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Committee advances temporary cap on county gas sales tax for summer months
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Summary
A proposal to cap Ulster County’s sales tax on motor fuel for June–August was introduced and moved forward by the Ways and Means Committee; supporters said it offers temporary relief to commuters, farmers and low‑income households while opponents warned the savings may not be passed to consumers.
Legislator Donovan told the committee a $3‑per‑gallon cap on the county levy for motor fuel during June, July and August would provide short‑term relief to families, farmers and commuters facing steep fuel prices. “We can reduce the total cost of a fill‑up by capping the county sales tax levy on fuel at $3 per gallon,” the sponsor said, noting similar relief was provided during the COVID era.
Several members voiced support but cautioned that prior experience in other counties shows stations do not always pass tax savings to consumers. One member said, “My hope is that the reduction in taxes will be passed on to the consumer instead of being added to the gas station's profit,” and asked staff to monitor whether retail prices actually change when the cap goes into effect.
Committee discussion also referenced parallel state activity and the possibility of encouraging the state to consider broader gas‑tax relief. The measure was moved and seconded in committee and will be forwarded for further consideration; members asked staff to monitor implementation and whether local retailers pass the savings to customers when enacted.
