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COMPTROLLER POLONCARZ

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County Comptroller Opposed to Lifting Gas Tax

May 6, 2008

Mark Leitner

BUFFALO (2008-05-06) The pain at the pump is not going away for the forseeable future. Some are suggesting a "cap" on the sales tax for gasoline, at least for the short-term, as a way of "easing" the pain.

Others say this would do more harm than good.

Erie County Comptroller Mark Poloncarz argues that while a "cap" may win some political points with the public, it would be at the expense of local governments and school districts because of the loss of many millions of dollars in sales tax revenues.

The Comptroller noted governments in other parts of New York imposed a cap, but later abandoned it.

"They've determined that the savings that they thought were going to be passed on to consumers never were passed on to consumer. They were retained by the oil companies," Poloncarz said.

The AAA of Western and Central New York holds a different view.

Spokeswoman Diana Dibble contends relief, no matter how small, is better than no relief at all.

"I don't think we can pass up an opportunity to bring some relief to motorists when we're looking at record high gas prices," Dibble said.

The combined federal and state taxes on gasoline sold in New York total more than 40 cents per gallon. That is before the addition of the sales tax and New York is one of only eight states to subject gasoline to sales tax at all.

The average price for regular unleaded is about $3.76 in Western New York.

Copyright 2008 - WNED

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