How much money can you save with the New York gas tax suspension?
Gas prices continue their upward march around the US crossing the $5 mark in parts of New York. Starting 1 June Empire State residents will get some relief.
Nationally the average price of gasoline is over fifty percent higher than it was a year ago, jumping five cents on Wednesday to just over $4.67 a gallon according to AAA. New Yorkers are seeing prices well above that in the better part of the state with $5-plus the average in five counties. Diesel is even more dear in the Empire State with a gallon costing on average $6.45, nine cents less that its peak in late May, but twice what it is was last year.
New York is joining a growing list of states that have decided to give motorists some relief by dropping the state’s levy on motor fuels. Governor Kathy Hochul announced in April that the state would cut its tax on regular gas and diesel as part of the state budget. The measure will go from 1 June through to the end of the year with separate tax relief being implemented in some local jurisdictions.
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How much will New York drivers save on motor fuel?
The state is suspending its eight cents fuel excise tax per gallon for gasoline, diesel and undyed kerosene along with the 6.4 cents per gallon of highway B20 diesel. Additionally, the 8-cent-a-gallon state sales tax will not be collected through to the end of the year meaning drivers will be paying up to 16 cents less per gallon when they fill up.
Motorist will still pay per gallon 17.3 cent for regular petroleum, 15.55 cents for highway diesel and 12.44 for B20 diesel on New York’s motor fuel business tax. Governor Hochul has called on counties to do their part and suspend local gas taxes with some counties already announcing they will provide relief to drivers by changing the local gas tax levy.
New York City counties that have lowered their gas tax
Rockland County will cap the local four percent gas tax to the first $2 a gallon of a gasoline purchase. The pause on collecting the levy will run through 28 February 2023, two months longer than the state suspension ending 31 December 2022. Putnam County has capped its tax at eight cents per gallon equivalent to what it would be were gas $2.00.
Nassau and Suffolk counties will stop levying their respective 4.25 percent gas tax at $3 per gallon until the end of the year leaving it fixed at 13 cents per gallon. Westchester will cap its tax at 12 cents per gallon, the equivalent of what drivers would pay if gas was $3 per gallon but only until 31 August.
In the wider New York City metropolitan area driver’s won’t find gas tax relief in neighboring New Jersey. However the average price per gallon is cheaper. Connecticut suspended its 25 cent a gallon gas tax in April but the measure will expire at the end of June. The average price is currently 4.70 per gallon statewide and $4.77 in Fairfield County.