Will NY's gas tax holiday end Dec. 31? Inside lawmakers' push to extend it

Are New Yorkers seeing the final days of the state's gas tax holiday?

Gov. Kathy Hochul won’t say whether she will extend the 16-cents-per-gallon break she gave drivers in June. The tax holiday only deleted New York's motor fuel and sales tax from the price of a gallon of gas − the state's total gas tax comes to 48 cents per gallon.

Spokesman Justin Henry said this when asked whether the tax holiday will live on into next year:

“Governor Hochul is deeply committed to helping keep money in New Yorkers’ pockets as they continue to face rising costs and inflation during a national affordability crisis,” he said. “The Governor worked closely with the legislature to provide more than $600 million in tax relief to New Yorkers by instituting a six-month gas tax holiday – which is already among the longest in the nation – and will continue to explore solutions to help New Yorkers meet the rising cost of living.”

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Will New York gas tax holiday stay or go?

With gas prices remaining high, some state lawmakers are pressing the governor to extend the reduction.

The average price for a gallon of regular in New York was $3.52 Friday, roughly what it was a year ago, but down from $4.18 in April when Hochul announced a six-month break at the pump. Ithaca had the highest average per-gallon price at $3.64, up from around $3.50 a year ago.

In recent days, Assembly member Angelo Santabarbara, D-Rotterdam, has urged members of the governor’s staff to continue the tax holiday and said he’s been told they’re considering it. Further, he’s pushing for New York to temporarily remove the state's full gas tax of 48 cents a gallon, beyond the current 16 cents off per gallon.

“In Albany it sometimes always comes down to the wire on these things and even during budget time it’s always the last few days,” Santabarbara said.

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Upstate New Yorkers need their cars

Extending the holiday into next year would require a legislative vote in a special session before the end of the year.

“We’re trying to help people get back on their feet and they’re still being hit hard by inflation,” Santabarbara said. “Anywhere you go that’s what people are talking about.”

Santabarbara represents a Schenectady district where folks have few public transportation options and rely on cars for commutes of an hour or more.

“If that gas tax comes back online that’s certainly going to make traveling more expensive for them,” Santabarbara said.

In April, Hochul said the state would cover the estimated $585 million in lost gas tax revenue by diverting money from the general fund so there would be money for highway, bridge and mass transit repairs.

The move was opposed by climate activists allied with advocates for public transportation who say the governor shouldn’t be encouraging people to drive more when the state is trying to limit carbon emissions.

Gas taxes are everyone's problem

Upstate lawmakers say the upstate-downstate divide shouldn’t apply when it comes to gas taxes.

“It impacts everybody,” said Assemblymember Mark Walczyk, R-Watertown. “You might not be paying at the pump if you’re receiving produce in New York City. That produce is impacted by the taxes that are paid on gas every time somebody drives the farm equipment to getting that to the market.”

Walczyk is sponsoring a bill that calls for a permanent reduction of the gas tax when per-gallon prices exceed $3. “It doesn’t make sense as gas prices continually grow to continue to tax the way that we tax per gallon,” said Walczyk, a Republican.

His district includes Jefferson and St. Lawrence counties on the Canadian border, and spans 120 miles. “People up here drive to everything,” he said. “It’s critical to our way of life.”

This article originally appeared on New York State Team: Lawmakers hope to extend NY gas tax holiday into 2023