NEW YORK (WWTI) — Governor Kathy Hochul announced that certain taxes on motor fuel and diesel motor will be suspended throughout the state starting June 1.
According to the state, the motor fuel excise tax, State sales tax, and Metropolitan Commuter Transportation District sales tax on motor fuel and diesel motor fuel will remain suspended through the end of the year. The fuel taxes suspension is expected to provide a reduction of at least $0.16 per gallon statewide, with some counties providing additional savings per gallon.
The initiative is expected to provide an estimated $609 million in relief to working families and businesses throughout the state. Governor Hochul said the suspension is critical to supporting New York residents as gas prices remain high.
“Fuel prices have surged in recent months, hurting working families and small businesses the most, and it is crucial that we provide New Yorkers relief,” Governor Hochul said. “By suspending certain fuel taxes for the next seven months, New York is providing some $609 million in direct relief to New Yorkers — a critical lifeline for those who need it most. At a time when families are struggling because of economic headwinds and inflation, we will continue to take bold action to reduce the economic burden on New Yorkers and get money back in their pockets.”
Additionally, 25 counties across the State have also taken action to set temporary caps on the sales tax charged per gallon of gas and diesel. The program was authorized as part of the State’s FY 2023 Enacted Budget.
The actions will work to save New Yorkers additional cents per gallon with each customer’s specific savings depending on the local sales tax rate and the difference between the price per gallon and the local cap.
A full description of local county tax rate sales can be found here. Governor Hochul had previously directed distributors, wholesalers, and retailers of motor fuel and highway diesel motor fuel to prepare for the upcoming suspension of these taxes. Those businesses can learn more here.