New York Assembly Bill A11093

New York 2025-2026 Regular Session

• Introduced: 4/24/26
• Refer: 4/24/26

Caption

Establishes limitations on taxes on diesel motor fuel and motor fuel; authorizes certain local laws limiting taxes on motor fuel

Summary

This bill would create a fuel-tax relief mechanism for diesel motor fuel and motor fuel in New York State. It amends several provisions of the Tax Law to make the state excise, additional, and supplemental taxes on diesel motor fuel and motor fuel variable based on the statewide average retail price of motor fuel. Under the bill, the full tax applies when average prices are at or below $2.25 per gallon, the tax is gradually reduced as prices rise above that level, and the tax is fully suspended when the average price reaches $3.00 per gallon or more. The bill also adds a compliance section requiring retailers and distributors to pass through any tax reduction in the prices they charge. The bill further extends this price-based limitation framework to the sales tax on motor fuel and to the petroleum business tax provisions in the Tax Law, so that those taxes would also be reduced or suspended as fuel prices increase. In addition, it authorizes cities with populations of one million or more and counties, except counties wholly within a city, to adopt local laws limiting taxes on diesel motor fuel and motor fuel consistent with the bill’s sales-tax limitation structure. The measure would take effect 90 days after becoming law and would apply to sales occurring on or after that date.

Impact

If enacted, the bill would significantly alter the operation of New York’s fuel taxation statutes by tying multiple state fuel-related taxes to a statewide average price trigger rather than applying fixed rates at all times. It would amend sections of the Tax Law governing diesel motor fuel taxes, motor fuel taxes, the sales tax on motor fuel, and the petroleum business tax, and it would add new local-government authority for certain cities and counties to limit those taxes. Retailers and distributors of motor fuel and diesel motor fuel would also be subject to a new statutory obligation to reduce prices when tax reductions occur.

Sentiment

No committee transcript or vote record is available, so there is no documented floor debate or recorded vote sentiment to assess. Based on the bill’s structure, it appears designed as consumer fuel-tax relief and would likely be viewed favorably by taxpayers and motorists concerned about high fuel prices. At the same time, the absence of recorded discussion means there is no formal evidence of support or opposition in the available materials.

Contention

The main policy tension in the bill is between providing relief at the pump and preserving tax revenue for the state and local governments. Supporters would likely emphasize that the bill automatically reduces or suspends fuel taxes when prices are high, while critics may focus on the potential loss of dedicated transportation and highway funding that currently depends on these taxes. Another likely point of contention is the administrative complexity of calculating statewide average fuel prices, adjusting tax rates in increments, and ensuring retailers and distributors pass through the reductions to consumers.