Provides for a phased decrease of excise taxes and sales taxes and petroleum business taxes on diesel motor fuel and motor fuel when the average price of motor fuel in the state exceeds $2.25 per gallon; authorizes cities having a population of one million or more and counties to adopt local laws limiting taxes on diesel motor fuel and motor fuel.
S02093 would tie several New York State taxes on diesel motor fuel and motor fuel to the statewide average price of motor fuel. For the excise taxes, additional excise taxes, supplemental taxes, the petroleum business tax, and the state sales tax on motor fuel, the bill keeps the full tax rate when the average price is $2.25 per gallon or less, then gradually reduces the tax as prices rise above that level. Under the bill, the taxes would be reduced in small increments for each five-cent increase above $2.25, and would be fully suspended if the statewide average reaches $3.00 per gallon. If prices later fall, the taxes would be restored in reverse increments until the full tax rate resumes at $2.25 per gallon.
The bill also authorizes local governments to adopt similar limitations. Cities with a population of one million or more, which would include New York City, and counties not wholly within a city would be allowed to enact local laws limiting taxes on diesel motor fuel and motor fuel in line with the state’s price-based formula. In addition, the bill adds a compliance provision requiring retailers and distributors to pass through any tax reduction to customers by lowering fuel prices accordingly.
The bill’s impact on state law would be significant because it would amend multiple sections of the Tax Law governing motor fuel and diesel fuel taxation, including excise taxes, additional taxes, supplemental taxes, the petroleum business tax, and the sales tax. It would create a new price-triggered tax adjustment system rather than a fixed-rate structure, affecting tax collection, distributor pricing, and state and local revenue streams. The measure would also expand local authority by expressly permitting certain cities and counties to limit these fuel-related taxes.
The general sentiment reflected by the bill’s text and caption is consumer-relief oriented, with the apparent goal of reducing fuel costs when prices are high. Because no committee transcript or vote history is provided, there is no recorded debate or formal vote pattern to indicate broader legislative support or opposition. The structure of the bill suggests it is intended as a response to high gasoline and diesel prices and to provide automatic tax relief at the pump.
The main point of contention likely concerns the tradeoff between lower fuel prices for consumers and reduced tax revenue for the state and affected local governments. Another likely issue is administrative complexity, since the bill requires tracking statewide average fuel prices, adjusting multiple taxes in real time, and ensuring that retailers and distributors pass the reductions through to customers. Local authorization may also raise questions about uneven tax treatment across jurisdictions and the fiscal impact on transportation-related funding.
The bill would amend the Tax Law to make several state fuel taxes variable rather than fixed, including taxes on diesel motor fuel, motor fuel, and the petroleum business tax component tied to fuel sales. It would also add new provisions to the sales tax article and create a compliance section requiring price reductions to reflect any tax suspension or reduction. Local governments in New York City and eligible counties would gain authority to adopt comparable fuel-tax limitations, altering the balance between state and local taxing power.
The bill appears generally favorable to consumers and motorists because it is designed to reduce fuel taxes when prices rise above a set threshold. No committee discussion or voting record is available, so there is no direct evidence of legislative support or opposition in the provided materials. Based on the bill’s structure and caption, the measure is framed as tax relief in response to higher fuel prices.
Likely areas of contention include the loss of state and local revenue, especially for transportation and highway-related funds historically supported by fuel taxes, and the administrative burden of implementing a price-indexed tax system. Opponents may also question whether the required pass-through to consumers can be effectively enforced. Supporters would likely emphasize affordability and relief for drivers, while critics may focus on fiscal stability and the complexity of local opt-in authority.