Anxious to reduce gas prices, New York legislators agreed to reduce the gasoline tax by four to nine cents per gallon. Lost revenues could equal $450 million/year.
"With New York State's gasoline taxes amongst the highest in the nation, legislative leaders agreed on May 10 to cut 4 to 9 cents a gallon from the tax, even as the oil industry says there is no guarantee the savings will actually reach the public."
"The New York Legislature is expected to approve the bill next week and send it to Gov. George E. Pataki, whose aides are reviewing the legislation."
"But should the measure win final approval, even the oil industry acknowledges that there is no guarantee that the savings will get passed on to consumers.
One reason is that gas taxes, for the most part, are levied when oil companies import fuel into the state and not directly at the pump. Though tax cuts at the wholesale level are passed down to retailers, small cuts would not necessarily show up in prices set by gas stations since variations of a few cents among stations are common."
FULL STORY: From Albany, a Move to Cut Gasoline Taxes
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