Proposal would Lower New York's Gas Prices by Cutting the Gas Tax

Call it $2 gas price envy. Though New York gas prices have dropped $1.20 from a year ago, they are also 25-cents above the national average. State Sen. Jim Seward hopes to spark a statewide movement to reduce prices by reducing state gas taxes.

3 minute read

February 9, 2015, 8:00 AM PST

By Irvin Dawid


"State Sen. Jim Seward, R-Milford, today (Feb. 6) announced the launch of an on-line petition drive in support of his initiative to cut New York’s gas tax," states AllOtsego.com.

“One of the leading national new stories is lower gasoline prices, but unfortunately, here in New York, the price drop hasn’t been quite as steep as in other states,” said Seward.  “One of the main factors keeping our gasoline prices above the rest of the nation – taxes.”

Sen. Seward's petition to cut New York's gas taxes may be a sign of how quickly the nation has acclimated to low gas prices. A price drop of 33 percent in a year to $2.43 on February 8 is not the issue for Seward—it's the fact that New York State gas prices are higher than in all other states save Hawaii, Alaska, and California, according to AAA's Daily Fuel Gauge Report.

New York does have higher gas taxes than most other states—but do taxes alone account for the higher price?

Motorists in neighboring Pennsylvania paid almost a dime less than their counterparts in New York, yet the Keystone State had the nation's highest state gas taxes on January 1 due to a recent tax increaseaccording to the American Petroleum Institute [PDF], followed by California and New York.

"Seward also wants to fix how the gas tax revenues are used," writes Robert Harding of Auburn Citizen. "He cited a report released last year by state Comptroller Tom DiNapoli's office that found less than one-quarter of gas taxes collected are used for bridge and road repairs, even though the intent of the gas tax is to use the funds for infrastructure improvements."

However, those funds are being used for transportation—but not for the capital costs where Seward wants them directed. According to DiNapoli's press release:

State operations costs also consume the greatest share of the fund: nearly $1.6 billion in the last fiscal year, including the costs of snow and ice removal by the Department of Transportation and day-to-day staff expenses at the Department of Motor Vehicles. Typically, staff expenses and snow and ice removal costs are regarded as ongoing costs of state operations and maintenance, not capital expenses.

Paradoxically, Seward wants "to cut New York’s gas tax and make sure that funds collected are used for their intended purpose – repairing our crumbling infrastructure." In other words, Sewards acknowledges the poor condition of roads and bridges and the need to repair them while championing reducing the taxes paid at the pump. 

If the senator truly wants to repair the crumbling infrastructure while maintaining that roads are plowed and DMV offices are staffed, he might consider championing an increase in state gas taxes at time when New York State gas prices are $1.20 per gallon less than they were a year ago. 

Hopefully we'll see stories where state legislators show more concern with how the condition of roads and bridges in their state compare with other states rather than prices paid at the pump.

Saturday, February 7, 2015 in All Otsego.com

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 11, 2025 - Diana Ionescu

Metrorail train pulling into newly opened subterranean station in Washington, D.C. with crowd on platform taking photos.

Congressman Proposes Bill to Rename DC Metro “Trump Train”

The Make Autorail Great Again Act would withhold federal funding to the system until the Washington Metropolitan Area Transit Authority (WMATA), rebrands as the Washington Metropolitan Authority for Greater Access (WMAGA).

June 2, 2025 - The Hill

Large crowd on street in San Francisco, California during Oktoberfest festival.

The Simple Legislative Tool Transforming Vacant Downtowns

In California, Michigan and Georgia, an easy win is bringing dollars — and delight — back to city centers.

June 2, 2025 - Robbie Silver

Man in teal shirt opening door to white microtransit shuttle with cactus graphics and making inviting gesture toward the camera.

Albuquerque’s Microtransit: A Planner’s Answer to Food Access Gaps

New microtransit vans in Albuquerque aim to close food access gaps by linking low-income areas to grocery stores, cutting travel times by 30 percent and offering planners a scalable model for equity-focused transit.

June 13 - U.S. Department Of Transportation

Group of people at table set ouf with picnic food on street during a neighborhood block party.

This City Will Pay You to Meet Your Neighbors

A North Kansas City grant program offers up to $400 for residents to throw neighborhood block parties.

June 13 - The Kansas City Star

Crowd gathered with protest signs on April 5, 2025 on steps of Minnesota state capitol protesting Trump cuts to social security and other federal programs.

Commentary: Our Silence Will Not Protect Us

Keeping our heads down and our language inoffensive is not the right response to the times we’re in. Solidarity and courage is.

June 13 - Shelterforce Magazine