New York gets statewide gas and diesel tax holiday

Governor Kathy Hochul announced the suspension of certain taxes on motor fuel and diesel motor fuel from Wednesday, June 1, 2022. 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. This fuel taxes suspension will provide a reduction of at least $0.16 per gallon statewide, with some counties providing additional savings per gallon.

“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.”

Twenty-five counties across the State have also taken action to set temporary caps on the sales tax charged per gallon of gas and diesel. This program was authorized as part of the State’s FY 2023 Enacted Budget.

Delaware, Dutchess, Erie, Monroe, Putnam, Rockland, Saratoga, Schenectady, Ulster, Wayne and Yates counties will collect tax only on the first $2 charged per gallon of gas and diesel, regardless of the actual price at the pump. Seneca County had previously capped its local sales tax in the same manner, and continues to.

Allegany, Broome, Cattaraugus, Chautauqua, Jefferson, Livingston, Nassau, Niagara, Oneida, Onondaga, Oswego, Suffolk and Westchester counties will collect tax only on the first $3 charged per gallon of gas and diesel, regardless of the actual price at the pump.

These actions will 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.

Senate Majority Leader Andrea Stewart-Cousins said, “New Yorkers have been picking up the tab for economic hardships due to geopolitical conflicts and a global pandemic. That is why we suspended the fuel tax and, starting today, are giving workers and families a break that they deserve and allowing them to keep their hard-earned money in their pockets. I am proud to have led the Senate Majority in working with Governor Hochul and Speaker Heastie to support New York consumers during

these uncertain economic times.”

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