ALBANY, N.Y. New York's Governor George Pataki said Thursday he will sign a bill to cap the state sales tax on gasoline, a move that would save consumers about four cents a gallon.
"I've never met a tax cut I didn't like," he said in New York City, according to the Associated Press.
Pataki said he will approve the bill despite believing it does not go far enough to encourage the use of alternative fuels or ensure that consumers would see the savings. He also previously questioned how the state will make up the $450 million in [image-nocss] annual revenue from the tax.
The bill passed by the state legislature on Monday would cap the sales tax at eightcents per gallon, freezing the tax at the rate paid when gasoline costs $2 a gallon. At current prices, the tax is about 12 cents a gallon.
The bill, which would take effect June 1, also gives local governments the option to cap or lower their local sales tax on gasoline. Local governments typically charge 12 to 15 cents per gallon at current prices.
Lawmakers said the bill would ensure that savings are passed along to consumers by gasoline retailers by fining gas station owners who do not lower prices to match the lower tax.
The bill also would allow New York City to cut or eliminate its local sales tax on home heating oil and would give consumers tax credits for buying home heating oil that contains biodiesel fuel or for buying energy-efficient home heating systems.
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