What is the Gas Sales Tax Reprieve for Erie County, New York?
A resolution authorized the County of Erie to adopt a cents-per gallon method of sales and compensating use taxes on a temporary basis in alignment with action taken by the State of New York in the adopted 2022-2023 state budget. This action will ensure Erie County resident pay no sales tax on a gallon of gasoline or diesel fuel above $2.00.
What is the Gas Sales Tax Reprieve for New York State?
Per New York State’s 2023 Annual budget:
To address the high cost of gasoline, which has surged in recent months as a result of the war in Ukraine, New York State will suspend the state sales tax on motor fuels, the separate motor fuel tax, and the metropolitan commuter transportation district sales tax imposed on motor fuels from June through December, providing an estimated $585 million in relief for working families and businesses statewide. In order to protect consumers, commuters and the state's infrastructure, the plan:
- Directs retailers to pass the entirety of this tax savings to consumers;
- Transfers money from the General Fund to the dedicated funds to offset the estimated revenue lost from suspension of these taxes - ensuring no negative financial impact for the MTA; and
- Grants county governments the option to cap the price their applicable local sales tax rate is imposed on, at $4 per gallon.
When will this take place and how long will this last?
The Gas Tax reprieve for Erie County is effective June 1, 2022 through February 28, 2023.
The Gas Tax reprieve for New York State is effective June 1, 2022 through December 31, 2022.
How will this affect the price of gas?
A consumer should expect an approximate decrease of $0.11 from Erie County Tax. The anticipated savings from New York State is $0.16. For an anticipated savings of $0.27 a gallon in Erie County.
Will the price of gas go down on June 1, 2022?
The reduction takes effect on June 1, 2022. Consumers should see the tax reprieve immediately. Stations with existing supply can claim a tax credit on any amount of remaining inventory on hand. Therefore, the tax reprieve will begin on June 1, 2022, and should be seen immediately across Erie County gas stations.
Why is the price of gas not $2.00?
The actual price of gas is not affected by this resolution. Effective June 1, 2022, the Erie County Gas Sales Tax will only be charged to the first $2.00 of a gallon of fuel, with the remaining price of a gallon of fuel capped and any amount over $2.00 will be exempted from Erie County taxes.
Why does the cost of gas vary from one gas station to the next?
The retailer sets the price of gas paid at the pump. Gas station prices will fluctuate as often as fuel deliveries are received, up to several times a day.
How will the decrease in these tax funds affect me?
Starting on or after June 1, 2022, each retail station in Erie County will pass savings onto the consumer.
What is Erie County doing to ensure these savings are passed on from the retailer to the consumer?
Erie County's Office of Consumer Protection will be monitoring this. If you have any questions or concerns, please contact our office at 716-858-1987 or submit an inquiry via email at Consumerprotection@erie.gov.
If you suspect a gas station is not passing along the Gas Sales Tax reprieve savings to consumers, you may file a report with the NYS Tax Department by phone (518-457-0578) or via this link: https://www.tax.ny.gov/help/contact/fraud/report-tax-fraud.htm.
Additional Resources:
Erie County Comptroller:
Gas Tax Calculator:
https://www4.erie.gov/comptroller/gas-tax-calculator
Erie County Legislature:
Adopting a cents per gallon rate of sales and compensation use taxes on motor fuel for June1st 2022 through February 28th 2023 with a $2.00
New York State Department of Taxation:
Suspension of Certain Taxes on Motor Fuel and Diesel Motor Fuel Beginning June 1, 2022:
https://www.tax.ny.gov/pdf/notices/n22-1.pdf
New information is available about the suspension of certain taxes on motor fuel and diesel motor fuel and Frequently asked questions:
https://www.tax.ny.gov/bus/gas/suspension.htm
Local Sales and Use Tax for Motor Fuel:
https://www.tax.ny.gov/pdf/publications/sales/pub718f.pdf
Tax Evasion Reporting:
https://www.tax.ny.gov/help/contact/fraud/report-tax-fraud.htm
New York State Office of the Attorney General:
New York State Attorney General's Price Gouging Complaint Form:
https://formsnym.ag.ny.gov/OAGOnlineSubmissionForm/faces/OAGPGCHome