5/23/06-Gov. George Pataki has signed a bill into law putting a “cap” on the sales tax on diesel and gasoline. The new rule takes effect June 1.
The sales tax cap allows the state to add sales tax to only the first $2 worth of a gallon of diesel or gasoline. It will cap the tax at 8 cents per gallon – saving consumers about 4 cents per gallon at current prices. For counties and local governments, the cap is optional.
The tax, which doesn’t affect the status of the International Fuel Tax Agreement, is set at a percentage of the price of fuel, and rises and falls based on the sales price. At $3 per gallon, the state collects 12 cents per gallon in sales tax. Counties and other localities add an additional levy between 12 and 15 cents.
The new law, previously A11331, fines fuel station owners who do not lower prices to coincide with the tax. Violators could face up to a $5,000 per occurrence.

5/18/06-The Legislature has approved putting a “cap” on the sales tax on diesel and gasoline. The bill now heads to Gov. George Pataki, who said he will sign it.
The sales tax cap calls for the state to add sales tax to only the first $2 worth of a gallon of diesel or gasoline. That would cap the tax at 8 cents per gallon – saving consumers about 4 cents per gallon at current prices. For counties and local governments, the cap is optional.
The tax, which doesn’t affect the status of the International Fuel Tax Agreement, is set at a percentage of the price of fuel, and rises and falls based on the sales price. At $3 per gallon, the state collects 12 cents per gallon in sales tax. Counties and other localities add an additional levy between 12 to 15 cents.
A11331 would fine fuel station owners who do not lower prices to coincide with the tax. Violators would face up to a $5,000, per occurrence.
If the governor signs the bill into law as expected, it would take effect June 1.
For bill status, call (518) 455-7545. In New York, call 1-800-342-9860.