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New York’s gas tax holiday goes into effect June 1. How it works

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New York’s gas tax holiday goes into effect Wednesday, as gas prices hover at record highs across the US following Memorial Day weekend.

The gas tax holiday was proposed in New York earlier this year, when inflation and the war in Ukraine sent oil prices into the stratosphere, leading to statewide per-gallon prices of over $ 4 at the pump.

That seems like nothing compared to today’s prices – New York’s average price per gallon was $ 4.93 as of Tuesday, amounting to a 60% hike compared to last year at this time, when it was $ 3.08, according to AAA. Meanwhile, the national average was $ 4.62 on Tuesday, up from $ 3.05 a year ago.

In order to lessen the strain on New Yorkers’ wallets amid rising costs for other consumer goods, New York lawmakers proposed to ditch the state’s gas tax this year, which in total adds 48 cents to each gallon pumped by drivers. Other ideas included a summer suspension of New York State Thruway tolls.

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How will the gas tax suspension work?

Frank White of Taopan gets gas at the Dutch Hill Road Shell station in Orangeburg May 31, 2022.

A version of the gas tax proposal passed in the state’s budget in April. It will remove the state’s motor fuel and sales tax from June 1 to Dec. 31, cutting the cost for drivers by about 16 cents a gallon at New York gas stations.

Since then, a number of New York counties have moved to cap their local sales tax on gasoline, including Dutchess, Monroe, Onondaga and Oswego Counties.

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