Albany, NY - Pataki Signs Bill Capping Gas Tax

Albany, NY - Consumers will save some money at the gas pump and earn tax credits for energy-efficient home heating systems under a bill signed into law by Gov. George Pataki.

The legislation, which takes effect June 1, caps the state sales tax on gasoline at 8 cents per gallon. Lawmakers estimate that it would save consumers $450 million a year. For a 20-gallon fill-up, the savings will be 80 cents if gas is $3 a gallon.

The new law also includes a personal income tax credit of up to $500 for the installation of new Energy Star-labeled energy-efficient home heating systems.

The bill gives local governments the option of capping or lowering their local sales tax on gasoline. Local governments typically charge 12 to 15 cents per gallon at current prices.

Pataki also said that he has directed the New York State Thruway to begin installing or converting fuel pumps at all travel plazas to provide drivers with the option to use ethanol, biodiesel, or compressed natural gas fuels.