Suffolk lawmakers repeal fuel tax cap

Diane Johnson pumps gas at Gas Sale on Islip Avenue at Suffolk Avenue in Central Islip. (July 6, 2011) Credit: James Carbone
Motorists in Suffolk would again pay full sales tax on gasoline next year under a measure approved by the county legislature.
In an effort to generate $10.3 million to cover tuition for students who attend out-of-county community colleges, lawmakers on Wednesday repealed the fuel tax cap. The 4.25 percent tax on the price of gasoline above $3 a gallon would be restored March 1, less than a year after taking effect.
While County Executive Steve Levy said he'll veto the repeal, passed as two budget amendments, the votes (11-7 and 12-6) suggest enough support for an override, supporters said.
The tuition issue largely is driven by students attending the Fashion Institute of Technology, which charges home counties of students outside Manhattan $10,980 a year -- more than double the tuition paid by full-time students at Nassau and Suffolk community colleges.
Levy wants to pass those costs on to individual towns -- some of which send more students out of the county than others -- as a way to fairly spread the burden. State law mandates that counties must pay the difference between tuition at their local community college and that of the out-of-county institution.
Several town supervisors balked at taking on the costs, prompting Democratic legislators to move to rescind the gasoline tax cap.
"I found it offensive to pass that charge along" to towns, said Suffolk Legis. DuWayne Gregory (D-Amityville), a sponsor of the tax-cap bill.
Levy, a Republican, said "the bigger question is, should any taxpayer be paying for this? The answer is no. It's a flaw in the state [law]."
Democratic lawmakers also said the cap wasn't generating savings for motorists because energy companies were building the sales tax into their pricing. They cited data showing that Suffolk's average gas price rose by more than a cent from June -- when the cap went into effect -- through August. Over that period, average prices in Nassau dropped by that amount.
"Clearly this was well-intended, but unfortunately the people benefiting are the oil wholesalers," said Majority Leader Jon Cooper (D-Lloyd Harbor).
Legis. Tom Muratore (R-Ronkonkoma), who sponsored the cap, said he'll seek to restore it. "It's disappointing," he said Thursday. "People need these savings."





