Gas prices fuel Suffolk's sales-tax boost

A big part of Suffolk's bounce in sales tax is due to ballooning gasoline prices, according to the county's chief planner, Seth Forman.

Rising prices at the pump account for at least $3.5 million of the $10 million jump in revenue from sales taxes in the first quarter, he said. Average gas prices rose to $3.75 per gallon this year, from $3.49 in 2011. "Considering the much better driving conditions for those months, it is a very conservative estimate," Forman added.

Another expert sees additional growth in sales-tax revenue from removing the cap on taxing gasoline above $3 per gallon, which occurred March 1. Robert Lipp, deputy director of the county legislature's budget-review office, said that will generate about $7 million more in sales tax for the rest of 2012, not yet counted in this year's budget. -- Rick Brand