Madison County will not suspend gas tax

WAMPSVILLE, N.Y. — Madison County’s Board of Supervisors announced this past week that they will not be suspending the county gas tax. New York state and several counties have suspended gas tax to help combat high fuel prices, but Madison County leaders feel such a move would be unproductive.

Madison County Board of Supervisors Chairman John Becker said eliminating the county gas tax would increase the property tax of homeowners in the county. County sales tax revenue helps off-set property taxes. That was a step neither he nor the board were willing to take.

“We would have to make up for the difference in county income by increasing property taxes,” Becker said. “We shouldn’t penalize county residents for failed federal policy,”

Madison County Administrator Mark Scimone said during this week’s board of supervisors meeting that adjusting the fuel tax ultimately did not make a difference for consumers at the gas pump.

“We’ve seen both Oneida and Onondaga county eliminate the gas tax. And soon the prices were right back where they were before,” he said. “According to AAA, the gas prices in Madison County are still less than the state average post-enactment of the cap other counties instituted on June first. In some cases, our gas prices are lower than our neighboring counties that did suspend the gas tax.”

The sales tax on gas in Madison County and the city of Oneida is four percent, about 4 cents per dollar, and is the same sales tax rate collected on other goods and services. The property tax rate for 2022 is $9.14 per thousand on average for the county.

“We empathize with our residents, the pain at the pump and the grocery store are hard on all of us,” Scimone said. “However, what do we as a county gain by suspending the gas tax?  We lose out on that tax revenue from people passing through our community that will help offset property taxes. Especially when not implementing the cap appears to have had no effect on our prices compared to our neighbors.”

On June 1 New York state suspended the motor fuel excise tax, state sales tax, and Metropolitan Commuter Transportation District sales tax on motor fuel and diesel motor fuel will remain suspended through the end of the year. The savings will amount to an estimated 16 cents per gallon and an estimated $609 million overall.

Also on June 1, 25 counties statewide placed a temporary cap on gas and diesel fuel tax. Onondaga, Oneida and Oswego counties are among 13 counties that collect tax on the first three gallons of gas purchased. Another 12 counties collect tax only after the first two gallons are purchased.

On May 31 The Oneida Indian Nation announced suspended the sales tax and a portion of the motor fuel excise tax for the remainder of 2022 at all Maple Leaf Market and SāvOn store locations in Oneida and Madison Counties.

According to AAA, the average price for a gallon of gas in the U.S. was $5.009 as of June 16. That is an all-time high. The average gas price per gallon in the northeast, including the Mid-Atlantic states and New England, along with Indiana and Ohio, ranged between $5.026 to $5.203 per gallon. California has gas prices over six dollars a gallon.

National gas prices averaged $4.483 per gallon a month ago and $3.075 a year ago. The national average was $2.37 when Joe Biden was sworn in as president.

Some analysts believe America, nationwide, will average $6 a gallon by the fall.

A number of factors are causing fuel prices to rise. These include an oil embargo against major oil producer Russia because of its invasion of Ukraine, a post-pandemic demand for fuel as people begin to travel, and U.S. domestic fuel policies.

Diesel prices, an essential part of the trucking and construction industries, have climbed nationally from $3.21 last year to $5.786 on June 16. This is also an all-time high. The cost of shipping will impact food availability and prices. For example, the U.S. imported more than $15 billion in fresh produce from Mexico in 2021, including avocados, tomatoes, grapes, bell peppers and strawberries, according to the U.S. Department of Agriculture.

The diesel prices have been hard on local farmers. Vicky Townsend, who owns five farms in the Town of Lenox, says fuel costs will force her and her family to take a loss on this year’s profits.

“We’ve been losing money, and we have to downsize this year,” Townsend said. “We will have to cut back on our crop and cattle production because of the fuel costs. These are sad times we are living in.”

High diesel prices have impacted food production and food shipment. “We fill our tractors and trucks seven times a year, and it’s now five thousand dollars each time we fill them up,” Townsend said. “I think they’re trying to get rid of farmers. Diesel fuel used to be affordable. We simply can not afford to keep up.”

Townsend’s concerns go beyond farmers. She is worried about senior citizens on a fixed income who will face high heating bills this winter.

The US Energy Information Administration predicts home heating costs for families using natural gas could increase by up to 30% this winter, an increase from an average $573 to $746. Those who heat their homes with oil this winter could see an increase as high as 43%, from an average of $1,210 to $1,734

“These people will have to choose between having heat in the winter and putting food on the table,” Townsend said. “These are decisions no one should be forced to make.”

The NYS Home Energy Assistance Program (HEAP) is a federally funded program that assists low-income residents of New York in meeting their home energy needs. The HEAP program is comprised of Regular Benefit, Emergency Benefit, and Weatherization components.

More information on the HEAP program may be found on the Office of Temporary Disability Assistance (OTDA) website, or by contacting the Madison County Department of Social Services HEAP unit at 315-366-2211.