Right after having an current profits image and hearing from city supervisors, Cayuga County lawmakers will not abide by surrounding counties in enacting a gasoline tax cap.
The Cayuga County Legislature’s Approaches and Suggests Committee experienced a lengthy dialogue about the opportunity gasoline tax cap. Mary Beth Leeson, the county’s finance director, introduced the different techniques the county could shift to a cents-for every-gallon process as a substitute of the current percentage amount. The alternatives involved capping profits taxes on the first $2, $3 or $4 for each gallon. If the selling price is higher than the cap, sales taxes would not be charged.
When the committee met in June, a person concern was how the reduction in income would affect towns and villages. The county splits its share of gross sales tax revenue with the community governments. If there was a $2-for every-gallon cap, the county would lose an estimated $435,000 in profits tax earnings and the allocation to towns would minimize by $217,500. For a $3-per-gallon cap, the county’s sales tax profits would fall by $217,500 and the towns’ share would lower by $108,750.
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Leeson stated they ruled out a $4-per-gallon cap since fuel price ranges are earlier mentioned the $4 mark.
Cayuga County Legislator Andrew Dennison told his colleagues that he would oppose the gasoline tax cap, in element, for the reason that the county has “the lowest priced gasoline all-around” as opposed to other counties that have adopted tax caps. In accordance to AAA, the county’s regular gas cost is $4.60 per gallon, the most affordable between surrounding counties, just about all of which adopted some kind of gasoline tax cap.
Dennison was also worried about the possible impact on other nearby governments.
“If you can find a risk that accomplishing this hurts the cities, for the reason that they get a lot less of the tax cash because we share it with them, hurts us and we wind up increasing taxes to the constituents, they absolutely sure as hell did not preserve any revenue did they?” he mentioned.
Town supervisors in attendance spoke out from the fuel tax cap proposal. Brutus Supervisor Jim Hotaling reported it would harm the towns’ budgets and would involve them to improve taxes on people. A pair of legislators, Jim Basile and Mark Solid, stated they listened to from supervisors who oppose the cap.
Another component in the discussion: The county’s income outlook. In June, Leeson reported it appeared that the county’s gross sales tax revenue was up 17% when compared to very last year. Nonetheless, when the condition reconciled the precise gross sales tax returns, it was identified that the county is up 3.1%.
The clarification for that disparity is that when product sales tax earnings was up last yr, New York City’s financial system was battling thanks to the results of the pandemic. But this yr, that’s adjusted for the reason that the city has rebounded.
“We are likely to be improved than past 12 months, which was quite excellent, but we’re not heading to be substantially greater than very last calendar year,” Leeson mentioned.
Eventually, the committee voted to table the resolution. If the county wanted to undertake a fuel tax cap, it would require to get motion prior to July 31 so it could consider influence on Sept. 1, the commence of the next revenue tax quarter.
Politics reporter Robert Harding can be attained at (315) 282-2220 or [email protected] Adhere to him on Twitter @robertharding.