Bill > S02093

This bill establishes a dynamic tax reduction mechanism for diesel motor fuel and motor fuel taxes in New York State, which adjusts tax rates based on the average price of motor fuel. When motor fuel prices are up to $2.25 per gallon, full tax rates will apply. As prices rise above $2.25 per gallon, taxes will be progressively reduced, with a quarter to two-thirds of a percentage point reduction for every five-cent increase in fuel prices. If fuel prices reach or exceed $3 per gallon, the taxes will be completely suspended. When prices fall below $3 per gallon, taxes will be gradually reinstated in incremental steps until they return to full rates at $2.25 per gallon. Additionally, the bill authorizes cities with populations over one million and counties to adopt local laws that limit taxes on diesel and motor fuel. A compliance provision requires fuel distributors and retailers to reduce fuel prices proportionally to any tax reductions, ensuring that consumers benefit from the tax changes. The law will take effect 90 days after becoming law and will apply to fuel sales from that date forward, providing a mechanism to help mitigate the impact of high fuel prices on consumers.