Post by newsfeeder on Aug 18, 2006 9:11:27 GMT -5
Oswego County Legislature chairman wants gas station operators to explain why.
www.syracuse.com/news/poststandard/oswego/index.ssf?/base/news-4/115589320375050.xml
Friday, August 18, 2006
Two months after voting to reduce the sales tax on gasoline, some Oswego County lawmakers are having second thoughts and the Legislature's chairman is thinking about asking gas station owners to explain what's going on.
There should be a 4-cent difference between the price of gas in the county's two cities - where the sales tax was not reduced - and in the rest of the county, said Michael Kunzwiler, D-Oswego, leader of the Legislature's Democrats.
"That's not happening," he said.
In June, the Legislature voted 23-1 in favor of switching from a 4 percent tax to a flat 8-cent-a-gallon gas tax. On a $3 gallon of gas, that works out to a difference of 4 cents.
Like some other legislators, John Proud, R-Mexico, voted for the tax cut with reservations. Before voting, he called on gas station owners to pass along the cut to motorists. Don't, he said, "rip off the public by ignoring the reduction that's been made."
Since the tax cut went into effect, Proud said, he has heard from constituents and fellow legislators that the savings are not being passed along.
"We really wanted to do something," Proud said. "We tried to help the gas-buying public out."
But Proud said he hasn't seen any difference in the price consumers are paying even though some gas stations are paying 4 cents less in tax on each gallon.
"This is costing us money we could use for property tax relief," he said.
County officials estimated the gas tax will reduce county revenues by $700,000 this year.
Gas station owners might be called in next week to explain how it is that posted gas prices don't reflect the difference in taxes, said Legislature Chairman Russ Johnson.
Vacationing out of state, Johnson said that when he returns he will be looking for answers. "When I get back," he said, "several need to explain the sales tax cut's benefits."
Legislator Arthur Gearsbeck, R-West Monroe, used to own several gas stations. He said stations, whether they are paying the cities' higher sales tax rate or the 8-cent-a-gallon rate in the rest of the county, have to compete if they want to sell gas.
The price a station owner sets depends on what sort of volume the owner wants to achieve. "It depends on how bad you want to sell your gas."
Gearsbeck added that stations may charge as little as 2 cents above what they pay for a gallon of gas, but at this time of year can charge much higher margins, maybe as high as 20 cents. "July and August are big months," he said. "After Labor Day, things slow down."
Johnson said if the sales tax cut isn't making it to motorists, he would consider reinstating the 4 percent tax. However, he expressed concerns that once the tax was restored, some legislators would come up with ways to spend the money, rather than put it toward a cut in property tax rates.
Johnson and others in the Legislature have said they want to reduce county property taxes by $4 million in next year's budget.
www.syracuse.com/news/poststandard/oswego/index.ssf?/base/news-4/115589320375050.xml
Friday, August 18, 2006
Two months after voting to reduce the sales tax on gasoline, some Oswego County lawmakers are having second thoughts and the Legislature's chairman is thinking about asking gas station owners to explain what's going on.
There should be a 4-cent difference between the price of gas in the county's two cities - where the sales tax was not reduced - and in the rest of the county, said Michael Kunzwiler, D-Oswego, leader of the Legislature's Democrats.
"That's not happening," he said.
In June, the Legislature voted 23-1 in favor of switching from a 4 percent tax to a flat 8-cent-a-gallon gas tax. On a $3 gallon of gas, that works out to a difference of 4 cents.
Like some other legislators, John Proud, R-Mexico, voted for the tax cut with reservations. Before voting, he called on gas station owners to pass along the cut to motorists. Don't, he said, "rip off the public by ignoring the reduction that's been made."
Since the tax cut went into effect, Proud said, he has heard from constituents and fellow legislators that the savings are not being passed along.
"We really wanted to do something," Proud said. "We tried to help the gas-buying public out."
But Proud said he hasn't seen any difference in the price consumers are paying even though some gas stations are paying 4 cents less in tax on each gallon.
"This is costing us money we could use for property tax relief," he said.
County officials estimated the gas tax will reduce county revenues by $700,000 this year.
Gas station owners might be called in next week to explain how it is that posted gas prices don't reflect the difference in taxes, said Legislature Chairman Russ Johnson.
Vacationing out of state, Johnson said that when he returns he will be looking for answers. "When I get back," he said, "several need to explain the sales tax cut's benefits."
Legislator Arthur Gearsbeck, R-West Monroe, used to own several gas stations. He said stations, whether they are paying the cities' higher sales tax rate or the 8-cent-a-gallon rate in the rest of the county, have to compete if they want to sell gas.
The price a station owner sets depends on what sort of volume the owner wants to achieve. "It depends on how bad you want to sell your gas."
Gearsbeck added that stations may charge as little as 2 cents above what they pay for a gallon of gas, but at this time of year can charge much higher margins, maybe as high as 20 cents. "July and August are big months," he said. "After Labor Day, things slow down."
Johnson said if the sales tax cut isn't making it to motorists, he would consider reinstating the 4 percent tax. However, he expressed concerns that once the tax was restored, some legislators would come up with ways to spend the money, rather than put it toward a cut in property tax rates.
Johnson and others in the Legislature have said they want to reduce county property taxes by $4 million in next year's budget.