I traveled to Albany yesterday with Tim Havens, the owner of Falls Farm and Garden, and his son, Timmy Jr. We were part of a delegation of officials meeting with staff members to Assembly Speaker Silver. This meeting was a follow up to the "truckers rally" held in Albany last week to focus attention on the extraordinary economic challenges facing this key economic sector. Here's what I learned that may surprise some people:
* While the state put a freeze on the gas tax a year ago, they did not cap the state tax on diesel fuel. The sales tax collected on gas is capped at $2 meaning any price above that level does NOT generate additional revenue for the state. On the other hand, the diesel fuel tax was NOT capped and is assessed a 4% state sales tax as well as a 3 to 5% county tax depending upon the jurisdiction at whatever price is current at the pump. This is clearly not fair.
* New York is one of just 4 states that imposes its own Truck or Ton Mileage Tax on larger trucks. The revenue from this fee generates about $160 million but means that many trucks look to avoid traveling through NY in the first place. At a time when the NY trucking industry which provides an incredibly valuable service to every consumer in the state is facing a genuine crisis, now is the time for NY to eliminate or phase-out this added tax. The savings that will be realized by truckers from such a move would certainly help to partially offset rising diesel costs.
The speaker's office indicated a willingness to look at these issues and suggestions. Legislation to eliminate the TMT has been filed for at least four consecutive years. Perhaps it will take this crisis to force NY to join with the vast majority of other states in eliminating this duplicative tax.
Tuesday, June 24, 2008
Back to Albany
Posted by
ADK_Chamber
at
7:00 AM
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment