New York Democratic Governor Kathy Hochul announced on Wednesday that the state is suspending taxes on gas sales for the rest of the year as prices continue at record levels.
The fuel tax suspension, effective June 1 through December 31, will provide savings of at least $0.16 per gallon across the state of New York.
“Fuel prices have surged in recent months, hurting working families and small businesses the most, and it is crucial that we provide New Yorkers relief,” Hochul said in a statement.
“By suspending certain fuel taxes for the next seven months, New York is providing some $609 million in direct relief to New Yorkers — a critical lifeline for those who need it most. At a time when families are struggling because of economic headwinds and inflation, we will continue to take bold action to reduce the economic burden on New Yorkers and get money back in their pockets,” she added.
With the national average for a gallon of regular unleaded up to $4.67 per gallon nationwide and $4.93 per gallon in New York, the news comes as a short-term relief to the state’s drivers.
The move could save the state’s drivers $585 million through 2022 as gas prices are expected to remain high, according to the legislation.
“Rising gas prices hurt families and our economy and we are doing everything possible at the state level to lower costs,” state Sen. John Mannion posted to Twitter.
Rising gas prices hurt families and our economy and we are doing everything possible at the state level to lower costs
— Senator John Mannion (@SenJohnMannion) May 27, 2022
New York joins a growing number of states pausing sales taxes on gas purchases. Maryland suspended its gas tax for 30 days in March, while Georgia passed a temporary measure the same month. Connecticut has also suspended gas taxes in its state between April 1 and June 30.
“Numerous states are in the process of deciding to suspend their state gas tax, including Ohio, West Virginia and New Jersey,” Forbes reported.
“California is eyeing much bigger relief for its residents. Governor Gavin Newsom released a proposal in late March to provide $11 billion in relief directly to California consumers in the form of $400 debit cards per vehicle owned, capped at $800 total,” it added.
In Florida, Republican Governor Ron DeSantis signed a budget last month that included a one-month gas tax holiday that will go into effect from October 1 through October 31. According to the state, it is expected to save the state’s drivers $200 million.
“Florida’s economy has consistently outpaced the nation, but we are still fighting against inflationary policies imposed on us by the Biden administration,” DeSantis said in a May statement.
“In Florida, we are going to support our residents and help them afford the goods that they need. Florida has been fiscally responsible, so we are in a good position to provide meaningful relief for families, right now,” he added.