New York’s gas taxes are dropping

From: POLITICO New York Playbook PM - Wednesday Jun 01,2022 08:25 pm

Jun 01, 2022

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New York is cutting some gas taxes to lower prices at the pump for the remainder of the year. | Getty Images

As gas prices approach $5 a gallon, New Yorkers experienced some relief at the pump today.

A “gas-tax holiday” of 16 cents per gallon took effect today and will last through year’s end. Twenty-five counties have also agreed to cap their own gas taxes, bringing more savings to drivers.

The measure was included in the state budget for the fiscal year that started April 1.

"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," Gov. Kathy 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.”

Of course, the move comes in an election year for Hochul and the state Legislature, so it’s a popular policy move and good politics.

New York’s average price per gallon today was $4.93 — a 60 percent increase compared to a year ago, according to AAA. That’s higher than a national average of $4.67.

Technically, the state budget deal suspends New York motor fuel tax of 8 cents a gallon and its 4 percent sales tax up to $2 a gallon, which should come to about 16 cents a gallon. New York caps its sales tax on gas at $2 a gallon, while counties do not.

So counties had the option to also cap their gas taxes. Delaware, Dutchess, Erie, Monroe, Putnam, Rockland, Saratoga, Schenectady, Seneca, Ulster, Wayne and Yates counties agreed to cap their sales-tax collections at $2 a gallon.

Allegany, Broome, Cattaraugus, Chautauqua, Jefferson, Livingston, Nassau, Niagara, Oneida, Onondaga, Oswego, Suffolk and Westchester counties will collect tax only on the first $3 charged per gallon.

Hochul has said that the loss of state revenue from the gas-tax suspension won’t impact state funding for infrastructure repairs: The money — around $400 million — will be backfilled with state aid.

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IT’S WEDNESDAY: Welcome back to Playbook PM as we guide you through the final days of the legislative session in Albany, the primary season and all the political doings in New York City. Thanks for reading!

From the Capitol

IN FLUX, AGAIN: The Clean Slate parole reform bill is a go for passage through the Senate today, but its fate in the Assembly is uncertain.

The bill, which would seal most criminal record s after individuals have completed their sentences, was dropped in the final hours of 2021 session due to a technical error. A year later, the Assembly is apparently still working on concerns from members and law enforcement about its implementation, according to the chamber’s sponsor, Queens Democrat Catalina Cruz. A new version was introduced over the weekend, but it has not been scheduled for a committee vote. — Anna Gronewold

FROM CITY HALL

A REMOTE POSSIBILITY: Mayor Eric Adams threw cold water on the notion of allowing remote work for city employees who are rebuffing the in-person requirement. Hours after POLITICO first reported that Adams’ chief of staff, Frank Carone, issued a missive to agency heads reminding them of the strict office requirement, the mayor was asked if he would consider a hybrid arrangement. In short, he rejected the notion.

“I tell city employees, I want you to look at everyday New Yorkers. The train conductor can’t do it from home. The safety agent can’t do it from home,” the mayor said after delivering a speech at the business-friendly Association for a Better New York at Cipriani Wall Street.

“I’m trying to fill up office buildings and I’m telling JPMorgan, Goldman Sachs — I’m telling all of them — listen, I need your people back into office so we can build the ecosystem. How does that look that city employees are home while I’m telling everyone else it’s time to get back to work?”

The mayor has left the door open a crack, however, saying at some point he might consider allowing public employees to work from home one day a week. Meanwhile Henry Garrido, who presides over the largest municipal union — District Council 37 — said he is backing a bill in Albany to allow telecommuting and demanded the Adams administration negotiate a similar policy with him. — Sally Goldenberg

— Adams also floated some housing policy ideas during his speech. He mentioned a density bonus for low-cost housing,permitting more studio apartments and converting offices to residential space.

His administration will begin pushing for changes to the city’s arcane zoning code this year to ease limitations on development, with a goal of addressing a persistent housing shortage that has driven up rents across the five boroughs over the past year. But the changes, which require approval from the City Council, will not happen quickly.

Adams’ team will begin engaging the public this summer, and hopes to launch a public review process early next year for plans related to carbon reduction and small business growth, which are likely to be easier political lifts.

The more controversial set of proposals included in his “Zoning for Housing Opportunity” plan would not begin public review until early 2024, an administration official said — a tacit acknowledgment that building necessary support will not be seamless. “We have to be honest: We’ve had areas of the city that were sacred cows and we were not willing to upzone. That can’t continue to happen,” the mayor said. “If we want to integrate our schools, then we need to integrate our neighborhoods.” — Sally Goldenberg and Janaki Chadha

— The mayor pledged to sock away some of the extra cash flowing into the city’s coffers as a result of better-than-expected tax revenue. “Some people, as soon as they get a dollar, it burns a hole in their pocket. That is not what I’m going to do,” he said at an unrelated press briefing today. “We have union contracts that are coming up. We have the healthcare stabilization fund, [which] is going to cost us billions.” But while Adams said he would put more money into the city’s Rainy Day fund and other reserves, he also noted that some of the funds will be spent. “We’re going to spend on agency new needs, but we are going to be smart with every taxpayer dollar,” he said.

Adams’ comments came in response to a letter released by the Citizens Budget Commission on Tuesday indicating the city will have $4.5 billion more than it thought between the current fiscal year and the one beginning July 1. The commission urged the mayor to put half into savings, budget for higher raises for the municipal workforce and spend the rest on one-time costs.

State Comptroller Thomas DiNapoli came out with a similar report today showing that strong revenue growth may allow New York City to generate at least an additional $2.4 billion in operating surplus in city fiscal year (FY) 2022 this fiscal year alone when compared to the executive budget released in April. That better-than-projected fiscal performance, however, may be short-lived amid inflation, geopolitical tension and supply chain issues, according to DiNapoli’s analysis.

DiNapoli urged the city to put a substantial portion of the surplus funds into reserves and protect itself against uncertainty. “New York City’s revenues continues to outpace expectations, but it would be wise to set aside surplus funds to withstand future budget volatility,” DiNapoli said. “The city’s recovery relies on its ability to provide public services while adapting to an uncertain economic landscape. This approach will help the city maintain financial flexibility and strengthen its fiscal foundation to remain attractive for residents and visitors and continue to create economic opportunities.”

The release of New York City’s $99.7 billion FY 2023 Budget — $104.9 billion when adjusted for surplus transfers — and Financial Plan (the “April Plan”) shows the city has benefited from stronger than anticipated tax collections, outsized federal grant revenue from relief programs, savings in pension contributions from extraordinary asset gains in FY 2021, and announced additional savings programs, including significant vacancy reductions since June 2021. — Joe Spector and Joe Anuta

ON THE BEATS

TRANSPORTATION: Hochul gave a nod to her predecessor, Andrew Cuomo, at a press conference today to commemorate the opening of Terminal C in LaGuardia Airport.

“I want to give recognition where it’s due,” Hochul said, calling Cuomo “the genesis” of the project and crediting him for “working hard.”

There’s no denying Cuomo, who likened himself to a modern Robert Moses, was the brainchild of the $8 billion renovation to LaGuardia Airport. But his name is seldom uttered these days after he resigned from office amid sexual harassment allegations. Cuomo has repeatedly denied the claims. Hochul notably didn’t mention the former governor in her January remarks to celebrate the opening of Terminal B, the New York Post reported at the time. The $4 billion terminal will serve Delta customers and is nearly twice the size of the two terminals it replaced. — Danielle Muoio Dunn

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The Campaign Trail

— Dan Goldman, former lead counsel to House Democrats during the first impeachment investigation of former President Donald Trump, announced his run for the 10th Congressional District today. Goldman is entering a field already filled with current and former elected officials with established bases and better name recognition. However, he notched a seven-figure fundraising haul in just 24 hours last year during a short-lived campaign for state attorney general. “Donald Trump and the Republican party he controls are not only trying to take away our rights but are tearing down the foundations of democracy itself,” Goldman said in a statement announcing his candidacy. “We need new voices in Congress with the strength, experience and courage to stop them." Goldman, a former assistant attorney in the Southern District, lives in Lower Manhattan. — Joe Anuta

— Rep. Mondaire Jones made an announcement today that appears designed to counteract Goldman’s record: the endorsement of Maryland Rep. Jamie Raskin, a Democrat who was the lead manager of the second impeachment investigation into Trump. “After Donald Trump incited a violent insurrection to overturn the 2020 election, the House of Representatives turned to Jamie Raskin to present the most compelling case possible to impeach the president,” Jones said in a statement. Jones, who represents Westchester and Rockland counties is also running in the 10th District, more than 20 miles away from his nearest office.

AROUND NEW YORK

— The state will spend $61 million to renovate portions of Buffalo’s Central Terminal.

— Lovers of genuine Staten Island pizza, prepare to shed a tear: Nunzio’s is for sale. (Perhaps a certain celebrity couple can come to the rescue?)

— The nation’s last Howard Johnson’s restaurant — located in Lake George — has closed.

— The East Side Access project into Grand Central Terminal will boost LIRR rush hour service by 50 percent, officials say.

— Nurses at Rochester General Hospital have filed paperwork to form a union.

— Eric Adams’ struggle with dyslexia is shaping his priorities as mayor of New York City.

A message from Con Edison:

From building a 22nd century grid to installing 400,000 EV charging ports by 2035, Con Edison is committed to shaping the new energy future—for our fellow New Yorkers and the generations to come.

And we can all do our part too. Small changes like switching to clean heating and cooling technology make a big difference for your home and our world. See Our Energy Future