Approved May 11, 2021

RESOLUTION OF THE GREATER UTICA CHAMBER OF COMMERCE IN OPPOSITON TO INCREASE IN STATE SALES TAX ON GASOLINE

WHEREAS, various members of the NY State Senate and NY State Assembly have introduced legislation (bills S4264A and A6967 respectively) that would enact a proposed “Climate and Community Investment Act”; and

WHEREAS, the proposed legislation would create a new state public authority with sweeping powers to drastically alter the state’s economy in many ways; and

WHEREAS, one component in the proposed legislation would impose a new carbon tax on state residents and businesses that would translate into an increase of 55 cents per gallon on the retail sale of gasoline and heating fuel; and

WHEREAS, New York State currently has the seventh highest state sales tax on gasoline in the country at 43.12 cents per gallon, and the new legislation could raise that to 98.12 cents per gallon; and

WHEREAS, this action would immediately raise the price of gasoline at the pump by 55 cents per gallon and increase heating costs for homes and businesses that use fuel oil by as much as 25% per heating season;  and

WHEREAS, the increased cost of transportation for food products and all other goods that are transported on highways would force businesses to raise the prices of their products; and

WHEREAS, the average retail gas station earns approximately 3-4 cents per gallon net profit on gasoline, whereas the State of New York would be deriving nearly one dollar per gallon through a highly inflationary tax that would greatly hamper economic activity across the state and significantly reduce the disposable income of households and businesses;

NOW THEREFORE BE IT RESOLVED, the Greater Utica Chamber of Commerce does hereby oppose any attempt to increase the already extraordinary level of state sales tax being inequitably added to the price of gasoline and home heating fuel.