BUFFALO, N.Y. (WKBW) — The Republican caucus wants to change how Erie County taxes gas, changing it from a percentage tax to a fixed amount per gallon.
Currently, Erie County charges a sales tax of 4.75% on gas. That's different from how the state and federal governments do it. Instead, it is a cents per gallon rate, with the federal government currently charging 18.4 cents per gallon.
That means when gas prices reach above $4.40 per gallon, those who fill up in Erie County pay more in taxes to the county than the U.S. government, according to the Erie County gas tax calculator. The average cost per gallon in Erie County was $4.50 Thursday, per AAA.
Karl Hasselback has operated Jim's Truck Stop in Cheektowaga for 63 years. He supports the cap.
"Nobody survives in this county without a car. And nobody survives without buying gas," Hasselbeck said.
WATCH: Lawmakers push to cap sales tax on gas in Erie County amid rising fuel costs
If IT moves forward, gas station operators would purchase gas wholesale with the reduction. Hasselback said he would pass most of those savings onto customers.
"I have to have a certain amount of money to pay my bills, but competition will drive the price to whatever we can survive," Hasselback explained.
Erie County Director of Budget Mark Cornell disagrees, pointing to a similar measure imposed between June 1, 2022, and March 1, 2024, under County Executive Mark Poloncarz. Cornell said available data from New York State shows that the cap had "no impact" on prices.
He told legislators consumers did not see a price drop when the cap was imposed, nor did they see an increase when it was removed.
"We would see no discernible benefit at the pumps, which is what we're all trying to do," Cornell said. "We saw it with our own eyes. We can talk anecdotal all we want, but [data shows] it did not have any impact."
Cornell argues a cap on sales tax would reduce the amount that would go back into the county's towns and villages. The Erie County Legislature could vote on it as soon as next Thursday.
