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'Wish it would continue, but we got a little break': Erie County gas tax cap to expire on March 1

Posted at 6:24 PM, Feb 22, 2024

BUFFALO, N.Y. (WKBW) — A pandemic-era relief program offering a bit of a break at the gas pump will come to an end in Erie County next month.

The county will not be renewing the gas tax cap which caps the county tax so drivers only pay Erie County sales tax on the first two dollars per gallon. It is set to expire on March 1, which is when you'll pay the county sales tax on the total cost per gallon.

Consumers like Michael Bullock say they don't want the county gas tax cap to expire.

"I'm sure most consumers wish it would continue but we got a little break for a while so hopefully the gas prices continue going down," said Bullock.

We talked with Bullock outside Jim's Truck Stop on Walden Avenue. The owner of this gas station, Carl Hasselback, said he also wants the cap to stay in place.

As for what to expect on March 1 at the pump, Hasselback said he has no idea. He said it's possible you won't notice any changes initially.

Hasselback said he sets his prices based on several factors including cost and competition.

"For example, I came in Monday morning and our cost price was up three cents. Before I turned around, Tuesday's price was down four and a half cents. So, the net effect was we didn't do anything. It would not be unbelievable that on the first of March, prices are down another dime, and if they are then sales tax increase would only be two and a half cents," said Hasselback.

County Executive Mark Poloncarz told 7 News there are a couple of reasons they are not extending the tax cap.

"The intention was for this to be a temporary situation when gas was over $4 a gallon," said Poloncarz.

He also said he doesn't think gas station owners are passing on the savings.

"When we instituted it we expected to see anywhere from a seven to 11 cent drop in the price and we didn't, and what we think happened is a number of the retailers just pocketed the alleged savings," said Poloncarz.

Hasselback says that's not true, "That's the most ridiculous statement I've ever heard. When somebody says you didn't pass it on...where's the study that says you didn't pass it on?"

A representative from Gas Buddy recently joined 7 Voices and said the lower gas prices in the WNY region are due to the mild winter but it is expected that they will increase as the transition to cleaner more expensive summer gasoline takes place.

You can watch that full conversation below.

Western New York gas prices continue to drop as national average rises