Some lawmakers say it’s already time to extend the gas tax holiday set to expire later this year.
The holiday will expire on January 1st and with inflation at alarming heights – some lawmakers are stepping-up – calling on their colleagues to extend it.
The state is expected to lose around $600 million in revenue that would’ve otherwise been collected through the gas tax, which was suspended in June when prices were around $4 per gallon.
While gas prices have come down to some degree – they haven’t lowered to levels that lawmakers say is sufficient to reinstate it. Especially with the rate of inflation.
“The latest inflation numbers confirm what everyone already knew: prices are still rising and the financial pain isn’t going away,” Assembly Minority Leader Will Barclay said in a statement on the issue.
However, Republicans aren’t the only ones calling for a lesser gas tax, or continuing the gas tax holiday. Several Upstate Democrats have joined Republicans in calling for a reduction in the gas tax collection beyond 2022.
Governor Kathy Hochul’s office has been quiet on plans for 2023. She said her fiscal outline will emerge when the new budget is presented. The problem is that’s typically released after the gas tax holiday would expire.
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