CAMEL – The Putnam County Legislature, meeting as Budget and Finance Committee, approved a tax break for gasoline purchases in the wake of skyrocketing fuel prices due to global oil disruptions resulting from United States military actions in Iran.
During a special meeting Monday evening, by a unanimous vote of those lawmakers present, Legislator Toni Addonizio was absent, a resolution was introduced by Legislator William Gouldman to cap the county’s sales tax on gasoline and diesel fuel at $3 per gallon.
The proposal prevents Putnam from collecting tax revenue from residents who have witnessed gas prices skyrocket to more than $4 a gallon in recent weeks.
The resolution caps the taxable base at $3 per gallon beginning on June 1 resulting in consumers not paying county sales tax on gasoline purchases above that threshold.
Putnam’s reduction mirrors similar legislation approved in Rockland County, where starting on June 1, the county’s share of sales tax will not be collected for any per gallon price of fuel exceeding $3.00. Dutchess County also plans to implement such legislation.
The reduction won’t kick in until June because according to the State Department of Taxation local jurisdictions can only change local sales tax rates quarterly on March 1, June 1, September 1 and December 1.
Legislature Chairman Dan Birmingham introduced an amendment to the resolution resulting in the expiration of the tax break from June 1, 2027 to December 31, 2027.
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