POUGHKEEPSIE – Dutchess County Executive Sue Serino tried to regular county sales tax in April, claiming it would cause a loss in revenue for the county. With the flat-rate tax set to expire in December, the legislature extended the plan through March 1, 2027, this month. County Budget Director Jessica White told the legislature the extension would cost the county about $1 million in 2027 revenue.
New York State gasoline sales tax is currently fixed at eight cents per gallon, rather than the normal four percent sales tax. Other relief measures include fixing the Metropolitan Commuter Transportation District (MCTD) Tax at 0.75 cents per gallon. With the temporary fixed rates set by the state, county, and MCTD, taxes collected remain at about 62 cents per gallon, despite fluctuating gasoline prices.
The following taxes are collected on each gallon of gasoline or diesel in Dutchess County:
- Federal government at 18.40 cents per gallon
- NYS Motor Fuel Excise Tax at 8.0 cents per gallon
- NYS Petroleum Business Tax at 15.80 cents per gallon
- NYS Petroleum Testing Fee at .05 cents per gallon
- NYS Gasoline Sales Tax at 8.0 cents per gallon
- Dutchess County Gasoline Sales Tax at 11.0 cents per gallon
- MCTD Sales Tax at 0.75 cents per gallon
Following the passing of the extension, Legislature Chairwoman Yvette Valdés Smith said, “I am proud to have passed this resolution to extend the gas sales tax cap. All of our prices in Dutchess are too high, including the price of gas and diesel. Capping our county’s sales tax on gas and diesel helps put money back into our residents’ pockets. This Legislature does not stand idly by and allow the County to profit off of working people.”
Serino does not approve of the extension and has returned the resolution unsigned. In her memo to the legislature, Serino said, “When the current exemption on the county’s portion of sales tax went into effect in June, we did not see any noticeable reduction in prices at the pump,” while noting that gas prices have continued to rise.
The county’s sales tax revenue funds programs and services used by county residents, and revenue reductions hurt funding for those services.
Legislator Emma Arnoff (D-Pleasant Valley), speaking at the October Budget and Finance Committee meeting, supported the extension, saying, “I don’t believe our county budget should profit or benefit from the fact that we’re in a war that has significantly raised gas prices.”
“The revenue lost from this exemption makes it more challenging for County Government to deliver the programs and services our community depends on—especially in a tough economy,” Serino’s memo said, adding “This revenue is not “profit” as incorrectly stated on the floor of the Legislature. The County does not “profit” from any tax or fee, these are the revenues that fund critical services our neighbors depend on: answering 911 calls, administering SNAP and HEAP assistance, public transit, mental health support, road and bridge safety, snow plowing, support for our non-for-profit partners, just to name a few. County operational costs are not immune to inflation. These pressures continue to rise, and we will need additional budget appropriations in November to keep essential services operating.” Those additional appropriations will likely increase the county’s budget, resulting in tax increases for county property owners.
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