Anne Gleason / The Citizen
AUBURN - Starting July 1, drivers filling up at the pump in the city will join those elsewhere in the county in saving about three cents a gallon at current gas prices. On Thursday, the Auburn City Council unanimously authorized a cap on sales tax on gasoline at the rate at $2 a gallon, or eight cents. The county passed a similar cap Wednesday night.
The council was initially set to vote on a tax cap at $3 a gallon, but councilors decided to pass the cap at the $2 a gallon rate in order to be consistent with the county and not hurt city residents and gas station owners.
City manager John Salomone had recommended against passing any cap, because of the loss in sales tax revenue to the city. At the $2 a gallon rate, the city would lose an estimated $250,000 this year.
"I don't think we should be sheep and go along with something that's bad legislation," he said.
Comptroller Lisa Green said the city has not seen a huge increase in sales tax revenue as a result of rising gas prices. She estimated the city would end the year with about $140,000 more in overall sales tax -- not just on gasoline sales -- than what was initially budgeted.
Lou Vasile, owner of D&L Truck Stop, said he understood why Salomone would recommend against the policy, but said gas station owners in the city would be put at a severe disadvantage without a cap similar to what the county authorized Wednesday.
The state enacted a cap on its portion of the sales tax last month at eight cents and then allowed for counties and municipalities to follow suit. All legislation had to be passed by today in order to be enacted July 1.
Read the full report in Friday's edition of The Citizen.
The council was initially set to vote on a tax cap at $3 a gallon, but councilors decided to pass the cap at the $2 a gallon rate in order to be consistent with the county and not hurt city residents and gas station owners.
City manager John Salomone had recommended against passing any cap, because of the loss in sales tax revenue to the city. At the $2 a gallon rate, the city would lose an estimated $250,000 this year.
"I don't think we should be sheep and go along with something that's bad legislation," he said.
Comptroller Lisa Green said the city has not seen a huge increase in sales tax revenue as a result of rising gas prices. She estimated the city would end the year with about $140,000 more in overall sales tax -- not just on gasoline sales -- than what was initially budgeted.
Lou Vasile, owner of D&L Truck Stop, said he understood why Salomone would recommend against the policy, but said gas station owners in the city would be put at a severe disadvantage without a cap similar to what the county authorized Wednesday.
The state enacted a cap on its portion of the sales tax last month at eight cents and then allowed for counties and municipalities to follow suit. All legislation had to be passed by today in order to be enacted July 1.
Read the full report in Friday's edition of The Citizen.
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