AUBURN - Cayuga County Legislators repealed a six-month-old cap on the sales tax on gas on Tuesday.
Supporting lawmakers argued that they would rather do away with the gasoline relief and use the projected revenue to lower the property tax levy. They won in an 8-4 vote to repeal the cap beginning in March.
The cap saves consumers a nickel per gallon at the pump at the current average of $3.26 per gallon. Since June, the county has capped its 4-percent cut of sales tax at the $2 per gallon mark.
Venice Enterprises owner Colleen Rejman asked the Legislature to keep the cap before the vote.
“I feel it would be a big mistake to remove this,” she said. “I'm definitely seeing the difference.”
Removing the cap makes her business less competitive, especially when neighboring counties continue to offer the tax break on their diesel fuel and gasoline, Rejman said. Legislator Christopher Palermo, R-Sterling, agreed with that sentiment.
“It's a pretty easy tax to avoid,” he said.
Ways and Means Committee Chairman Paul Dudley, R-Cato, said he would rather see a break in property tax than sales tax.
“I also run a trucking business,” Dudley said. “And we also pay property taxes. There are many more people that pay the gas tax than there are property taxpayers.”
The Ways and Means Committee added $325,000 in projected revenue to the tentative 2008 budget in anticipation of the repeal, enough to lower the tax levy by a percentage point.
“It's almost like the lesser of two evils,” Legislator Ann Petrus, R-Brutus said.
Legislator Raymond Lockwood, R-Aurelius, added that he had not seen proof the relief was working in his travels across the state. After the meeting, Rejman was disappointed by the final decision.
“They did no real investigation,” she said, adding that the impact of the repeal will trickle down to other businesses in the local economy. “I think we're going to start fueling outside of the county.”
Palermo; Francis Mitchell, R-Genoa; Peter Tortorici, R-Auburn; and David Axton, R-Mentz, voted against the repeal.
In other news:
* Legislators unanimously appointed Axton to fill the District 3 seat left vacant by Bernard Smith, who died in August. Axton won the special election for the seat this month.
The term expires in 2010.
* The Legislature also accepted Ways and Means Committee revisions to the tentative 2008 budget, which actually lowers the tax levy by less than a percentage point compared to this year.
The committee made numerous additions and subtractions over the past two weeks to reduce the initial $33.5 million tentative levy by about $2 million.
The Buildings and Grounds Department budget was reduced by about $365,000 that was determined excess for asbestos and lead removal projects. The committee also eliminated county manager recommendations to establish an auditing and purchasing department for a savings of about $100,000.
About $1.3 million in revenue was added to account for retail growth and the elimination of the gas sales tax cap. The sheriff's department was granted an additional $130,000 to outfit deputies with global positioning units.
A public hearing on the tentative budget is slated for 7 p.m. Dec. 11.
* Legislators agreed to a $7,500 renovation project that will modify the waiting area in the Community Mental Health Clinic in the Historic Post Office building.
The state has been withholding aid in part due to citations for lack of privacy at the site. Legislators who unanimously agreed to the project hope it will provide a temporary solution to the problem while the county explores moving the clinic to Auburn Memorial Hospital.
Staff writer Shane Liebler can be reached at 253-5311 ext. 248 or shane.liebler@lee.net
The cap saves consumers a nickel per gallon at the pump at the current average of $3.26 per gallon. Since June, the county has capped its 4-percent cut of sales tax at the $2 per gallon mark.
Venice Enterprises owner Colleen Rejman asked the Legislature to keep the cap before the vote.
“I feel it would be a big mistake to remove this,” she said. “I'm definitely seeing the difference.”
Removing the cap makes her business less competitive, especially when neighboring counties continue to offer the tax break on their diesel fuel and gasoline, Rejman said. Legislator Christopher Palermo, R-Sterling, agreed with that sentiment.
“It's a pretty easy tax to avoid,” he said.
Ways and Means Committee Chairman Paul Dudley, R-Cato, said he would rather see a break in property tax than sales tax.
“I also run a trucking business,” Dudley said. “And we also pay property taxes. There are many more people that pay the gas tax than there are property taxpayers.”
The Ways and Means Committee added $325,000 in projected revenue to the tentative 2008 budget in anticipation of the repeal, enough to lower the tax levy by a percentage point.
“It's almost like the lesser of two evils,” Legislator Ann Petrus, R-Brutus said.
Legislator Raymond Lockwood, R-Aurelius, added that he had not seen proof the relief was working in his travels across the state. After the meeting, Rejman was disappointed by the final decision.
“They did no real investigation,” she said, adding that the impact of the repeal will trickle down to other businesses in the local economy. “I think we're going to start fueling outside of the county.”
Palermo; Francis Mitchell, R-Genoa; Peter Tortorici, R-Auburn; and David Axton, R-Mentz, voted against the repeal.
In other news:
* Legislators unanimously appointed Axton to fill the District 3 seat left vacant by Bernard Smith, who died in August. Axton won the special election for the seat this month.
The term expires in 2010.
* The Legislature also accepted Ways and Means Committee revisions to the tentative 2008 budget, which actually lowers the tax levy by less than a percentage point compared to this year.
The committee made numerous additions and subtractions over the past two weeks to reduce the initial $33.5 million tentative levy by about $2 million.
The Buildings and Grounds Department budget was reduced by about $365,000 that was determined excess for asbestos and lead removal projects. The committee also eliminated county manager recommendations to establish an auditing and purchasing department for a savings of about $100,000.
About $1.3 million in revenue was added to account for retail growth and the elimination of the gas sales tax cap. The sheriff's department was granted an additional $130,000 to outfit deputies with global positioning units.
A public hearing on the tentative budget is slated for 7 p.m. Dec. 11.
* Legislators agreed to a $7,500 renovation project that will modify the waiting area in the Community Mental Health Clinic in the Historic Post Office building.
The state has been withholding aid in part due to citations for lack of privacy at the site. Legislators who unanimously agreed to the project hope it will provide a temporary solution to the problem while the county explores moving the clinic to Auburn Memorial Hospital.
Staff writer Shane Liebler can be reached at 253-5311 ext. 248 or shane.liebler@lee.net
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