Auburn to hold public hearing on gas tax cap

AUBURN -- The City of Auburn will hold a public hearing Feb. 28 to allow to discussion of a proposal to repeal the cap on gasoline sales tax within the city. Auburn City Council voted Thursday during its business meeting to authorize the hearing and carried out the first reading of the proposed law.

Should the law pass, taxes on motor and diesel fuels would be calculated as a percentage rate on every dollar. Under the current cap, which was adopted in 2006, the city stops collecting sales tax at $2 per gallon. The proposal comes on the heels of a decision by the Cayuga County Legislature to repeal its own gas tax cap. The Legislature repealed its $2 cap in November 2007.

If the cap is repealed, the local law would conform to the county's tax rate and the city would gain additional revenue, according to city officials,