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 The Legislature repealed its $2 cap in November 2007.
If the cap is repealed, the local law would conform to the county's tax rate and the city would gain additional revenue, according to city officials,
After the proposal's first reading, Councilor Matt Smith said that it would be a "major mistake" for the city to repeal the cap. People from Weedsport or Union Springs passing through Auburn will be more likely to get gas in Auburn if it is cheaper, which will actually create more tax revenue for the city, he said.
"This is an opportunity for us as a city council to benefit the taxpayers of our community," Smith said. "Why should we make things more difficult for people?"
Councilor Thomas McNabb agreed, saying during the meeting that the 4 or 5 cents per gallon is a lot for a person raising four kids and driving to Syracuse or Rochester.
"Why should we penalize these people by putting more taxes on them?" McNabb said.
The public hearing will take place at 6 p.m. on Feb. 28 at city hall.
For more, read Friday's Citizen
If the cap is repealed, the local law would conform to the county's tax rate and the city would gain additional revenue, according to city officials,
After the proposal's first reading, Councilor Matt Smith said that it would be a "major mistake" for the city to repeal the cap. People from Weedsport or Union Springs passing through Auburn will be more likely to get gas in Auburn if it is cheaper, which will actually create more tax revenue for the city, he said.
"This is an opportunity for us as a city council to benefit the taxpayers of our community," Smith said. "Why should we make things more difficult for people?"
Councilor Thomas McNabb agreed, saying during the meeting that the 4 or 5 cents per gallon is a lot for a person raising four kids and driving to Syracuse or Rochester.
"Why should we penalize these people by putting more taxes on them?" McNabb said.
The public hearing will take place at 6 p.m. on Feb. 28 at city hall.
For more, read Friday's Citizen
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Post your comment - click hereThere are 5 comment(s)
tigerboots wrote on Feb 15, 2008 10:42 AM:
CryinRyan wrote on Feb 15, 2008 8:02 AM:
Farmer's Gal wrote on Feb 15, 2008 7:58 AM:
Yikes wrote on Feb 15, 2008 12:44 AM:
Are these two gentlemen (Mr. Smith and Mr. McNabb) that far out-of-touch with reality?
The gas prices in Auburn are ALREADY 5-15 cents higher than anywhere else in CNY.
The day Auburn capped the tax at $2.00, did anyone see a decrease in the price compared to surrounding towns? Nope. The day Cayuga County capped the tax did anyone see a decrease in the price compared to surrounding counties? Nope. Many months later has anyone seen a decrease in the price? Nope.
Here's a thought. Maybe, just maybe, the gas station owners kept their prices the same so instead of the local taxpayers getting relief, the 4-5 cents per gallon went into the pockets of the station owners? Sure, they'll pay additional income tax on it, but doesn't that go to the state?
Don't worry though, keep the cap and when the city runs short of funds, they can always raise the tax on local property owners to make up the difference.
"
ethan wrote on Feb 14, 2008 10:25 PM: