With gasoline prices now approaching $4 per gallon and putting a strain on New York’s hardworking families and small businesses, the Senate will act on legislation to provide much needed relief at the gas pump by suspending New York State’s gasoline taxes during the summer travel season.

The bill will eliminate the New York State taxes on gasoline from Memorial Day weekend through Labor Day. If the federal, State and local governments all temporarily suspended their taxes, New Yorkers would save 65 cents per gallon at the pump.If the State enacts this tax relief plan, New Yorkers would save approximately 32 cents per gallon in state gasoline taxes under the plan, including 16 cents from the State’s Petroleum Business Tax, 8 cents from the State sales tax, and 8 cents from the State’s Motor Fuel Excise Tax.

Meanwhile, under the bill, local governments would have the option of waiving their local sales taxes of approximately 14 cents per gallon.

The bill will be structured in a way that provides a guarantee of sufficient State resources to fully fund the State’s Dedicated Highway and Bridge Trust Fund.

The plan would also reduce gasoline costs to local small businesses and truckers, leading to lower prices on consumer goods and services, and providing a boost to the State’s vital tourism industry.

Under the Senate plan, the average price of a gallon of diesel fuel would be reduced from $4.58 to $3.93.

While the plan to suspend the State’s gasoline taxes provides immediate relief from high costs at the pump, Senators are also calling for a renewed emphasis on renewable energy sources that will decrease our reliance on foreign oil in the future. Specific legislation includes removing the State sales tax on hybrid and alternative fuel vehicles; providing an EZ Pass discount for fuel efficient vehicles; and allowing a property tax exemption for farmland devoted to woody bio-mass for fuel sources production.

There is also a Senate proclamation calling on the Congress and President to take immediate action to reduce the price of fuel and to launch a major commitment to promote the use and production of alternative fuels.

In addition, Senator George Maziarz, the Chair of the Senate’s Energy and Telecommunications Committee, has introduced a bill to amend the current bio-fuel production credit to provide for a twenty-five cent per gallon incentive specific for cellulosic ethanol production.