New York State Sen. Tony Avella, of Queens, is promoting a proposal that would require the city to tax gasoline sales at a flat rate, rather than as a percentage of the price per gallon.
Avella, a Democrat, said the city makes a lot of extra cash when gas prices go up because it collects more from sales tax. He doesn�t think it is fair to drivers.
�Obviously the price of gas is going up significantly. We need to do something for consumers and the city never budgeted for this extra windfall. So we�re not affecting their budget and I just think it�s the right thing to do,� he told 1010 WINS.
The savings from switching to a flat rate � which would equal 8 cents a gallon as opposed to the 4 percent per gallon the city charges � would save the average motorist around $80 per year, according to the senator.
Avella said New York City�s tax is the only gas tax that charges by percentage. He said federal and state taxes are flat.
(Source: 1010 WINS)