Tax Cap On Its Way Out

County Legislators Likely To Eliminate Limit On Gasoline Tariff

By Dennis Phillips dphillips@post-journal.com
MAYVILLE — Next week, Chautauqua County legislators most likely will take the first steps toward eliminating the county’s tax cap on gasoline.

On Monday, the county’s Administrative Services Committee will meet to discuss a proposal, which all members of the committee sponsored, to eliminate the gas tax cap.

In July 2006, the County Legislature passed a resolution capping the local tax on gasoline at $2 a gallon. However, because gas prices in the county are not noticeably lower than surrounding counties, county officials are debating to eliminate the cap altogether. Last month, the legislature passed a resolution to ask the Attorney General’s Office to investigate why gas prices in the county — where there is a cap — are not cheaper than surrounding counties where there is not a cap. County officials have said gas should be about 6 cents cheaper in Chautauqua County.

Last month, the committee discussed bringing the proposal to the table this month to get it through the legislature and repeal the cap as soon as possible. However, because the gas tax cap can only be repealed every fiscal quarter, even if the cap is eliminated this month by the legislature, it would not go into effect until Sept. 1.

Both sides of the aisle in the legislature seem to agree that because there is no savings for the consumer, the cap should be repealed so the county can receive more tax revenue. Darin Schulz, county finance director, last month said the cap has kept the county from receiving about $2 million more in revenue.

Stephen Keefe, D-Fredonia and committee chairman, said he doesn’t want to repeal the cap, but agrees it’s the best solution because there is no benefit for the consumer.

‘‘If there was a difference at the pumps I would be for the cap, but there is no savings at all so I’m in favor of putting the tax back on and seeing what the market does,’’ he said.

Legislator James Caflisch, R-Clymer, said the gas tax cap has not worked for other counties as well and they have already repealed their cap. One fear among county officials is if the cap is repealed, county gas prices may increase to around 6 cents more than surrounding counties. However, Caflisch said that may not be the case.

‘‘I’m not sure prices will go up much. If you look at the history of Onondaga County, they didn’t experience sticker shock when putting tax back on gas. I expect a similar situation here.’’

Keefe said he is sure his committee will pass the proposal and expects discussion when it hits the floor of the full legislature.

‘‘When it goes to the legislative floor I anticipate quite a bit of debate,’’ he said.

Caflisch, who didn’t approve the cap when it was first passed by the legislature, said it will be interesting to see how legislators who voted for the cap proposal two years ago will react to now possibly repealing the cap.

‘‘If they recognize they made a mistake and the action has not been beneficial to the taxpayers, in fact it has hurt the taxpayers, I’m hoping the proposal will move through as a bipartisan action,’’ Caflisch said.