Leaders from the Hudson Valley have a plan in place that they believe will "ease the pain" for many drivers.

On Thursday, Dutchess County Executive Marc Molinaro and County Legislature Chairman Gregg Pulver announced they are proposing a resolution to the County Legislature to temporarily amend the County’s sales tax calculation on retail sales of motor fuel and diesel motor fuel, capping the amount of sales tax the County collects and offering residents much-needed relief as fuel costs spike due to worldwide pricing forces.


“As the price at the pump skyrockets, I propose Dutchess County do all it can, under New York State law, to ease the pain for local motorists. We recognize this relief is limited, but we must do what we can to help as families, farmers, and small businesses are crushed by rising costs," Molinaro said.

Molinaro is proposing Dutchess County change its sales tax calculation for retail motor fuel and diesel motor fuel purchases to provide the maximum benefit for consumers allowed under State law.


The proposal would cap the amount of county sales tax collected on each gallon of retail motor fuel at $.08.

"By cutting and capping the county tax on gas - we can provide some assistance and I encourage my colleagues to adopt this proposal," Molinaro said.

Horizontal shot of someone's hands holding money at the gas pump

Under the current sales tax methodology, consumers pay 3.75% county sales tax on their total motor fuel purchase, in addition to a myriad of other State and federally imposed taxes and fees.

The County Legislature will vote on the resolution to cut and cap the local county sales tax on retail motor fuel purchases at its April 11th board meeting, and the new sales tax cap would be effective June 1, 2022, pending approval of the New York State Commissioner of Taxation and Finance, and it would expire on December 1, 2022.

Person paying with credit card at gas pump, motion blur

“Our nation is currently experiencing inflation the likes of which we haven’t seen in some 40 years, including recent spikes at the pump," Chairman Pulver said. "I urge my fellow legislators to approve this measure to bring relief to residents.”

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