Local Gas Prices Continue Rapid Climb As Tax Cap Is Delayed

Hauppauge residents who hoped to see a tax break at the pump thanks to Suffolk County officials may find themselves waiting a little longer. 

Suffolk County legislators passed a tax cap on motor and diesel fuel to limit the sales tax on sales prices over $3 a gallon at their Tuesday meeting. 

In Hauppauge, local gas prices have increased by 12 cents in the past week as the lowest price of $3.43 per gallon at  was up to $3.55 on Feb. 27. This is roughly consistent with the average price of $3.59 per gallon of 87 regular on Long Island, according to LongIslandGasPrices.com. 

Over the past six months, prices have increased by nearly a dollar from a low of $2.74 on Oct. 1 to $3.55 this week.

Among Hauppauge's businesses,

Robert Lipp, deputy director of the Suffolk County Legislature Budget Review Office said that the sales tax cap wouldn’t affect the price of gas at the pump until it goes over $3.30 per gallon.

"The tax cap is on the wholesale price," said Lipp. "So the point to be made is that if consumers are seeing a price of $3.30 at the pump, that is the equivalent of a wholesale price of $3.00."

Because the tax cap is based on wholesale pricing–something the consumer doesn't really see–the tax cap will not kick in until after other taxes are applied. The county sales tax goes onto the pricing last.

Lipp said that he expected the savings for the average consumer to be one penny per gallon, or $8 per year. That's based on driving a car about 12,000 miles per yearend getting an average of 20 miles per gallon.

However, any relief the Suffolk County gas tax cap, originally planned to go into effect March 1, may delayed until at least the summer months if not longer.

Suffolk County Legislature Presiding Officer William Lindsay said Wednesday that a “technical error” will delay implementation of the tax cap for at least another three months.

Lindsay, D-Holbrook, said the county law was never filed with New York State.

He added that a special meeting has already been called for Thursday, and Suffolk County Executive Steve Levy has been asked to file a certificate of necessity. The tax cap can be filed following another affirmative vote, and would begin three months after it is filed with the state.

Among other things the county is looking into to offer residents relief from rising gas prices is the current sales tax on home heating fuel. 

Kevin Rooney, CEO of Hauppauge-based Oil Heat Institute of Long Island said that for home heating oil customers, there would not be much of an effect on prices.

"Customers, prior to the heating season locked in their heating oil price with a price cap or affixed price," he said. "If they did, they have been largely insulated from what we’ve seen in crude oil prices, by the posted or fixed price. If you locked in back in September at $2.99 a gallon, honestly do you care what the price is today?"

  in Hauppauge did not respond to Patch's requests for comment.