Our View: Profiting from gas crisis bad public policy

Saturday, July 5, 2008 11:22 PM EDT

A sales tax is still a tax.
That doesn't seem to register with city officials who continue to push for the removal of the city's cap for sales tax on gasoline. At last week's council meeting, city manager Mark Palesh and comptroller Lisa Green both pushed for repeal, saying it could bring substantial revenue to the city and ultimately would help keep property taxes in check.

They also argue that the gas tax cap in place isn't bringing any relief at the pump.

But that's just not true. A check one day last week of the gas stations inside city limits and of those within the border towns shows a real price difference. In Auburn, the average for regular unleaded was $4.18 per gallon; outside the city line, it jumped to $4.24.

Is that a giant difference? No. But it does have an impact over time, especially for a city with a substantial number of residents who commute to and from Syracuse each day.

We also don't buy the argument that the sales tax cap has hurt the city's finances. According to the Cayuga County Treasurer's Office, the city has enjoyed a 13.9 percent increase in sales tax revenue through the first half of 2008.

Higher prices on most taxable goods is probably one reason for the increase.

The city needs to remember the people paying those higher prices are struggling. Many of them don't own properties, either, so it won't give comfort to tell them their gasoline bill will be even higher to help offset property taxes.

The city council voted to keep the cap in place a few months ago, and their reasons for doing so remain the same.

Trying to profit off the gas price crisis is simply bad public policy.

The Citizens' Say

There are 3 comment(s)

excnyer wrote on Jul 7, 2008 10:07 AM:

" Believe it or not, gas is cheaper in Auburn. I've seen prices in other counties where the price is between 6 and 17 cents higher than Auburn. The citizens of Auburn should get a break any way they can because Auburn is a depressed area. "

Hillbilly wrote on Jul 7, 2008 9:23 AM:

" Look at it this way. Since the price of gas in the city is lower than outside more of it is sold in the city. Thus more tax revenue. Increase the tax and the cost to the public becomes the same as outside the city limits. The public will then fill up outside the limits (because there is no longer a savings benefit to filling up inside the city limits) and the city will loose revenue. Some times less is more. But, get a politician to understand this is impossible. I will pay my taxes to the lowest priced location. "

horseradish wrote on Jul 7, 2008 8:52 AM:

" And you people need to realize that as gas prices increase, so does the amount of money that municipalities need to cover the costs OF THE GASOLINE THEY USE!!! It isn't as cut and dry as you would like to think. Either taxes are going up or services will be cut. When services are cut, who do you think will be the first to whine? "

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