Cap Would Have Cost

Cap Would Have Cost

By Jessica Light

Two years ago, the state allowed counties to put a cap on collecting gas taxes at 3.00 dollars a gallon.
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But the Broome County legislature rejected the plan.

With fuel prices sticking well over the proposed cap now, Broome's Budget director says it was the right decision.

Nathaalie Maxwell says Broome collects 18 cents per gallon or about 2.7 million dollars a year.

The gas tax generates 6 percent of the counties overall revenue.

Maxwell says "We would have to increase property taxes by 6 percent in order to make up that deficit in revenues. And you wouldn't see the gas prices go down because the companies would just pump them back up and make their own, use our 18 cents and make their own profit."

Maxwell says several counties that did opt to cap their taxes are regretting the decision.

She can't say yet whether higher gas prices are producing any kind of windfall for the Broome budget now.

There are other factors beside price like the amount of consumption.

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