Riverhead - Suffolk County Legislators
Ed Romaine, Tom Cilmi, and Tom Muratore introduced legislation to authorize a referendum to let the voters decide to repeal the county's residential energy tax. The tax, 2.5 percent on home energy fuels, is the only one of its type in New York.
At a news conference today, Romaine said, "let the people decide whether they want this nuisance tax. People are tired of their government spending too much, taxing too much, and going into debt too much."
"Every additional fee, every additional tax, every additional surcharge from every level of government is killing our economy," added Cilmi. "Individually, they may not seem like much, but added together, people just can't afford to live here anymore."
Cilmi continued, "The more folks leave, the more costly it is for those who remain. Giving taxpayers the opportunity to say 'no' to this regressive tax is the first step. People will have the chance to say 'enough is enough.'"
The residential energy sales tax is one of the most regressive taxes imposed on residents as it is not related to an individual's "ability to pay" and taxes a necessity of life. It is applied to electricity, natural gas, propone, kerosene, even wood.
On the regressive nature of sales taxes, one report states, "On average, poor families pay more than six times as high a share of their income in these consumption taxes as do the best-off families, and middle-income families pay at four times the rate of the wealthy."
Revenue generated by this tax is estimated to be $54 million in 2010, an almost three fold increase from when it was first imposed in 2001 after the economic uncertainties of the 9/11 attacks.
The cost of home heating fuels have skyrocketed since then, further increasing the burden on taxpayers and magnifying the inequities. The average national price of home heating oil in January 2002 was $1.16 cents; today it is $2.92. Repealing such a tax will provide a stimulus to the local economy by placing more disposable income in the pockets of consumers.
"Home heating fuels are not a luxury, they are necessities," said Legislator Romaine. "Eliminating this tax will grant relief to the already overburdened Suffolk taxpayer, particularly those of low and moderate income."
Former Legislator Cameron Alden repeatedly tried to repeal or even reduce this tax. However, his efforts were thwarted by the majority.
Unlike the Alden legislation, this bill does not repeal the tax outright; instead, it authorizes a referendum to be held in November 2010. If approved, the tax would expire August 31, 2011.
"It's time we let the people decide on taxes that are levied upon them, "said Legislator Tom Muratore. "Hopefully, taxpayers will voice their discontent for this nuisance tax and send government a message to stop spending."
Romaine also intends to introduce a companion bill that would create a bi-partisan panel of government finance experts to review county tax and budget policy and determine the best methods to fund county government.
The energy tax referendum bill now goes before committee. A public hearing will be held on March 2 at 2:30 p.m., at the Evans K. Griffing Building in Riverhead. A vote by the entire legislature could come as early as March 23.
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