NY Cap On Gas Sales Tax OK'd

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NY Cap On Gas Sales Tax OK'd

New York motorists can expect a little break at the gas pump just in time for the summer vacation season, according to a report by the Associated Press.

Governor Pataki said he'll sign a bill to cap the state sales tax on gasoline, a move that would save consumers about four cents a gallon.

The bill passed by the state Legislature earlier this week would cap the sales tax at eight cents per gallon, freezing the tax at the rate paid when gas costs two dollars a gallon. With current prices around three dollars or higher, the tax is about 12 cents a gallon.

The bill would take effect June 1, the AP said.

The legislation also gives local governments the option to cap or lower their local sales tax on gas. Local governments typically charge 12 to 15 cents per gallon at current prices.