Monday, 25 Nov 2024

Carl Heastie floats raising state sales tax on gas to fund mass transit

Warning that congestion pricing is not a sure bet, Assembly Speaker Carl Heastie Friday suddenly floated the idea Friday of raising the state sales tax on gasoline to help fund mass transit.

“It’s an option,” Heastie said at a Crain’s New York breakfast in midtown.

He later told reporters he was merely citing “an example” of alternative revenue sources other than congestion pricing that could be used for upgrading the subways.

The state’s 4 percent sales tax on gasoline is currently capped at 8 cents a gallon.

But other local state and federal taxes brought the grand total tax per gallon in New York to an average of about 64 cents in 2018, fifth highest in the nation, according to the AAA..

Gov. Cuomo has proposed a slew of new revenues to fund the MTA, including a congestion fee to enter Manhattan below 61st Street.

But Heastie said he’s “still not sure” he has the 76 Democratic votes needed to get the charge through the Assembly.

The state’s new $175 billion budget is supposed to be adopted by April 1.

Heastie said congestion pricing remains a touchy issue because many outer-borough Assembly members represent areas with spotty transit who want assurances their assurances their constituents will see improved service.

“You got to offer them something better than two buses to the train,” he said.

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