New York implements fuel tax holiday

June 1, 2022

Keith Goble


The state of New York is the fifth state to provide at least some consumers a break on fuel costs.

Starting Wednesday, June 1, the state is offering a partial tax holiday for gas and diesel fuel purchases.

The Empire State charges about 33 cents per gallon for gas and diesel. There are multiple components that make up the state’s fuel tax collection.

There is an 8-cent excise tax and a 17.3-cent petroleum business tax. Additionally, there is an 8-cent state sales tax.

A budget deal reached in April between state lawmakers and Gov. Kathy Hochul set the stage for fuel tax collection to be trimmed by 16 cents per gallon. Specifically, excise tax and state sales tax collection will be suspended from June 1 through the end of the year.

New York’s excise tax and the sales tax raise about $485 million each per year.

The tax break is estimated to cost the state $585 million in lost fuel revenue.

The budget deal also gave counties permission to reduce their local fuel taxes.

Other states to act

Connecticut, Georgia, and Maryland acted in March to provide tax relief at the pump.

In Connecticut, a three-month holiday from paying the state’s 25-cent excise tax on gas took effect April 1. The tax holiday does not affect the 41.1-cent excise tax on diesel.

The gas tax holiday was set to run through the end of the fiscal year – June 30. As part of a budget deal agreed upon by state lawmakers and Gov. Ned Lamont, the tax break will be extended to Dec. 1.

A fuel tax holiday that includes diesel is ongoing in Georgia.

The state normally collects a 29.1-cent gas tax and a 32.6-cent diesel tax.

Gov. Brian Kemp signed into law a suspension of state fuel taxes through May 31.

Prior to the sunset date, Kemp signed an executive order to continue the tax holiday through July 14.

The governor said the state is in a good position to provide a tax break because of a $3.7 billion budget surplus through fiscal year 2021.

Maryland was the first state to take action on a fuel tax holiday.

A 30-day suspension of the state’s 36.1-cent gas tax and 36.85-cent diesel tax concluded April 16.


In Florida, Gov. Ron DeSantis acted last month to provide a tax holiday from at least some fuel expenses.

The tax package, HB7071, provides for 10 sales tax holidays including a gas tax holiday. Diesel fuel is not affected.

The state collects a 27-cent tax rate on gas purchases.

Tax collection will cease for the month of October.

A portion of the state’s federal stimulus dollars will be used to cover the estimated $200 million in lost gas tax revenue.

More state trends

Keith Goble, state legislative editor for Land Line Media, keeps track of many trends among statehouses across the U.S. Here are some recent articles by him.