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State Lawmakers Should Help Alleviate Skyrocketing Energy Bills For Families And Small Businesses
by Assemblyman Willis H. Stephens, Jr.
With the winter months squarely upon us, many Mid-Hudson residents are facing major challenges in meeting the cost of skyrocketing prices on gas and electricity. As the temperature drops, heating bills go through the roof, and with no apparent end in sight, ratepayers are feeling the crunch. The residents of this state should feel their elected officials are doing everything humanly possible to help them through this very difficult period.
Our way of life is being threatened, and in response, I feel state lawmakers need to address this problem head on and take the initiative to solve problems rather than compound them. Our constituents placed their faith in us to do what is right in critical situations; we must not let them down.
On Feb. 6, 1 joined my Assembly Republican colleagues in introducing three amendments to alleviate the high taxes on energy and give the taxpayers of this state relief that has been long overdue.
The amendments would:
* Provide a 60-day suspension of local sales taxes on energy sources, saving residential customers approximately $25 million.
* Provide a complete and immediate repeal of the energy gross receipts tax (GRT), saving families and businesses approximately $500 million.
* Abolish the petroleum business tax (PBT), saving commercial customers approximately $25 trillion per year.
Because the gross receipts tax is imposed on the total amount of money collected by each utility, this tax is passed along to customers. Sales taxes ranging from 1 to 4 percent on energy sources are imposed by 59 localities and school districts across the state. In both cases, as energy costs skyrocket, tax revenues skyrocket as well.
With the elimination of these burdensome taxes, Mid-Hudson ratepayers, who now pay both GRT and local sales tax, could see a savings of $150 this winter, and small businesses would save even more. The Mid-Hudson region would also see more jobs created and retained and Mid-Hudson taxpayers would be able to realize a significant tax break. That in turn, would enable them to reinvest their savings back into our local economies.
Unfortunately, my colleagues from across the aisle blocked these tax-cutting measures due to partisan politics.
We need to continue the momentum that was created in last year’s state budget, in which the Legislature abolished the GRT on large manufacturers and determined that small businesses and other commercial users will have to wait until 2005 for elimination at which time homeowners will only receive a partial tax cut.
I am determined to work for my constituents who had the faith in me to represent them in Albany. If we fail to accomplish the people’s work, then we fail ourselves. I ask that every lawmaker join me in asking whether we are doing all we can for our constituents and join together to ensure that we are.
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