New York to cap sales tax on diesel sales

May 29, 2006

New York Gov. George Pataki signed into law a tax cap on diesel and gas purchases that will limit sales tax to 8 cents whenever the price of fuel is at least $2 per gallon. The law takes effect Thursday, June 1.

Pataki also announced a plan for the state Thruway’s travel plazas to add fuel pumps for biodiesel, ethanol and compressed natural gas. The governor also proposed a property tax credit for installing renewable fuel pumps and eliminating the sales tax on renewable fuels.

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