Putnam looks to limit gas tax as prices rise, offer modest relief to drivers

The Putnam County Legislature is poised to approve a measure capping the county’s share of sales tax on gasoline and diesel fuel at $3 per gallon, a move officials say will provide modest relief to drivers while ensuring the county does not benefit from rising fuel prices. 

The proposal, introduced by Legislator William Gouldman, is expected to go before the full Legislature on April 7. If approved, County Executive Kevin Byrne said he intends to sign it within the required 10-day period. 

Under the plan, the county’s 4 percent sales tax on fuel would be capped at $3 per gallon, limiting how much tax is collected as prices climb. The cap would take effect June 1, and remain in place through Dec. 31, 2027. 

Officials emphasized the measure is not expected to dramatically lower gas prices for consumers, but rather to prevent further increases driven by local taxation. 

“It really won’t reduce the overall cost of a gallon, but we are not going to increase it,” Byrne said. “We are not going to profit from people’s hardships.” 

Gouldman said the legislation is intended as a practical step at the local level, even as broader market forces remain outside the county’s control. 

“We are doing what we can to help families in Putnam County,” he said. “The government should not benefit from higher prices. We cannot control the global market or what happens nationally or at the state level, but we can control what we do here.” 

The county previously enacted a similar cap in 2022, when fuel prices surged following Russia’s invasion of Ukraine. At that time, the cap was set at $2 per gallon; the new proposal raises that threshold to $3. 

Byrne also pointed to broader efforts at the state level to ease fuel costs, noting that in 2022 he and then-Assemblyman Mike Lawler helped pass legislation (A9009C) that temporarily eliminated the state motor fuel tax from June through December of that year. 

While the measure will slightly reduce potential tax revenue, county officials said the impact has already been accounted for in the budget. 

“This isn’t about generating more money,” Byrne said. “The sales tax revenue from gasoline has already been budgeted. This is about making sure we’re not taking more from residents just because prices are high.” 

Byrne added that additional relief could come from the state level, suggesting Albany consider temporarily suspending its fuel tax again. 

“The state doesn’t have a budget yet, so they could do that,” he said. “That would be another roughly 8 percent off, which would be much more meaningful.” 

The county will also continue to monitor for potential price gouging, Byrne said, though he noted no significant issues have been identified so far. Putnam’s Consumer Affairs division would investigate and take action if necessary. 

The proposal mirrors similar measures adopted in neighboring counties, including Rockland and Dutchess, as local governments seek ways to ease the burden of persistently high fuel costs without undermining their own fiscal stability.