State, county leaders push for cap on gas tax as prices surge over 25-percent

HVNY News + Notes

Apr 6

Written By HVNY

Gas prices on Monday crossed over the $4 mark across much of the Hudson Valley – $4.15 by the Taconic in Salt Point – as prices have spiked more than 25-percent in recent weeks.

To provide residents a bit of relief at the pump, more than a dozen New York State Senators have signed a letter to Governor Kathy Hochul urging the implementation of a statewide gas and diesel tax holiday in response to the surge in gas prices.

“This increase has disrupted daily life for New Yorkers statewide, from commuting to industrial production to tourism,” the letter, penned by NYS State Senator Michelle Hinchey, who represents parts of the Hudson Valley, says.

This week, members of the Dutchess County Legislature will also introduce a cap on the county’s sales tax on gasoline and highway diesel at $3 per gallon.

Currently, Dutchess collects a 3.75-percent sales tax on every gallon of gas sold throughout the county. The proposed resolution would cap the taxable base at $3 per gallon, meaning consumers would not pay county sales tax on gas purchases above that threshold.

“Many Dutchess residents are at the pump at least once a week throughout the summer driving season, so this cap will provide real and meaningful relief for our working families, small business owners, contractors and farmers,” Legislature chair Yvette Valdés Smith said in a statement.

The resolution will be officially introduced during the April 9, 2026 meeting of the Dutchess County Budget and Finance Committee. The meeting begins at 5:30pm in the Legislative Chambers, 22 Market Street, Poughkeepsie.

Putnam and Rockland counties have already approved gas sales tax caps, and a similar bipartisan proposal was recently introduced in Ulster County.

“This is no windfall, but we are doing what we can to help families,” Rockland County Executive Ed Day said. “Government should not benefit from higher prices – it should step in to provide relief. This action delivers immediate, albeit modest, savings and continues our efforts to ease costs for residents when and where possible.”

Pending approval, all caps would take effect on June 1, 2026.

Governor Hochul last imposed a statewide gas tax cap in 2022, from June through the end of December, due to then-rising fuel costs across the country.