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Vote on energy tax proposed
GOP county lawmakers call for referendum on ending sales tax on home fuel purchases
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A group of Republican county lawmakers called for a referendum on repealing Suffolk's residential energy tax Tuesday.
Legislators Tom Muratore (R-Ronkonkoma), Ed Romaine (R-Center Moriches) and Tom Cilmi (R-East Islip), introduced a bill at Tuesday's general meeting that would place a proposition eliminating the county's 2.5 percent sales tax on home heating fuel on the November ballot. If approved, the tax would expire in August 2011.
Critics say the proposal "irresponsibly" eliminates a major source of county revenue without an offsetting expense cut, in the face of a budget deficit expected to exceed $100 million.
The heating fuel tax, the only one of its kind in New York, disproportionately burdens poorer residents, costing them — in proportion to their income — six times more than the highest earning families, according to a Tuesday release from the bill sponsors. The regressive tax applies to purchases of electricity, natural gas, propane, kerosene and firewood.
"It's time we let the people decide on taxes that are levied upon them," Muratore said. "Hopefully, taxpayers will voice their discontent for this nuisance tax and send government a message to stop spending."
The county expects to take in $54 million from the fuel tax in 2010, three times its revenue when first imposed in 2001 to cope with economic troubles following the Sept. 11 tragedy, according to the Republicans' release. The price of home heating oil averaged $1.16 per gallon nationwide in January 2002, whereas in 2010 the average is $2.92.
"Home heating fuels are not a luxury, they are necessities," said Romaine. "Eliminating this tax will grant relief to the already overburdened Suffolk taxpayer, particularly those of low and moderate income."
Suffolk would have to double its general fund property tax to make up for the roughly $50 million annual loss if the tax is repealed, Presiding Office Bill Lindsay (D-Holbrook) countered in a Tuesday release, since the sponsors have not identified new revenue sources or service cuts to balance the loss.
"If someone could show me how to find over $50 million in real cuts or recurring revenues, then we could talk," Lindsay said. "We've cut this budget to the bone, it's just not there."
In a release issued Tuesday night, Romaine responded, saying that if a referendum is held and the tax repealed, "we will identity offsets to close any budget gap that may exist."
An energy tax repeal would reverse a 20-year effort by the county to shift the tax burden from Suffolk residents to its spenders, a larger group, according to the presiding officer. As a result, the real estate tax, projected to yield about $51 million in 2010, has shrunk over 70 percent since it generated $166 million in 1989. "Over the years, there has been a conscious decision by the Suffolk County government to reduce the dependence on real estate taxes for our home owners, and shift the burden to the broader-based sales tax to provide vital services," stated his office's release.
"I think thoughtful residents out there will realize [the bill sponsors are] just proposing a shift in taxes from a tax on energy to a property tax," said Deputy Presiding Officer Vivian Viloria-Fisher (D-East Setauket). "No one wants these types of games right now. We are in a serious economic crisis and we need serious solutions."
A public hearing on the proposal is set for 2:30 pm March 2 in Riverhead.
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