By Mike Caputo
During a press conference held in Valley Stream State Park last Thursday, Skelos (R-Rockville Centre) and several representatives from environmental advocacy organizations said they are pressing the state Assembly to pass a bill granting a sales tax exemption to those who purchase new and used hybrid, fuel cell and other fuel-efficient vehicles. The Skelos-sponsored bill already has been passed unanimously by the state Senate.
"This legislation is an important first step toward reducing our dependence on foreign oil and protecting our environment," Skelos said.
Harping on the major themes of the bill, Skelos said it would help reduce gasoline consumption and air pollution, providing relief from increasing fuel costs while addressing global climate change.
Also falling under the tax exemption would be traditional models made in 2008 and beyond that are certified by the Environmental Protection Agency and achieve a highway fuel economy estimate of 35 miles per gallon or better.
Hybrids and other fuel-efficient cars can typically use between 40 and 50 miles-per-gallon of gas, helping decrease fuel costs for owners of vehicles. However, Skelos noted that hybrids are "more expensive," and it would take more time for their owners to actually see a savings than when buying a traditional car. Skelos suggested that the tax exemption could make up that dollar difference, allowing for hybrid buyers to see an economical savings in a shorter amount of time. This may make fuel-efficient vehicles more enticing for car buyers, which environmental advocates believe will then translate into a major boost for the environment.
"By exempting hybrids and other fuel-efficient vehicles from the state sales tax, this bill makes it easier for New Yorkers to take action in the fight against climate change," said Marcia Bystryn, executive director of the New York League of Conservation Voters.
With the proposed tax exemption, Skelos said buyers of hybrid vehicles would save about 8 percent. Savings could translate to upwards of about $2,500 for what the representatives called "top-end" fuel-efficient vehicles like the Ford Escape.
This particular tax break is better than those available on a federal level because it is more direct, said Bill Cook, a supporting lobbyist representing the Citizens Campaign for the Environment. According to the EPA Web site, buyers of hybrids purchased or placed into service beginning in 2006 could be eligible for a federal income tax credit of up to $3,400.
However, the credit is based on make, model and date of purchase. Furthermore, when a given manufacturer has sold more than 60,000 eligible vehicles, the credit amount begins to phase out.
With this state sales tax exemption, buyers would see their savings immediately, and Cook said he would purchase one, while hoping that people with similar financial situations would follow suit. Cook emphasized that a major thrust of the bill is to introduce fuel-efficient vehicles to people who would otherwise steer clear of them because of price rather than provide tax relief to the rich.
"Understanding the difference to tailor the legislation to affect working class Long Islanders and working class New Yorkers, that's the kind of legislation I want," Cook said.
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