County Implements $3 Gas Sales Tax Cap

Gasoline Sales Tax Cap Effective June 2026 Until March 2027

Rockland County government leaders have approved a measure to ease the burden of rising fuel costs by capping the amount of sales tax collected on gasoline.

According to AAA, the average price of gasoline in Rockland County is approaching $4 per gallon. Under the measure, the County’s 4% sales tax on gasoline will be applied only to the first $3 per gallon, rather than the full retail price.

“This is no windfall, but we are doing what we can to help families,” County Executive 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.”

Adopted by the County Legislature and to be signed by County Executive Ed Day, the cap will be in effect from June 1, 2026, through March 1, 2027. The cap applies only to the County’s portion of the sales tax. New York State’s per-gallon taxes, including the state excise tax and the Metropolitan Commuter Transportation District (MCTD) assessment, remain unchanged.

The legislation was sponsored by County Legislator Beth Davidson, who pointed to broader economic pressures driving the need for action.

“With families already facing higher costs for groceries, health care, and home energy, I’m grateful the legislature stepped up proactively to bring our constituents some relief at the gas pump,” Legislator Davidson said. “Gas prices were already on the rise, and as oil prices soar due to the conflict in the Middle East, they’ll only continue to go up. I want to thank our chair, Jay Hood, for setting this sales tax cap in motion in time for the summer travel season.”

County government took similar action in April 2022, capping sales tax as gas prices soared and the economy was still in post-pandemic economic recovery.

Like then, Legislature Chairman Jay Hood Jr. said, today’s financial strain on residents war ranted action by county government.

“The rising cost of essentials – food, utilities, and now gasoline – is hitting families hard,” Hood said. “By capping the sales tax once prices exceed $3 per gallon, we are putting some money back into residents’ pockets. This is about helping people get to work, take care of their families, and manage everyday life, especially as we head into the summer travel season.”

While the measure will modestly lower the tax burden, officials noted that overall gasoline prices will continue to fluctuate based on market conditions, including the impacts of the war in Iran and seasonal driving demands.

Budget & Finance Committee Chairman Itamar Yeger said, “We can’t control global prices or events, but we can control how much we collect in taxes,” Yeger said. “This cap is a commonsense way to ease some of the financial strain residents are experiencing.”