Senator Kemp Hannon (R-6th S.D.) today urged an end to government "profiteering" on high gas prices, calling for a cap on the sales tax to provide immediate price relief to motorists, and proposed to spend an already accumulated gas tax windfall to help seniors stay warm this winter.

"The unexpected tax windfall generated by soaring gas prices doesn't belong to the government, it belongs to the people," said Senator Hannon. "We must act now to return this windfall to the people who need it most, and take steps to provide relief for motorists so that the state doesn't profit on their hardship."

Senator Hannon said that he will propose legislation to roll back the gas tax and replace it with a fixed state-local levy, providing motorists immediate savings up to eight to 10 cents per gallon on fuel purchased at more than $2 per gallon. Unlike the existing levy, the new gas tax would not rise as prices increase, thereby eliminating any future windfall to state and local governments.

"Government should not be profiteering from the rise in gas prices," Senator Hannon said. "Instead, state government must do all we can to limit the impact on consumers' wallets."

Senator Hannon's legislation also creates a new "Senior Heat" program, which will provide direct, one-time, rebate checks of $100 or more to assist at least 640,000 New York seniors eligible for the Enhanced STAR property tax program in meeting their increased energy bills this winter. Enhanced STAR is available to seniors 65 years and older who earn under $65,000 per year.

The program is to be funded with revenues from the gas tax windfall, now projected at $42 million, but estimated to grow to $100 million or more by the end of the fiscal year.

"Fixed-income seniors are facing an unimaginable choice this winter between staying warm and meeting life's other necessities," said Senator Hannon. "This program will help avert tragedy, and help hard-pressed seniors stay warm, by directing this unanticipated windfall to those who need it most."

In addition to soaring gas prices, the price for natural gas and heating oil has risen dramatically since last winter. According to NYSERDA, the average fuel oil price rose from $1.76 per gallon one year ago to $2.43 per gallon last week -- a 38 percent increase. New York homeowners consume an average 800 gallons of fuel oil each winter. Natural gas costs are expected to show similar increases.

Rising fuel costs are of increasing concern to New Yorkers. Senator Hannon has already called on Congress to launch a detailed investigation into possible illegal price gouging by oil companies.

In addition, Senator Hannon said the Senate would soon unveil proposals aimed at reducing New York's long-term dependence on foreign oil.