Since the price of gasoline spiked in the last several months, New York State has reaped a windfall in taxes. Since the sales tax on gas is based on the cost per gallon, when the price suddenly rose to over three dollars a gallon, sales taxes rose commensurately.

However, in a stroke of political genius, the New York State Senate has passed legislation which caps state and local taxes so that only the first $2 per gallon will be taxed. That helps ease the crunch which many New Yorkers have felt lately.

In addition, the extra money which has been collected so far will be used to help many senior citizens pay their winter heating bills, which are predicted to be substantially higher than last year. Under the legislation, seniors who are eligible for the enhanced STAR property tax rebate could receive an additional $200 towards heating fuel. (Seniors are eligible for Enhanced STAR rebates if they are 65 years or older and have an income of less than $64,650.)

This legislation seems like a great idea -- it helps out many of the middle income people who have felt particularly hurt by the latest energy crunch. We hope the State Assembly considers passing companion legislation.

Meg Morgan Norris

Publisher