NY LEGISLATORS SHOOT DOWN PROPOSAL TO TAX FUEL OIL

NY LEGISLATORS SHOOT DOWN PROPOSAL TO TAX FUEL OIL

Rank and file members of the State Legislature shot down the proposal to eliminate the tax exemption on home heating oil almost as soon as it was proposed, defying Gov. Mario Cuomo and the legislative leadership.

The proposal would have ended heating oil's exemption from the 2.75 percent petroleum gross receipts tax and the state's 4 percent sales tax. City and county governments are free to impose their own sales taxes.There was no support for the proposal in either house of the Legislature. Members on both sides of the aisle were adamant that the tax was going nowhere.

It appears that aviation fuel's exemption from the gross receipts tax will also be continued.

Putting the taxes on heating oil would have filled a $50 million hole in an overdue budget that is out of balance by estimates ranging from $2 billion to as much as $4 billion.

Attention is now shifting to the petroleum gross receipts tax, levied on gasoline, residual fuel oil, ship's bunker fuel, diesel fuel, lubricating oil, and other products.