Gov. Andrew Cuomo is considering an extension of an energy tax that would negatively impact the bottom line of New York's businesses and consumers.
His budget proposal contains language that would extend the utility surcharge, also known as 18-a. This 2 percent fee, adopted in 2009, is set to sunset this year.
Extending this fee would cost the state's energy consumers $1.8 billion over the next four years.
A recent report by the Public Policy Institute of New York found that a quarter of every dollar spent on energy in New York goes to state and local taxes and that 18-a contributes to the state's high energy costs.
Meanwhile, many consumers — especially lower-income households and senior citizens — struggle to afford the energy they need, especially in a bad economy.
For some, energy costs can account for nearly a quarter of their income, making additional taxes or fees especially onerous.
High taxes on energy also make New York a more difficult place to do business. Reducing the cost of doing business is widely recognized as a key component to growing the state's economy and creating more private-sector jobs. We have heard from many concerned about the added operational costs; for some major upstate manufacturers, this extension will cost $1 million or more per year.
With consumers and businesses still feeling the impact of the economic downturn, our elected officials need to provide relief, not burdensome mandates that adversely impact personal finances and economic growth.
The state's leaders need to do the right thing by keeping their promise and rejecting the extension of this tax.
Heather Briccetti,
president, The Business Council of New York State , Inc.
Albany