AAA Calls for Gas Price Relief
Supports Suspension of State Sales Tax on Gasoline

BUFFALO, NY, May 5, 2008 --AAA Western and Central New York recently announced support of a state legislative proposal to suspend the state sales tax on gasoline and to authorize local governments to do the same to bring some relief to motorists from spiraling gas prices.

“The burden on motorists in the form of taxes and fees is extremely heavy in New York State,” said Tom Chestnut, President and CEO of AAA Western and Central New York. “Relief would be welcomed by motorists, help increase tourism and benefit the Upstate New York economy.”

The combined federal and state taxes on gasoline sold in New York State total more than 40 cents per gallon before the addition of sales taxes. New York is one of only eight states to subject gasoline to sales tax at all, thereby adding anywhere from 15 to 25 cents per gallon to the price, depending on pump price. The state calculates the 4% sales tax after the addition of the state business petroleum tax, state excise tax and federal excise tax, thus motorists are paying “taxes on taxes.”

“Additionally, gasoline sales taxes are deposited into the state’s general fund, therefore repeal of the sales tax would not adversely affect the state’s Dedicated Highway and Bridge Trust Fund for highways, roads, and bridges,” concluded Chestnut.

As Upstate New York’s largest motoring and travel organization, AAA provides its 880,000 members with travel, insurance, financial, and automotive-related services. Since its founding in 1900, AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited at www.AAA.com.

Contact:
Shaun Seufert (716) 929-3600
Diana R. Dibble (315) 453-5904
Wally Smith (716) 626-3225