Democratic Legislators to Propose Tax Relief at the Pump
Resolution Would Cap County's Sales Tax, Saving Drivers Millions of Dollars This Summer and Beyond

POUGHKEEPSIE, NY — As gasoline prices continue to surge as a consequence of the war in the Middle East, members of the Dutchess County Legislature are putting forward a resolution to cap the County's sales tax on gasoline and highway diesel at $3 per gallon. The proposal would prevent Dutchess County from collecting windfall tax revenue from residents who have seen gas prices rise more than 25% in recent weeks.

Under current law, Dutchess County collects a 3.75% sales tax on every gallon of gasoline and diesel sold at retail stations countywide. As prices at the pump rise, so does the County's tax revenue. The proposed resolution would cap the taxable base at $3.00 per gallon beginning on June 1, meaning that consumers would not pay county sales tax on gas purchases above that threshold.

Chair Yvette Valdés Smith (D-Fishkill) shared, “Many Dutchess residents are at the pump at least once a week throughout the summer driving season, so this cap will provide real and meaningful relief for our working families, small business owners, contractors, and farmers. The Legislature is always looking for ways we can help residents through these challenging economic times, and this resolution will ease the pain through the summer and beyond.”

County Legislator Emma Arnoff (D-LaGrange) stated, “Out-of-control gas prices are crushing constituents who are already struggling with rising electricity costs, rent, and interest rates.

People should not have to sacrifice necessities to pay their bills, so we must do everything we can wherever we can to ease the pain.”

Legislator Eric Alexander (D-Amenia) said, “This resolution is particularly important for our farmers, who are seeing operational costs increase by 25% or more, creating significant financial strain during this critical planting season.”
“I'm proud to be part of a majority that cares about the working people of Dutchess County. We will continue to do whatever we can to improve the lives of our constituents,” said Assistant Majority Leader Kristofer Munn (D-Red Hook).

Majority Leader Barrington Atkins (D-Poughkeepsie) added, “Every day, I speak with residents who are working hard and still falling behind. That is not right. When gas prices go up, it should not result in the government taking more from people’s pockets just because it can. That only adds to the burden families are already carrying. This proposal is about standing with our community and making sure we are doing our part to ease the burden.”

The resolution will be introduced at the April 9 meeting of the Budget & Finance Committee and is expected to take effect June 1, 2026, pending approval.