Mounting fuel prices have pushed several New York counties to seek ways to ease the resulting cost burden for residents. In an effort to minimize already high cost pressures on local families, five counties have elected to change their method of calculation for sales and use tax on motor fuel, highway diesel motor fuel, and B20 biodiesel sold as qualified fuel. These counties will be temporarily moving from a percentage-based method of calculation to a fixed cents-per-gallon method to help control the tax impacts of rising fuel costs. The switch to a flat rate tax will prevent automatic tax increases due to escalating fuel prices.
Which counties will be making the switch?
Chemung County, Dutchess County, Onondaga County, Rockland County, and Ulster County have elected to move temporarily to a cents-per-gallon method from a percentage rate method.
New Rates for Motor Fuel and Diesel Motor Fuel
The cents-per-gallon rates for motor fuel and diesel motor fuel vary by county as follows:
Chemung County: 12 cents-per-gallon
Dutchess County: 11 cents-per-gallon
Onondaga County: 16 cents-per-gallon
Rockland County: 12 cents-per-gallon
Ulster County: 12 cents-per-gallon
New Rates for B20 Biodiesel
The cents-per-gallon rates for B20 Biodiesel vary by county as follows:
Chemung County: 10 cents-per-gallon
Dutchess County: 9 cents-per-gallon
Onondaga County: 13 cents-per-gallon
Rockland County: 10 cents-per-gallon
Ulster County: 10 cents-per-gallon
When will the new rates become effective?
For all five counties, the change will be effective starting June 1, 2026.
When will the new rates expire?
The new temporary rates expire at different times based on the county.
For Chemung County, the rate will expire after November 30, 2026.
For Dutchess County, the rate will expire after November 30, 2026.
For Onondaga County, the rate will expire after August 31, 2026.
For Rockland County, the rate will expire after February 28, 2027.
For Ulster County, the rate will expire after August 31, 2026.
Important to Note: These changes impact only local county sales tax, not New York State sales and use and tax.
Next Steps for Business Owners
If you own a gas station or are in the business of selling gas, diesel, or B20 biodiesel in any of these five counties, we recommend consulting with your RBT CPAs’ accountant to help you navigate these upcoming changes. RBT CPAs has been serving businesses and organizations throughout the Hudson Valley and beyond since 1969. Our experienced professionals are here to support all of your business’s accounting, tax, audit, and advisory needs. Give us a call today and find out how we can be Remarkably Better Together.