Orange County Joins Neighboring Counties to Push for Gas Sales Tax Cap

Orange County could be the next county in the Hudson Valley to implement a gas sales tax cap. Legislators unanimously approved a resolution on Wednesday to cap the county’s sales tax to $3 per gallon for motor fuel and diesel motor fuel.

Fuel prices across the country have spiked since the war in Iran escalated. Ulster, Dutchess, Putnam, and Rockland counties have all voted to cap their county’s sales tax on gas and diesel at $3 in recent months. The current average gas price in New York state is $4.11, with the national average gas price at $4.05 according to the American Automobile Association (AAA).

Orange County District 16 Legislator Stephen Hunter, who introduced the resolution, says a gas sales tax cap limits the county’s 3.75 percent sales tax on gasoline to $3 per gallon. The measure sends a clear message to residents, he says.

“It’s just basically saying that we’re not going to try to collect a windfall or take [an] extra benefit as a government agency and collect extra tax on this inflated gas price,” said Hunter.

Hunter says gas prices are often an important indicator of how the economy is doing and affecting residents. “People drive around and you see the prices posted outside the gas stations and there’s something about a gas price that psychologically really affects people.”

He said that a sales tax cap can have a small and big impact on the community.

“You think about small businesses, right? That may have a fleet of cars for deliveries, or someone who owns a landscaping business in the summertime who are filling up their machines on the daily basis,” said Hunter. “The impact for your average consumer might be small, but for some it may be large,” said Hunter.

The resolution now heads to a special legislative session for approval on Tuesday, April 28. If approved, the sales tax cap would go into effect on June 1, 2026 and expire on March 1, 2027.

Image: A person sits in a car as a sign showing the gas price at a gas station, Tuesday, March 10, 2026, in New York. (AP Photo/Yuki Iwamura)