Assemblyman Tom O’Mara (R,I,C-Big Flats), the ranking Republican member on the Assembly Energy Committee, today reiterated his concern over utility tax hikes, which took effect the beginning of this month.  The tax increase, a 500% increase over the prior utility surcharge, was enacted in this year’s state budget as part of a nearly $8 billion tax-and-fee package pushed by Governor Paterson to shore up the state’s growing budget deficits.     

Assemblyman O’Mara was outspoken in his opposition to this increase and voted against the tax-and-fee increases in this year’s budget.  However, the measures were passed by the Democrat-controlled Assembly and Senate majorities at the request of Governor Paterson.

“During these tough economic times, the last thing Upstate residents and businesses need is higher utility costs,” said O’Mara.   “New Yorkers already pay the highest energy costs in the nation and the utility tax hike will only place additional strains on the budgets of families and businesses at the worst possible time.”    

“Now that this tax increase, about 2%, is showing up on one’s utility bills, the reality of the impact of higher government spending and taxes enacted in this year’s budget is really hitting home,” O’Mara continued. “This is but one example of what my fight in Albany is all about and what Republicans in Albany have been working against.”

O’Mara noted that the $550 million in expected revenue derived from this “18-a utility surcharge” tax hike will be placed in the state’s general fund, a fund controlled by downstate interests and likely to go to programs unrelated to offsetting higher energy costs. 

“Higher taxes to support more and more state spending is not the solution to the state’s fiscal problems and is in fact, the root cause of New York’s economic woes,” remarked O’Mara.  “Unfortunately, the Governor and downstate Democrat Legislative Leaders seem intent on continuing their tax-and-spend policies at the expense of Upstate families and businesses.”