Tag Archives: congestion tax

People Who Live Or Work In New York City Will Cheer This

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On Wednesday, The New York Post reported that the much-hated congestion toll in New York City will be going away. The Department of Transportation (DOT) under President Trump has pulled the previous approval of the toll.

The article reports:

New York City’s spectacularly unpopular congestion pricing scheme is on death row as the Trump administration announced Wednesday it is pulling its approval of the toll — slamming it as “backwards and unfair” — in a major blow to Gov. Kathy Hochul, The Post has learned.

The US Department of Transportation’s Federal Highway Administration terminated the approval of the controversial program, according to a letter Transportation Secretary Sean Duffy sent to Hochul on Wednesday afternoon.

“New York State’s congestion pricing plan is a slap in the face to working class Americans and small business owners,” said Duffy, noting that commuters entering NYC have already financed the construction and improvement of city roadways through their taxes.

“But now the toll program leaves drivers without any free highway alternative, and instead, takes more money from working people to pay for a transit system and not highways. It’s backwards and unfair,” he said, blasting the program as harmful to small businesses in the Big Apple that depend on customers from New Jersey and Connecticut.

I have a nephew (who has since moved to North Carolina) that worked in New York City in the motion picture industry. The toll would have resulted in more than $100 a week in commuting expenses. There were times when he needed to bring his truck into the City for his job, and the extra expense would be a problem. The people paying this toll are not the people who can afford it–they are the working people who are afraid to ride the subways because of safety issues. During the 1960’s, I rode the subway every day when I commuted to school, but I wouldn’t want to ride it now. This tax needed to go away, and I applaud Secretary Duffy for ending it. Also, some serious effort needs to be made to clean up the subways and make them safer.

Somehow Taxes, Once In Place, Never Seem To Go Down

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Remember when New York State Governor Kathy Hochul put the congestion tax in place in New York City after the election so as not to lose Democrat votes? Remember when she told you how much money she was saving you because she decided that the tax should be $9 instead of $15? (article here) Well, don’t be too grateful all at once, because changes are coming.

On Wednesday, The New York Post reported:

The new $9 toll to drive into Midtown Manhattan could soar another 25% — to $11.25 — on “gridlock alert days’’ starting next year, The Post has learned.

The MTA’s right to jack up the already hotly controversial commuter tax was listed in a footnote in the revised congestion pricing plan filed with the state’s rule-making publication, the New York State Register.

“If whacking hardworking Jersey and New York families with a new, $9 a day Congestion Tax wasn’t enough, the MTA is now pouring extra salt on the wound with a 25 percent extra Uber-style surge pricing tax on so-called ‘Gridlock Alert Days’ — whenever they want,” seethed Dem Rep. Josh Gottheimer, who represents northern New Jersey communities that border the George Washington Bridge into Manhattan.

“It’s a huge insult to our families trying to make ends meet,’’ said Gottheimer, who is running to become Garden State governor next year.

When you give a mouse a cookie…

Now That The Election Is Over…

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On Thursday, The New York Post reported that New York State Governor Kathy Hochul is restarting the congestion pricing plan. The cost of entering midtown Manhattan was originally set at $15, but the Governor has magnanimously reduced it to $9. She did wait until after the election so that voters wouldn’t be influenced by her adding the tax.

The article reports:

Hochul had abruptly paused the program just before it was set to go into effect in June with a base rate of $15 — and then relaunched with with the lower fee just before President-elect Donald Trump’s administration had an opportunity to block it.

Critics argue the first-in-the-nation toll — which was first approved by state lawmakers and then-Gov. Andrew Cuomo in 2019 — is just a cash grab for the MTA that’ll saddle New York City drivers with yet another fee.

The article includes the details:

When does congestion pricing start?

Cars will be tolled beginning at midnight on Jan. 5, Hochul said.

How much will drivers be charged?

Standard passenger vehicles using an E-ZPass will be charged $9 per day for entering the tolling zone during daytime hours, defined as 5 a.m. to 9 p.m.

That base amount is set to increase to $12 in 2028.

Other types of vehicles, like motorcycles and trucks, pay at different rates as follows:

    • Motorcycles: $4.50
    • Small trucks and non-commuter buses: $14.40
    • Large trucks and tourism buses: $21.60
    • Taxi and Black Car Drivers: $0.75 per ride
    • Uber, Lyft and other rideshare drivers: $1.50 per ride

The toll is reduced by 75% during overnight hours, between 9 p.m. to 5 a.m., to around $2.25.

Drivers without an E-ZPass will will receive a bill via mail and pay an inflated toll amount, though it wasn’t immediately clear how much.

Where is the toll zone?

The toll zone encompasses all areas below 60th Street – effectively all of Manhattan south of Central Park.

The article concludes:

Currently, the Biden administration is on board with the congestion pricing program. A spokesperson for the Federal Highway Administration confirmed that it is working to sign off on Hochul’s revised plan and get the toll up and running by Jan. 5.

The incoming Trump administration will almost definitely feel differently, with the president-elect telling The Post that he considered the toll the “most regressive tax known to womankind.”

Hochul has previously said she believes the toll can survive court challenges, even at its reduced $9 base rate.

This is one more reason tourists might want to stay out of New York City.