What's happening
This bill allows New York City to tax all passenger vehicles, including medallion taxicabs, up to $400 per vehicle annually.
Why it matters
Creates a level playing field. by subjecting medallion taxicabs to the same maximum tax ($400 per vehicle annually) as all other passenger vehicles, eliminating the previous higher cap ($1,000) for taxicabs—this may impact competition between taxis and rideshare vehicles.
Potentially increases city revenue. by allowing New York City to tax a broader class of vehicles (including for-hire vehicles and taxis), which could support transit or infrastructure funding, though the per-vehicle tax is now capped at a lower amount for taxis.
Could affect consumer costs and business operations. since taxi companies and other passenger vehicle operators may pass the cost of this annual tax onto riders through fare increases, or adjust their business models in response.
Signals a policy shift. towards treating all passenger vehicles equally for tax purposes, which may have broader implications for how cities regulate and tax different transportation providers in the future.
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Who cares
Headline styles
Tax NYC Passenger Vehicles
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to cities
- Print number 3628a
- Amend and recommit to finance
- Reported and committed to finance
- Referred to cities
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Tax City Passenger Vehicles
In Assembly Committee · Cities · Sponsor Aravella Simotas
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3628--A
2019-2020 Regular Sessions
IN SENATE
February 11, 2019
Introduced by Sens. RAMOS, KRUEGER -- read twice and ordered printed, and when printed to be committed to the Committee on Cities -reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend chapter 1032 of the laws of 1960, relating to enabling any city of one million or more to impose taxes on certain motor vehicles, and to amend the administrative code of the city of New York, in relation to enabling any city of one million or more to impose taxes on certain motor vehicles
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (b) of subdivision 3 of section 1 of chapter 1032 of the laws of 1960, relating to enabling any city of one million or more to impose taxes on certain motor vehicles, as amended by chapter 241 of the laws of 1989, is amended to read as follows:
(b) On medallion taxicabs[, not in excess of one thousand dollars per vehicle] and on all other motor vehicles of transportation of passengers, not in excess of four hundred dollars per vehicle.
§ 2. Subparagraph (C) of paragraph 2 of subdivision a of section 11-802 of the administrative code of the city of New York, as amended by local law number 60 of the city of New York for the year 1989, is amended to read as follows:
(C) For tax years beginning on and after June first, nineteen hundred ninety and ending on or before May thirty-first, two thousand nineteen, on medallion taxicabs, one thousand dollars for each such vehicle, and on all other motor vehicles for transportation of passengers, four hundred dollars for each such vehicle.
§ 3. Paragraph 2 of subdivision a of section 11-802 of the administrative code of the city of New York is amended by adding a new subparagraph (D) to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01532-03-9
S. 3628--A 2
(D) For tax years beginning on or after June first, two thousand nineteen, on all motor vehicles for transportation of passengers, including medallion taxicabs, four hundred dollars for each such vehicle.
§ 4. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend chapter 1032 of the laws of 1960, relating to enabling any city of one million or more to impose taxes on certain motor vehicles, and to amend the administrative code of the city of New York, in relation to enabling any city of one million or more to impose taxes on certain motor vehicles
Purpose
To make the annual commercial motor vehicle tax rate for medallion taxi- cabs equal to the rate paid by other vehicles that transport passengers in cities of one million or more.
Summary of provisions
Section 1 amends chapter 1032 of 1960 to conform the commercial motor vehicle tax rates for medallion taxicabs and other vehicles for the transportation of passengers in cities of one million or more.
Read the full memo (701 words)
Section 2 amends section 11-802 of the New York City Administrative Code to end the current commercial motor vehicle tax rate for mediation taxi- cabs.
Section 3 adds a new subparagraph D to section 11-802(a) (2) of the New York City Administrative Code to make the commercial motor vehicle tax rate for medallion taxicabs and other vehicles for the transportation of passengers the same, as of June 1, 2019.
Section 4 provides the effective date.
Justification
Medallion taxi cabs currently pay a much higher commercial motor vehicle tax (CMVT) rate in New York City than other vehicles that are permitted to transport passengers for hire. The current annual tax is $1,000 for each taxicab and $400 for each other vehicle for hire. This tax rate was last adjusted in 1990. At the time, the legislature estimated that the tax on taxicabs would equal about twenty cents for each ride, although the tax is borne by the vehicle owner. Since taxicabs now transport about half as many passengers each day as they did in 1989, the cost per ride associated with this tax has doubled. At the same time, other livery vehicles now proliferate on the streets, add to traffic congestion, and cause greater wear and tear on roads than they did when the CMVT was last amended.
The City has budgeted $65 million per year in revenue from the CMVT for each fiscal year through 2023. Since the number of for hire vehicles has more than doubled over the past five year, revenues from this tax now exceed budgeted amounts. Revenues from Street Hail Liveries (SHL's) and taxicabs have already declined as fewer of these vehicles are in service. Based on the number of taxicabs and for-hire vehicles in service on December 31, 2014, the tax assessed against the taxicab and for-hire industries at that time was $36.7 million. Based on the number of licensed vehicles as of December 31, 2017, $55.75 million would be collected, an increase of 52% in three years. The remainder of the revenue from the CMVT is assessed against trucks and other commercial vehicles. The fiscal impact of this proposal would be a loss of taxicab revenue of about $7.5 million per year, based on approximately 12,500 taxicabs currently in service. Revenue generated from the taxicab and for hire industries would nonetheless exceed the revenue collected three years ago by about 33% percent. Therefore, this legislation would have no adverse impact on the proposed City of New York budget plan through 2023.
With the arrival of app-based hailing of for hire vehicles, the market conditions for medallion taxicabs has been significantly altered. The trip revenue for each medallion taxicab has dropped as the costs for operating these taxis has risen since 1990. Far more passengers use for-hire vehicles, including black cars, and there are far more of vehi- cles on the streets of the city, causing wear and tear on the city infrastructure.
In order to create equity among the various for-hire industries, and to ensure that each vehicle using the streets pays a proportionate share of road maintenance, this bill proposes to equalize the commercial vehicle tax rates for all vehicles that transport passengers in New York City at a rate not to exceed the current rate charged to non-taxicab for-hire vehicles.
Prior legislative history
2017-2018: A10924
Fiscal implications
None to the State.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.