What's happening
This bill imposes a daily $5 licensing fee on ride-hail drivers and companies in New York City, with revenue going to the MTA.
Why it matters
Makes ride-hail driving in NYC more expensive for both drivers and companies, potentially reducing the number of available drivers. this could affect ride availability, wait times, and pricing for customers, especially during peak hours.
Specifically prohibits passing the new fee on to passengers. , meaning ride-hail companies and drivers must absorb the cost, which may impact driver earnings, company profit margins, or incentives for drivers.
Directs all revenue from these fees to the Metropolitan Transportation Authority (MTA) finance fund. , potentially providing a new, dedicated funding stream for public transit infrastructure and operations in NYC.
Imposes significant penalties (up to $1,000 per violation) for companies that fail to collect or remit the fees. , increasing compliance pressure and administrative responsibilities for ride-hail platforms operating in the city.
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Who cares
New York City TNC drivers
Drivers would owe $5 for each ride-hailing network they access to solicit trips during a 24-hour period and could not pass that fee on to passengers.
Transportation network companies
Networks would also owe a $5 daily licensing fee when accessed by a driver, and companies would face penalties of up to $1,000 per violation for failing to collect or remit licensing fees.
Metropolitan Transportation Authority
Its finance fund would receive the licensing fees through quarterly remittances from transportation network companies.
New York Attorney General
The office would bring civil actions to recover penalties for companies’ failures to collect or remit the fees.
Headline styles
Daily Fee for Rideshare Drivers
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Print number 4989a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
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.
Daily Fee for Ride-Share Drivers
In Assembly Committee · Ways And Means · Sponsor Robert C. Carroll
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4989--A
2019-2020 Regular Sessions
IN SENATE
April 3, 2019
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to establishing a daily licensing fee on transportation network company drivers in a city with a population of one million or more
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1292 of the tax law, as added by section 18 of part AAA of chapter 59 of the laws of 2017, is amended to read as follows:
§ 1292. Imposition. (a) There is hereby imposed on every TNC a state assessment fee of 4% of the gross trip fare of every TNC prearranged trip provided by such TNC that originates anywhere in the state outside the city and terminates anywhere in this state.
(b)(1)(i) Any TNC driver authorized to drive in the city shall pay a per day licensing fee for each TNC digital network, as defined by subdivision two of section sixteen hundred ninety-one of the vehicle and traffic law, that such TNC driver accesses for purposes of soliciting any prearranged trips which shall be five dollars per day per TNC digital network accessed and shall be valid for a twenty-four hour period, which shall begin when a TNC digital network is accessed for purposes of soliciting any prearranged trips. In no case shall the licensing fee imposed by this subdivision be passed along to passengers.
(ii) Any TNC digital network accessed by a TNC driver authorized to drive in the city shall pay a per day licensing fee which shall be five dollars per day and shall be valid for a twenty-four hour period, which shall begin when the TNC digital network is accessed by the driver for the purposes of soliciting prearranged trips.
(2) The licensing fee collected pursuant to this subdivision shall be remitted to the metropolitan transportation authority finance fund
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01998-05-9
S. 4989--A 2
established by section twelve hundred seventy-h of the public authorities law, by a TNC on a quarterly basis.
(3) Any TNC who fails to collect and/or remit the licensing fee pursuant to this subdivision shall be liable for a civil penalty of not more than one thousand dollars for each violation, which shall be recovered in a civil action brought by the attorney general.
§ 2. Section 1298 of the tax law, as added by section 18 of part AAA of chapter 59 of the laws of 2017, is amended to read as follows:
§ 1298. Deposit and disposition of revenue. (a) All taxes, fees, interest and penalties collected or received by the commissioner under this article shall be deposited and disposed of pursuant to the provisions of section one hundred seventy-one-a of this chapter.
(b) Notwithstanding subdivision (a) of this section, the licensing fees collected pursuant to subdivision (b) of section twelve hundred ninety-two of this article shall be remitted to the metropolitan transportation authority finance fund established by section twelve hundred seventy-h of the public authorities law.
§ 3. This act shall take effect on the thirtieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establish- ing a daily licensing fee on transportation network company drivers in a city with a population of one million or more
Purpose or general idea of bill
To amend section 1292 of the tax law, by adding section 18 of part AAA of chapter 59 of the laws of 2019.
Summary of provisions
Section 1 of the bill is amended to add subdivision (b)(1). Part (i) states any TNC driver authorized to drive in the city shall pay a per day licensing fee for each TNC digital network, as defined by subdivi- sion two of section sixteen hundred ninety-one of the vehicle and traf- fic law, that such TNC driver accesses for purposes of soliciting any prearranged trips. Such licensing fee shall be five dollars per day per TNC digital network accessed, and shall be valid for a twenty-four hour period, which shall begin when a TNC digital network is accessed for purposes of soliciting any prearranged trips. (ii) A Five dollar fee shall also be placed on the TNC digital network with which the driver is accessing. In no case shall the licensing fee imposed by this subdivi- sion be passed along to passengers. (2) The licensing fee collected pursuant to this subdivision shall be remitted to the metropolitan transportation authority finance fund Established by section twelve hundred seventy-h of the public authorities law, by a TNC on a quarterly basis. (3) Any TNC who fails to collect and/or remit the licensing fee pursuant to this subdivision shall be liable for a civil penalty of not more than one thousand dollars for e ach violation, which shall be recovered in a civil action brought by the attorney general.
Section 2 of the bill is amended by adding subsection (b), which reads as follows: Notwithstanding subdivision (a) of this section, the fees collected pursuant to subdivision (b) of section twelve hundred ninety- two of this article shall be deposited into the metropolitan transporta- tion authority finance fund established by section twelve hundred seven- ty-h of public authorities law.
Section 3 sets the effective date.
Justification
The streets of New York City are facing an increasingly alarming congestion problem. One of the factors contributing to this problem is the amount of for-hire vehicles on the road. Drivers who work for trans- portation network companies often work for more than one in order to increase their profits for a day's work, meaning that some drivers use multiple apps such as Uber, Lyft, Juno, etc. This bill would impose a five dollar fee on a driver each day per digital network accessed. The revenue collected from this fee would be remitted to the metropolitan transportation authority finance fund, and would be used for improve- ments to the city's public transportation system.
Prior legislative history
A.10669 of 2017-18
Fiscal implications
To be determined.
Effective date
This act shall take effect on the thirtieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.