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New York City’s Congestion Pricing tax.

Cities are getting involved in many initiatives to promote sustainable mobility in city centers, or at least to control and to reduce the massive use of private vehicles for daily commutes.

 

The New York City’s Congestion Pricing tax.

New York City has chosen the Congestion Pricing tax which consists of a toll all vehicles traveling below 60th Street will have to pay. The money obtained from the tax will be used to improve the existing subway and to cover other regional transport needs.

This initiative promotes sustainable mobility in two ways. On one hand, public transport will be improved with the funds obtained from the tax, and this will make people see it as an attractive alternative, while, on the other hand, the tax can be also seen as a way to disincentivize people from using their private vehicles to get to the city center or to commute. It is expected that this initiative will encourage people to choose alternative forms of transport such as public transport or bicycles.

This increase in the use of alternative forms of transport, as well as the increase in investment in infrastructure, could be the beginning of a virtuous circle that will return the NYC transport system to the position that it deserves. At the same time, the improvement in the transport service allows people with lower incomes and disadvantaged citizens to have better access to the jobs on offer, in line with the ideas we have developed in the first article in this newsletter. So it can be concluded that public transport reduces inequality.

To whom applies this tax?

The Congestion Pricing tax applies to transportation in vehicles that carry people for-hire, including:

  • vehicles commonly known as taxis,
  • vehicles commonly known as “green cabs,”
  • limousines,
  • black cars,
  • livery vehicles (including vehicles commonly known as community cars),
  • rideshare/transportation network company vehicles, and
  • pool vehicles. (For more information on pool vehicles.

 

The surcharge does not apply to the following:

  • transportation provided in connection with funerals;
  • transportation provided by a bus;
  • transportation provided by, or pursuant to a contract with, school districts;
  • transportation administered by or on behalf of the Metropolitan Transportation Authority; or
  • transportation by ambulance or ambulette.

23 Aug, 2019 I Category: TOPICAL I No comments.

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