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The Inevitable Proposal: Commuter Tax

November
24

Nine years ago, the state abolished the New York City commuter tax.

But for months, ever since the economy went south and the Metropolitan Transportation Authority announced its $1.2 billion budget gap, we’ve been predicting that the commuter tax would come back on the table.

And now it has. Or will.

Today, the city’s comptroller, William C. Thompson Jr., is going to formally submit a plan calling for the revival of the tax and for an increase in registration fees for all cars in the city and the 12-county region served by the MTA. Thompson said if the new taxes and fees go through, the MTA will reap $2 billion a year in revenue.

The old commuter tax amounted to .45 percent…so if you earned $100,000 and commuted to a city job you paid $450 in extra taxes. A few Westchester County legislators have already expressed their opposition to the commuter tax, but their protests may get swept aside by the tidal wave of the bad economy.

Thompson is also proposing that the present $30 car registration fee, which is paid every two years, be changed to $100 annually for cars weighing up to 2,300 pounds. After that, it’s nine cents extra for every pound. So if you’ve got a heavy SUV, here’s another excuse to get rid of it.

These ideas are in addition to raising transit fares and tolls by 23 percent.

So add it up…the recession is going to hurt in many ways. This is just the transportation part of the misery. Even those who are lucky enough to keep their jobs, will feel the pain…it’s like getting pelted by a rain of nickels and dimes.

This entry was posted on Monday, November 24th, 2008 at 12:25 pm by Phil Reisman.
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One Response to “The Inevitable Proposal: Commuter Tax”

  1. Irene LiPuma

    What was the upshot of Wednesday’s vote on the raises for Westchester County’s commishes?

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About the author
Phil ReismanPhil Reisman is a veteran journalist and native of Westchester County. He began his career in 1977 as the head copy boy of a startup New York City newspaper that quickly went belly up. Reisman was not to blame for the newspaper's failure, or so he claims.
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