Electronic tolling devices installed below 60th Street in Manhattan will be introduced after December 31 2020. The scheme could raise up to $US 1bn per year for MTA with The New York Post reporting that 80% of congestion revenue could go to the New York City Subway and the remaining 20% to Metro-North and Long Island Rail Road commuter networks.
The state budget also includes a Progressive Mansion Tax, which aims to raise $US 365m from high-end property transfers, and will be used to support up to $US 5bn in financing for Metropolitan Transit Authority (MTA) projects. The state has also eliminated an Internet Tax Advantage, a sales tax loophole on internet retail businesses, which could raise a further $US 320m for MTA.
A plan to introduce congestion charging in New York by previous mayor Mr Michael Bloomberg failed in 2008. However, public opinion of the measure has shifted in recent years, with a recent poll indicating that 52% of registered voters in New York state support the measure, and 39% oppose.
For more on MTA's plans for improving subway and commuter network performance, see the January issue of IRJ p40, or click here.
