🌆 Final Congestion Toll For NYC Taxis & FHVs *Almost* Decided, Taxi Exemption Still On Table
Toll structure & exemptions for Central Business District Tolling Program ("Congestion Pricing") almost final, with push to have yellow cabs fully exempt ahead of last vote
MTA voted to approve the Traffic Mobility Review Board’s congestion tolling recommendations
Currents proposals call for (additional) per trip congestion surcharge of $2.50 for Uber/Lyft trips and $1.25 for taxi & other non-app FHV trips
MTA will hold last public hearings in coming months before finalizing and implementing congestion tolling in May/June 2024
Mayor’s Office and MTA Board Member would like full CBD congestion toll exemption for yellow cabs, ahead of final vote
Today, the Metropolitan Transportation Authority’s (MTA) Traffic Mobility Review Board (TMRB), a six (now five) member panel, which includes current and former MTA Board members, made its final congestion tolling recommendations to the MTA Board.
In a 9-to-1 vote, the MTA Board approved the TMRB’s proposals, with the last public hearings to take place over the next few months, before a final approval vote and implementation by the Spring / Summer of next year (2024).
Our Central Business District Tolling Program ("Congestion Pricing") coverage is focused on the City’s for-hire transportation industry.
NYC TLC Industry Specifics
While many different scenarios were presented over the last several months, the TMRB’s final recommendations for the NYC for-hire transportation industry can be simply summarized as follows:
⚫🟣 $2.50 additional surcharge per HV trip: To be paid by passenger (per trip) when they use “high volume (HV)” services (Uber, Lyft)
🚕🟢 $1.25 additional surcharge per taxi / non-HV trip: To be paid by passenger (per trip) for yellow cab, green taxi, non-HV black car, livery and luxuy limo sectors
♿🚕 Full exemption from additional congestion surcharges for wheelchair accessible vehicles (WAVs) and TLC-licensed commuter vans: WAVs will not be subject to additional congestion surcharges
As we’ve covered, current congestion surcharges for yellow cabs and other NYC for-hire services are not changing. This is why we often reference the new congestion tolls to enter Manhattan’s Central Business District (CBD) below 60th St. as an additional congestion surcharge.
We also wanted to note, we’re not sure if the above surcharges apply to non-NYC TLC-plated for-hire vehicles (i.e., New Jersey OL plates, Newark taxi medallion cabs).
Full Exemption Push For Yellow Cabs
In what appears to be a more vocalized push for a full exemption to additional congestion surcharges for the yellow taxi medallion sector: Mayor Eric Adams, Deputy Mayor of Operations Meera Joshi (previously TLC Chair) and MTA Board Member Midori Valdivia (previously a TLC Deputy Commissioner), are asking for a full exemption for the yellow cab sector.
In a press conference after the MTA Board meeting and vote today, MTA Chair & CEO Janno Lieber seemed open to the idea of a yellow cab exemption, but cautioned that changing any part of the proposal may trigger other revisions to the TMRB recommendations.
Hearing & Other Highlights
To make it easier for our readers, we’ve pieced together some brief highlights from not only today’s MTA Board meeting , but from a Mayor’s Office press briefing yesterday, highlighting comments that ask for a taxi medallion sector CBD congestion toll exemption.
“We’re really focusing on our two yellows, school buses and taxi[s].”
- NYC Mayor Eric Adams (highlighted in video above)
“For the yellow taxis, we are asking for a full exemption.”
- NYC Deputy Mayor Meera Joshi (highlighted in video above)
“There is a case to be made for a deeply narrow exemption for taxis.”
- Midori Valdivia, MTA Board Member (highlighted in video above)
“[Mayor Adam’s] has made a pitch about fully exempting yellow cabs based upon the condition of the industry, which is not about congestion, it’s about this other factor…one which we’re all very sympathetic to, but the TMRB was charged with dealing with congestion…we’re going to continue to look at the yellow cab issue…it’s a really complex calculus if you change anything.”
- Janno Lieber, MTA Chair & CEO (highlighted in video above)
It’ll be interesting to see if the yellow cab sector does get a full exemption to any additional congestion surcharge. If non-WAV taxis are fully exempt from new NYC congestion tolling, it will be a major win, after a string of recent setbacks, for the taxi medallion industry.
Medallion valuations might react positively and we would expect Uber to continue its push to sign-up more yellow cabs. If a congestion exemption is granted, it will give taxis a meaningful built-in price advantage vs. other FHVs (i.e., yellow cabs do not pay sales tax plus taxis would pay no additional congestion surcharge, if fully exempt).
Click here or on image for a copy of full TMRB Report
As always, let us know your thoughts in the comments section below or by emailing us at info@automarketplace.com.
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Uber and Lyft passengers and all drivers going into the CBD are basically subsidizing subway turnstile jumpers and bus fare evaders. Nice job, MTA. Get your own house in order first.
I have a WAV vehicle for Uber/Lyft. This means I am exempt from told I below 60th?