nyc travel tax

Awesome, you're subscribed!

Thanks for subscribing! Look out for your first newsletter in your inbox soon!

The best of New York for free.

Sign up for our email to enjoy New York without spending a thing (as well as some options when you’re feeling flush).

Déjà vu! We already have this email. Try another?

By entering your email address you agree to our Terms of Use and Privacy Policy and consent to receive emails from Time Out about news, events, offers and partner promotions.

• Things to Do
• Food & Drink
• Time Out Market
• Coca-Cola Foodmarks
• Attractions
• Los Angeles

Get us in your inbox

🙌 Awesome, you're subscribed!

Congestion pricing in NYC: everything you need to know, including start date, exemptions and a map

The new guidelines for Manhattan kicks in June 30.

Everyone is talking about the congestion pricing plan that will force drivers to pay $15 every time they enter midtown Manhattan . Although an official start date has yet to be announced, an MTA lawyer recently revealed that officials are likely going to kick things off at the end of June. 

So to ease your worries (or, perhaps, enhance them), we put together this handy little guide trying to dissect everything you need to know about the new congestion pricing in NYC. 

What is the congestion pricing toll?

To put it very simply, once the new plan goes into effect, every time drivers enter a specific area in Manhattan they will be charged a fee.  

When does congestion pricing in NYC start?

Officials originally announced that it would begin June 30, but on June 5, the MTA said it is putting the plan on hold indefinitely, according to NBC New York.

The news outlet said that an official briefed on the plans told them that Governor Kathy Hochul wanted to pause the rollout so more due diligence could be done. The MTA will now come up with a list of projects that could be impacted by not having the congestion pricing funding. The plan was said to bring in about $15 billion for the MTA.

NBC asked Mayor Eric Adams about the delay and he was supportive.

“We have to get it right,” he told them. “We have to make sure it’s not an undue burden on everyday New Yorkers and we have to make sure it’s not going to impact our recovery. If she’s looking at analyzing other ways we can do it, I’m all for it.”

Congestion pricing map: where is the toll zone? 

The affected area concerns Manhattan's central business district below 60th Street. That means that cars entering every single street and avenue south of and including 60th Street will be charged a toll. 

The new cost does not, however, apply to folks entering the FDR Drive, West Side Highway and the Hugh L. Carey Tunnel. That being said, if you exit any of those major roadways to enter a street within the newly designated area, you will be charged (if you take the West Side Highway up to 50th Street, for example, you will not be exempt from the payment). 

What are the congestion pricing hours?

According to the proposed plan, any car entering Manhattan below 60th Street will pay a fee. However, the price will change depending on the hour of the day. Between 5am and 9pm on weekdays, motorists will be charged the full fee.

On weekends, those hours morph to 9am to 9pm. Outside the peak times, the toll will still apply but will likely cost about 75% less than its full price.

How much will drivers be charged?

The New York Post reports that, unless things change last minute, this will be the breakdown for what each vehicle will be charged during” peak hours: 

Passenger vehicles: $15 Small trucks: $24 Large trucks: $36 Motorcycles: $7.50 Taxi drivers: $1.25 per ride Uber, Lyft, other ride-shares: $2.50 per ride

How do you pay the toll?

Drivers with an E-ZPass will automatically be charged a fee upon entering the Central Business District. Those who do not own a pass will be mailed a bill to the address of the registered vehicle. 

Are there any exemptions to the toll?

Yes, there are exemptions to the toll. 

The MTA just opened its application portal for discount and exemption plans for households earning less than $50,000 a year, disabled individuals, emergency vehicles, buses and commuter vans and specialized government vehicles.

On the non-exempt list are employee shuttles and municipal employee private vehicles.

Why is the MTA charging commuters?

Discussions about the congestion toll have been going on for years now. According to the MTA, the program will reduce traffic, travel time and emissions; improve quality of life and “lead to safer streets and cleaner air.”

Even more specifically, the MTA said that the plan will raise $1 billion per year—money that will then be used to upgrade other transport-related infrastructures (from new subways and buses to the extension of the much talked about Second Avenue Subway and signal-related advancements). 

What’s been the reaction to the plan?

Although the amount of traffic that all but defines life in Manhattan is very obvious, a nuance that the new guidelines will likely ameliorate, many people have complained about the possibility of the new fee. People who work for the city—think teachers, first responders and the like—and are not part of the already-announced potential exemptions have raised concerns about not being able to carry out their duties daily if they have to pay to enter the specific zones where their jobs take place. 

The arrival of the new systems seems to be inevitable but here's to hoping that officials will be able to work out kinks and appease a majority of the population before things go into effect.

• Anna Rahmanan

Share the story

An email you’ll actually love

Popular on Time Out

Discover Time Out original video

• Press office
• Investor relations
• Work for Time Out
• Editorial guidelines
• Privacy notice
• Do not sell my information
• Cookie policy
• Accessibility statement
• Terms of use
• Copyright agent
• Modern slavery statement
• Manage cookies
• Claim your listing
• Local Marketing Solutions
• Advertising

Time Out products

• Time Out Worldwide

NYC congestion pricing: How much will it cost drivers, and who could get discounts?

As of now, it is not clear what the base fare will be to enter manhattan south of 61st street, but it could be anywhere from $ 9 to $ 23 per trip, by nbc new york staff and andrew siff • published october 2, 2023 • updated on october 2, 2023 at 7:25 pm, what to know.

• MTA Chairman Janno Lieber said the transit authority is on track to begin tolling drivers coming in to Manhattan below 60th Street in May 2024
• As of now, it is not clear what the base fare to enter Manhattan's central business district will be set at, but it could be anywhere from $9 to $23 per trip
• Those who drive for a living, as well as commuters into Manhattan, say the additional payment is unfair, while those in favor say the plan is necessary to reduce traffic and to fund the MTA

It's one of the biggest points of interest surrounding congestion pricing : How much will drivers have to pay, and who (if anyone) could get discounts?

24/7 New York news stream: Watch NBC 4 free wherever you are

There may finally be an answer soon.

The Traffic Mobility Review Board met Monday evening to decide on the controversial plan set to begin in late Spring 2024. It marks the final time the special panel will meet before announcing recommended toll rates.

The board said they were not looking to set a fixed price for the tolls, but rather presented four different scenarios that could occur. It remains to be seen what the price will be, but the board stated they will likely enact so-called "crossing credits" so that those who already pay at the Lincoln or Holland Tunnel, for example, will not pay the full congestion fee.

It was not clear how much the "crossing credits" would amount to, but it's possible that drivers coming from New Jersey via the tunnels would get a break of around $4-$7 off their congestion toll, the board posited. Drivers from Long Island and Queens using the Queens-Midtown Tunnel could also get the same break, according to the board. Those who come over the George Washington Bridge and go south of 60th Street would see no such discount, however.

Get Tri-state area news and weather forecasts to your inbox. Sign up for NBC New York newsletters.

Another key detail from the meeting: The board mentioned charging double the rate of other automobiles, and full-size trucks would be charged triple. Both measures would be done to help the MTA hit its revenue target.

Overall, it appeared that few (if any) groups would be fully exempt from the toll.

While it is not clear what any of the prices will be, the toll is expected to be somewhere between $9-$23. MTA Chairman Janno Lieber said that the goal is to keep it far below the higher amount.

"People talking about the $23, [the board members] are trying to keep it well lower than that. They’re trying," said Lieber.

He added that one key factor in keeping the toll lower: having the number of exemptions low as well. But everyone from New Jersey residents to small business owners to cabbies have been hoping to win special exceptions and not have to pay the toll. 

NYC congestion pricing: Will some drivers get exemptions? Advisory board weighs in

Staten Island plans to sue MTA over congestion pricing plan after NJ announced lawsuit

NJ to sue Federal Highway Administration over NYC congestion pricing plan, Murphy says

"If you start giving out exemptions willy-nilly, the rest of the world goes up," Lieber said.

The issue of exemptions and whether some people should pay more than others was also addressed at an earlier Traffic Mobility Board hearing in August. Some who drive for a living, such as truck drivers or cab drivers, said that congestion pricing is especially unfair for them.

"Uber and Lyft drivers have been taxed since 2019, and now they're talking about adding a second tax. It's not the drivers who decide to come into the city, it's the passengers," said Andrew Greenblatt, of the Independent Drivers Guild, during the August hearing.

The official pricing recommendations and exemptions will be announced later in October. An independent mobility panel will ultimately decide how much each driver is charged. Scanners along West End Avenue have been in place for weeks.

"The fairest thing is to keep the base toll as low as possible," said Carl Weisbrod, the chair of the review board, who emphasized that exemptions will result in higher fares for everyone else. "As soon as we start giving exemptions here and exemptions there, then people have a claim of saying it’s not fair benefitting X as opposed to Y."

New Jersey Gov. Phil Murphy previously sent a letter to the Traffic Mobility Board asking for drivers from his state to be exempt, arguing they shouldn’t have to pay for the toll to take the Holland and Lincoln tunnels or George Washington Bridge in addition to an extra fee to go into midtown Manhattan. He argued that toll price should count as a credit toward the fee, to ensure they are not having to pay twice.

Lieber previously said Wednesday that the transit authority is on track to begin tolling drivers coming in to Manhattan below 60th Street in May 2024. That fits with the MTA's plan of having congestion pricing begin in spring of next year, which they have maintained has been their target start date.

New Jersey has filed a lawsuit against the federal government in an effort to block congestion pricing. Staten Island has said it plans to sue the MTA over the plan as well.

"If the sidewalks of the city are congested or crowded, does that mean we should have a walking tax to deal with the congestion on the sidewalks," argued Staten Island Borough President Vito Fossella.

The New York City Council also held a hearing on the matter late over the summer, though no new ground was broken on who might get any possible exemptions — such as medical patients or those who live in areas without good public transit options. At the hearing, the City Council said they had received requests to exempt residents in certain areas, while also getting requests specifically not to exempt those same individuals.

Transit President Richard Davey testified at that hearing, saying the revenue generated from the plan will help make NYC's transit system state of the art — which will benefit everyone.

"That is what congestion pricing is going to buy, investment in our transit system. So we’re excited about taking this next step in the approval process," said Davey.

At a rally in support of the plan in August, advocates pointed to the other advantages.

"Buses will run faster, air will be cleaner, our streets will be quieter and calmer. And New Yorkers who rely on driving will spend less time stuck in traffic than ever before," said Elizabeth Adams of Transportation Alternatives.

This article tagged under:

NYC's $15 congestion tax wins initial approval

Revenue would go to update aspects of the subway system.

New York City’s plan to charge motorists driving into Manhattan’s central business district inched forward as a proposed tolling structure received an initial approval from the Metropolitan Transportation Authority.

The MTA’s governing board voted nine to one Wednesday to allow the tolling program to move forward. The agency, which operates the city’s subways, buses and commuter rail trains, is implementing the congestion pricing tolling plan. Passenger cars with an E-ZPass will pay $15 during peak periods, while trucks pay $24 to $36. It’s the first such program in the US.

The initial approval allows the MTA to begin a public comment period on the tolling structure. Officials anticipate congestion pricing will bring in $1 billion annually that the transit agency will borrow against to raise $15 billion for its $51.5 billion multi-year capital budget. That spending plan includes modernizing subway signals, extending the Second Avenue subway to 125th Street and adding escalators and elevators to make the system more accessible for everyone.

Congestion pricing gives the MTA, which already has $47 billion of outstanding debt, a new revenue source to fund necessary infrastructure needs, said Neal Zuckerman, an MTA board member who chairs its finance committee.

“We’re spending 15% of our operating budget servicing that debt,” Zuckerman said. “Congestion pricing is necessary for plugging the gap of the building, the repairing , the fixing we must do.” 

The MTA is eager to get the new toll revenue flowing into its capital budget. It has already delayed a $1.3 billion project to update signals on the A and C subway lines in Brooklyn because its funding relies on congestion pricing revenue. More project delays could come. The anticipated cash from the tolls would account for up 50% of the remaining funding in the MTA’s capital plan.

“We’ve knocked out as many of the projects as we can that did not depend on congestion pricing,” Janno Lieber, the MTA’s chief executive officer, said during Wednesday’s meeting.  “Now we’re coming to the point where we really start to need that money.”   

The goal is for drivers to start paying the toll in May or June, but a New Jersey lawsuit may push out the implementation. Governor Phil Murphy has filed suit to get a court to force the MTA to undergo a longer environmental analysis.   

The MTA can make some changes to the tolling structure. The transit agency will now analyze how to exempt public school buses from the toll after some board members raised concerns. The board also mentioned giving a break to yellow-taxi passengers, although incorporating that type of change could be challenging, Lieber told reporters after the board meeting.

“When you make tweaks to it, it definitely creates diversions, different traffic patterns, which then have to be restudied,” Lieber said. “And in a doomsday scenario, would run afoul of the limits placed by the environmental assessment.”

Related: NYC’s $15 Congestion Pricing Risks Delay From New Jersey Lawsuit

The fee would apply once a day to drivers entering Manhattan south of 60th Street from 5 a.m. to 9 p.m. on weekdays and between 9 a.m. and 9 p.m. on weekends, with tolls 75% lower during the night. There’s a 50% increase for vehicles without an E-ZPass. The proposal includes a credit for drivers entering the district through certain tunnels.

The plan includes potentially boosting the tolls by 25% during so-called gridlock alert days, which is the holiday season and also the United Nations’ General Assembly.

The toll wouldn’t apply to taxi drivers and for-hire vehicles, but instead charge passengers per ride, $1.25 for taxis and $2.50 to those in ride-shares like Uber or Lyft .

The tolling plan calls for a $5 credit to passenger vehicles entering Manhattan through four tunnels: Queens-Midtown connecting Manhattan to Long Island City, the Hugh L. Carey — a bypass to downtown from Brooklyn, and both the Holland and Lincoln which connect to New Jersey. Small trucks would get $12 while large trucks and tour buses would receive $20.

John Samuelsen, Transport Workers Union’s international president and a non-voting MTA board member, has said the MTA needs to add more express bus routes in underserved areas and more frequent local bus service to get more commuters to take public transportation instead of driving. Samuelsen was on the Traffic Mobility Review Board, which recommended the tolling structure. He resigned last week, saying the program doesn’t include sufficient service changes.

“We’re talking about targeted service increases, perhaps in the far reaches of the outer boroughs, that would encourage those who currently drive to get out of their cars and onto public transit,” Samuelsen told reporters after the board meeting.

• Government/Legal
• Infrastructure
• License License
• Facebook Share
• Twitter Share
• Tumblr Share
• Twitch Share
• Flipboard Share
• Instagram Share
• Newsletter Share
• Youtube Share
• Feeds Share

Popular Vehicles

Featured makes, product guides.

• The Best Electric Bikes
• The Best Car Covers
• The Best Portable Air Compressors
• The Best Car GPS Trackers

Choose a Display Name

Please enter a display name

Sign in to post

Please sign in to leave a comment.

• Election 2024
• Entertainment
• Newsletters
• Photography
• Personal Finance
• AP Investigations
• AP Buyline Personal Finance
• AP Buyline Shopping
• Press Releases
• Israel-Hamas War
• Russia-Ukraine War
• Global elections
• Asia Pacific
• Latin America
• Middle East
• Election Results
• Delegate Tracker
• AP & Elections
• Auto Racing
• 2024 Paris Olympic Games
• Movie reviews
• Book reviews
• Personal finance
• Financial Markets
• Business Highlights
• Financial wellness
• Artificial Intelligence
• Social Media

New York governor pushes for tax increase after nixing toll program in Manhattan

FILE - Pedestrians cross Delancey Street as congested traffic from Brooklyn enters Manhattan over the Williamsburg Bridge, March 28, 2019, in New York. New York Gov. Kathy Hochul on Wednesday, June 5, 2024 indefinitely delayed implementation of a plan to charge motorists big tolls to enter the core of Manhattan, just weeks before the nation’s first “congestion pricing” system was set to launch. (AP Photo/Mary Altaffer, File)

• Copy Link copied

ALBANY, N.Y. (AP) — On Wednesday, Gov. Kathy Hochul enraged environmentalists and public transit advocates — but delighted suburban commuters — by putting the brakes on a plan to battle New York City’s traffic by imposing high tolls on Manhattan drivers.

On Thursday, she was scrambling to get support for her proposal to hike a business tax as a way of replacing the $1 billion per year the tolls had been expected to raise for New York’s ailing subway system.

The governor’s behind-the-scenes effort to get legislative approval for the tax hike came a day after she unexpectedly upended the “congestion pricing” toll, a program that was in the works for years and had been scheduled to launch June 30.

The Legislature, which is expected to wrap up its annual legislative session on Friday, would have to approve the tax increase on city businesses, known as a payroll mobility tax.

It did not appear to have much support.

“To tell New Yorkers that you care about the cost of living and then to propose a raise on their taxes, to me, is incomprehensible. It does not make sense,” said Sen. Zellnor Myrie, a Democrat.

Avi Small, a spokesman for Hochul, declined Thursday to provide details on the governor’s proposed tax increase and instead referred a reporter to comments Hochul made a day earlier in a pre-recorded video announcing the indefinite pause of congestion pricing.

“We have set aside funding to backstop the MTA capital plan, and are currently exploring other funding sources,” Hochul said Wednesday, referring to the Metropolitan Transportation Authority, the entity that controls the subway, bus and commuter rail systems that serve the city.

Congestion pricing was signed into law by former Gov. Andrew Cuomo in 2019 after years of advocacy from public transit advocates.

In her pre-recorded statement, the governor said she was blocking the plan because of its financial burden on residents dealing with inflation and high costs of living. She also cited the city’s fragile economic position as it continues to recover from the COVID-19 pandemic.

Drivers entering Manhattan south of 60th Street would have had to pay tolls of around $15, depending on vehicle type, on top of tolls for entering the same area via certain bridges and tunnels.

Sen. Liz Krueger, a Democrat who chairs a legislative finance committee, noted that the proposed business tax would eventually be passed down to workers and said she does not think her chamber would support such a proposal.

“Remember, payroll mobility taxes are actually taxes on the workers. It’s not a corporate tax, it’s a tax on the workers,” said Kruger, adding “I believe the governor did misjudge this.”

The New York City Independent Budget Office said the tolls had been expected to yield $400 million this year and then $1 billion annually. Toll revenues were set to finance $15 billion in capital projects for the Metropolitan Transportation Authority, which runs a vast transportation network in the city and throughout big chunks of the state.

The MTA has already allocated more than $400 million for infrastructure to implement congestion pricing, according to the budget office, and has a contract worth more than $500 million with a private vendor tasked with operating and maintaining the tolling infrastructure.

Before the abrupt reversal, Hochul had been an avid supporter of congestion pricing and had touted the program as recently as two weeks ago. Heavy pushback began to mount as the start date neared, with harsh criticism coming from the city’s suburban commuters.

We've detected unusual activity from your computer network

To continue, please click the box below to let us know you're not a robot.

Why did this happen?

Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy .

For inquiries related to this message please contact our support team and provide the reference ID below.

Fraud and Compliance

What are state tax implications for traveling employees.

Imagine a time when all work happened onsite at a business location within easy driving distance of your home – a simple time, to be sure. Today’s work reality is much more complex with workers in-office, remote, and everywhere in between. With more business travelers getting on the road again , some employees spend more time traveling than in any one office. 

And while you might think that managing travel-related taxes within the U.S. would be relatively straightforward, it turns out state-to-state tax codes are far from united. This creates issues for travelers and businesses alike. 

To comply with complicated state tax regulations, organizations need to enhance their processes and increase their understanding of where travelers are, how long they’ll be gone, and the type of work they’re doing. Not just in the U.S., but globally. 

However, when a company’s process for understanding its travel footprint is inefficient, it can cause inconveniences for business travelers, complexity for travel and finance managers, or bigger business implications like fines. 

How to Reduce Risk and Manage Tax Compliance in a Work-from-Anywhere World

Are employers required to withhold out-of-state taxes.

Whether an employer needs to withhold out-of-state taxes depends on various factors. But if you have business travelers, it’s crucial to know where your company stands.  

The rules vary for withholding income tax on employees who temporarily travel outside of their resident state for work. This requires payroll managers to navigate different filing rules for all states, territories, and hundreds of municipalities. 

For example, more than half of states that have a personal income tax require employers to withhold tax from a nonresident employee’s wages beginning with the first day that employee travels to their state for business. Other states have a threshold that must be reached before income tax is withheld for nonresident employees. 

If your business travelers are wondering, “If I travel for work, where do I pay taxes?” The answer may not be simple. In some cases, employees could also be legally required to file an income tax return in every state they travel to for work — even if just for one day. 

Get the guide: Enhance your compliance and spend management with SAP Concur solutions  

How Do State Taxes Work for Business Travelers? 

If your employees travel out of state – or out of the country – it’s imperative to stay on top of tax compliance for your travelers. 

Remember that tax regulations are subject to change and it’s important to verify the latest rules for the locations where your employees travel for business. 

States That Impose Income Tax on Business Travelers 

The following states impose income tax on the first day nonresidents work in their state, so make sure you’re addressing tax compliance for any employee that travels to these places. 

• Massachusetts 
• Mississippi 
• New Jersey 
• North Carolina 
• Pennsylvania 
• Rhode Island 

And these states impose income tax on nonresidents after a state-specific threshold is reached. The threshold varies by state. 

• California 
• Connecticut 
• New Mexico 
• North Dakota 
• South Carolina 
• West Virginia 

States That Don’t Impose Income Tax on Business Travelers 

The following states do not impose state income tax on business travelers. But again, it’s always important to stay up to date on tax rules, as they’re subject to change. 

• New Hampshire 
• South Dakota 
• Washington 

See: How Hybrid Work Raises Your Tax Risk and Complexity  

How Do You Stay Compliant with Business Travel-Related State Taxes? 

So, how can you ensure that your company complies with state- or country-specific tax requirements for traveling employees? You can start by adopting a fully integrated technology solution into your company’s travel booking workflow. 

Because it comes down to payroll teams to know — and navigate — state tax implications for traveling employees, consider choosing a solution that gives your team a comprehensive view of travel and spending, plus the ability to manage interstate payroll taxes. 

Look for a solution that enables your teams to handle multi-state and cross-border payroll tax compliance. Even better if it can automatically track tax and payroll requirements as the employee travels to different locations. 

For example, an organization using Concur Travel can also connect with an SAP Concur integration that makes it easier for businesses to comply with complex tax regulations .  

To learn more about how you can help your company better navigate tax complexities, download our whitepaper, A Finance Leader’s Guide to Tax Compliance . 

New York governor pushes for tax increase after nixing toll program in Manhattan

New York Gov. Kathy Hochul is trying to raise taxes on businesses in the city to close a big budget gap that emerged after she halted a plan to charge drivers a toll to enter the center of Manhattan

ALBANY, N.Y. -- On Wednesday, Gov. Kathy Hochul enraged environmentalists and public transit advocates — but delighted suburban commuters — by putting the brakes on a plan to battle New York City's traffic by imposing high tolls on Manhattan drivers.

On Thursday, she was scrambling to get support for her proposal to hike a business tax as a way of replacing the $1 billion per year the tolls had been expected to raise for New York's ailing subway system.

The governor's behind-the-scenes effort to get legislative approval for the tax hike came a day after she unexpectedly upended the “congestion pricing” toll, a program that was in the works for years and had been scheduled to launch June 30.

The Legislature, which is expected to wrap up its annual legislative session on Friday, would have to approve the tax increase on city businesses, known as a payroll mobility tax.

It did not appear to have much support.

“To tell New Yorkers that you care about the cost of living and then to propose a raise on their taxes, to me, is incomprehensible. It does not make sense,” said Sen. Zellnor Myrie, a Democrat.

Avi Small, a spokesman for Hochul, declined Thursday to provide details on the governor's proposed tax increase and instead referred a reporter to comments Hochul made a day earlier in a pre-recorded video announcing the indefinite pause of congestion pricing.

"We have set aside funding to backstop the MTA capital plan, and are currently exploring other funding sources," Hochul said Wednesday, referring to the Metropolitan Transportation Authority, the entity that controls the subway, bus and commuter rail systems that serve the city.

Congestion pricing was signed into law by former Gov. Andrew Cuomo in 2019 after years of advocacy from public transit advocates.

In her pre-recorded statement, the governor said she was blocking the plan because of its financial burden on residents dealing with inflation and high costs of living. She also cited the city's fragile economic position as it continues to recover from the COVID-19 pandemic.

Drivers entering Manhattan south of 60th Street would have had to pay tolls of around $15, depending on vehicle type, on top of tolls for entering the same area via certain bridges and tunnels.

Sen. Liz Krueger, a Democrat who chairs a legislative finance committee, noted that the proposed business tax would eventually be passed down to workers and said she does not think her chamber would support such a proposal.

“Remember, payroll mobility taxes are actually taxes on the workers. It's not a corporate tax, it's a tax on the workers,” said Kruger, adding “I believe the governor did misjudge this.”

The New York City Independent Budget Office said the tolls had been expected to yield $400 million this year and then $1 billion annually. Toll revenues were set to finance $15 billion in capital projects for the Metropolitan Transportation Authority, which runs a vast transportation network in the city and throughout big chunks of the state.

The MTA has already allocated more than $400 million for infrastructure to implement congestion pricing, according to the budget office, and has a contract worth more than $500 million with a private vendor tasked with operating and maintaining the tolling infrastructure.

Before the abrupt reversal, Hochul had been an avid supporter of congestion pricing and had touted the program as recently as two weeks ago. Heavy pushback began to mount as the start date neared, with harsh criticism coming from the city's suburban commuters.

Trending Reader Picks

Ex-NJ attorney general testifies Sen. Bob Menendez confronted him twice over a pending criminal case

• Jun 6, 6:16 PM

Mississippi police officer loses job after telling man to 'go back to Mexico'

• Jun 6, 6:12 PM

Records tumble in Southwest US as temperatures soar well into triple digits and 122 in Death Valley

• Jun 6, 9:32 PM

1,900 New Jersey ballots whose envelopes were opened early must be counted, judge rules

• Jun 7, 12:28 PM

Paris Olympics organizers unveil a display of five rings mounted on the Eiffel Tower

• Jun 7, 1:15 AM

ABC News Live

24/7 coverage of breaking news and live events

An official website of the United States government

Here's how you know

Official websites use .gov A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS A lock ( Lock A locked padlock ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

• The Attorney General
• Organizational Chart
• Budget & Performance
• Privacy Program
• Press Releases
• Photo Galleries
• Guidance Documents
• Publications
• Information for Victims in Large Cases
• Justice Manual
• Business and Contracts
• Why Justice ?
• DOJ Vacancies
• Legal Careers at DOJ

Two Partners Of Westchester Accounting Firm Plead Guilty To Tax Fraud Conspiracy

Damian Williams, the United States Attorney for the Southern District of New York, and Thomas M. Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that GEORGE SANOSSIAN and JACK N. SARDIS pled guilty to conspiracy to defraud the IRS, on May 29 and June 5, 2024, respectively, in White Plains federal court.  SANOSSIAN’s sentencing before U.S. District Judge Cathy Seibel is scheduled for September 24, 2024.  SARDIS’s sentencing before U.S. District Judge Nelson S. Román is scheduled for September 26, 2024.   

U.S. Attorney Damian Williams said: “As they admitted in court, the defendants, both certified public accountants, conspired to fraudulently reduce the tax liability of clients of their accounting firm.  This case serves as a reminder to all Americans that they are required to truthfully report their earnings and that criminal penalties could await those who fraudulently deceive the IRS, as George Sanossian and Jack Sardis have learned.  My Office will continue to hold to account those who scheme to impede the lawful functions of the IRS.”   

IRS-CI Special Agent in Charge Thomas M. Fattorusso said: “Schemes to conceal and reduce federal income and payroll tax liability, such as those utilized by Sardis and Sanossian, are unfair to every taxpayer who obeys the law and pays their fair share.  The prosecution of individuals who intentionally conceal income and evade taxes is a key step in the IRS’s enforcement strategy.  These guilty pleas place the defendants a step closer to realizing the consequences of their actions.”

According to the Informations, to which SARDIS and SANOSSIAN pled guilty, and statements made court:

SARDIS and SANOSSIAN were certified public accountants and partners in an accounting firm in Scarsdale, New York, that provided accounting and income and payroll tax services to clients, including nine businesses in the construction industry (the “Clients”).  From in or about 2012 through at least on or about April 15, 2018, SARDIS and SANOSSIAN agreed with Clients to scheme to: (i) fraudulently reduce the income tax liability of the Clients; (ii) conceal wages paid to employees by the Clients and, thereby, fraudulently reduce the Clients’ payroll tax liability; and (iii) conceal personal income of the Clients.  The defendants advised the Clients to participate in a scheme to reduce their federal income and payroll tax liability, pursuant to which the Clients issued checks made payable to a shell company and gave the checks to SARDIS and SANOSSIAN, who then caused the checks to be cashed at a check cashing service and returned the cash, minus a fee, to the Clients.  Some Clients used the cash to pay employees without reporting the cash wages on their IRS Forms 941, thereby evading both their employer contributions to Social Security and Medicare and their obligation to withhold income tax on those wages, which permitted the employees to evade federal and state income tax.  The owners and managers of some Clients took the cash for personal use without reporting the income on their personal federal and state tax returns.  SARDIS and SANOSSIAN caused checks to be cashed in this manner for Clients in a total amount exceeding $2 million.

 *                *                *

SARDIS, 66, of Englewood Cliffs, New Jersey, and SANOSSIAN, 70, of Scarsdale, New York, pled guilty to one count of conspiracy to defraud the IRS, which carries a maximum sentence of five years in prison.  SARDIS and SANOSSIAN have agreed to pay restitution to the IRS and New York State, representing the additional tax due and owing as a result of their conduct, in the total amount of $652,883.60. 

The maximum potential sentence in these cases is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Mr. Williams praised the outstanding investigative work of the IRS-CI in this case.

The case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys Jeffrey C. Coffman and James McMahon are in charge of the prosecution.

Nicholas Biase, Lauren Scarff, Shelby Wratchford (212) 637-2600

Related Content

Damian Williams, the United States Attorney for the Southern District of New York; Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue...

Damian Williams, the United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against JOSEPH EUGENE LEMAY, a/k/a “Gene Lemay,” and...

Damian Williams, the United States Attorney for the Southern District of New York; Stuart M. Goldberg, the Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; James Smith...

Property tax benefits

The City of New York offers benefits that can lower your property tax bill or protect you from rent increases.

Cooperative and Condominium Tax Abatement

Senior citizen homeowners’ exemption (sche), senior citizen rent increase exemption (scrie) for landlords, senior citizen rent increase exemption (scrie) for tenants, school tax relief (star) program, non-profit exemptions, industrial & commercial abatement program (icap), veterans exemptions, disability rent increase exemption (drie) for landlords, disability rent increase exemption (drie) for tenants, disabled homeowners’ exemption (dhe), payment in lieu of taxes agreements (pilot), industrial & commercial incentive program (icip), solar electric generating system (segs) tax abatement, clergy exemption, major capital improvement (mci) abatement, green roof tax abatement, commercial revitalization program (crp), childcare center abatement, commercial expansion program (cep), clean energy systems exemption, domestic and foreign government property tax exemptions, disabled crime victim/good samaritan exemption, 421g (expired on june 30, 2006), division of alternative management program (damp), j-51 tax exemption and abatement for residential rehabilitation or conversion to multiple dwellings, urban development action area project (udaap), looking for other construction and development benefits.

The Department of Housing Preservation and Development (HPD) manages property tax incentives for certain new construction projects, renovations, and the purchase of foreclosed properties. Explore these benefits on the HPD website.

Contact the Department of Finance for assistance.

• Share full article

Advertisement

Supported by

U.S. Tightens Car Mileage Rules, Part of Strategy to Fight Climate Change

The new measure requires automakers to achieve an average of 65 miles per gallon for all the car models they sell by 2031.

By Coral Davenport

The Biden administration on Friday tightened vehicle fuel mileage standards, part of its strategy to transform the American auto market into one that is dominated by electric vehicles that do not emit the pollution that is heating the planet.

The new mileage standards announced by the Transportation Department are among several regulations the administration is using to prod carmakers to produce more electric vehicles. In April, the Environmental Protection Agency issued strict new limits on tailpipe pollution that are designed to ensure that the majority of new passenger cars and light trucks sold in the United States are all-electric or hybrids by 2032, up from 7.6 percent last year.

In addition to the regulations, the 2022 Inflation Reduction Act, championed by Mr. Biden, provides tax credits for buyers of new and used electric vehicles, along with incentives for charging stations and grants and loans for manufacturers.

The push for more E.V.s comes as the world’s leading climate experts say that retiring the internal combustion engine is critical to staving off the most deadly effects of global warming.

But Mr. Biden’s efforts have become a meaty target for former President Donald J. Trump and other Republicans who frame them as the federal government taking away consumer choice. The oil and gas industry is spending millions on advertising that falsely calls Mr. Biden’s policies a ban on conventional cars.

Mr. Trump has made attacks on electric vehicles a mainstay of his campaign to retake the White House, falsely saying they do not work, cannot travel far and will “kill” the American automobile industry. Mr. Trump has promised that if he is elected to a second term he will undo Mr. Biden’s climate policies, including federal support for electric vehicles.

But at a rally in Arizona on Thursday, Mr. Trump struck an uncharacteristically supportive note on electric vehicles as he heaped praise on Elon Musk, the chief executive of Tesla. “We want to get rid of the electric mandate for the cars,” he began, calling it the “green new scam.” Then he added: “By the way, I’m a big fan of electric cars, I’m a fan of Elon. I like Elon but, you know, I like him. I think a lot of people are going to want to buy electric cars. But if you want to buy a different kind of car, you’re going to, you have to have a choice. Some people need to go far. Some people don’t want their car built in China.”

China has heavily subsidized its auto industry, which has enabled its top automaker to produce electric cars priced as low as $17,000. Very few Chinese-made automobiles are sold in the United States, where President Biden has imposed a 100 percent tariff on Chinese auto imports to try to prevent them from undercutting domestic manufacturers.

The new standards require American automakers to increase fuel economy so that, across their product lines, their passenger cars would average 65 miles per gallon by 2031, up from 48.7 miles today. The average mileage for light trucks, including pickup trucks and sport utility vehicles, would have to reach 45 miles per gallon, up from 35.1 miles per gallon.

The standards will also require heavy-duty pickup trucks, such as the Chevrolet Silverado 2500 HD, and large vans, such as Amazon delivery vans, to reach 35 miles per gallon by 2035, up from 18.8 miles per gallon today.

The final rules are weaker than draft rules published by the Transportation Department last year , which would have required automakers to achieve a standard of 66.4 miles per gallon by 2032 for passenger cars, and 54.4 miles per gallon by the same year for light trucks. That proposal was loosened after lobbying from automakers, who also succeeded in weakening the E.P.A. rule from an initial, more ambitious proposal.

But administration officials say that, to meet the new standards, automakers would still have to both increase the number of all-electric and hybrid vehicles they sell while also increasing the fuel efficiency of their conventional cars.

“Not only will these new standards save Americans money at the pump every time they fill up, they will also decrease harmful pollution and make America less reliant on foreign oil,” Transportation Secretary Pete Buttigieg said in a statement. “These standards will save car owners more than $600 in gasoline costs over the lifetime of their vehicle.”

The E.P.A.’s emissions rule and the Transportation Department’s mileage standard were designed to achieve similar results through different means. The E.P.A. rule lowers the amount of carbon dioxide that can be emitted from a vehicle’s tailpipe. The Transportation Department rule lowers the amount of gasoline, the fuel that produces the carbon dioxide pollution, that a vehicle can burn in order to move.

“Today’s final rule is another important step toward reducing carbon pollution and curbing climate change,” said Harold Wimmer, president of the American Lung Association. “This final rule will work in tandem with the U.S. Environmental Protection Agency’s strong, recently finalized rules to ensure new vehicles are less polluting.”

Legal experts say the overlap of the two measures could help protect the administration’s climate policies against an expected wave of legal challenges. If the courts strike down one, the other might remain standing.

In terms of the effects on the climate, the E.P.A.’s tailpipe regulations are over ten times more powerful than the Transportation Department’s new mileage standards. According to the government, the E.P.A. rule would prevent seven billion tons of carbon dioxide emissions by 2054, while the Transportation Department rule on its own would eliminate 710 million tons of carbon dioxide emissions by 2050.

Dan Becker, director of the Safe Climate Transport Campaign at the Center for Biological Diversity, said that the mileage rule should have been stronger, calling it “weak” and saying the administration “caved to automaker pressure.”

Consumer Reports, the consumer advocacy organization, said that while the new rule would not deliver any new emissions reduction benefits beyond those already required in the E.P.A. rule, it would “check the box on the legal requirement” for enacting the standards.

Automakers said Friday that they were generally satisfied with the new mileage rule.

“For today, the administration appears to have landed on a corporate average fuel economy rule that works with the other recent federal tailpipe rules,” said John Bozzella, president of the Alliance for Automotive Innovation, which represents 42 car companies that produce nearly all the new vehicles sold in the United States.

The mileage standards could be more legally durable than the E.P.A. tailpipe rule.

Republican attorneys general from 25 states have already filed a lawsuit challenging the E.P.A. tailpipe regulation, arguing that the agency exceeded its legal authority. They are expected to file litigation against the Transportation Department rule, as well.

“The Biden Administration is willing to sacrifice the American auto industry and its workers in service of its radical green agenda,” Russell Coleman, the Kentucky attorney general, who is leading the lawsuit against the E.P.A., said in a statement. “We just aren’t buying it. Demand for E.V.s continues to fall, and even those who want to buy one can’t afford it amid historic inflation.”

While demand for E.V.s has slowed, it is still growing. A record 1.2 million Americans bought electric vehicles last year, making up 7.6 percent of new car sales. Analysts project that demand will climb to 10 percent this year . That’s in part because prices of electric vehicles are falling , making them competitive with conventional vehicles. Carmakers including Tesla, Ford, General Motors and Stellantis, the owner of Jeep, have announced plans for electric vehicles that would sell new for as little as $25,000.

Globally, roughly one in five cars sold in 2023 was electric, with much of that growth taking place in China. Electric cars accounted for around 18 percent of all cars sold worldwide in 2023, up from only 2 percent in 2018, according to the International Energy Agency.

Coral Davenport covers energy and environment policy, with a focus on climate change, for The Times. More about Coral Davenport