Drivers in New York City will soon be subject to a toll for driving on the busiest streets of Manhattan. The “Congestion Pricing Plan,” recently approved by the Metropolitan Transportation Authority (MTA), aims to reduce the number of vehicles circulating daily in the city and, consequently, reduce traffic in one of the most congested cities in the country.
New York is the first city in the United States to create a congestion zone. Therefore, its experience will be closely monitored by other cities with severe vehicle congestion. According to Inrix, a data collector, New York is only the fourth worst city in North America in terms of traffic delays – not as bad as Chicago, Boston, or Toronto, but worse than Monterrey, Philadelphia, Miami, San Francisco, Los Angeles, and Washington (Although the MTA claims New York is the worst in the country.)
The congestion fee will affect any driver entering the so-called Central Business District (CBD), which extends from 60th Street in Manhattan to the southern tip of the Financial District. In other words, most drivers entering downtown Manhattan or below will have to pay the toll, according to the MTA.
Different vehicles will be charged different amounts:
• Passenger vehicles: $15
• Small trucks (such as box trucks, moving vans, etc.): $24
• Large trucks: $36
• Motorcycles: $7.50
The daytime rates will be in effect from 5 AM to 9 PM every day of the week and from 9 AM to 9 PM on weekends.
Drivers will be charged only for entering the zone, not for exiting or remaining in it. This means that residents who enter the CBD and circulate around the block looking for parking will not be charged.
Additionally, only one toll will be charged per day – therefore, anyone who enters the area, exits, and returns will still pay the toll only once that day.
The MTA stated that the implementation of the plan is expected to reduce the number of vehicles entering the area by 17%. This equates to 153,000 fewer cars in that part of Manhattan. They also anticipate that the plan will generate $15 billion, which would be used to modernize subways and buses.
Do Uber, Lyft, and other rideshare companies receive exemptions? What about taxis?
There will be exemptions for rideshare trips and taxis, but they will not escape completely unscathed.
The toll will not be in effect for taxis, but a surcharge of $1.25 will be charged to drivers per trip. The same policy applies to Uber, Lyft, and other rideshare drivers, but the surcharge will be $2.50.
Are there other exemptions to the congestion fees?
Many groups hoped to obtain exemptions, but very few will avoid having to pay the toll entirely. This small group is limited to specialized government vehicles (such as snowplows) and emergency vehicles.
Low-income drivers earning less than $50,000 per year may apply to pay half the daytime toll, but only after the first 10 trips of the month.
Although not an exemption, there will also be so-called “crossing credits” for drivers using any of the four tunnels to enter Manhattan. This means that those who have already paid a toll at the Lincoln or Holland Tunnel, for example, will not pay the full congestion fee. The credit amounts to $5 per trip for passenger vehicles, $2.50 for motorcycles, $12 for small trucks, and $20 for large trucks.
Drivers from Long Island and Queens using the Queens-Midtown Tunnel will receive the same discount, as will those using the Brooklyn-Battery Tunnel. However, those crossing the George Washington Bridge and heading south of 60th Street will not receive any discount.
When will the toll take effect?
The MTA stated that the goal is to start charging the toll in late spring 2024. But it is likely to take a bit longer.
After the MTA approved the initial plan, a 60-day public review period went into effect, which will include four public hearings in late February and early March. Any possible adjustments to the plan (such as Mayor Eric Adams’ request for more exemptions) will need to be added before what would be a “final” vote in April.
This means that the toll may not take effect until late June 2024.
Source: NBC New York