NYC Congestion Pricing Is Seemingly Dead—In Favor Of Payroll Taxes

In a surprise reversal, Gov. Kathy Hochul announced that planned congestion pricing in Manhattans Congestion Relief Zone will be shelved indefinitely—seemingly putting an end to what had been a contentious policy.

The plan, which was set to begin on June 30th, would have charged passenger vehicles up to $15 to enter Manhattan south of 60th Street. It would have been administered by the Metropolitan Transportation Authority and was intended to curtail vehicle traffic in and below Midtown—specifically by out-of-state drivers.

In the near term, it seems lawmakers are considering raising taxes on local businesses to make up the financial difference, Bloomberg Tax reported.