New York City authorities will implement a city toll in Manhattan

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Here is one more reason not to rent a car in New York: New York will set up an urban toll. A "Congestion charge" in the New York City style.

Traffic is still very dense in Manhattan. (Photo Didier Forray)

After more than 10 years of hesitation, New York State announced the adoption of a new urban toll system in Manhattan as of December 31, 2020. A first in the United States! What is it about? Any vehicle travelling in Manhattan south of 60th Street will then have to pay a tax, based on the “congestion charge” model introduced in London City in 2005.

This system, called the Central Business District Tolling, is designed to relieve traffic congestion in Manhattan by discouraging motorists from passing through the heart of New York. New York State estimates that more than 730,000 vehicles congregate in southern Manhattan every day… Note that the system will not apply to the two highways that border Manhattan, the West Side Highway along the Hudson River and the FDR Drive along the East River.

$15 billion in five years!

The New York State Parliament has not yet decided on the amount of the tax, but two figures are already circulating, as a test run. New York’s congestion charge could amount to about $12 a day for cars and $25 a day for trucks. A prohibitive fare that fuels controversy among Brooklyn, Queens and New Jersey residents who are used to travelling to Manhattan by car.

New York State announced that the money collected will be used to modernize the New York City subway system and fund the MTA, the New York Transportation Authority. According to New York State estimates, the new urban toll is expected to generate approximately $15 billion in revenue over 5 years. Enough to rebuild the New York subway system!

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