Congestion taxes in NYC have received a lot of attention in the recent past. In fact, all the people who drive to the busiest neighborhood of Manhattan are concerned about it, as they will have to make a payment to get in. The primary objective of implementing the congestion tax is to find funding that is needed for the subway repairs of the city. However, it doesn’t seem to be a quick fix available for the issue.
Patrick Foye, who is the MTA President recently had an interview with the Wall Street Journal, where has stated that the implementation of NYC congestion tax will not take place anytime soon. According to him, it will take at least two more years to implement a surcharge ton the drivers who enter Manhattan.
Something similar to NYC tax is already implemented in London. Foye highlighted that it took three years to implement that within London. The process is much complicated than it sounds, but he is sure that NYC will be able to get the project implemented within two years.
They are currently making plans to setup and install electronic devices around the district, which is located towards the south of 61st Street. The installation of these devices will be completed by 2020. Then they will start offering discounts for the people who travel during the off-peak hours. Uber is one of the leading supporters of the NYC tolls. They are backing up the entire project with so much of enthusiasm and they are sure that the project will end up with a positive node.
The decision to implement a NYC congestion tax is fair and reasonable. A considerable number of vehicles are entering the area and it gives life to a congestion, especially during the peak times. The officials wanted to reduce this congestion in an effective manner. However, they wanted to do it without the construction of new highways as well. That’s where they thought about implementing the congestions tax.
With the congestions tax, the total number of vehicles that enter the area will be controlled. In fact, it will make drivers think twice. On the other hand, it will also tempt the drivers to use the off-peak hours for their transportation. The amount of money that can be raised from the paying drivers can be used to improve the infrastructure facilities of the city. In fact, they have already planned to use that for the repairs of metro.
As a result of this new NYC tax, more people will think about using public transportation systems to get their transportation requirements catered. With that, there comes the need to provide a better service to them. This also makes the improvement of infrastructure facilities useful.
It is true that there should be a dedicated stream of income to fund the Metropolitan Transportation Authority. Otherwise, they will not be able to cater the needs of the passengers and maintain the quality of the services that they offer. The NYC tools seem like a perfect opportunity available for them. It will generate a continuous revenue stream, which can be used to provide a better metro service forever in the future. All the people who use the commuter rails also agree with this. They are quite frustrated with the existing railway system and the facilities available to them. They prefer if those facilities can further be improved. Then they will be able to get to the destination without any hassle. The Metropolitan Transportation Agency has currently started working on it and this initiative can be completed in a positive note.
This is not the first time that congestion taxes are implemented in a city. It can be found in many other cities around the world, such as London and Singapore. It was many years back the government officials came up with the idea of implementing NYC tolls. However, the topic was debated for many years. It has received attention again and we can assume that the project will be completed by the end of 2020.
According to the case studies, which were completed on NYC congestion tax back in the day, it has been identified that the official entities will be able to raise around $1 billion per year. If the entry fee can be leveraged to $11.52, then there is a possibility to make more than $15 billion. This is a higher amount when compared to the amount that is raised via internet sales taxes. Hence, it can be considered as a solid income stream, which can contribute a lot towards the betterment of metro services available in NYC.
A variable tolling mechanism will be introduced in NYC. As a result, the people who drive through NYC will be encouraged to select the off-peak hours to hit the road. On the other hand, they will also be able to encourage the delivery services to move forward with their operations during the off-peak hours. In the meantime, they will be able to reduce the congestion and finance MTA.
By the end of 2020, we will be able to see this system up and running. As a result, we will also be able to see less congested roads in Manhattan. Since most of the house owners in NYC don’t own cars, this will not be a major issue. On the other hand, we will also be able to see significant improvements in the NYC metro service, which provide their services to a higher number of passengers.