PARAMUS

'New Jersey is not New York City's piggy bank': NJ lawmakers fight NY congestion toll

Stephanie Noda
NorthJersey.com

PARAMUS — Lawmakers are vowing to fight back against a proposed New York City congestion toll with a fee of New Jersey's own that would tax out-of-state drivers going to the city.

U.S. Rep. Josh Gottheimer, D-Wyckoff, said new legislation is in the works to add what he called a sales tax at every New Jersey/New York crossing, and tolls for all non-New Jersey residents.

The New York congestion plan would impose a toll on motorists driving into Manhattan below 60th Street during peak times. New York received key approval at the end of March to move forward with the plan. 

Gottheimer, state Sen. Joe Lagana, Assemblywoman Lisa Swain and Assemblyman Chris Tully were in Paramus on Monday to announce new legislation that would reimburse drivers hit by New York's plan.

N.J. state Sen. Joseph Lagana talks about how New York City's congestion pricing will affect New Jersey commuters, in Paramus, N.J., on Monday May 10, 2021. In the background, from left, are N.J. Assemblyman Chris Tully and U.S. Rep. Josh Gottheimer.

Manhattan congestion pricing could cost New Jersey motorists who travel into New York City $3,000 more a year in tolls, Gottheimer said. The toll is imposed on cars that enter the zone regardless of where they come from. 

The congestion fee has not been announced, but in 2019, a proposal called for an $11.52 fee for cars and $25.34 for trucks. It's estimated that New York could see $1 billion annually in revenue from the fee, which would go toward refurbishing bus and subway systems, according to the Associated Press.

Lagana said he has spoken with New Jersey Senate President Steve Sweeney, who expressed willingness to move forward with the proposal. Swain said she and Tully have introduced a resolution opposing New York's plan. 

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"We simply can not expect a robust recovery and a return to in-person work to be successful if workers needed in New York City are being penalized simply for going to their jobs," Lagana said. "New Jersey is not New York City's piggy bank."

If it is approved, New York City would be the first city in the country to implement congestion pricing.

Gottheimer said New York was doing the “unthinkable” by trying to enact the plan, which he dubbed the "Manhattan moocher" congestion tax.

He said New Jersey drivers would be exempt from the New Jersey tax, since "enough is enough." 

U.S. Rep. Josh Gottheimer talks about how New York City's congestion pricing will affect New Jersey commuters, in Paramus, N.J., on Monday May 10, 2021. In the background are N.J. Assemblyman Chris Tully and N.J. Assemblywoman Lisa Swain.

Money collected from the sales tax would go into a "congestion tax relief fund" that would reimburse New Jersey drivers who pay New York's congestion tax. If New York backs off on congestion tolls, he said, New Jersey legislators would also back off. 

"In short, New York is going to attack our wallets and attack our families," Gottheimer said. "We're going to give them a taste of their own medicine." 

He said the congestion pricing goes against the cooperative spirit the two states usually share, and noted the $14 billion stimulus funding package, which will in part help New York’s transit system, that New Jersey fought for.

"They want more, and they think we’re their ATM here in Jersey," Gottheimer said. "They want it from us."

Gottheimer is also working with state Sen. Steve Oroho to have New Jersey residents who work from home but for New York companies be taxed at New Jersey rates.

More:Why congestion pricing for New York City just took a big step forward

Stephanie Noda is a local reporter for NorthJersey.com. For unlimited access to the most important news from your local community, please subscribe or activate your digital account today.

Email: noda@northjersey.com 

Twitter: @snoda11