BILL NUMBER: S8120
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the tax law, in relation to requiring medallion agents
to manage payments of the congestion surcharge
 
PURPOSE OF BILL:
To ensure that agents licensed by the Taxi and Limousine Commission are
solely liable for making payments of the MTA improvement zone surcharge
on behalf of medallion owners.
 
SUMMARY OF PROVISIONS:
Section one amends the tax law to clarify that agents licensed by the
Taxi and Limousine Commission are authorized on behalf of medallion
owners to manage the medallions and/or make payments of the MTA
improve-merit zone surcharge, including in batch format. These agents
would be held solely liable for making these payments absent a good
faith dispute of the amount owed.
Section two relates to the effective date.
 
JUSTIFICATION:
Under congestion pricing, liability for paying the MTA improvement zone.
surcharge has fallen solely on medallion owners without authorizing
agents licensed by the Taxi and Limousine Commission to be liable. Plac-
ing the burden solely on the owners could create some unintended conse-
quences. Since the agents are more involved in the management of these
medallions, whereas some owners may take a more hands-off approach, it
would be more appropriate to assign sole liability to the agents when
they are there. Leaving liability to the owners would be quite onerous
to the agents who would still be charged with filing the surcharge
payments, forcing them to reach out to owners who are often out of
reach. Assigning sole liability to the agents would lower the utility
costs of managing these taxes while also ensuring payment compliance.
 
PRIOR LEGISLATIVE HISTORY:
2021-2022: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To Be Determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.