Livery cab tax takes effect

June 1, 2009 3:50:46 PM PDT
The cost of taking a livery cab in New York suddenly increased Monday. That's because a new state tax of more than 8 percent went into effect. But the higher price took many passengers by surprise. The 8.375 percent tax, a little-noticed provision in the state budget, is imposed on all livery car, limousine and corporate black-car trips.

The tax is expected to generate more than $25 million for Albany and an additional $25 million for the city.

"Minimum wage is still $6, but everything else is going up," 18-year-old Jesus Garcia told the New York Daily News. "We only use car services when we absolutely have to. Now, it'll be less affordable than it already was."

According to the newspaper, there are just less than 22,700 livery cars licensed by the Taxi and Limousine Commission to carry passengers in the city, along with 8,600 black cars and 5,223 limousines.

The sales tax will be paid by the passenger and collected by the driver, who will forward it to the state.


NEW YORK AND TRI-STATE AREA NEWS

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