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.
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