NY State Senate Bill 2023-S1847

Senate Bill S1847

2023-2024 Legislative Session

Relates to processing fees resulting from credit card or other non-cash payments selected by passengers of taxicabs and for-hire transportation

download bill text pdf

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to investigations and government operations
Jan 17, 2023	referred to investigations and government operations

2023-S1847 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§1283 & 1299-b, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S8024
2021-2022: S4154

2023-S1847 (ACTIVE) - Summary

Grants authority for medallion owners and designated agents to pass along credit card processing fees to the customer.

2023-S1847 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1847

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the tax law, in relation to processing fees resulting
from credit card or other non-cash payments selected by passengers of
taxicabs and for-hire transportation

 
PURPOSE OF BILL:

To allow medallion owners and designated medallion agents the flexibili-
ty to pass along certain credit card processing fees pertaining to the
congestion, MTA-State, improvement, overnight and rush hour surcharges
to the customer, subject to a local rule or regulation adopted by the
New York City Taxi and Limousine Commission (TLC).

 
SUMMARY OF PROVISIONS:

Section 1. Provides authority for medallion owners and designated agents
to pass along credit card processing fees pertaining to the MTA State
surcharge to the customer.

Section 2. Provides authority for medallion owners and designated agents
to pass along credit card processing fees pertaining to the congestion
surcharge to the customer.

Section 3. Provides authority for medallion. owners and designated
agents to pass along credit card processing fees pertaining to any
locally imposed surcharges to the customer.

Section 4. Provides for an effective date of 90 days after enactment.

 
JUSTIFICATION:

Under the congestion-pricing scheme enacted in 2018, liability for
paying the MTA improvement zone surcharge has fallen solely on medallion
owners, including the required 12.5-cent credit card fee per ride. While
the actual cost of the congestion surcharge is recouped from the custom-
er, the law is silent relative to who must pay the 12.5-cent credit card
fee per ride. The NYC TLC has taken the position that, absent clarifica-
tion in state law, the medallion owners must bear this burden, which can
translate to lost revenue of over $2,200 per vehicle, per year. In a
competitive and evolving FHA' industry, this is another unnecessary and
harmful impediment.

A previous version of this legislation was vetoed by the Governor veto
financial burden on drivers but stated that it would be too difficult to
implement and enforce the credit cord processing fee pass-through or
trips solely within the congestion son-n. To address this concern, this
legislation has been update:d to uniformly incorpprate the full scope of
state and local surcharges (five) imposed on taxicab trips.  The bill
also provides permissive authority to the NYC TLC to enact a local rule
or regulation necessary to effectuate these provisions.

 
PRIOR LEGISLATIVE HISTORY:

2022: S4154

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None anticipated.

 
EFFECTIVE DATE:
This act shall take effect 90 days after enactment.

2023-S1847 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1847
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2023
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in relation to  processing  fees  resulting
   from  credit card or other non-cash payments selected by passengers of
   taxicabs and for-hire transportation

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision (c) of section 1283 of the tax law is amended
 by adding a new paragraph 4 to read as follows:
   (4) THE SURCHARGE IMPOSED BY THIS ARTICLE  MUST  BE  PASSED  ALONG  TO
 PASSENGERS AND SEPARATELY STATED ON ANY RECEIPT THAT IS PROVIDED TO SUCH
 PASSENGERS,  AND MAY INCLUDE, IF PERMITTED BY THE REGULATORY AGENCY, ANY
 PROCESSING FEES RESULTING FROM A CREDIT CARD OR OTHER  NON-CASH  PAYMENT
 OPTION  SELECTED  BY SUCH PASSENGER. THE PASSING ALONG OF SUCH SURCHARGE
 SHALL NOT BE CONSTRUED BY ANY COURT OR ADMINISTRATIVE BODY AS THE  IMPO-
 SITION  OF  THE SURCHARGE ON THE PERSON OR ENTITY THAT PAYS FOR THE FOR-
 HIRE TRANSPORTATION TRIP.  ALL REGULATORY AGENCIES MUST ADJUST ANY FARES
 THAT ARE AUTHORIZED BY THEM TO INCLUDE THE  SURCHARGE  IMPOSED  BY  THIS
 ARTICLE,  AND  MAY ADJUST SUCH AUTHORIZED FARE TO INCLUDE ANY PROCESSING
 FEES IMPOSED ON THE PAYMENT OF SUCH SURCHARGE, AND MUST REQUIRE THAT ANY
 METER OR OTHER INSTRUMENT USED IN ANY FOR-HIRE VEHICLE REGULATED  BY  IT
 TO  CALCULATE FARES BE ADJUSTED TO INCLUDE THE SURCHARGE AND ANY ATTEND-
 ANT FEES WHERE AUTHORIZED. ANY PROCESSING  FEES  CHARGED  TO  PASSENGERS
 SHALL ALSO BE SEPARATELY STATED ON ANY RECEIPT PROVIDED TO PASSENGERS.
   §  2. Paragraph 1 of subdivision (b) of section 1299-b of the tax law,
 as added by section 2 of part NNN of chapter 59 of the laws of 2018,  is
 amended to read as follows:
   (1)  The  surcharge  imposed  by  this article must be passed along to
 passengers and separately stated on any receipt that is provided to such
 passengers, AND MAY INCLUDE, IF PERMITTED BY THE REGULATORY AGENCY,  ANY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03673-01-3

 S. 1847                             2
 
 PROCESSING  FEES  RESULTING FROM A CREDIT CARD OR OTHER NON-CASH PAYMENT
 OPTION SELECTED BY SUCH PASSENGER. The passing along of  such  surcharge
 shall  not be construed by any court or administrative body as the impo-
 sition  of  the surcharge on the person or entity that pays for the for-
 hire transportation trip. All regulatory agencies must adjust any  fares
 that  are  authorized  by  them to include the surcharge imposed by this
 article, AND MAY ADJUST SUCH AUTHORIZED FARE TO INCLUDE  ANY  PROCESSING
 FEES IMPOSED ON THE PAYMENT OF SUCH SURCHARGE, and must require that any
 meter  or  other instrument used in any for-hire vehicle regulated by it
 to calculate fares be adjusted to include the surcharge AND ANY  ATTEND-
 ANT  FEES  WHERE  AUTHORIZED.  ANY PROCESSING FEES CHARGED TO PASSENGERS
 SHALL ALSO BE SEPARATELY STATED ON ANY RECEIPT PROVIDED TO PASSENGERS.
   § 3. (a) For purposes of this  section,  the  term  "surcharge"  shall
 mean:
   (i) the taxicab improvement surcharge, the rush hour surcharge and the
 nighttime  surcharge  imposed on taxicab fares pursuant to section 58-26
 of the rules of the city of New York; and
   (ii) any other surcharge imposed on taxicab or other  for-hire  trans-
 portation  fares  which is not specifically set forth in section 1283 or
 1299-b of the tax law, or in paragraph (i) of this subdivision.
   (b) Notwithstanding any law, rule or regulation to the  contrary,  any
 surcharge imposed upon a taxicab or for-hire transportation fare must be
 passed  along to passengers and separately stated on any receipt that is
 provided to such passengers,  and  may  include,  if  permitted  by  the
 authorizing  regulatory  agency,  any  processing  fees resulting from a
 credit card or other non-cash payment option selected by such passenger.
 The passing along of any such surcharge shall not be  construed  by  any
 court  or administrative body as the imposition of any such surcharge on
 the person or entity that pays for the taxicab or  for-hire  transporta-
 tion  trip.  All  regulatory  agencies  must  adjust  any fares that are
 authorized by them to include any surcharges imposed by the state or any
 other governmental body, and may adjust such authorized fare to  include
 any  processing  fees  imposed  on  the  payment  of  such  surcharge or
 surcharges, and must require that any meter or other instrument used  in
 any  taxicab  or  for-hire vehicle regulated by it to calculate fares be
 adjusted to include such surcharge or surcharges and any attendant  fees
 where  authorized.  Any processing fees charged to passengers shall also
 be separately stated on any receipt provided to passengers.
   § 4. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

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