NY State Senate Bill 2019-S8024

Senate Bill S8024

2019-2020 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

Archive: Last 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 10, 2020	referred to investigations and government operations

2019-S8024 (ACTIVE) - Details

See Assembly Version of this Bill:: A10102
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:: 2021-2022: S4154, A7341
2023-2024: S1847

2019-S8024 (ACTIVE) - Summary

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

2019-S8024 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8024

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 FHV industry, this is another unnecessary and
harmful impediment.

A previous version of this legislation was vetoed by the Governor (Veto
Memo .281 of 2019). In his Memo, the Governor recognized the cumulative
financial burden on drivers, but stated that it would be too difficult
to implement and enforce the credit card processing fee pass-through on
trips solely within the congestion zone. To address this concern, the
legislation has been updated to uniformly incorporate 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:

New bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None anticipated.

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

2019-S8024 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8024
 
                             I N  S E N A T E
 
                              March 10, 2020
                                ___________
 
 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
 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD15146-02-0

 S. 8024                             2
 
 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.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.