Senate Passes Bill To Eliminate $1 E-z Pass Surcharge

Thomas P. Morahan

March 21, 2006

State Senator Thomas P. Morahan announced New York State Senatepassage of legislation that would prohibit agencies that administer E-ZPass in New York State from charging monthly surcharges.

The bill (S.6331) is a response to complaints from downstate motorists about an unwarranted $1 administrative service charge being tacked on to their E-ZPass account bills each month.

Three different agencies authorize E-ZPass within the state, the New York State Thruway Authority, the Port Authority of New York and New Jersey and Metropolitan Transportation Authority (MTA). The Port Authority and the MTA charge the $1 fee, the Thruway does not.

"This unnecessary fee defeats the purpose of the account holder discounts. Adding to the outrage felt by E-ZPass customers is the fact that the MTA is sitting on a more than $1 billion surplus," said Senator Morahan

According to the MTA’s website, the $1 monthly account service fee was instituted last summer to "help defray the administrative costs of managing our customer’s E-ZPass accounts." MTA estimates that the monthly surcharge generates $13.2 million annually. The MTA recently announced that it had a budget surplus of over $1 billion.

The bill has been sent to the Assembly.