Manhattan, NY – Class Action by Out-of-Towners Challenging Parking Tax

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    Manhattan, NY – A federal class action claims that Manhattan discriminates against out-of-towners by charging them an 8 percent tax to park in the borough’s garages while Manhattan residents can apply for an exemption.
    By charging the tax without limitation the city could raise up to $22 million, according to the complaint.

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    The five named plaintiffs are residents of New Jersey, Long Island and Queens who commute to Manhattan and park their cars in garages at monthly rates. They pay 18.375 percent in state, city and borough taxes, while Manhattan residents with qualifying vehicles pay only 10.375 percent.

    Thousands of out-of-towners have paid the surcharge since Aug. 26, 2006, the class claims.

    The class seeks declaratory relief and an injunction to stop the discriminatory tax policies, which they say violate the commerce, privileges and immunities, and equal protection clauses of the Constitution.

    Named as defendants are the city and state of New York, former Govs. Eliot Spitzer and George Pataki, Gov. David Paterson, Mayor Michael Bloomberg, and the current and former commissioners of the state finance department and the taxation and finance department.


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    11 Comments
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    mikes dinettes
    mikes dinettes
    14 years ago

    this is a very fair lawsuit , since why should people from out of town pay more in taxes then people who live in mannhatten .

    Gimel
    Gimel
    14 years ago

    Do we from the other boroughs also have to pay this tax? Why?

    Anonymous
    Anonymous
    14 years ago

    This lawsuit will make that the residents from manhattan will also have to pay full 18%, no one should think one second that the city/state will give up one penny of tax money.

    Anonymous
    Anonymous
    14 years ago

    We shell do the same with the verizano bridge why is it that the bridge is cheaper for statend island residence?

    Anonymous
    Anonymous
    14 years ago

    There are legal distinctions between taxes which (with few exceptions) cannot differentiate between residents of different states (based on the Commerce Clause etc.) and user fees which can take residence into account (e.g. lower usage fees for bridges or parks etc. which are financed and maintained with local taxes versus those paid for by federal taxes.

    brooklyn boy
    brooklyn boy
    14 years ago

    I believe that NYC residents that live in the outer boroughs do pay this tax and I resent it. The exemption was started to make it fair for Manhattan residents to get a break on parking near their homes. They could very well get an exemption for parking near work so I would like the same exemption.

    Anonymous
    Anonymous
    14 years ago

    soooooooo many taxes to pay. everyone wants a piece. I have nothing left for myself. 🙁