In 1985, New York City imposed an additional eight percent tax surcharge to its standard 10.25% parking sales tax for all parking services rendered in the borough of Manhattan. State and local legislation authorizing this tax surcharge also exempted Manhattan residents who have their primary residence in the borough, who own cars and register them at their primary residences, and who garage their cars on a monthly basis or longer, to apply for an annual exemption from the surcharge. When the exemption provision of the law was constructed, legislators failed to anticipate the dramatic growth in the multi-billion personal and family car leasing industry and the benefit was only extended to Manhattan residents who owned their cars.
Following complaints from Manhattan residents who garage their leased cars on a long- term basis of discriminatory treatment under the law, Senator Roy Goodman proposed a bill and the State Legislature enacted a measure authorizing the City to expand the eligibility requirements of the parking tax exemption. In August, Mayor Giuliani signed legislation (Local Law 74 of 1996) sponsored by Manhattan Councilmembers Stanley Michels, Andrew S. Eristoff, and Gifford Miller into law extending benefits to residents who garage their leased cars starting December 1st.
Mayor Bloomberg: WHY THE HELL ARE THESE EXEMPTIONS STILL IN EFFECT? Are you not trying to discourage car use in the precious borough of Manhattan and encouraging mass transit? Why is this City imposing parking tax surcharges and trying to implement congestion taxes on outer borough residents but exempting Manhattanites?