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March 16, 2010


                                Repeal of $25 license plate fee

                              MEMORANDUM IN SUPPORT

Unshackle Upstate, a bipartisan coalition of over 70+ business and trade organizations
representing a growing group of over 70,000 employers and employing upwards of 1.5
million people support the repeal of the $25 fee for the reissuance of license plates that
was part of the 2009-10 Enacted State Budget.

Starting on April 1st, every New York motorists must pay a $25 fee for new license plates
when their vehicle registrations are due. This represents a $10 increase from the current
price and a $19.50 increase since 2001. Furthermore, if you want to keep your existing
plate number, it will cost an additional $20. This new and unnecessary license plate fee
is in addition to the 25 percent increase in driver’s license and registration fees that took
effect in August.

Moreover, in addition to the new DMV fees, the cost of using our cars on New York
State roads and bridges has risen as well. Recently, the fourth Thruway rate hike in five
years went into effect, resulting in a 5 percent increase for all drivers. This brings the
cumulative increase since 2004 to 45 percent for passenger cars. It is important to note
that these toll and fee increases have a disproportionate affect on Upstate New Yorkers,
who rely on their cars much more than downstate residents.

In November, after immense public pressure, Gov. Paterson admitted that the proposal
was a “revenue grab” agreed to eliminate the new license plate fee requirement if the
legislature could “identify real, responsible, recurring alternative savings measures” that
would replace the projected $129 million in revenue to the state’s general fund. Despite
this new opportunity, the law remains unchanged and will take effect next month. No
such proposal has been put forward and the New York State taxpayers are set to incur yet
another unnecessary tax burden in their everyday lives.

For these reasons, Unshackle Upstate strongly encourages the governor and legislature to
implement a repeal of this onerous burden in the 2010-11 Enacted State Budget.

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Repeal Of $25 License Plate Fee

  • 1. March 16, 2010 Repeal of $25 license plate fee MEMORANDUM IN SUPPORT Unshackle Upstate, a bipartisan coalition of over 70+ business and trade organizations representing a growing group of over 70,000 employers and employing upwards of 1.5 million people support the repeal of the $25 fee for the reissuance of license plates that was part of the 2009-10 Enacted State Budget. Starting on April 1st, every New York motorists must pay a $25 fee for new license plates when their vehicle registrations are due. This represents a $10 increase from the current price and a $19.50 increase since 2001. Furthermore, if you want to keep your existing plate number, it will cost an additional $20. This new and unnecessary license plate fee is in addition to the 25 percent increase in driver’s license and registration fees that took effect in August. Moreover, in addition to the new DMV fees, the cost of using our cars on New York State roads and bridges has risen as well. Recently, the fourth Thruway rate hike in five years went into effect, resulting in a 5 percent increase for all drivers. This brings the cumulative increase since 2004 to 45 percent for passenger cars. It is important to note that these toll and fee increases have a disproportionate affect on Upstate New Yorkers, who rely on their cars much more than downstate residents. In November, after immense public pressure, Gov. Paterson admitted that the proposal was a “revenue grab” agreed to eliminate the new license plate fee requirement if the legislature could “identify real, responsible, recurring alternative savings measures” that would replace the projected $129 million in revenue to the state’s general fund. Despite this new opportunity, the law remains unchanged and will take effect next month. No such proposal has been put forward and the New York State taxpayers are set to incur yet another unnecessary tax burden in their everyday lives. For these reasons, Unshackle Upstate strongly encourages the governor and legislature to implement a repeal of this onerous burden in the 2010-11 Enacted State Budget.