The State of New Jersey has filed a federal lawsuit to block New York’s congestion pricing plan, alleging that they will receive no benefit from this new “extraordinary and unprecedented revenue stream.”
By John Heinis/Hudson County View
“In connection with this extraordinary and unprecedented revenue stream, the MTA has agreed to allocate 10% to Long Island Rail Road and 10% to Metro-North Railroad
—but nothing to New Jersey’s transit agencies, even though more than 400,000 New Jersey residents commute into Manhattan every day and will pay millions of dollars to the MTA under this congestion pricing scheme,” the 68-page suit, filed in U.S. District Court today, says.
“But the costs to New Jersey will be more than just financial: diverting traffic from one place means it will increase traffic elsewhere, with all the concomitant environmental and public health impacts. The end result is that New Jersey will bear much of the burden of this congestion pricing scheme—in terms of environmental, financial, and human impacts—but receive none of its benefits.”
The lawsuit is against the U.S. Department of Transportation (USDOT) and the Federal Highway Administration (FHWA) to block the plan put forth by the Metropolitan Transportation Authority (MTA) and the State of New York.
Also today, Murphy also signed Bill S3128/A4694, which will help ensure New Jersey taxpayer dollars stay in our state and go toward programs and services that benefit Garden State residents.
Specifically, the bill will bring our tax code in line with New York’s and allows New Jersey to tax remote employees who live out of state but work at New Jersey companies – if that state has a similar tax rule.
Additionally, the legislation provides tax credits for New Jersey residents who dispute aggressive tax policies imposed on them by other states.
If New Jerseyans take this issue up with another state’s tax authority and receive a tax refund for work they did in New Jersey, the State of New Jersey will provide a tax credit.
Furthermore, this bill creates a $35 million grant program to encourage companies that primarily operate outside the state to properly assign their employees that live in New Jersey and to open offices here.
“At the MTA’s own admission, its tolling program would divert traffic and shift pollution to many vulnerable New Jersey communities, impacting air quality while offering nothing to mitigate such considerable harm,” Murphy said in a statement.
“Today we stand as a unified front against this reckless scheme and reaffirm our commitment to combat the unjust taxation of our hardworking residents by other states.”
U.S. Senator Bob Menendez (D-NJ), U.S Rep. Josh Gottheimer (D-5), U.S. Rep. Bill Pascrell (D-9), and Assembly Speaker Craig Coughlin (D-19) all attended a Fort Lee press conference with Murphy to announce their support of the litigation.
“As the senior senator of New Jersey, I have made it abundantly clear that it’s unacceptable for New York to try balancing its budget on the backs of New Jersey commuters. Their proposed congestion tax scheme is nothing more than a shakedown and must be defeated,” said Menendez.
His son, U.S. Rep. Rob Menendez (D-8) held a press conference with Gottheimer outside the Holland Tunnel in Jersey City in May blasting congestion pricing.
“Today’s a huge day in the fight against New York’s commuter crushing $23/day Congestion Tax. If the MTA gets its way, trucks will be backed up here in North Jersey, billowing cancer-causing pollution into the lungs of our children,” added Gottheimer.
“I want to thank our Governor for punching back at a state that decided to use Jersey as their piggy bank to solve their years of criminal mismanagement at the MTA.”
Pascrell echoed a similar sentiment, stating that New Jerseyans should not have to subsidize the cost of living for New Yorkers.
“Let me be crystal clear. The Garden State is not New York’s piggy bank. We are not the MTA’s ATM. New Jersey has been our region’s pack mule for a long time. Enough is enough – we say no more of their weight on our shoulders. New Yorkers should fill New York’s budget shortfalls.”
President and CEO of the Meadowlands Chamber of Commerce Jim Kirkos came out hard against the measure back in August and vocalized his support for the lawsuit opposing it today.
“New York’s Congestion Tax will prove one thing: it’s better to do business in New Jersey. It not only taxes hardworking New Jerseyans who commute to Manhattan, New Jersey’s businesses that serve Manhattan will face enormous cost increases when delivering goods and services that New York City relies on.”
