(The Center Square) — Business groups want New York Gov. Kathy Hochul to block plans by the state Thruway Authority to add a new surcharge on tolls processed through commercial accounts.
In a letter to Hochul, the coalition of trucking and freight companies said the 1% surcharge, set to take effect in January, is a “backdoor” toll increase on the state’s trucking industry that would ultimately be passed onto consumers in the form of higher costs for goods and services. They noted the Hochul administration’s focus on improving “affordability” in the state.
“You have noted that ‘when costs for basic necessities skyrocket, every dollar counts.’ We agree,” the groups wrote. “A hidden toll increase runs counter to that goal and risks raising costs on everything from groceries to building supplies — especially harmful for small businesses, working families and the farmers and processors who rely on efficient transportation.”
The coalition says the Thruway Authority’s move bypassed the public process normally used for toll adjustments and comes after the state Comptroller Tom DiNapoli’s office flagged $276 million in unpaid tolls and collection shortfalls. While it would apply only to commercial trucking accounts, it would add costs across the entire E-ZPass network and increase operating pressures, they said.
“We respectfully request your Administration’s assistance in encouraging the Authority to pause implementation, meet with affected businesses and consider alternatives that do not raise costs for truckers, farms or New Yorkers,” the letter reads.
Thruway Authority Executive Director Frank Hoare defended the changes and noted that commercial vehicles traveling on the Thruway pay among the lowest toll rates in the nation, or about 19 cents per mile, compared to the New Jersey Turnpike, which charges 43 cents a mile.
“The new program has a one percent administrative fee charged to the Toll Management Service Provider, not the commercial trucking industry, which offsets the costs we incur to administer this program and allows them access to our information that they use to operate and generate profits, considerable profits, for their business,” he said. “Without access to this system, paid for by New York State tolling authorities, service providers would not be able to make the tens of millions of dollars they currently enjoy.”
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Hoare said, despite claims by trucking groups, the new program won’t change toll rates or discounts for commercial fleets and claimed it will benefit the industry.
“In fact, this new program protects the fleet owners and ensures they receive the 20 percent volume discount and ultimately they will benefit from increased competition in this service provider arena,” he said in the statement. “We look forward to continuing to support the commercial truck industry.”
