DMV fee: Andrew Cuomo wants to tack on $1 to millions of license, registration transactions
- New York's Department of Motor Vehicles will add a $1 convenience fee to online transactions as part of New York's budget proposal.
- The fee would be added to registration fees and license/permit fees.
- It would take effect 180 days after the budget proposal becomes law, and would expire after five years.
New York would add a $1 fee to all driver's license and vehicle registration transactions over the next five years under a proposal in Gov. Andrew Cuomo's state budget plan.
The proposed fee, added as an amendment to state vehicle and traffic law, would apply to millions of transactions a year, with the money going to support the DMV's technology infrastructure and contactless customer service, according to Cuomo's administration.
If approved, the fee would kick in 180 days after it's passed and would remain in place for five years.
The $1 fee would be deposited into the state’s dedicated Highway and Bridge Trust Fund, which would then go toward funding technology upgrades to allow for more online services, according to the state DMV.
DMV spokesperson Lisa Koumjian said the agency shifted its operations to reduce density in its offices and provide services online during the pandemic, and the state intends to use the revenue from the fee to do more in the future.
"Going forward, DMV will go further in implementing remote services for common transactions, including original vehicle registrations, driver license amendments and driver permits, all supported by this nominal transaction fee that will also help it develop future initiatives," Koumjian said in a statement.
If approved, the fee would be charged on top of existing fees for the registration and re-registration of a motor vehicle, historic motorcycle, snowmobile or vessel, and the issuance or renewal of a driver’s license, learner permit or non-driver identification card.
The fee would result in an estimated $3.8 million in state revenue for the fiscal year beginning April 1, and about $13 million for the following four years before it expires.
Cuomo unveiled his $193 billion budget proposal on Tuesday, with the spending plan relying on Washington approving $6 billion in funding for the state.
Whether the $1 DMV fee will make it into the final budget will depend on negotiations with state lawmakers in the coming months.
Cuomo and the state Legislature have until March 31 in order to approve an on-time budget for the fiscal year that begins the next day.
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Includes reporting by New York State Team editor Jon Campbell.
Sarah Taddeo is the consumer watchdog reporter for USA Today Network's New York State Team. Got a story tip or comment? Contact Sarah at STADDEO@Gannett.com or (585) 258-2774. Follow her on Twitter @Sjtaddeo. This coverage is only possible with support from our readers. Please consider becoming a digital subscriber.