NY: Lawmakers consider new $25 fee for Upstate NY drivers

Could owning a car soon get a little more expensive in Upstate New York?

A new $25 vehicle registration fee for Upstate New York drivers has been proposed in the New York State Legislature. WHAM reports lawmakers are debating the idea in state budget hearings, with supporters saying it will provide more funding for upstate transit systems.

“The proposed $25 DMV fee is a modest investment that helps keep our entire transportation system moving. Every bus or train removes cars from the road, reduces congestion, and helps workers get to jobs that keep our regional economy running,” a New York Public Transit Association spokesperson told WGRZ. “This funding would help ensure transit systems remain affordable, reliable and accessible, and are able to avoid service reductions and support the workforce, businesses, and communities that New Yorkers depend on every day.”

The proposed fee would be a $25 added annual surcharge on New York State DMV vehicle registrations. According to the NYPTA, there are about 5 million registered cars in Upstate New York, potentially raising $125 million more annually.

WHAM reports a similar registration charge of $50 is already in place for downstate New Yorkers, with the money helping fund the Metropolitan Transportation Authority. NYS Assembly Transportation Committee Chairman Bill Magnarelli, D- 129th Assembly District, told the Rochester TV station an upstate fee would help improve public transportation outside of NYC.

“I’m trying to get mass transit in Upstate New York up to par,” Magnarelli said.

“You may not need it for yourself, but think about your aging parents who may rely on public transit, think about people with disabilities in your community who rely on public transit,” New York State Senator Jeremy Cooney told WTEN. “Think about your workers, if you’re an employer, who rely on public transit. It’s a rising tide that lifts all boats.”

Others, including Gov. Kathy Hochul and Republican gubernatorial candidate Bruce Blakeman, have spoken out against the upstate fee.

“The Governor has made historic investments in public transportation and has proposed a 5.75% increase in upstate transit funding in her budget. The Governor is laser-focused on affordability and has no plans to implement an additional fee on drivers in the region,” a Hochul spokesperson told WGRZ.

“Families struggling to pay for groceries, housing, and utilities could be hit with an extra $25 tax just to register their car,” Blakeman told WHAM. “This is congestion pricing coming to a state near you — and it’s only the beginning.”

A decision is expected to be made for the 2026 state budget, which is due in April.

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