Facing an unprecedented budget deficit amid the COVID-19pandemic, New York Gov. Andrew Cuomo has proposed additional fees for online transactions made through the state’s Department of Motor Vehicles.
In his $193 billion budget proposal released earlier this week, Cuomo proposed a new $1 fee for each transaction made through the DMV as the state faces a record-setting $15 billion budget shortfall.
The new fees would keep motorists at home during the COVID-19 crisis while providing the state with additional revenue to offset the deficit.
Fees would apply to the registration, re-registration or renewal of a registration for a vehicle, motorcycle, historic motorcycle, snowmobile or vessel, as well as those applying for original, duplicate or renewal learner permits, driver licenses or non-driver identification cards.
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.
In total, the proposal would bring the state an estimated $13 million annually. Under the proposal, the fee would be waived after five years. It is expected to be voted on along with the full budget by the end of March before the fiscal year starts on April 1.
The pandemic has forced the DMV to reinvent itself and has offered more online options, which is intends to continue moving forward in the “new normal.”
“Going forward, DMV will go further in implementing remote services for common transactions, including original vehicle registrations, driver license amendments and driver permits,” spokesperson Lisa Koumjian said in a statement. “All supported by this nominal transaction fee that will also help it develop future initiatives.”
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