New York Governor Andrew Cuomo has reached a budget deal with the state's legislature that includes a 6% surcharge on vehicles rented upstate, Syracuse.com reports.
The fee is expected to generate $22 million annually, which will help fund renovations and operations for the Upstate New York transit system.
If approved, the tax will be part of the 2020 budget agreement and go into effect June 1. It would affect all car rental in counties north of New York City, including airports.
The legislation does not address an amendment to last year's Federal Aviation Administration that included an amendment, backed by the American Car Rental Association, that ensures taxes imposed at airports be levied only for airport purposes.
When contacted on this point, Jim Peters, a spokesperson for the FAA responded, "It's a problem for the FAA."