ALBANY, N.Y. – A new proposal before the New York State Assembly aims to eliminate the state’s long-standing highway use tax, a levy that trucking companies say puts them at a competitive disadvantage compared with out-of-state carriers and drives up the cost of doing business in New York.
Assembly Bill 25, sponsored by Assemblyman William Magnarelli (D-Syracuse), would repeal Article 21 of the state’s Tax Law, which currently imposes a highway use tax—commonly known as the “ton-mile tax”—on vehicles operating on New York’s public highways. The measure was prefiled for the 2025–2026 legislative session and referred to the Assembly Ways and Means Committee.
Magnarelli’s bill argues that the tax, originally enacted to fund road maintenance through fees based on vehicle weight and miles traveled, has become a financial and administrative burden on in-state trucking businesses. “The highway use tax reduces the ability of New York trucking companies to compete with out-of-state companies because it places a higher cost burden on the New York-based trucking industry,” the bill’s justification reads.
Unlike neighboring states that rely on fuel taxes or registration fees, New York remains one of the few to maintain a ton-mile tax system. Trucking advocates have long argued that the tax is outdated, difficult to calculate, and easily avoided by out-of-state companies who pass through the state without registering locally. Supporters of repeal contend that eliminating the tax would make New York more attractive to freight carriers, lower shipping costs, and provide relief to manufacturers and consumers.
The bill’s sponsors note that multiple previous attempts to repeal the tax have been introduced over the past two decades, including versions filed in nearly every legislative session since 1999. None have advanced to the governor’s desk.
The fiscal implications of the repeal remain undetermined, as the tax currently generates revenue that supports state transportation programs. Critics of repeal are expected to raise concerns about potential funding shortfalls for highway maintenance and infrastructure.
If enacted, the repeal would take effect immediately, ending a decades-old tax that has become a persistent point of contention between the trucking industry and Albany lawmakers.
New York lawmakers revive effort to repeal the state’s highway use tax, calling it a costly burden on local trucking companies.
