Int. No. 1133
By Council Members Brewer and J. Sanchez
A Local Law to amend the administrative code of the city of New York, in relation to the application of higher reduced fines to higher-earning participants in the stipulated fine and commercial abatement programs
Be it enacted by the Council as follows:
Section 1. Chapter 1 of title 11 of the administrative code of the city of New York is amended by adding a new section 11-145 to read as follows:
§ 11-145 Parking violations; reduced fine programs. a. Definitions. For purposes of this section, the following terms have the following meanings:
Business entity. The term “business entity” means a corporation, partnership, organization, or other entity engaged in business, but does not include a natural person.
Commercial abatement program. The term “commercial abatement program” means the department’s voluntary enrollment program whereby commercial organizations that are enrolled in the fleet program and meet the eligibility criteria established by the department, but are not eligible for the stipulated fine program, waive their right to challenge parking summonses and agree to pay a reduced fine amount for each summons.
Commercial organization. The term “commercial organization” means any business entity that is an owner or lessee of at least 1 vehicle that is used exclusively for the delivery of goods or services.
Commissioner. The term “commissioner” means the commissioner of finance.
Department. The term “department” means the department of finance.
Fleet program. The term “fleet program” means the department’s voluntary enrollment program whereby commercial organizations receive computer-generated hearing logs and can schedule hearings in the parking violations bureau’s consolidated adjudication unit.
Income. The term “income” means the amount reported by a commercial organization to the internal revenue service for the purpose of the federal income tax in the most recent tax year for which such organization filed a federal income tax return that is equal to the gross receipts or sales of such organization minus any returns and allowances, minus the cost of goods sold plus the amount of any dividends, interest, gross rents, gross royalties, capital gain net income, net gain or loss from the sale of business property, net farm profit or loss, ordinary income or loss from other partnerships, estates, or trusts, or other income or loss; except that, if a commercial organization is a limited liability company or other business entity that is not separate from its owner for federal income tax purposes under section 301.7701-2(c)(2) of title 26 of the code of federal regulations, income means the income of the entity that reports the activities of such organization as its sole owner for federal income tax purposes.
Income factor. The term “income factor” means:
1. For a commercial organization with income of not more than five million dollars, one;
2. For a commercial organization with income of more than five million dollars but not more than ten million dollars, a fraction the numerator of which is ten million dollars minus the amount of income and the denominator of which is five million dollars; and
3. For a commercial organization with income of more than ten million dollars, zero.
Reduced fine. The term “reduced fine” means a reduced fine for a parking violation that is applied to a commercial organization enrolled in the commercial abatement program or the stipulated fine program.
Small business rate. The term “small business rate” means the rate calculated by multiplying the base rate determined by the commissioner pursuant to subdivision c of this section and the income factor.
Stipulated fine program. The term “stipulated fine program” means the department’s voluntary enrollment program whereby commercial organizations that make expeditious pick-ups, deliveries, or service calls and that are enrolled in the fleet program and meet the eligibility criteria established by the department, waive their right to challenge parking summonses and agree to pay a reduced fine amount for each summons.
b. Amount of reduced fines. The amount of a reduced fine that is applied to a commercial organization whose income is equal to or less than ten million dollars shall be equal to the amount of the reduced fine for the same parking violation that is applied to a commercial organization whose income is greater than ten million dollars multiplied by a percentage equal to 100 percent minus the small business rate.
c. Small business rate; determination of base rate. The commissioner shall determine a base rate that shall be no less than 10 percent for purposes of calculating the small business rate. In determining such base rate, the commissioner shall consider the deterrence effect of fines for parking violations in relation to the ability of commercial organizations to pay such fines, and any other factor the commissioner deems relevant to carry out the purposes of the commercial abatement program and stipulated fine program.
§ 2. This local law takes effect 120 days after it becomes law.
LS #8218/ 24774
9/23/26