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How Zohran Mamdani’s pied-à-terre tax exposed an epidemic of ‘ghost cars’ instead
['Catherina Gioino']
Fortune | FORTUNE
Those vehicles owed nearly two-and-a-half times more in outstanding fines than properly registered cars, and paid only 16% of what they owed, versus 63% for validly plated ones.
The question is simple: Are you a New York City resident?
What we’re describing here is rate evasion, or “garage fraud,” a recognized form of insurance fraud nationally, not just a New York quirk.
It’s been illegal since 2022, when Italy banned residents from driving foreign-plated cars not also registered domestically.
In New York, with a driver simply registering a Honda in New Jersey, they’re part of a greater tax and insurance fraud scheme.