Report says NYC would reap millions by lifting cap on vendor permits

Eliminating the existing cap on street vendor licenses could generate millions of dollars in economic activity for New York City, according to a new report from the Independent Budget Office.

Members of the city council say the findings support their legislative push to legalize street vendors who currently operate in the underground economy.

Currently, there are 5,100 permits available for food vendors and 853 permits for merchandise vendors. While it’s unclear how many street vendors actually operate across the five boroughs, the report cited estimates of as many as 20,000, with an equal or even greater number of people on a waitlist for permits.

The report also cited growing demand due to “the influx of migrants from South and Central America, many of whom have turned to vending on streets and subways.”

The IBO report estimated that under a “higher-demand scenario,” in which an additional 16,696 permits were granted, the city would generate $13.4 million in increased revenue, after administrative costs were factored in. Those revenues include increased sales taxes as well as permit fees.

Two council members who have introduced legislation to expand the pool of permits said they were “heartened” by the IBO’s report.

“By bringing street vending out of the shadows, our city would join other cities across the U.S. that do not place arbitrary caps on vending, and instead effectively regulate all vendors,” said Amanda Farías and Pierina Sanchez in a joint statement.

“This will provide vendors with a government touchpoint that will improve the safety of goods sold, increasing compliance on our sidewalks, raising tax and fee revenues for the city during this fiscally difficult time, and per these findings, being fiscally positive for our city,” the statement said.