S T A T E O F N E W Y O R K
2011-2012 Regular Sessions
I N S E N A T E
April 15, 2011
Introduced by Sen. BALL -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to exempting earnings from
self-employment, for-profit corporations, not-for-profit corporations,
political subdivisions of the state and school districts from the
metropolitan commuter transportation mobility tax; and to repeal
certain provisions of such law relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subsection (b) of section 800 of the tax law, as added by
section 1 of part C of chapter 25 of the laws of 2009, is amended to
read as follows:
(b) Employer. Employer means an employer required by section six
hundred seventy-one of this chapter to deduct and withhold tax from
wages, that has a payroll expense in excess of two thousand five hundred
dollars in any calendar quarter; other than:
(1) any agency or instrumentality of the United States;
(2) the United Nations; [or]
(3) an interstate agency or public corporation created pursuant to an
agreement or compact with another state or the Dominion of Canada[.];
(4) ANY FOR-PROFIT CORPORATION;
(5) ANY NOT-FOR-PROFIT CORPORATION;
(6) ANY POLITICAL SUBDIVISION OF THE STATE OR ANY MUNICIPALITY, AND
EVERY AGENCY AND INSTRUMENTALITY THEREOF;
(7) ANY SCHOOL DISTRICT; OR
(8) AN INDIVIDUAL HAVING NET EARNINGS FROM SELF-EMPLOYMENT FROM ACTIV-
ITY WITHIN THE MCTD.
S 2. Subsection (e) of section 800 of the tax law is REPEALED.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 4716--A 2
S 3. Section 801 of the tax law, as added by section 1 of part C of
chapter 25 of the laws of 2009, is amended to read as follows:
S 801. Imposition of tax and rate. (a) For the sole purpose of provid-
ing an additional stable and reliable dedicated funding source for the
metropolitan transportation authority and its subsidiaries and affil-
iates to preserve, operate and improve essential transit and transporta-
tion services in the metropolitan commuter transportation district, a
tax is hereby imposed at a rate of thirty-four hundredths (.34) percent
of [(1)] the payroll expense of every employer who engages in business
within the MCTD [and (2) the net earnings from self-employment of indi-
viduals that are attributable to the MCTD if such earnings attributable
to the MCTD exceed ten thousand dollars for the tax year].
(b)[(1) An individual having net earnings from self-employment from
activity both within and without the metropolitan commuter transporta-
tion district is required to allocate and apportion such net earnings to
the MCTD in the manner required for allocation and apportionment of
income under article twenty-two of this chapter.
(2) In the case of individuals with earnings from self-employment, the
net earnings from self employment threshold in paragraph two of
subsection (a) of this section will be computed on an individual basis
regardless of whether that individual filed a joint personal income tax
(c)] The determination of whether a covered employee is employed with-
in the MCTD will be made by utilizing the rules applicable to the juris-
diction of employment for purposes of the statewide wage reporting
system under section one hundred seventy-one-a of this chapter and
substituting the MCTD for the state in that application.
S 4. Subsection (b) of section 804 of the tax law is REPEALED.
S 5. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.