senate Bill S1896
(R) 7th Senate District
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
Exempts political subdivisions from the imposition of the metropolitan commuter transportation mobility tax.
TITLE OF BILL:
to amend the tax law, in relation to the
exemption of political subdivisions from the
imposition of the metropolitan
commuter transportation mobility tax
PURPOSE: The legislation would exempt local
governments outside of New
York City located within the metropolitan commuter transportation
district from paying the metropolitan commuter transportation
mobility tax (MTA payroll tax.
SUMMARY OF PROVISIONS: Section 1 amends Subsection
(b) of Section 800
of the tax law, as added by section 1 of part B of Chapter 56 of the
Laws of 2011, to exempt all counties, towns, cities, villages and
other political subdivisions outside of New York city from paying the
metropolitan commuter transportation mobility tax.
Section 2 sets the enacting date.
JUSTIFICATION: The metropolitan commuter
transportation mobility tax
(MTA payroll tax)enacted in 2009, was subsequently rolled back in
2011 for 78.2% of the entities that were required to pay the tax in
the Metropolitan Commuter Transportation District (MCTD), which
includes the counties of Dutchess, Nassau, Orange, Putnam, Rockland,
Suffolk and Westchester. Taxing existing jobs has proven to have had
a crippling effect on the economy and new job creation within the
MCTD. This tax is having a severe negative impact on economic
recovery, and is discouraging growth of new business and job creation
at a time when the government should be promoting these objectives.
To address the negative effect of this tax on jobs and economic growth
as well as the effect on property taxes, the tax should be repealed for
local government entities in the MCTD, and take the burden of this
onerous tax off of the property taxpayers.
LEGISLATIVE HISTORY: S.6206 (2012)
FISCAL IMPLICATIONS: Approximately $19.8 million to
EFFECTIVE DATE: This act shall take effect
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