NY State Senate Bill 2023-S2253

Senate Bill S2253

2023-2024 Legislative Session

Relates to the definition of the metropolitan commuter transportation district for the purposes of the metropolitan commuter transportation mobility tax

download bill text pdf

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to investigations and government operations
Jan 19, 2023	referred to investigations and government operations

2023-S2253 (ACTIVE) - Details

See Assembly Version of this Bill:: A4318
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §800, Tax L; amd §1266, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S6311, A8635
2011-2012: S2871, A4170
2013-2014: S1772, A1217
2015-2016: S319, A92
2017-2018: S1624, A964
2019-2020: S3495, A5188
2021-2022: S5169, A5809

2023-S2253 (ACTIVE) - Summary

Relates to the definition of the metropolitan commuter transportation district for the purposes of the metropolitan commuter transportation mobility tax; requires the metropolitan transportation authority to renegotiate the joint service operating agreement with the state of Connecticut.

2023-S2253 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2253

SPONSOR: PALUMBO
 
TITLE OF BILL:

An act to amend the tax law, in relation to the definition of the metro-
politan commuter transportation district for the purposes of the metro-
politan commuter transportation mobility tax; and to amend the public
authorities law, in relation to requiring the metropolitan transporta-
tion authority to renegotiate the joint service operating agreement with
the state of Connecticut

 
PURPOSE:

This legislation would exempt all employers within the towns of Brookha-
ven, East Hampton, Riverhead, Shelter Island, Southampton and Southold
in Suffolk County from the Metropolitan Transportation Authority's
payroll tax as implemented by Chapter 25 of the Laws of 2009.

 
SUMMARY OF PROVISIONS:

Section 1. Legislative finds. The town of Brookhaven, East Hampton,

Riverhead, Shelter Island, Southold and Southampton in the County of
Suffolk already pay substantial taxes and mortgage recording taxes to
the MTA for the minimal mass transit services they receive. As such, the
aforementioned towns should be exempt from the newly Metropolitan Commu-
ter Transportation mobility tax.

Section 2. Amends subdivision(A) of section 800 of the tax law, as added
by Section 1 of part C of Chapter 25 of the Laws of 2009 to exclude the
town of Brookhaven, East Hampton, Riverhead, Shelter Island, Southampton
and Southold in Suffolk County from the Metropolitan Commuter Transpor-
tation District.

Section 3. Amends Section 1266 of the public authorities law by adding a
new subdivision 19 requiring the renegotiation of the joint service
agreement between the MTA and the state of Connecticut relating to the
operation of the Metro-North New Haven line and reducing its services
and expenses by March 31, 2025.

Section 4. Provides for an immediate effective date of this act.

 
JUSTIFICATION:

Chapter 25 of the Laws of 2009 implements various supplemental fees and
taxes for the 12-county Metropolitan Commuter Transportation District
(MCTD) in an effort to financially bailout the MTA. Provisions of this
package include a 0.34% payroll tax for all employers in MCTD, which
includes the town of Brookhaven and the towns which comprise the Peconic
Bay Region located on the east end of Long Island (East Hampton, River-
head, Shelter Island, Southampton and Southold). The Peconic Bay Region
alone has a population of approximately 140,000 and represents 1.1% of
the MCTD.

This measure will surely have a devastating effect on every local
employer located within the Peconic Bay Region and the town of Brookha-
ven. This new expense will ultimately have to be passed along by those
employers through higher prices and increased property taxes. Residents
of these areas already heavily subsidize the MTA through increased
fares, additional sales tax and a mortgage recording tax. In return for
these onerous taxes and fees, they receive minimal services from the
MTA. In fact, the Volpe Study on improved rail/bus service estimates
that the east end pays $40 to $60 million more for services than what is
received from the MTA on an annual basis. Despite the fact that this
area does not have the same level of New York City commuters, they pay
the same as those who benefit from ample services.

This legislation further provides for the renegotiation of the joint
service agreement between the MTA and the State of Connecticut related
to the operation of the Metro North New Haven line. The monies saved by
reducing services and expenses related to the Metro North new Haven lien
by an amount which produces recurring savings to the MTA would help to
offset the cost of exempting the towns of Brookhaven, East Hampton,
Riverhead, Shelter Island, Southold and Southampton from this tax.

It is necessary to avoid any further inequitable taxation on those towns
undeserved by the MTA which comprises the Peconic Bay Region and the
town of Brookhaven. Therefore, enactment of this legislation is neces-
sary to exempt these areas from the MTA's employer payroll tax.

 
LEGISLATIVE HISTORY:

2022 S.5169/A.5809; 2020 S.3495/A.5188; 2017-18 S.1624A/A.964A;

2015-16 S.319A/A.92A; 2013-14 S.1772A/A.1217A; 2011-12 S.2871; 2010
S.6311A.8635B

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Immediately.

2023-S2253 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2253
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced  by  Sen. PALUMBO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in relation to the definition of the metro-
   politan commuter transportation  district  for  the  purposes  of  the
   metropolitan  commuter  transportation  mobility tax; and to amend the
   public authorities law, in  relation  to  requiring  the  metropolitan
   transportation  authority  to  renegotiate the joint service operating
   agreement with the state of Connecticut
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. Pursuant to chapter 25 of the laws of
 2009, the legislature did enact the metropolitan mobility tax within the
 twelve   county  region  constituting  the  metropolitan  transportation
 district. The legislature hereby finds that the residents of  the  towns
 of  Brookhaven,  East  Hampton,  Riverhead, Shelter Island, Southold and
 Southampton in the  county  of  Suffolk  receive  minimal  mass  transit
 services  from the metropolitan transportation authority. Further, these
 towns already pay  substantial  taxes  to  the  MTA  for  these  minimal
 services,  including increased sales taxes and mortgage recording taxes.
 It has been estimated these six towns contribute more than  $60  million
 annually to the MTA than they receive back in service.
   In the interest of tax fairness and to avoid such additional inequita-
 ble  taxation  on  these  towns, it is the purpose of this act to exempt
 such towns from the newly adopted metropolitan  commuter  transportation
 mobility tax.
   § 2. Subsection (a) 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:
   (a) Metropolitan commuter transportation  district.  The  metropolitan
 commuter  transportation  district  ("MCTD") means the area of the state

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03797-01-3

 S. 2253                             2
 
 included in the district created and governed by section twelve  hundred
 sixty-two of the public authorities law, EXCEPT THAT FOR THE PURPOSES OF
 THIS  ARTICLE, THE TOWNS OF BROOKHAVEN, EAST HAMPTON, RIVERHEAD, SHELTER
 ISLAND,  SOUTHAMPTON  AND  SOUTHOLD  IN SUFFOLK COUNTY SHALL BE EXCLUDED
 FROM THE DISTRICT FOR THE PURPOSES OF  THIS  ARTICLE  AND  ANY  REVENUES
 PREVIOUSLY  COLLECTED  FROM WITHIN THESE COUNTIES SHALL BE REIMBURSED TO
 EACH PAYOR BY MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-FIVE.
   § 3.  Section 1266 of the public authorities law is amended by  adding
 a new subdivision 20 to read as follows:
   20.  THE  AUTHORITY  IS  REQUIRED  BY MARCH THIRTY-FIRST, TWO THOUSAND
 TWENTY-FIVE TO:
   (A) RENEGOTIATE THE JOINT SERVICE AGREEMENT BETWEEN THE AUTHORITY  AND
 THE STATE OF CONNECTICUT RELATED TO THE OPERATION OF THE METRO-NORTH NEW
 HAVEN  LINE  TO  (I)  REQUIRE  CONNECTICUT  TO  SET  NEW HAVEN LINE FARE
 INCREASES AT LEVELS NECESSARY TO SUSTAIN EQUIVALENT FARE LEVELS  BETWEEN
 NEW  YORK  STATE  RESIDENTS RIDING THE METRO-NORTH COMMUTER RAILROAD AND
 CONNECTICUT RESIDENTS RIDING THE  METRO-NORTH  COMMUTER  RAILROAD,  (II)
 REQUIRE  THAT  CONNECTICUT  OPERATING  DEFICIT SUBSIDY PAYMENTS SHALL BE
 BASED ON CONNECTICUT RESIDENT UTILIZATION OF  THE  METRO-NORTH  COMMUTER
 RAILROAD AND CONNECTICUT RESIDENT UTILIZATION OF THE NEW YORK CITY TRAN-
 SIT  AUTHORITY  WITH  SUCH SUBSIDIES TO BE DETERMINED BY MULTIPLYING THE
 CONNECTICUT RESIDENT UTILIZATION PERCENTAGES FOR THE METRO-NORTH  COMMU-
 TER  RAILROAD  AND THE NEW YORK CITY TRANSIT AUTHORITY BY THE RESPECTIVE
 BASELINE OPERATING DEFICIT OF THESE OPERATING ENTITIES PRIOR TO  SUBSIDY
 ADJUSTMENTS AND PRIOR TO INCREASED REVENUES PROVIDED TO THE AUTHORITY BY
 NEW  YORK STATE RESIDENTS PURSUANT TO PAYMENTS MANDATED BY CHAPTER TWEN-
 TY-FIVE OF THE LAWS OF TWO THOUSAND NINE, AND (III) PROVIDE FOR RETROAC-
 TIVE LUMP SUM PAYMENTS DUE FROM THE  STATE  OF  CONNECTICUT  RELATED  TO
 CALENDAR YEAR TWO THOUSAND NINE; OR
   (B)  REDUCE SERVICES AND EXPENSES RELATED TO THE METRO-NORTH NEW HAVEN
 LINE OPERATION BY AN AMOUNT WHICH  PRODUCES  RECURRING  SAVINGS  TO  THE
 AUTHORITY  WHICH ARE EQUIVALENT TO THE INCREASED JOINT SERVICE AGREEMENT
 PAYMENTS WHICH WOULD BE DETERMINED UNDER PARAGRAPH (A) OF THIS  SUBDIVI-
 SION.
   § 4. This act shall take effect immediately.

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