Gov. Andrew Cuomo was in West Hempstead, Nassau County Monday morning to sign into law the measure that will reduce the MTA payroll tax as part of his New York Works Agenda unveiled last week.
The previous tax was 34 cents per $100 of payroll for businesses and also covers certain schools and self-employed individuals located in the 12 counties that are serviced by the Metropolitan Transportation Authority.
Businesses with a payroll under $1.25 million will no longer pay the tax that helps support the MTA.
Also under the new plan, parochial and private schools would join public schools in being exempt from the tax, and small businesses with a payroll under $1.5 million would see their rate fall from 0.34 percent to 0.11 percent. Those businesses with payrolls under $1.75 million would have to pay a 0.23 percent rate…
In total, the MTA payroll tax will be reduced or eliminated entirely for 294,900 taxpayers. Another 415,000 taxpayers will also see the tax eliminated through the raising of the self-employment income tax exemption. According to the governor’s office, $250 million in lost revenue for the MTA will be reimbursed by the state.
“After years of leading the charge to repeal the MTA payroll tax, I am thrilled with the governor’s plan,” said Sen. Greg Ball, R-Patterson, who also lauded other parts of the plan such as a reduction on taxes for the middle class. “This tax cut for the middle class is exactly the shot in the arm working families need and is a great jobs-focused package that begins to adjust our unfair tax code, while eliminating the job-killing MTA payroll tax for the vast majority of payers.” (READ MORE).