Senate Passes Bill to Exempt Libraries From Mta Payroll Tax

William J. Larkin Jr.

June 4, 2012

The New York State Senate today passed legislation (S6079A), sponsored by Senator Jack Martins (R-C-I, Mineola), that would exempt libraries from the paying the MTA payroll tax. Repealing the tax would save libraries in the downstate MTA region $1.3 million annually.

"Our libraries do a tremendous job with limited resources," said Senator Bill Larkin (R-C, Cornwall-on-Hudson).  "This legislation will free them from the burden of paying this onerous tax which will allow the funding to go towards critical library programs and expanded services.  I urge the Assembly to bring this bill up for a vote as soon as possible," said Larkin.

Last December, the Senate successfully led the effort to repeal the MTA payroll tax for small businesses, public and private schools and other entities with payrolls under $1.25 million. That’s over 700,000 taxpayers who were previously paying it. Approximately 80 percent of all employers received a total elimination. Thousands of others received a significant reduction.

"The New York Library Association is grateful for Senator Martins’ prompt action to extend the exemption from the MTA payroll tax to include public libraries, which were left out of the recently adopted changes in December.  The library community is hopeful that this unfortunate oversight will be addressed before the end of the session," said Michael J. Borges, Executive Director of the New York Library Association. 

The bill was sent to the Assembly.