S T A T E O F N E W Y O R K
________________________________________________________________________
8635--B
2009-2010 Regular Sessions
I N A S S E M B L Y
June 1, 2009
___________
Introduced by M. of A. THIELE -- Multi-Sponsored by -- M. of A. ALESSI
-- read once and referred to the Committee on Ways and Means --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- again reported from said committee
with amendments, ordered reprinted as amended and recommitted to said
committee
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 five 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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14027-03-9
A. 8635--B 2
S 2. 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, is amended to
read as follows:
(a) Metropolitan commuter transportation district. The metropolitan
commuter transportation district ("MCTD") means the area of the state
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 TEN.
S 3. Section 1266 of the public authorities law is amended by adding
a new subdivision 19 to read as follows:
19. THE AUTHORITY IS REQUIRED BY MARCH THIRTY-FIRST, TWO THOUSAND TEN
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.
S 4. This act shall take effect immediately.