S T A T E   O F   N E W   Y O R K
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                                 8193--A

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              June 6, 2011
                               ___________

Introduced  by M. of A. LATIMER, SPANO, THIELE, GRAF, MURRAY, LOSQUADRO,
  MOLINARO, CONTE -- read once and referred to the Committee on Ways and
  Means -- committee discharged,  bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

AN ACT to amend the tax law, in relation to creating regions one and two
  for  the  metropolitan  commuter transportation mobility tax; to amend
  the state finance law, in relation to aid and incentives  for  munici-
  palities;  to  amend the state finance law, in relation to transfer of
  moneys in the metropolitan mass  transportation  operating  assistance
  account;  to  amend the tax law and the state finance law, in relation
  to the deposit of certain motor fuel and diesel fuel taxes;  to  dedi-
  cate  certain monies to the metropolitan transportation authority; and
  to repeal section 3609-g of the education law

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. 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:
  S 800. Definitions. For the purposes of this article:
  (a)  Metropolitan  commuter  transportation district. The metropolitan
commuter transportation district ("MCTD") means [the area] THE  COMBINA-
TION  OF REGION ONE AND REGION TWO of the state included in the district
created and governed by section twelve hundred sixty-two of  the  public
authorities law.
  (b)  REGION  ONE.  REGION ONE MEANS COUNTIES CONTAINED WHOLLY WITHIN A
CITY WITH A POPULATION OF ONE MILLION OR MORE.
  (C) REGION TWO. REGION TWO MEANS THE  COUNTIES  OF  DUTCHESS,  NASSAU,
ORANGE, PUTNAM, ROCKLAND, SUFFOLK, AND WESTCHESTER.
  (D)  Employer.  Employer  means  an  employer  required by section six
hundred seventy-one of this chapter to  deduct  and  withhold  tax  from
wages, that has a payroll expense in excess of two thousand five hundred
dollars in any calendar quarter; other than

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11987-09-1
              

A. 8193--A                          2

  (1) any agency or instrumentality of the United States;
  (2) the United Nations; [or]
  (3)  an interstate agency or public corporation created pursuant to an
agreement or compact with another state or the Dominion of Canada[.];
  (4) A NON-PUBLIC  PRIMARY  OR  SECONDARY  SCHOOL  THAT  SATISFIES  THE
REQUIREMENTS PRESCRIBED BY LAW FOR NON-PUBLIC SCHOOLS IN THIS STATE, AND
THAT  HAS QUALIFIED FOR FEDERAL TAX EXEMPTION UNDER SECTION 501(C)(3) OF
THE INTERNAL REVENUE CODE;
  (5) ANY PUBLIC  SCHOOL  DISTRICT,  BOARD  OF  COOPERATIVE  EDUCATIONAL
SERVICES,  OR  SPECIAL  ACT  SCHOOL DISTRICT, AS DEFINED IN SECTION FOUR
THOUSAND ONE OF THE EDUCATION LAW; OR
  (6) AN EMPLOYER THAT IS LOCATED IN THE MCTD WITH TWENTY-FIVE  OR  LESS
COVERED EMPLOYEES OR AN INDIVIDUAL HAVING NET EARNINGS FROM SELF EMPLOY-
MENT FROM ACTIVITY WITHIN THE MCTD.
  [(c)]  (E)  Payroll  expense.  Payroll expense means wages and compen-
sation as defined in sections 3121 and 3231 of the internal revenue code
(without regard to section  3121(a)(1)  and  section  3231(e)(2)(A)(i)),
paid to all covered employees.
  [(d)]  (F) Covered employee. Covered employee means an employee who is
employed within REGION ONE OR REGION TWO OF the MCTD.
  [(e)] (G) Net earnings from self-employment. Net earnings  from  self-
employment  has  the  same  meaning  as  in section 1402 of the internal
revenue code.
  S 2. Section 801 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:
  S 801. Imposition of tax and rate. (a) For the sole purpose of provid-
ing  an  additional stable and reliable dedicated funding source for the
metropolitan transportation authority and its  subsidiaries  and  affil-
iates to preserve, operate and improve essential transit and transporta-
tion  services  in  the metropolitan commuter transportation district, a
tax is hereby imposed [at a rate of thirty-four hundredths (.34) percent
of] ON: (1) the payroll expense of every employer who engages  in  busi-
ness  within  the  MCTD  and  (2)  PRIOR  TO JANUARY FIRST, TWO THOUSAND
TWELVE, the net earnings from self-employment of  individuals  that  are
attributable  to  the  MCTD  if  such  earnings attributable to the MCTD
exceed ten thousand dollars for the tax year[.] AT THE FOLLOWING RATES:
  (I) FOR REGION ONE, ON OR AFTER JANUARY FIRST, TWO THOUSAND  NINE  AND
BEFORE  JANUARY  FIRST,  TWO  THOUSAND  THIRTEEN, THIRTY-FOUR HUNDREDTHS
(.34) PERCENT; ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND  THIRTEEN  AND
BEFORE  JANUARY  FIRST,  TWO  THOUSAND FOURTEEN, TWENTY-EIGHT HUNDREDTHS
(.28) PERCENT; AND ON JANUARY FIRST, TWO THOUSAND FOURTEEN AND THEREAFT-
ER, TWENTY-ONE HUNDREDTHS (.21) PERCENT.
  (II) FOR REGION TWO, ON OR AFTER JANUARY FIRST, TWO THOUSAND NINE  AND
BEFORE  JANUARY FIRST, TWO THOUSAND TWELVE, THIRTY-FOUR HUNDREDTHS (.34)
PERCENT; ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE AND BEFORE JANU-
ARY FIRST, TWO THOUSAND THIRTEEN, TWENTY-THREE HUNDREDTHS (.23) PERCENT;
ON OR AFTER JANUARY FIRST, TWO  THOUSAND  THIRTEEN  AND  BEFORE  JANUARY
FIRST,  TWO  THOUSAND  FOURTEEN, TWELVE HUNDREDTHS (.12) PERCENT; AND ON
JANUARY FIRST, TWO THOUSAND FOURTEEN AND THEREAFTER, ZERO (0) PERCENT.
  (b)(1) [An] PRIOR TO JANUARY FIRST, TWO THOUSAND TWELVE, AN individual
having net earnings from self-employment from activity both  within  and
without the metropolitan commuter transportation district is required to
allocate  and  apportion  such  net  earnings  to the MCTD in the manner
required for allocation and apportionment of income under article  twen-
ty-two of this chapter.

A. 8193--A                          3

  (2)  [In]  PRIOR TO JANUARY FIRST, TWO THOUSAND TWELVE, IN the case of
individuals with earnings from self-employment, the  net  earnings  from
self  employment  threshold  in  paragraph two of subsection (a) of this
section will be computed on an individual basis  regardless  of  whether
that individual filed a joint personal income tax return.
  (c) The determination of whether a covered employee is employed within
REGION ONE OR REGION TWO OF the MCTD will be made by utilizing the rules
applicable  to the jurisdiction of employment for purposes of the state-
wide wage reporting system under section one  hundred  seventy-one-a  of
this chapter, AS ADDED BY CHAPTER FIVE HUNDRED FORTY-FIVE OF THE LAWS OF
NINETEEN  HUNDRED  SEVENTY-EIGHT,  and substituting REGION ONE OR REGION
TWO OF the MCTD for the state in that application.
  S 3. Section 3609-g of the education law is REPEALED.
  S 4. Subdivision 10 of section 54 of the state finance law is  amended
by adding a new paragraph j-1 to read as follows:
  J-1.  SPECIAL AID AND INCENTIVES FOR MUNICIPALITIES TO THE CITY OF NEW
YORK. IN THE STATE FISCAL YEAR  COMMENCING  APRIL  FIRST,  TWO  THOUSAND
FOURTEEN  AND  IN EACH STATE FISCAL YEAR THEREAFTER, A CITY WITH A POPU-
LATION OF ONE MILLION OR MORE SHALL RECEIVE ONE  HUNDRED  FIFTY  MILLION
DOLLARS  PAYABLE ON OR BEFORE DECEMBER FIFTEENTH. SPECIAL AID AND INCEN-
TIVES FOR MUNICIPALITIES TO THE CITY OF NEW YORK  SHALL  BE  APPORTIONED
AND  PAID  TO THE NEW YORK CITY TRANSIT AUTHORITY FOR THE PURPOSE OF THE
SUPPORT OF MASS TRANSIT IN THE CITY OF NEW YORK.
  S 5. Subdivision 7 of section 88-a of the state finance law is amended
by adding a new paragraph (c) to read as follows:
  (C) IN THE STATE FISCAL YEAR  COMMENCING  APRIL  FIRST,  TWO  THOUSAND
TWELVE,  AND  IN EACH STATE FISCAL YEAR THEREAFTER, MONEYS IN THE METRO-
POLITAN MASS TRANSPORTATION OPERATING ASSISTANCE ACCOUNT  SHALL  NOT  BE
TRANSFERRED  TO THE GENERAL FUND OR OTHER STATE FUNDS OR ACCOUNTS EXCEPT
FOR THE  PUBLIC  TRANSPORTATION  SYSTEMS  OPERATING  ASSISTANCE  ACCOUNT
PROVIDED  THAT  ANY  MONEYS  TRANSFERRED  TO  THE  PUBLIC TRANSPORTATION
SYSTEMS OPERATING ASSISTANCE ACCOUNT SHALL ONLY BE USED TO SUPPORT TRAN-
SIT SYSTEMS. IN ADDITION, MONEYS IN THE METROPOLITAN MASS TRANSPORTATION
OPERATING ASSISTANCE ACCOUNT AND PUBLIC TRANSPORTATION SYSTEMS OPERATING
ASSISTANCE ACCOUNT SHALL NOT  BE  APPROPRIATED  FOR  ANY  OTHER  PURPOSE
EXCEPT FOR THE SUPPORT OF TRANSIT SYSTEMS.
  S  6.  Subdivision  (d)  of  section 1102 of the tax law is amended by
adding a new paragraph 1-a to read as follows:
  (1-A) EXCEPT AS OTHERWISE PROVIDED, ONE CENT PER GALLON OF  THE  TAXES
COLLECTED  OR  RECEIVED IN ANY MONTH WITH RESPECT TO SUCH PREPAYMENT PER
GALLON TAX IMPOSED BY THIS SECTION SHALL BE DEPOSITED PROPORTIONATELY AS
FOLLOWS: (I) FOR MOTOR FUEL, EIGHTY-ONE AND FIVE-TENTHS PERCENT  IN  THE
SPECIAL  OBLIGATIONS  AND  RESERVE  AND PAYMENT ACCOUNT OF THE DEDICATED
HIGHWAY  AND  BRIDGE  TRUST  FUND  ESTABLISHED   PURSUANT   TO   SECTION
EIGHTY-NINE-B  OF  THE  STATE  FINANCE  LAW AND EIGHTEEN AND FIVE-TENTHS
PERCENT IN THE METROPOLITAN  MASS  TRANSPORTATION  OPERATING  ASSISTANCE
ACCOUNT   ESTABLISHED   PURSUANT   TO   SUBDIVISION   SEVEN  OF  SECTION
EIGHTY-EIGHT-A OF THE STATE FINANCE LAW; (II)  FOR  DIESEL  MOTOR  FUEL,
SIXTY-THREE  PERCENT  IN THE SPECIAL OBLIGATIONS AND RESERVE AND PAYMENT
ACCOUNT OF THE DEDICATED  HIGHWAY  AND  BRIDGE  TRUST  FUND  ESTABLISHED
PURSUANT  TO SECTION EIGHTY-NINE-B  OF THE STATE FINANCE LAW AND THIRTY-
SEVEN PERCENT IN THE METROPOLITAN MASS TRANSPORTATION OPERATING  ASSIST-
ANCE ACCOUNT ESTABLISHED PURSUANT TO SUBDIVISION SEVEN OF SECTION EIGHT-
Y-EIGHT-A OF THE STATE FINANCE LAW.
  S  7. Paragraph 1-a of subdivision (d) of section 1102 of the tax law,
as added by section six of this act, is amended to read as follows:

A. 8193--A                          4

  (1-a) Except as otherwise provided, [one cent] TWO CENTS per gallon of
the taxes collected or received  in  any  month  with  respect  to  such
prepayment  per  gallon  tax  imposed by this section shall be deposited
proportionately as follows: (i) for motor  fuel,  eighty-one  and  five-
tenths  percent  in  the  SPECIAL  OBLIGATIONS  AND  RESERVE AND PAYMENT
ACCOUNT OF THE dedicated  highway  and  bridge  trust  fund  established
pursuant  to section eighty-nine-b of the state finance law and eighteen
and five-tenths percent in the metropolitan mass transportation  operat-
ing  assistance  account  established  pursuant  to subdivision seven of
section eighty-eight-a of the state finance law; (ii) for  diesel  motor
fuel,  sixty-three  percent  in  the SPECIAL OBLIGATIONS AND RESERVE AND
PAYMENT ACCOUNT OF THE dedicated highway and bridge  trust  fund  estab-
lished  pursuant  to section eighty-nine-b  of the state finance law and
thirty-seven percent in the metropolitan mass  transportation  operating
assistance  account established pursuant to subdivision seven of section
eighty-eight-a of the state finance law.
  S 8. Paragraph 1-a of subdivision (d) of section 1102 of the tax  law,
as amended by section seven of this act, is amended to read as follows:
  (1-a)  Except as otherwise provided, [two cents] FOUR CENTS per gallon
of the taxes collected or received in any month  with  respect  to  such
prepayment  per  gallon  tax  imposed by this section shall be deposited
proportionately as follows: (i) for motor  fuel,  eighty-one  and  five-
tenths  percent  in  the  SPECIAL  OBLIGATIONS  AND  RESERVE AND PAYMENT
ACCOUNT OF THE dedicated  highway  and  bridge  trust  fund  established
pursuant  to section eighty-nine-b of the state finance law and eighteen
and five-tenths percent in the metropolitan mass transportation  operat-
ing  assistance  account  established  pursuant  to subdivision seven of
section eighty-eight-a of the state finance law; (ii) for  diesel  motor
fuel,  sixty-three  percent  in  the SPECIAL OBLIGATIONS AND RESERVE AND
PAYMENT ACCOUNT OF THE dedicated highway and bridge  trust  fund  estab-
lished  pursuant  to section eighty-nine-b  of the state finance law and
thirty-seven percent in the metropolitan mass  transportation  operating
assistance  account established pursuant to subdivision seven of section
eighty-eight-a of the state finance law.
  S 9. Paragraph (a) of subdivision 7  of  section  88-a  of  the  state
finance  law, as added by chapter 481 of the laws of 1981, is amended to
read as follows:
  (a)  The  "metropolitan  mass  transportation   operating   assistance
account"  shall  consist  of the revenues derived from the taxes for the
metropolitan transportation district imposed by section  eleven  hundred
nine  of the tax law and that proportion of the receipts received pursu-
ant to the tax imposed by article nine-a of such  law  as  specified  in
section  one  hundred  seventy-one-a of such law, and that proportion of
the receipts received pursuant to the tax imposed  by  article  nine  of
such  law  as specified in section two hundred five of such law, and the
receipts required to be deposited pursuant to the provisions of  section
one  hundred  eighty-two-a  OF  SUCH  LAW,  AND  THAT  PROPORTION OF THE
RECEIPTS RECEIVED PURSUANT TO THE TAX IMPOSED BY ARTICLE TWENTY-EIGHT OF
SUCH LAW AS SPECIFIED IN SECTION ELEVEN HUNDRED TWO OF SUCH LAW, and all
other moneys credited or transferred thereto  from  any  other  fund  or
source pursuant to law.
  S  10.  Paragraph  (a)  of  subdivision 3 of section 89-b of the state
finance law, as amended by section 2 of chapter 165 of the laws of 2008,
is amended to read as follows:
  (a) The special obligation reserve and payment account  shall  consist
(i)  of all moneys required to be deposited in the dedicated highway and

A. 8193--A                          5

bridge trust fund pursuant to the provisions  of  sections  two  hundred
five,  two  hundred  eighty-nine-e,  three  hundred  one-j, five hundred
fifteen, ELEVEN HUNDRED TWO and eleven hundred sixty-seven  of  the  tax
law,  section  four  hundred  one  of  the  vehicle and traffic law, and
section thirty-one of chapter fifty-six of the laws of nineteen  hundred
ninety-three, (ii) all fees, fines or penalties collected by the commis-
sioner  of transportation pursuant to section fifty-two and subdivisions
five, eight and twelve of  section  eighty-eight  of  the  highway  law,
subdivision  fifteen of section three hundred eighty-five of the vehicle
and traffic law, section two of the chapter of the laws of two  thousand
three  that  amended  this  paragraph,  subdivision (d) of section three
hundred four-a, paragraph one of subdivision (a) and subdivision (d)  of
section  three  hundred  five, subdivision six-a of section four hundred
fifteen and subdivision (g) of section twenty-one hundred twenty-five of
the vehicle and traffic law, section fifteen of this chapter,  excepting
moneys  deposited  with  the  state  on account of betterments performed
pursuant to  subdivision  twenty-seven  or  subdivision  thirty-five  of
section  ten  of  the  highway  law,  (iii)  any moneys collected by the
department of transportation for services provided  pursuant  to  agree-
ments  entered  into  in  accordance  with  section ninety-nine-r of the
general municipal law, and (iv) any other moneys collected  therefor  or
credited or transferred thereto from any other fund, account or source.
  S  11.  Paragraph  (a)  of  subdivision 3 of section 89-b of the state
finance law, as amended by section 3 of chapter 165 of the laws of 2008,
is amended to read as follows:
  (a) The special obligation reserve and payment account  shall  consist
(i)  of all moneys required to be deposited in the dedicated highway and
bridge trust fund pursuant to the provisions  of  sections  two  hundred
eighty-nine-e, three hundred one-j, five hundred fifteen, ELEVEN HUNDRED
TWO  and eleven hundred sixty-seven of the tax law, section four hundred
one of the vehicle and traffic law, and section  thirty-one  of  chapter
fifty-six  of  the laws of nineteen hundred ninety-three, (ii) all fees,
fines or penalties  collected  by  the  commissioner  of  transportation
pursuant to section fifty-two and subdivisions five, eight and twelve of
section  eighty-eight of the highway law, subdivision fifteen of section
three hundred eighty-five  of  the  vehicle  and  traffic  law,  section
fifteen  of  this  chapter, excepting moneys deposited with the state on
account of betterments performed pursuant to subdivision twenty-seven or
subdivision thirty-five of section ten of the  highway  law,  (iii)  any
moneys  collected  by  the  department  of  transportation  for services
provided pursuant to agreements entered into in accordance with  section
ninety-nine-r  of  the  general municipal law, and (iv) any other moneys
collected therefor or credited or transferred  thereto  from  any  other
fund, account or source.
  S  12.  A maximum of one hundred million dollars per annum from reven-
ues, fees or credits gathered from resources generated within the metro-
politan commuter transportation  district  by  assumed  authority  under
sections  5  and  66 of the public service law shall be dedicated to the
metropolitan transportation authority in order to support  energy  effi-
cient public transportation in the state fiscal year commencing April 1,
2012 and in each state fiscal year thereafter.
  S  13. This act shall take effect immediately; provided, however, that
the provisions of sections one, six, nine, ten and eleven  of  this  act
shall  take  effect  January  1,  2012; provided, further, that sections
three and seven of this act  shall  take  effect  on  January  1,  2013;
provided,  further,  that  section  eight  of this act shall take effect

A. 8193--A                          6

January 1, 2014; provided, further, that the amendments to paragraph (a)
of subdivision 3 of section 89-b of  the  state  finance  law,  made  by
section  ten  of this act, shall be subject to the expiration and rever-
sion  of  such paragraph pursuant to section 13 of part U1 of chapter 62
of the laws of 2003, as amended, when upon such date the  provisions  of
section eleven of this act shall take effect.