NY State Senate Bill 2011-S5596

Archive: Last 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 04, 2012	referred to investigations and government operations returned to senate died in assembly
Jun 15, 2011	referred to ways and means delivered to assembly passed senate ordered to third reading cal.1291 committee discharged and committed to rules
Jun 11, 2011	print number 5596a
Jun 11, 2011	amend (t) and recommit to investigations and government operations
Jun 06, 2011	referred to investigations and government operations

Votes

- Jun 15, 2011 - Floor Vote
  S5596
  
  40
  
  Aye
  
  22
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 15, 2011
      
      aye (40)
      
      Alesi
      
      Ball
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Gallivan
      
      Golden
      
      Griffo
      
      Grisanti
      
      Hannon
      
      Johnson
      
      Kennedy
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Libous
      
      Little
      
      Marcellino
      
      Martins
      
      Maziarz
      
      McDonald
      
      Nozzolio
      
      O'Mara
      
      Oppenheimer
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Saland
      
      Seward
      
      Skelos
      
      Smith
      
      Stewart-Cousins
      
      Valesky
      
      Young
      
      Zeldin
      
      nay (22)
      
      Adams
      
      Addabbo Jr.
      
      Avella
      
      Diaz
      
      Dilan
      
      Duane
      
      Espaillat
      
      Gianaris
      
      Hassell-Thompson
      
      Huntley
      
      Klein
      
      Krueger
      
      Montgomery
      
      Parker
      
      Peralta
      
      Perkins
      
      Rivera
      
      Sampson
      
      Savino
      
      Serrano
      
      Squadron
      
      Stavisky

Bill Amendments

Original

A (Active)

co-Sponsors

View additional co-sponsors

2011-S5596 - Details

See Assembly Version of this Bill:: A8193
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§800 & 801, Tax L

2011-S5596 - Summary

Relates to the metropolitan commuter transportation mobility tax.

2011-S5596 - Sponsor Memo

                                BILL NUMBER:S5596

TITLE OF BILL:
An act
to amend the tax law, in relation to creating regions one and two for
the metropolitan commuter transportation mobility tax

PURPOSE OR GENERAL IDEA OF BILL:
This bill establishes regions one and two for the purpose of phasing
out the MTA payroll tax over two and a half years. "Region one"
contains New York City's five boroughs and "region two" contains the
counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and
Westchester. For region one. the payroll tax shall remain at the .34%
level through January 1, 2013. when it shall be reduced to .28%. On
January 1, 2014, the tax shall be reduced further to .21%. For region
two, the tax is reduced to .23% in the first year (2012 - 2013) and
to .12% in the second year (2013 - 2014). On January 1. 2014. the tax
will cease to be in effect in region two. The MTA payroll tax shall
be eliminated with respect to public and non-public schools and small
businesses with twenty five or fewer employees beginning on January
1, 2012. It is the intent of the legislature that the reductions in
tax provided for in this section shall be implemented without any
increase in fares, or any decrease in service provided by the MTA.

SUMMARY OF PROVISIONS:
Section One amends section 800 of the tax law, as

added by section 1 of part C of chapter 25 of the laws of 2009 to
define: "region one" as counties contained wholly within a city with
a population of one million or more, referring to New York City's
five boroughs, "region two" as the counties of Dutchess, Nassau,
Orange, Putnam, Rockland, Suffolk and Westchester, and the
metropolitan commuter transportation district ("MCTD") as the
combination of these two regions. This section also excludes from the
definition of an "employer" for the purposes of the imposition of
this tax: agencies and instrumentalities of the United States, the
United Nations. an interstate agency or public corporation created
pursuant to an agreement or compact with another state or with
Canada. public primary and secondary schools, non-public primary or
secondary schools who have tax-exempt status within the MCTD. small
businesses with twenty-five or less employees within the MCTD and
self-employed individuals within the MCTD.

Section Two amends section 801 of the tax law. as added by section 1
of part C of chapter 25 of the laws of 2009 to provide a reduction in
the tax imposed on region one employers from .34% to .28% for one
year commencing January 1, 2013 and from .28% to .21% commencing
January 1, 2014. For region two. the tax imposed shall be reduced to
January 1, 2013, and fully eliminated as of January 1, 2014.

Section Three provides the effective dates.

JUSTIFICATION:
Enacted in 2009, article 23 of the tax law imposed an onerous tax on
employers in the areas serviced by the Metropolitan Transportation
Authority. This region, called the Metropolitan Commuter
Transportation District (MCTD), includes New York City's five


boroughs as well as the surrounding counties of Dutchess, Nassau,
Orange, Putnam, Rockland, Suffolk and Westchester. Employers who are
required to withhold New York state income tax from employee wages
and whose payroll exceeds $2,500 quarterly are currently required to
pay a 0.34% tax on payroll expenses allocated to the MCTD. This
amounts to $.34 per $100.00 of their payroll. Self-employed
individuals who make more than $10,000 during the tax year are
subject to the same 0.34% tax rate on their net earnings from
self-employment allocated to the MCTD.

This tax has had a crippling effect on business in the areas subject
to this tax. Not only has there been a severe negative impact on
existing businesses, it has also stymied growth of new business at a
time when the government should be incentivizing people to start new
businesses.
While an across the board elimination of the tax would be ideal, an
immediate repeal of the tax would financially devastate the MTA,
which has relied on this revenue and is already facing a severe debt
situation.

To address the negative effect of this tax on business growth as well
as concerns pertaining to schools, the tax shall immediately be
repealed with respect to small businesses with twenty five or fewer
employees as well as public and non-public schools. Under current
law, public schools are required to pay the mobility tax however they
are reimbursed by the state for this cost. This legislation fully
exempts public schools from having to pay the tax. This relief
applies to schools and small businesses throughout the entire MCTD,
including New York City, so that these financially vulnerable
institutions and businesses will no longer be subject to the
devastating tax rates imposed by the mobility tax.

This legislation phases out the tax for the purpose of providing an
additional stable and reliable dedicated funding source for the MTA
to preserve their essential services. The gradual repeal of the tax
proposed in this legislation would reduce the amount of the tax
imposed on the seven counties outside of New York City to .23%
beginning on January 1, 2012, and again to .12% beginning January 1,
2013, expiring one year later on January 1, 2014. The tax would
remain at the .34% level within the five boroughs until January 1,
2013, when it shall be reduced to .28% until January 1, 2014, when
the tax will be reduced again to .21% where it shall remain.

This plan's expedited reduction and ultimate repeal is an equitable
strategy because these areas are generally not as reliant on the
MTA's services. While residents of New York City's five boroughs
utilize the subways and busses in their daily life, many residents of
the surrounding counties use MTA services infrequently. In the
absence of an immediate repeal, relieving the residents of these
suburban areas of this burden, as well as small business owners and
non-public schools in the entire MCTD, is an appropriate way to
facilitate the eventual abrogation of this ill-conceived tax.

LEGISLATIVE HISTORY:

New bill.


FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
provisions of section one of this act shall take effect on January 1,
2012.

2011-S5596 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5596

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 6, 2011
                               ___________

Introduced  by  Sens. ZELDIN, MARTINS, BALL, JOHNSON, LAVALLE, SALAND --
  read twice and ordered printed, and when printed to  be  committed  to
  the Committee on Investigations and Government Operations

AN ACT to amend the tax law, in relation to creating regions one and two
  for the metropolitan commuter transportation mobility tax

  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
  (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 LOCATED IN THE MCTD 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;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11987-01-1

S. 5596                             2

  (5) A PUBLIC PRIMARY OR SECONDARY SCHOOL LOCATED IN THE MCTD; 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) the net earnings  from  self-employment  of
individuals that are attributable to the MCTD if such earnings attribut-
able  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 individual having net  earnings  from  self-employment  from
activity  both  within and without the metropolitan commuter transporta-
tion 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 twenty-two of this chapter.  AN INDIVIDUAL HAVING
NET EARNINGS FROM SELF-EMPLOYMENT FROM ACTIVITY BOTH WITHIN AND  WITHOUT
REGIONS ONE AND TWO IS REQUIRED TO ALLOCATE AND APPORTION SUCH NET EARN-
INGS  TO THE RESPECTIVE REGION IN THE MANNER REQUIRED FOR ALLOCATION AND
APPORTIONMENT OF INCOME UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER.
  (2) 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-

S. 5596                             3

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.  This act shall take effect immediately; provided, however, that
the provisions of section one of this act shall take effect  on  January
1, 2012.

co-Sponsors

View additional co-sponsors

2011-S5596A (ACTIVE) - Details

See Assembly Version of this Bill:: A8193
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§800 & 801, Tax L

2011-S5596A (ACTIVE) - Summary

Relates to the metropolitan commuter transportation mobility tax.

2011-S5596A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5596A

TITLE OF BILL:
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 municipalities; 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 dedicate certain monies to
the metropolitan transportation authority; and to repeal section 3609-g
of the education law

PURPOSE OR GENERAL IDEA OF BILL:
This bill establishes regions one and two for the purpose of phasing
out the MTA payroll mobility tax (PMT) over two and a half years.
"Region one" contains New York City's five boroughs and "region two"
contains the counties of Dutchess, Nassau, Orange, Putnam, Rockland,
Suffolk, and Westchester.
For region one, the PMT shall remain at the 0.34% level through
January 1, 2013, when it shall be reduced to 0.28%. On January 1,
2014, the tax shall be reduced further to 0.21%. For region two, the
tax is reduced to 0.23% in the first year (2012 - 2013) and to 0.12%
in the second year (2013 - 2014). On January 1, 2014, the tax will

cease to be in effect in region two. The MTA PMT shall be eliminated
entirely for public and non-public schools, the self-employed, and
employers with twenty five or fewer employees beginning on January 1,
2012. It is the intent of the legislature that the MTA shall address
the reductions in tax provided for in this legislation without any
increase in fares, or any decrease in service provided by the MTA.

SUMMARY OF PROVISIONS:
Section One amends section 800 of the tax law, as added by section 1
of part C of chapter 25 of the laws of 2009 to define: "region one"
as counties contained wholly within a city with a population of one
million or more (New York City's five boroughs), "region two" as the
counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and
Westchester, and the metropolitan commuter transportation district
("MCTD") as the combination of these two regions. This section also
excludes from the definition of an "employer" for the purposes of the
imposition of this tax: agencies and instrumentalities of the United
States, the United Nations, an interstate agency or public
corporation created pursuant to an agreement or compact with another
state or with Canada, public primary and secondary schools,
non-public primary or secondary schools who have tax-exempt status
within the MCTD, employers with twenty-five or less employees within
the MCTD and self-employed individuals within the MCTD.

Section Two amends section 801 of the tax law. as added by section 1
of part C of chapter 25 of the laws of 2009 to provide a reduction in
the tax imposed on region one employers from 0.34% to 0.28% for one
year commencing January 1, 2013 and from 0.28% to 0.21% commencing
January 1, 2014. For region two, the tax imposed shall be reduced to


0.23% on January 1, 2012, 0.12% on January 1, 2013, and fully
eliminated as of January 1, 2014.

Section Three repeals Section 3609-g of the education law, which
provided for the reimbursement of public schools for their MTA PMT
payments.

Sections Four through Twelve provide measures to mitigate the
immediate fiscal impact of this legislation on the MTA's operating
budget. These measures include: $150 million in special aid and
incentives to the City of New York for the NYC Transit Authority
(Section Four); directing that any surplus moneys in the metropolitan
mass transportation operating assistance account (MMTOA) be used only
to support transit systems (Section Five);
dedicating a portion of the prepayment of gasoline and diesel fuel
sales tax to MMTOA (Sections Six through Eleven); section Twelve
dedicates a maximum of $100 million from Regional Greenhouse Gas
Initiative (RGGI) and Energy Efficiency Portfolio Standards (EEPS)
revenues to the MTA.

It should be noted that the dedication of gas and diesel sales tax
revenues provided for in this legislation does not represent any
increase these taxes.
It is a dedication of existing tax revenues only.

Section Thirteen provides the effective dates.

JUSTIFICATION:
Enacted in 2009, article 23 of the tax law imposed an onerous tax on
employers in the areas serviced by the Metropolitan Transportation
Authority. This region, called the Metropolitan Commuter
Transportation District (MCTD), includes New York City's five
boroughs as well as the surrounding counties of Dutchess, Nassau,
Orange, Putnam, Rockland, Suffolk and Westchester. Employers who are
required to withhold New York state income tax from employee wages
and whose payroll exceeds $2,500 quarterly are currently required to
pay a 0.34% tax on payroll expenses allocated to the MCTD. This
amounts to $.34 per $100.00 of their payroll. Self-employed
individuals who make more than $10,000 during the tax year are
subject to the same 0.34% tax rate on their net earnings from
self-employment allocated to the MCTD.

Taxing existing jobs and new job creation has had a crippling effect
on the economy of the MCTD. This tax is having a severe negative
impact on economic recovery, and is discouraging growth of new
business and job creation at a time when the government should be
promoting these objectives.

To address the negative effect of this tax on jobs and economic growth
as well as the effect on school district property taxes, the tax
shall immediately be repealed for the self employed and for employers
with twenty five or fewer employees as well as public and non-public
schools. Under current law, public schools are required to pay the
mobility tax; however, they are reimbursed by the state for this
cost. This legislation fully exempts public schools from having to
pay the tax. This relief applies to employers, public and non-public


schools and the self-employed throughout the entire MCTD, including
New York City.

A gradual reduction and repeal permits the MTA to absorb the reduction
of PMT revenue without disruption of services or the need for fare
increases. This legislation would reduce the amount of the tax
imposed on employers of 26 or more employees in the seven counties
outside of New York City to 0.23% beginning on January 1, 2012, and
again to 0.12% beginning January 1, 2013, with a complete elimination
one year later on January 1, 2014. For New York City employers of 26
or more, the tax would remain at the 0.34% level within
the five boroughs until January 1, 2013, when it shall be reduced to
0.28% until January 1, 2014, when the tax will be reduced again to
0.21%.

This legislation's expedited reduction and ultimate repeal for the
counties outside New York city reflects the fact that these areas are
not as reliant on the MTA's services. While residents of New York
city's five boroughs utilize the subways and busses in their daily
life, many residents of the surrounding counties use MTA services
infrequently. A review of ridership indicates that MTA service
utilization rates are more than eight times greater in New York city
than in outlying areas.

When fully implemented in 2014, the estimated $840.9 million in tax
savings generated by this legislation represents a tiny portion of
the MTA's expected $15 billion 2014 operating budget. The
legislature's intent and expectation in enacting this legislation is
that the MTA can absorb the gradual loss of PMT revenue through
improved operating efficiencies, and without resorting to fare
increases or service reductions. However, this legislation also
includes several measures to mitigate the immediate fiscal impact of
the PMT phase-out on the MTA's operating budget and in order to
provide the MTA with the opportunity to implement greater operating
efficiencies. These mitigation measures will result in the MTA having
to absorb only $354.3 million in foregone PMT revenue by 2014, a tiny
2.4% of the MTA expected $15 billion operating budget.

As the economy of the MCTD improves through the reduction and repeal
of the MTA PMT, the various other sources of revenue for the MTA will
also recover. The legislature expects that this economic recovery, as
well as the increased operating efficiencies implemented by the MTA
due to to the repeal of the PMT, will provide the MTA with adequate
operating revenues in the years ahead. Clearly, there is no need for
the MTA to have to resort to fare hikes or service cuts as a result
of enacting this legislation.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
When fully implemented on January 1, 2014, the total tax savings
generated by this legislation is estimated at $840.9 million. The
mitigation measures provided to the MTA by this legislation are
expected to offset approximately $486.6 million of the estimated tax
savings, for a net $354.3 million in foregone revenue for the MTA.


EFFECTIVE DATE:
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
on January 1, 2014; provided, further, that 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
reversion of such paragraph pursuant to section 13 of part U1 of
chapter 62 of the laws of 2003, when upon such date the provisions of
section eleven of this act shall take effect.

2011-S5596A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5596--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 6, 2011
                               ___________

Introduced  by  Sens. ZELDIN, MARTINS, BALL, BONACIC, CARLUCCI, JOHNSON,
  LARKIN, LAVALLE, SALAND -- read twice and ordered  printed,  and  when
  printed to be committed to the Committee on Investigations and Govern-
  ment   Operations  --  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11987-08-1

S. 5596--A                          2

wages, that has a payroll expense in excess of two thousand five hundred
dollars in any calendar quarter; other than
  (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

S. 5596--A                          3

required for allocation and apportionment of income under article  twen-
ty-two of this chapter.
  (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. 5596--A                          4

  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:
  (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:

S. 5596--A                          5

  (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
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

S. 5596--A                          6

three  and  seven  of  this  act  shall  take effect on January 1, 2013;
provided, further, that section eight of  this  act  shall  take  effect
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.

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Senate Bill S5596

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Jun 15, 2011 - Floor Vote

Floor Vote: Jun 15, 2011

Bill Amendments

co-Sponsors

2011-S5596 - Details

2011-S5596 - Summary

2011-S5596 - Sponsor Memo

2011-S5596 - Bill Text download pdf

co-Sponsors

2011-S5596A (ACTIVE) - Details

2011-S5596A (ACTIVE) - Summary

2011-S5596A (ACTIVE) - Sponsor Memo

2011-S5596A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5596

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Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Bill Amendments

co-Sponsors

2011-S5596 - Details

2011-S5596 - Summary

2011-S5596 - Sponsor Memo

2011-S5596 - Bill Text download pdf

co-Sponsors

2011-S5596A (ACTIVE) - Details

2011-S5596A (ACTIVE) - Summary

2011-S5596A (ACTIVE) - Sponsor Memo

2011-S5596A (ACTIVE) - Bill Text download pdf

Comments