Senate Bill S6597

2011-2012 Legislative Session

Phases out the imposition of the metropolitan commuter transportation mobility tax upon hospitals and not-for-profit corporations

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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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 01, 2012	referred to investigations and government operations

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2011-S6597 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§800 & 801, Tax L
Versions Introduced in 2013-2014 Legislative Session:: S3888

2011-S6597 (ACTIVE) - Summary

Phases out the imposition of the metropolitan commuter transportation mobility tax upon hospitals and not-for-profit corporations.

2011-S6597 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S6597

TITLE OF BILL:
An act
to amend the tax law, in relation to reducing and eliminating the
metropolitan commuter transportation mobility tax on hospitals
and not-for-profit corporations; and
providing for the repeal of certain provisions upon the expiration
thereof

PURPOSE:
This legislation phases out the imposition of the metropolitan
commuter transportation mobility tax upon hospitals and
not-for-profit corporations.

SUMMARY OF PROVISIONS:
Section One - Section One - amends section 800 of the tax law to
exempt employers which are hospitals and not-for-profit corporations
from the commuter transportation mobility tax on or after January
first, two thousand fifteen.

Section Two - amends section 801 of the tax law, to reduce the state
the metropolitan commuter transportation mobility tax on hospitals
and not-for-profit corporations to twenty-three hundredths (.23)
beginning in on or after January first, two thousand thirteen.

Section Two - amends section 801 of the tax law, to reduce the state
metropolitan commuter transportation mobility tax to twelve
hundredths (.12) before January first, two thousand fifteen.

Section Three - states this act shall take effect immediately; except
that section one of this act shall take effect January 1, 2015 or on
the same date and same manner as section 1 of part B of chapter 56 of
the laws of 2011, whichever is later, when upon such date section two
of this act shall expire and be deemed repealed.

JUSTIFICATION:
Chapter 29 of the Laws of 2009 imposed within the Metropolitan
Commuter Transportation District a tax of 34 cents per every $100 of
payroll on nearly every employer and on the net earnings of the
self-employed that exceeds $10,000 annually.

Although the tax was repealed for 80% of the tax-paying population,
not-for-profit corporations and hospitals are still paying the tax in
full. Not-for-profits and hospitals often operate on a tight budget
and have limited resources, while providing services that are
imperative throughout New York State. In addition, many of the grant
opportunities that have assisted them financially over the years have
dried up due to the economic downturn.

This legislation will phase out the tax for not-for-profits and
hospitals in increments until January 1, 2015.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately; except that section one of
this act shall take effect January 1, 2015 or on the same date and
same manner as section 1 of part B of chapter 56 of the laws of
2011, whichever is later, when upon such date section two of this
act shall expire and be deemed repealed.

2011-S6597 (ACTIVE) - Bill Text download pdf

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

                                  6597

                            I N  S E N A T E

                              March 1, 2012
                               ___________

Introduced  by  Sen.  BALL  --  read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to reducing and eliminating the
  metropolitan commuter transportation mobility  tax  on  hospitals  and
  not-for-profit  corporations;  and providing for the repeal of certain
  provisions upon the expiration thereof

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

  Section  1. Paragraphs 3 and 4 of subsection (b) of section 800 of the
tax law, paragraph 3 as amended and paragraph 4 as added by section 1 of
part B of chapter 56 of the laws of 2011, are amended and two new  para-
graphs 5 and 6 are added to read as follows:
  (3)  an interstate agency or public corporation created pursuant to an
agreement or compact with another state or the Dominion of Canada; [or]
  (4) [Any] ANY eligible educational institution. [An "eligible] "ELIGI-
BLE educational institution" shall mean any public  school  district,  a
board  of  cooperative  educational  services,  a  public  elementary or
secondary school, a school approved pursuant to article  eighty-five  or
eighty-nine  of the education law to serve students with disabilities of
school age, or a nonpublic elementary or secondary school that  provides
instruction in grade one or above[.];
  (5)  ANY  HOSPITAL,  AS  DEFINED IN ARTICLE TWENTY-EIGHT OF THE PUBLIC
HEALTH LAW; OR
  (6) ANY NOT-FOR-PROFIT CORPORATION.
  S 2. Subsection (a) of section 801 of  the  tax  law,  as  amended  by
section  2  of  part  B of chapter 56 of the laws of 2011, is amended to
read as follows:
  (a) (1) For the sole purpose of providing  an  additional  stable  and
reliable  dedicated  funding  source for the metropolitan transportation
authority and its subsidiaries and affiliates to preserve,  operate  and
improve  essential  transit and transportation services in the metropol-
itan commuter transportation  district,  a  tax  is  hereby  imposed  on
employers  who engage in business within the MCTD [(1)] (I) at a rate of

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

                                                           LBD14864-02-2

S. 6597                             2

(A) eleven hundredths (.11) percent for employers with  payroll  expense
no  greater  than  three  hundred  seventy-five  thousand dollars in any
calendar quarter, (B) twenty-three hundredths (.23) percent for  employ-
ers  with  payroll expense greater than three hundred seventy-five thou-
sand dollars and no greater than four hundred thirty-seven thousand five
hundred dollars in any calendar quarter, and (C) thirty-four  hundredths
(.34)  percent  for  employers  with  payroll  expense in excess of four
hundred thirty-seven thousand five hundred dollars in any calendar quar-
ter, and [(2)] (II) at a rate of thirty-four hundredths (.34) percent of
the net earnings from self-employment of individuals that are  attribut-
able  to the MCTD if such earnings attributable to the MCTD exceed fifty
thousand dollars for the tax year.
  (2)  NOTWITHSTANDING  THE  PROVISIONS  OF  PARAGRAPH   ONE   OF   THIS
SUBSECTION, A TAX IS HEREBY IMPOSED ON EMPLOYERS WHICH ARE HOSPITALS, AS
DEFINED   IN   ARTICLE   TWENTY-EIGHT  OF  THE  PUBLIC  HEALTH  LAW,  OR
NOT-FOR-PROFIT CORPORATIONS AND WHICH ENGAGE IN BUSINESS WITHIN THE MCTD
AT A RATE OF (I) ON AND AFTER JANUARY FIRST, TWO THOUSAND  THIRTEEN  AND
BEFORE  JANUARY  FIRST,  TWO  THOUSAND FOURTEEN, TWENTY-THREE HUNDREDTHS
(.23) PERCENT; AND (II) ON AND AFTER JANUARY FIRST, TWO  THOUSAND  FOUR-
TEEN  AND  BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, TWELVE HUNDREDTHS
(.12) PERCENT.
  S 3. This act shall take effect immediately; except that  section  one
of  this  act  shall take effect January 1, 2015 or on the same date and
same manner as section 1 of part B of chapter 56 of the  laws  of  2011,
whichever  is  later,  when upon such date section two of this act shall
expire and be deemed repealed.

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Senate Bill S6597

Sponsored By

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

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co-Sponsors

2011-S6597 (ACTIVE) - Details

2011-S6597 (ACTIVE) - Summary

2011-S6597 (ACTIVE) - Sponsor Memo

2011-S6597 (ACTIVE) - Bill Text download pdf

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Sponsored By

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

Actions

co-Sponsors

2011-S6597 (ACTIVE) - Details

2011-S6597 (ACTIVE) - Summary

2011-S6597 (ACTIVE) - Sponsor Memo

2011-S6597 (ACTIVE) - Bill Text download pdf

Comments