Senate Bill S3877

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

                                  3877

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 26, 2013
                               ___________

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  exempting  earnings  from
  self-employment, for-profit corporations, not-for-profit corporations,
  political  subdivisions  of  the  state  and school districts from the
  metropolitan commuter  transportation  mobility  tax;  and  to  repeal
  certain provisions of such law relating thereto

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

  Section 1. Subsection (b) of section 800 of the tax law, as amended by
section 1 of part B of chapter 56 of the laws of  2011,  is  amended  to
read as follows:
  (b)  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 three hundred twelve
thousand five hundred dollars in any calendar quarter; other than
  (1) any agency or instrumentality of the United States;
  (2) the United Nations;
  (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 educa-
tional 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 FOR-PROFIT CORPORATION;
  (6) ANY NOT-FOR-PROFIT CORPORATION;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07163-01-3

              

S. 3877                             2

  (7) ANY POLITICAL SUBDIVISION OF THE STATE OR  ANY  MUNICIPALITY,  AND
EVERY AGENCY AND INSTRUMENTALITY THEREOF; OR
  (8) AN INDIVIDUAL HAVING NET EARNINGS FROM SELF-EMPLOYMENT FROM ACTIV-
ITY WITHIN THE MCTD.
  S 2. Subsection (e) of section 800 of the tax law is REPEALED.
  S  3.  Section  801 of the tax law, as added by section 1 of part C of
chapter 25 of the laws of 2009, subdivision (a) as amended by section  1
of  part  N  of  chapter  59  of the laws of 2012, 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 on employers and individuals as follows: [(1)] For
employers  who engage in business within the MCTD, the tax is imposed at
a rate of [(A)] (1) eleven  hundredths  (.11)  percent  of  the  payroll
expense for employers with payroll expense no greater than three hundred
seventy-five  thousand  dollars in any calendar quarter, [(B)] (2) twen-
ty-three hundredths (.23) percent of the payroll expense  for  employers
with  payroll  expense  greater than three hundred seventy-five thousand
dollars and no greater than  four  hundred  thirty-seven  thousand  five
hundred  dollars  in  any  calendar  quarter,  and [(C)] (3) thirty-four
hundredths (.34) percent of  the  payroll  expense  for  employers  with
payroll  expense  in  excess  of four hundred thirty-seven thousand five
hundred dollars in any calendar quarter. If the employer  is  a  profes-
sional employer organization, as defined in section nine hundred sixteen
of  the labor law, the employer's tax shall be calculated by determining
the payroll expense attributable to each client who has entered  into  a
professional  employer  agreement with such organization and the payroll
expense attributable to such organization itself,  multiplying  each  of
those  payroll  expense amounts by the applicable rate set forth in this
paragraph and adding those products together. [(2) For individuals,  the
tax  is imposed at a rate of thirty-four hundredths (.34) percent of the
net earnings from self-employment of individuals that  are  attributable
to the MCTD if such earnings attributable to the MCTD exceed fifty thou-
sand dollars for the tax year.]
  (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.
  (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 with-
in the MCTD will be made by utilizing the rules applicable to the juris-
diction  of  employment  for  purposes  of  the statewide wage reporting
system under section one  hundred  seventy-one-a  of  this  chapter  and
substituting the MCTD for the state in that application.
  S 4. Subsection (b) of section 804 of the tax law is REPEALED.
  S  5. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.