senate Bill S1772A

2013-2014 Legislative Session

Relates to the definition of the metropolitan commuter transportation district for the purposes of the metropolitan commuter transportation mobility tax

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 26, 2014 print number 1772a
amend and recommit to investigations and government operations
Jan 08, 2014 referred to investigations and government operations
Jan 09, 2013 referred to investigations and government operations

Bill Amendments

Original
A (Active)
Original
A (Active)

S1772 - Bill Details

See Assembly Version of this Bill:
A1217A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §800, Tax L; amd §1266, Pub Auth L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S2871A, A4170A
2009-2010: S6311, A8635B

S1772 - Bill Texts

view summary

Relates to the definition of the metropolitan commuter transportation district for the purposes of the metropolitan commuter transportation mobility tax; requires the metropolitan transportation authority to renegotiate the joint service operating agreement with the state of Connecticut.

view sponsor memo
BILL NUMBER:S1772

TITLE OF BILL:
An act
to amend the tax law, in relation to the definition of the metropolitan
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

PURPOSE OR GENERAL IDEA OF BILL:
This legislation would exempt all employers within the towns of
Brookhaven, East Hampton, Riverhead, Shelter Island, Southampton and
Southold in Suffolk County from the Metropolitan Transportation
Authority's payroll tax as implemented by Chapter 25 of the Laws of
2009.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Legislative Findings. The towns of Brookhaven, East
Hampton, Riverhead, Shelter Island, Southold and Southampton in the
County of Suffolk already pay substantial taxes and mortgage
recording taxes to the MTA for the minimal mass transit services they
receive. As such, the aforementioned towns should be exempt from the
newly adopted Metropolitan Commuter Transportation mobility tax.

Section 2. Amends subsection (a) of section 800 of the tax law, as
added by Section 1 of part C of Chapter 25 of the Laws of 2009 to
exclude the towns of Brookhaven, East Hampton, Riverhead, Shelter
Island, Southampton and Southold in Suffolk County from the
Metropolitan Commuter Transportation District and provides for the
reimbursement of any revenues previously collected from with in these
counties by March 31, 2014.

Section 3. Amends Section 1266 of the public authorities law by adding
a new subdivision 19 requiring the renegotiation of the joint service
agreement between the MTA and the state of Connecticut relating to
the operation of the Metro-North New Haven line and reducing its
services and expenses by March 31, 2014.

Section 4. Provides for an immediate effective date of this act.

JUSTIFICATION:
Chapter 25 of the Laws of 2009 implements various supplemental fees
and taxes for the 12-county Metropolitan Commuter Transportation
District (MCTD) in an effort to financially bailout the MTA.
Provisions of this package include a 0.34% payroll tax for all
employers in MCTD, which includes the town of Brookhaven and the
towns which comprise the Peconic Bay Region located on the east end
of Lona Island (East Hampton, Riverhead, Shelter Island, Southampton
and Southold). The Peconic Bay Region alone has a population of
approximately 140,000 and represents 1.1% of the MCTD.


This measure is having a devastating effect on every local employer
located within the Peconic Bay Region and the town of Brookhaven.
This expense will ultimately have to be passed along by those
employers through higher prices and increased property taxes,
Residents of these areas already heavily subsidize the MTA through
increased fares, additional sales tax and a mortgage recording tax.
In return for these onerous taxes and fees, they receive minimal
services from the MTA. In fact, the Volpe Study on improved
rail/bus service estimates that the east end pays $40 to $60 million
more for services than. what is received from the MTA on an annual
basis. Despite the fact that this area does not have the same level
of New York City commuters, they, pay the same as those who benefit
from ample services.

This legislation further provides for the renegotiation of the joint
service agreement between the MTA and the State of Connecticut
related to the operation of the Metro-North New Haven line. The
monies saved by reducing services and expenses related to the
Metro-North New Haven line by an amount which produces recurring
savings to the MTA would help to offset the cost of exempting the
towns of Brookhaven, East Hampton, Riverhead, Shelter Island,
Southold and Southampton from this tax.
It is necessary to avoid any further inequitable taxation on those
towns underserved by the MTA which comprise the Peconic Bay Region
and the town of Brookhaven. Therefore, enactment of this legislation
is necessary to exempt these areas from the MTA's employer payroll tax.

PRIOR LEGISLATIVE HISTORY:
2011-12: A.4170-A/S.2871-A
2010: A.8635-B/S.6311

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately.

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

    S. 1772                                                  A. 1217

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Investi-
  gations and Government Operations

IN ASSEMBLY -- Introduced by M. of A. THIELE, ENGLEBRIGHT, LOSQUADRO  --
  read once and referred to the Committee on Ways and Means

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 six 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.
                                                           LBD01867-01-3

S. 1772                             2                            A. 1217

  S 2. Subsection (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 FOURTEEN.
  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
FOURTEEN 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.

S1772A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A1217A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §800, Tax L; amd §1266, Pub Auth L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S2871A, A4170A
2009-2010: S6311, A8635B

S1772A (ACTIVE) - Bill Texts

view summary

Relates to the definition of the metropolitan commuter transportation district for the purposes of the metropolitan commuter transportation mobility tax; requires the metropolitan transportation authority to renegotiate the joint service operating agreement with the state of Connecticut.

view sponsor memo
BILL NUMBER:S1772A

TITLE OF BILL: An act to amend the tax law, in relation to the
definition of the metropolitan 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

PURPOSE: This legislation would exempt all employers within the towns
of Brookhaven, East Hampton, Riverhead, Shelter Island, Southampton
and Southold in Suffolk County from the Metropolitan Transportation
Authority's payroll tax as implemented by Chapter 25 of the Laws of
2009.

SUMMARY OF PROVISIONS:

Section 1. Legislative finds. The town of Brookhaven, East Hampton,
Riverhead, Shelter Island, Southold and Southampton in the County of
Suffolk already pay substantial taxes and mortgage recording taxes to
the MTA for the minimal mass transit services they receive. As such,
the aforementioned towns should be exempt from the newly Metropolitan
commuter Transportation mobility tax.

Section 2. Amends 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 to
exclude the town of Brookhaven, East Hampton, Riverhead, Shelter
Island, Southampton and Southold in Suffolk County from the
Metropolitan Commuter Transportation District.

Section 3. Amends Section 1266 of the public authorities law by adding
a new subdivision 19 requiring the renegotiation of the joint service
agreement between the MTA and the state of Connecticut relating to the
operation of the Metro-North New Haven line and reducing its services
and expenses by March 31, 2015.

Section 4. Provides for an immediate effective date of this act.

JUSTIFICATION: Chapter 25 of the Laws of 2009 implements various
supplemental fees and taxes for the 12 county Metropolitan Commuter
Transportation District (MCTD) in an effort to financially bailout the
MTA. Provisions of this package include a 0.34% payroll tax for all
employers in MCTD, which includes the town of Brookhaven and the towns
which comprise the Peconic Bay Region located on the east end of Long
Island (East Hampton, Riverhead, Shelter Island, Southampton and
Southold). The Peconic Bay Region alone has a population of
approximately 140,000 and represents 1.1% of the MCTD.

This measure will surely have a devastating effect on every local
employer located within the Peconic Bay Region and the town of
Brookhaven. This new expense will ultimately have to be passed along
by those employers through higher prices and increased property taxes.
Residents of these areas already heavily subsidize the MTA through
increased fares, additional sales tax and a mortgage recording tax. In
return for these onerous taxes and fees, they receive minimal services
from the MTA. In fact, the Volpe Study on improved rail/bus service
estimates that the east end pays $40 to $60 million more for services


than what is received from the MTA on an annual basis. Despite the
fact that this area does not have the same level of New York City
commuters, they pay the same as those who benefit from ample services.

This legislation further provides for the renegotiation of the joint
service agreement between the MTA and the State of Connecticut related
to the operation of the Metro North New Haven line. The monies saved
by reducing services and expenses related to the Metro North new Haven
lien by an amount which produces recurring savings to the MTA would
help to offset the cost of exempting the towns of Brookhaven, East
Hampton, Riverhead, Shelter Island, Southold and Southampton from this
tax.

It is necessary to avoid any further inequitable taxation on those
town undeserved by the MTA which comprise the Peconic Bay Region and
the town of Brookhaven. Therefore, enactment of this legislation is
necessary to exempt these areas from the MTA's employer payroll tax.

LEGISLATIVE HISTORY: 2011-12 S.2871; 2010 S.6311/A.8635B

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: Immediately.

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

    S. 1772--A                                            A. 1217--A

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Investi-
  gations and Government Operations -- recommitted to the  Committee  on
  Investigations  and  Government  Operations  in accordance with Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

IN  ASSEMBLY  -- Introduced by M. of A. THIELE, ENGLEBRIGHT -- read once
  and referred to the Committee on Ways and Means -- recommitted to  the
  Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2
  --  committee  discharged,  bill amended, 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01867-02-4

S. 1772--A                          2                         A. 1217--A

It has been estimated these six 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.
  S 2. Subsection (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 FIFTEEN.
  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
FIFTEEN 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.

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