Senate Bill S3888

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

                                  3888

                       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 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  1  of  part  N of chapter 59 of the laws of 2012, 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07334-01-3
              

S. 3888                             2

improve  essential  transit and transportation services in the metropol-
itan commuter transportation  district,  a  tax  is  hereby  imposed  on
employers and individuals as follows: [(1)] (I) For employers who engage
in  business within the MCTD, the tax is imposed at a rate of (A) 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)  twenty-three  hundredths  (.23)
percent of the payroll expense for employers with payroll expense great-
er  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)  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 professional  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 appli-
cable rate set forth in this paragraph and adding those products togeth-
er.  [(2)] (II) For individuals, the tax is imposed at a rate  of  thir-
ty-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 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 FOURTEEN AND
BEFORE JANUARY FIRST,  TWO  THOUSAND  FIFTEEN,  TWENTY-THREE  HUNDREDTHS
(.23) PERCENT; AND (II) ON AND AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN
AND  BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, TWELVE HUNDREDTHS (.12)
PERCENT.
  S 3. This act shall take effect immediately; except that  section  one
of  this  act  shall  take  effect  January 1, 2016, when upon such date
section two of this act shall expire and be deemed repealed.