NY State Senate Bill 2015-S7294

Senate Bill S7294

2015-2016 Legislative Session

Relates to guaranteed shares of revenue of the metropolitan commuter transportation mobility tax

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance 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
Jun 02, 2016	reported and committed to finance
Apr 13, 2016	referred to investigations and government operations

Votes

- Jun 2, 2016 - Investigations And Government Operations Committee Vote
  S7294
  
  6
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Investigations And Government Operations Committee Vote: Jun 2, 2016
      
      aye (6)
      
      Carlucci
      
      Hoylman-Sigal
      
      Lanza
      
      Murphy
      
      Nozzolio
      
      O'Mara
      
      aye wr (2)
      
      Golden
      
      Squadron
      
      excused (1)
      
      Diaz

2015-S7294 (ACTIVE) - Details

See Assembly Version of this Bill:: A9725
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §805, Tax L; amd §92-ff, St Fin L; amd §1277, Pub Auth L
Versions Introduced in 2017-2018 Legislative Session:: S4246, A6561

2015-S7294 (ACTIVE) - Summary

Relates to guaranteed shares of revenue of the metropolitan commuter transportation mobility tax; provides that monies in the mobility tax trust account shall be paid over directly to the chief financial officer of each respective county of the district to defray certain transportation, maintenance, and operation costs.

2015-S7294 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7294

 TITLE OF BILL :

An act to amend the tax law, the state finance law and the public
authorities law, in relation to guaranteed shares of revenue of the
metropolitan commuter transportation mobility tax

 PURPOSE OR GENERAL IDEA OF BILL :

The purpose of this bill is to allow suburban counties to retain a
fair share of the Metropolitan Commuter Transportation Mobility Tax
(MTA Payroll Tax) to meet critical transportation needs. A portion of
the MTA Payroll Tax would be returned to counties to provide a 50%
subsidy of the local portion of costs for mass transit and a 50%
reduction in the costs of Station Maintenance.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1: (a) Would deposit taxes, interest and penalties collected
or received by the commissioner into either banks, banking houses or
trust companies, as designated by the comptroller. (b) Calls for the
amount of revenues to be paid over by the fifteenth and the final
business day of each succeeding month from such account into the
mobility tax trust account to each respective county of the district
and to the metropolitan transportation authority finance fund

established under the public authorities law.

Section 2: Monies in the "mobility tax trust account" shall be paid
over directly to the chief financial officer of each respective county
of the district, in the amount sufficient to defray 50% of the local
share of operation and maintenance costs for the public bus service
and 50% of the station operation and maintenance costs and to be
transferred on a monthly basis to the metropolitan transportation
authority finance fund.

Section 3: If the city or county fail to make payment to the authority
for station maintenance as required, the CEO of the authority shall
certify to the state comptroller the amount due and owing the
authority at the end of the state fiscal year and the comptroller
shall withhold an equivalent amount for the next succeeding state aid
allocated to such county or city for the motor fuel tax and the motor
vehicle registration fee. Prior to withholding amounts due, the
authority from such county or city, the comptroller shall pay in full
the amount due to the state of New York municipal bond bank agency,
the city university construction fund, the NYC housing development
corporation and the transit construction fund.

Section 4: Effective date

 JUSTIFICATION :

Since 2009, the MTA Payroll Tax has imposed a 0.34% tax on employers
within the Metropolitan Commuter Transportation District (MCTD). To
date, the counties included in the district: New York (Manhattan),
Bronx, Kings (Brooklyn), Richmond (Staten Island), Queens, Nassau,
Orange, Suffolk, Rockland, Putnam, Dutchess, and Westchester have
contributed nearly $1.5 billion dollars to the MTA. Thanks to the
efforts of our suburban delegation, the tax was dramatically reduced
in 2011 to the benefit of suburban communities. Unfortunately, the MTA
Payroll Tax remains law at the reduced rate.

Communities outside New York City pay the MTA Payroll Tax, which
results in far more money coming out of these counties than benefits
received. Simultaneously, the needs of local residents have been
increasing as the result of more intra-county travel and a regional
shift towards transit oriented developments where downtowns are being
redeveloped in an effort to spur economic development and much needed
job growth. The systems also provide transportation to the most
vulnerable members of our society who are wholly reliant on these
systems for transportation to health care and other vital services.

In addition to the MTA Payroll Tax, suburban taxpayers support the
regional transit system by funding local transit operations which
connect passengers to MTA bus, rail and subway stops. This is in
addition to other surcharges which support the MTA system, including
MTA Commuter Transportation District Taxicab and Hail Vehicles Rides,
MTA Auto Rentals, and MTA Corporate Surcharges in addition to bearing
the costs of local transit systems that support the regional transit
network.

 PRIOR LEGISLATIVE HISTORY :

New bill

 FISCAL IMPLICATIONS :

None to the state

 EFFECTIVE DATE :
This act shall take effect immediately.

2015-S7294 (ACTIVE) - Bill Text download pdf

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

                                  7294

                            I N  S E N A T E

                             April 13, 2016
                               ___________

Introduced  by  Sen. MARTINS -- 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,  the  state  finance  law  and  the  public
  authorities  law,  in  relation to guaranteed shares of revenue of 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.  Subsections (a) and (b) of section 805 of the tax law, as
added by section 1 of part C of chapter 25 of  the  laws  of  2009,  are
amended to read as follows:
  (a)  The  taxes,  interest,  and penalties imposed by this article and
collected or received by the commissioner shall be deposited daily  with
such  responsible  banks,  banking  houses or trust companies, as may be
designated by the comptroller, to the credit of the comptroller in trust
for the metropolitan transportation authority  AND EACH RESPECTIVE COUN-
TY OF THE DISTRICT AS  DEFINED  BY  SECTION  ONE  THOUSAND  TWO  HUNDRED
SIXTY-TWO  OF  THE PUBLIC AUTHORITIES LAW. An account may be established
in one or more of such depositories. Such deposits will be kept separate
and apart from all other money in the possession of the comptroller. The
comptroller shall require adequate security from all such  depositories.
Of the total revenue collected or received under this article, the comp-
troller shall retain such amount as the commissioner may determine to be
necessary for refunds under this article. The commissioner is authorized
and  directed to deduct from the amounts it receives under this article,
before deposit into the trust accounts designated by the comptroller,  a
reasonable  amount  necessary to effectuate refunds of appropriations of
the department to reimburse the department for  the  costs  incurred  to
administer, collect and distribute the taxes imposed by this article.
  (b)  On  or before the twelfth and twenty-sixth day of each succeeding
month, after reserving such amount for such refunds and  deducting  such
amounts  for  such  costs,  as  provided  for  in subsection (a) of this
section, the commissioner shall certify to the comptroller the amount of
all revenues so received during the prior  month  as  a  result  of  the

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

                                                           LBD14722-01-6

S. 7294                             2

taxes,  interest  and  penalties  so  imposed. The amount of revenues so
certified shall be paid over by the fifteenth and the final business day
of each succeeding month from such account into the mobility  tax  trust
account  of  the metropolitan transportation authority financial assist-
ance fund established pursuant to section  ninety-two-ff  of  the  state
finance  law, for payment, TO EACH RESPECTIVE COUNTY OF THE DISTRICT AND
AS pursuant to appropriations by the  legislature  to  the  metropolitan
transportation  authority  finance  fund established pursuant to section
twelve hundred seventy-h of the public authorities law.
  S 2. Paragraph (b) of subdivision five of section 92-ff of  the  state
finance  law,  as added by section 1 of part G of chapter 25 of the laws
of 2009, is amended to read as follows:
  (b) Moneys in the "mobility tax trust account" shall[,] BE  PAID  OVER
DIRECTLY TO THE CHIEF FINANCIAL OFFICER OF EACH RESPECTIVE COUNTY OF THE
DISTRICT,  IN  AN  AMOUNT  SUFFICIENT TO DEFRAY (I) FIFTY PERCENT OF THE
LOCAL SHARE OF OPERATION AND MAINTENANCE COSTS FOR  PUBLIC  BUS  SERVICE
AND  (II)  SUBJECT TO THE PROVISIONS OF SECTION ONE THOUSAND TWO HUNDRED
SEVENTY-SEVEN OF THE PUBLIC AUTHORITIES LAW, FIFTY  PERCENT  OF  STATION
OPERATION  AND  MAINTENANCE  COST,  AND pursuant to appropriation by the
legislature, be transferred on  a  monthly  basis  to  the  metropolitan
transportation  authority  finance  fund  established  by section twelve
hundred seventy-h of the public authorities law and utilized in  accord-
ance with said section. It is the intent of the legislature to enact two
appropriations  from  the mobility tax trust account to the metropolitan
transportation authority finance  fund  established  by  section  twelve
hundred  seventy-h of the public authorities law. One such appropriation
shall be equal to the amounts expected to be available for such  purpose
pursuant to article twenty-three of the tax law or from any other monies
described  in  paragraph (a) of this subdivision during the two thousand
nine--two thousand ten fiscal year and shall be effective in that fiscal
year. The other  such  appropriation  shall  be  equal  to  the  amounts
expected  to  be  available for such purpose pursuant to article twenty-
three of the tax law or from any other monies described in paragraph (a)
of this subdivision during the two  thousand  ten--two  thousand  eleven
fiscal  year  and shall, notwithstanding the provisions of section forty
of this chapter, take effect on the first day of the two thousand  ten--
two thousand eleven fiscal year and lapse on the last day of that fiscal
year.  It is the intent of the governor to submit and the legislature to
enact for each fiscal year after the two thousand nine--two thousand ten
fiscal year in an annual budget  bill:  (i)  an  appropriation  for  the
amount expected to be available in the mobility tax trust account during
such  fiscal year for the metropolitan transportation authority pursuant
to article twenty-three of the tax law or any other monies described  in
paragraph  (a)  of  this  subdivision; and (ii) an appropriation for the
amount projected by the director of the budget to be  deposited  in  the
mobility  tax  trust account pursuant to article twenty-three of the tax
law or from any other monies described in paragraph (a) of this subdivi-
sion for the next succeeding fiscal year. Such appropriation for payment
of revenues projected to be deposited  in  the  succeeding  fiscal  year
shall,  notwithstanding the provisions of section forty of this chapter,
take effect on the first day of such succeeding fiscal year and lapse on
the last day of such fiscal year. If for any fiscal year  commencing  on
or  after the first day of April, two thousand ten the governor fails to
submit a budget bill containing the foregoing, or the legislature  fails
to  enact a bill with such provisions, then the metropolitan transporta-
tion authority shall notify the comptroller, the director of the budget,

S. 7294                             3

the chairperson of the senate finance committee and the  chairperson  of
the  assembly  ways  and  means  committee  of  amounts  required  to be
disbursed from the appropriation made during the preceding  fiscal  year
for  payment in such fiscal year. In no event shall the comptroller make
any payments from such appropriation prior to May first of  such  fiscal
year,  and  unless and until the director of the budget, the chairperson
of the senate finance committee and the chairperson of the assembly ways
and means committee have been notified of the required payments and  the
timing  of  such payments to be made from the mobility tax trust account
to the metropolitan transportation authority finance fund established by
section twelve hundred seventy-h of the public authorities law at  least
forty-eight  hours  prior  to  any  such  payments.  Until  such time as
payments pursuant to such appropriation are made in  full,  revenues  in
the  mobility  tax  trust  account  shall not be paid over to any person
other than the metropolitan transportation authority.
  S 3. The closing paragraph of section 1277 of the  public  authorities
law,  as  amended by chapter 161 of the laws of 2000, is amended to read
as follows:
  In the event that a city or county shall fail to make payment  to  the
authority  for station maintenance as required pursuant to this section,
or any part thereof, the chief executive officer  of  the  authority  or
such  other  person as the chairman shall designate shall certify to the
state comptroller the amount due and owing the authority at the  end  of
the state fiscal year and the state comptroller shall withhold an equiv-
alent amount from the next succeeding state aid allocated to such county
or  city  from the motor fuel tax and the motor vehicle registration fee
distributed pursuant to former section one hundred twelve of the highway
law, or amounts distributed pursuant to section  ten-c  of  the  highway
law,  or  per  capita local assistance pursuant to section fifty-four of
the state finance law, OR LOCAL ASSISTANCE PURSUANT TO PARAGRAPH (B)  OF
SUBDIVISION  FIVE  OF  SECTION  NINETY-TWO-FF  OF  THE STATE FINANCE LAW
subject to the following limitations: prior to withholding  amounts  due
the  authority  from  such  county or city, the comptroller shall pay in
full any amount due the state of New York municipal bond bank agency, on
account of any such county's or city's obligation to  such  agency;  the
city university construction fund pursuant to the provisions of the city
university  construction fund act; the New York city housing development
corporation, pursuant to the provisions of the  New  York  city  housing
development  corporation  act  (article  twelve  of  the private housing
finance  law);  and  the  transit  construction  fund  pursuant  to  the
provisions  of  title  nine-A of article five of this chapter. The comp-
troller shall give the director of the budget notification of  any  such
payment.  Such amount or amounts so withheld by the comptroller shall be
paid to the authority and the authority shall use such  amount  for  the
repayment  of  the state advances hereby authorized. When such amount or
amounts are received by the authority,  it  shall  credit  such  amounts
against any amounts due and owing by the city or county on whose account
such amount was withheld and paid.
  S 4. This act shall take effect immediately.

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