S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7680
 
                             I N  S E N A T E
 
                             February 7, 2018
                                ___________
 
 Introduced  by Sen. PHILLIPS -- 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 the imposition  of  tax  and
   rate under 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. 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)  For  the sole purpose of providing an additional stable and reli-
 able  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 and individuals as follows: (1) For employers  who  engage  in
 business  within  the MCTD, the tax is imposed at a rate of (A) [eleven]
 TEN hundredths [(.11)] (.10) percent of the payroll expense for  employ-
 ers  with  payroll  expense  no  greater than three hundred seventy-five
 thousand dollars in any calendar quarter, (B) [twenty-three]  TWENTY-ONE
 hundredths  [(.23)]  (.21)  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)  [thirty-four]  THIRTY-
 ONE  hundredths [(.34)] (.31) percent of the payroll expense for employ-
 ers 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, multi-
 plying  each of those payroll expense amounts by the applicable rate set
 forth in this paragraph and adding  those  products  together.  (2)  For
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14561-01-8

 S. 7680                             2
 
 individuals,  the  tax  is imposed at a rate of [thirty-four] THIRTY-ONE
 hundredths [(.34)] (.31) percent of the net earnings  from  self-employ-
 ment  of  individuals that are attributable to the MCTD if such earnings
 attributable  to  the  MCTD exceed [fifty] SEVENTY-FIVE thousand dollars
 for the tax year.
   § 2. This act shall take effect immediately and shall apply to payroll
 expense incurred on or after October 1, 2018.