NY State Senate Bill 2023-S164

Senate Bill S164

2023-2024 Legislative Session

Relates to the transfer of funds into the metropolitan transportation authority aid trust account and the public transportation system operating assistance account

download bill text pdf

Current Bill Status - In Senate Committee Investigations And Government Operations 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to investigations and government operations
Jan 04, 2023	referred to investigations and government operations

2023-S164 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1105, Tax L; amd §§92-ff & 88-a, St Fin L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S6470
2017-2018: S2931
2019-2020: S302
2021-2022: S4283

2023-S164 (ACTIVE) - Summary

Relates to the transfer of funds into the metropolitan transportation authority aid trust account and the public transportation system operating assistance account.

2023-S164 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S164

SPONSOR: HOYLMAN
 
TITLE OF BILL:

An act to amend the tax law and the state finance law, in relation to
the transfer of funds into the metropolitan transportation authority aid
trust account and the public  transportation system operating assistance
account

 
PURPOSE:

Ensures a percentage of sales tax revenue collected from transportation
network company services are dedicated to the Metropolitan Transporta-
tion Authority Aid Trust Account and the Public Transportation System
Operating Assistance Account.

 
SUMMARY OF PROVISIONS:

Section 1: Amends paragraph 10 of subdivision (c) of section 1105 of the
tax law, as added by section 2 of part U-1 of chapter 57 of thelaws of
2009 to include transportation network companies.

Section 2: Amends subdivision 6 of section 92-ff of the state finance
law by adding a new paragraph (c) that dedicates one-fourth of sales tax
revenues generated by transportation network company rides in the MTA
region to the Metropolitan Transportation Authority Aid Trust Account,
and ensures that this account receives an amount based on historical
precedent.

Section 3: Amends subdivision 5 of section 88-a of the state finance law
by adding a new paragraph (d) that dedicates one-fourth of sales tax
revenues generated by transportation network company rides occurring
outside of the MTA region to the Public Transportation System Operating
Assistance Account, while ensuring that this does not affect previous
account adjustments that are indexed to regional sales tax growth.

Section 4: Provides for an immediate effective date.

 
JUSTIFICATION:

In 2009, the State took action to stabilize the MTA's economic outlook
to the benefit of its ridership as well as the state's economy as a
whole. In addition to structural reforms, the package staved off draco-
nian service cuts and fare increases while supporting the Authority's
ability to maintain its system in good repair. A component of this pack-
age established a $.50 surcharge on yellow taxi. rides within the City
of New York. With the recent advent of nontraditional transportation
services, revenue from this fee and subsequent deposits into the MTA Aid
Trust Account has declined. Recent projections from the MTA have indi-
cated a loss of as much as $10 million per year from this revenue
source, despite the expansion of nontraditional transportation services.
Currently, rides provided by transportation network companies - includ-
ing Uber and Lyft - do not include the $.50 surcharge that goes to the
MTA. Instead, they pay sales taxes which are split between the State's
General Fund and affected locality...  indeed, one estimate an Uber
official made is is that it will pay as much as $100 million in sales
taxes in 2016. However, only a minor percentage - three-eighths of one
percent of the State's sales tax revenue is directed into MTA operating
revenues. This legislation seeks to address the loss in revenue by
directing $10 million of sales and compensating use taxes collected in
the twelve-county MTA region to the authority's aid trust account in
2016. Furthermore, it ensures that twenty-five percent of sales tax
gross receipts generated by transportation network company rides- rough-
ly .50 per ride - are provided to the MTA Aid Trust Account, while also
ensuring that a minimum of $85 million of revenues are dedicated to the
trust account in 2017. Lastly, it indexes the baseline in subsequent
years to the consumer cost change factor.

In anticipation of the impacts that transportation network company
activity will have on Upstate New York, this legislation also dedicates
twenty-five percent of sales and compensating use taxes collected from
transportation network company rides outside of the metropolitan trans-
portation region to the Public Transportation System Operating Assist-
ance (PTOA) account should the service be expanded. Further, these
revenues shall not affect previous efforts undertaken by the State to
index PTOA to sales tax growth.

Like its downstate counterparts, upstate transit providers have experi-
enced significant ridership growth and increased needs in recent years,
and this legislation intends to provide an equal rate of assistance to
these providers if nontraditional transportation services proliferate
Upstate.

 
LEGISLATIVE HISTORY:

S.4283 of 2021-2022 (Hoylman): Died in Investigations and Government
Operations

S.0302 of 2019-2020 (Hoylman): Died in Investigations and Government
Operations

A.2533 of 2019-2020 (Rodriguez): Died in Ways and Means

S.2931 of 2017-2018 (Dilan): Died in Investigations and Government Oper-
ations

S.6470 of 2016 (Dilan): Died in Investigations and Government Operations

A.9087 of 2016 (Rodriguez): Died in Ways and Means

 
FISCAL IMPLICATIONS:

This legislation does not increase any taxes or fees. It simply dedi-
cates a percentage of sales and compensating use tax revenues to tran-
sit-related purposes. Based on current ridership data, it is anticipated
that revenues dedicated to these accounts will range from twenty-five to
fifty cents per ride, depending on the region and price of the ride.

 
EFFECTIVE DATE:
Immediate

2023-S164 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    164
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- 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 and the state finance law,  in  relation  to
   the  transfer  of funds into the metropolitan transportation authority
   aid trust account and the  public    transportation  system  operating
   assistance account
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 10 of subdivision (c) of section 1105 of the  tax
 law,  as  added  by  section  2 of part U-1 of chapter 57 of the laws of
 2009, is amended to read as follows:
   (10) Transportation service, whether  or  not  any  tangible  personal
 property  is  transferred  in  conjunction  therewith, and regardless of
 whether the charge is paid in this state or out of state so long as  the
 service is provided in this state.  FOR PURPOSES OF THIS SECTION, TRANS-
 PORTATION  SERVICE  SHALL  INCLUDE  SERVICES  PROVIDED BY TRANSPORTATION
 NETWORK COMPANIES.
   § 2. Subdivision 6 of section  92-ff  of  the  state  finance  law  is
 amended by adding a new paragraph (c) to read as follows:
   (C) THE COMPTROLLER IS HEREBY AUTHORIZED AND DIRECTED TO TRANSFER FROM
 THE  GENERAL  FUND  FOR  DEPOSIT  INTO  THE  METROPOLITAN TRANSPORTATION
 AUTHORITY AID TRUST ACCOUNT, ON OR BEFORE  MARCH  THIRTY-FIRST  OF  EACH
 YEAR, AN AMOUNT EQUAL TO THE FOLLOWING:
   (I)  FOR THE STATE FISCAL YEAR ENDING MARCH THIRTY-FIRST, TWO THOUSAND
 TWENTY-THREE, TEN MILLION DOLLARS;
   (II) IN EACH SUCCEEDING STATE FISCAL YEAR, THE TRANSFER  SHALL  ENSURE
 THAT   THE  METROPOLITAN  TRANSPORTATION  AUTHORITY  AID  TRUST  ACCOUNT
 RECEIVES A SUM EQUAL TO FIFTY PERCENT OF GROSS RECEIPTS OF  STATE  SALES
 AND  COMPENSATING USE TAXES COLLECTED PURSUANT TO SECTION ELEVEN HUNDRED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02121-01-3
 S. 164                              2
 
 FIVE OF THE TAX LAW FOR TRANSPORTATION SERVICES PROVIDED BY  TRANSPORTA-
 TION  NETWORK  COMPANIES  ORIGINATING IN ANY OF THE TWELVE COUNTIES THAT
 COMPRISE THE METROPOLITAN TRANSPORTATION COMMUTER  DISTRICT  ESTABLISHED
 PURSUANT  TO  SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES
 LAW, IN ADDITION TO THE RECEIPTS COLLECTED UNDER SECTION TWELVE  HUNDRED
 EIGHTY-ONE  OF  THE  TAX  LAW.  PROVIDED, HOWEVER, THAT IF THE AGGREGATE
 AMOUNT OF REVENUES RETAINED BY THE METROPOLITAN TRANSPORTATION AUTHORITY
 PURSUANT TO PARAGRAPH TEN OF SUBDIVISION (C) OF SECTION  ELEVEN  HUNDRED
 FIVE OF THE TAX LAW AND SECTION TWELVE HUNDRED EIGHTY-ONE OF THE TAX LAW
 IS  LESS  THAN  EIGHTY-FIVE  MILLION DOLLARS, THEN THE COMPTROLLER SHALL
 INCREASE THE PERCENTAGE  OF  STATE  SALES  AND  COMPENSATING  USE  TAXES
 RETAINED  BY  THE METROPOLITAN TRANSPORTATION AUTHORITY UNTIL IT RETAINS
 NO LESS THAN EIGHTY-FIVE MILLION  DOLLARS  FOR  THE  STATE  FISCAL  YEAR
 ENDING MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-FOUR.  FURTHER, THE COMP-
 TROLLER  SHALL  INCREASE THE LEVEL OF TRANSFER FROM THE GENERAL FUND FOR
 SUBSEQUENT STATE FISCAL YEARS TO AN AMOUNT EQUAL TO THE PRODUCT  OF  THE
 AGGREGATE  AMOUNT  DISCUSSED  IN  THE PREVIOUS SENTENCE AND ONE PLUS THE
 CONSUMER COST CHANGE FACTOR. FOR  PURPOSES  OF  THIS  SUBPARAGRAPH,  THE
 CONSUMER  COST CHANGE FACTOR IS THE PERCENTAGE OF CHANGE OF THE NATIONAL
 CONSUMER COST INDEX FOR THE MOST RECENT TWELVE MONTH PERIOD RELATIVE  TO
 THE PREVIOUS TWELVE MONTH PERIOD.
   § 3. Subdivision 5 of section 88-a of the state finance law is amended
 by adding a new paragraph (d) to read as follows:
   (D)  THE  COMPTROLLER  IS  HEREBY  AUTHORIZED AND DIRECTED TO TRANSFER
 FIFTY PERCENT OF THE GROSS RECEIPTS OF STATE SALES AND COMPENSATING  USE
 TAXES  COLLECTED  PURSUANT TO SECTION ELEVEN HUNDRED FIVE OF THE TAX LAW
 ON TRANSPORTATION SERVICES PROVIDED BY TRANSPORTATION NETWORK  COMPANIES
 ORIGINATING OUTSIDE THE METROPOLITAN TRANSPORTATION COMMUTER DISTRICT TO
 THE  PUBLIC  TRANSPORTATION  SYSTEM  OPERATING ASSISTANCE ACCOUNT ESTAB-
 LISHED UNDER THIS SUBDIVISION. THESE TRANSFERS SHALL NOT BE INCLUDED FOR
 PURPOSES OF CALCULATING THE SALES TAX GROWTH FACTOR ESTABLISHED IN PARA-
 GRAPH (C) OF THIS  SUBDIVISION,  AND  SHALL  SUPPLEMENT  THE  ADDITIONAL
 TRANSFERS  INDEXED  TO  THE  SALES TAX GROWTH FACTOR REQUIRED UNDER THIS
 SUBDIVISION. TRANSFERS PROVIDED UNDER THIS PARAGRAPH SHALL NOT  BE  USED
 TO OFFSET REDUCED TRANSFERS UNDER PARAGRAPH (C) OF THIS SUBDIVISION.
   § 4. This act shall take effect immediately.

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