S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2253
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced  by  Sen. PALUMBO -- 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 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.
   § 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
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03797-01-3
              
             
                          
                 S. 2253                             2
 
 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 TWENTY-FIVE.
   § 3.  Section 1266 of the public authorities law is amended by  adding
 a new subdivision 20 to read as follows:
   20.  THE  AUTHORITY  IS  REQUIRED  BY MARCH THIRTY-FIRST, TWO THOUSAND
 TWENTY-FIVE 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.
   § 4. This act shall take effect immediately.