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This entry was published on 2014-09-22
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SECTION 801
Imposition of tax and rate
Tax (TAX) CHAPTER 60, ARTICLE 23
§ 801. Imposition of tax and rate. (a) 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 improve essential transit and
transportation services in the metropolitan 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 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 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
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 applicable rate
set forth in this paragraph and adding those products together. (2) For
individuals, the tax is imposed at a rate of thirty-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.

(b)(1) An individual having net earnings from self-employment from
activity both within and without the metropolitan commuter
transportation district is required to allocate and apportion such net
earnings to the MCTD in the manner required for allocation and
apportionment of income under article twenty-two of this chapter.

(2) In the case of individuals with earnings from self-employment, the
net earnings from self employment threshold in paragraph two of
subsection (a) of this section will be computed on an individual basis
regardless of whether that individual filed a joint personal income tax
return.

(c) The determination of whether a covered employee is employed within
the MCTD will be made by utilizing the rules applicable to the
jurisdiction of employment for purposes of the statewide wage reporting
system under section one hundred seventy-one-a of this chapter and
substituting the MCTD for the state in that application.