Repeals article 23 of the tax law relating to the metropolitan commuter transportation mobility tax

5 Co-sponsors

• Marc Alessi
• Fred Thiele
• Robert Sweeney
• Mike Spano
• Harvey Weisenberg

8 Multi-sponsors

• Clifford Crouch
• Steven Englebright
• George Latimer
• Marcus Molinaro
• Ann Rabbitt
• Andrew Raia
• Joseph Saladino
• David Townsend

BILL NUMBER:A9809

Title of bill

An act to repeal article 23 of the tax law, relating to the metropolitan commuter transportation mobility tax; to amend the tax law, administrative code of the city of New York, education law and the highway law, in relation to making technical corrections related thereto; and to repeal provisions of the tax law, administrative code of the city of New York, education law, public authorities law and the state finance law, relating to the metropolitan commuter transportation mobility tax

Purpose or general idea of bill

This legislation will repeal the Metropolitan Transportation Authority Tax.

Summary of specific provisions

This legislation makes the proper repeals and amendments to the laws of New York in order to completely repeal the Metropolitan Transportation Authority Tax.

Justification

When the MTA tax was presented to the New York State Assembly and the New York State Senate, it was to inflict a tax on most of the residents of the state to pay for a transportation system which does not serve most of the people around the state. In particular, it doesn't serve the majority of residents of Suffolk County.

The tax is a major burden on businesses, not-for-profits and schools in a time of crisis in our economy.

The tax, in its adoption and application, violates the state constitution and the New York Public Authorities Law. Employers have paid out an estimated $1.35 billion to date and it is now being challenged in the state Supreme Court.

The complaint filed alleges that the law was unconstitutional because it is a special law, meaning that it only impacts a local portion of the state. As such, a Home Rule Message was required, or a two-thirds majority vote of the state Legislature was required to pass the law. Neither was accomplished. The complaint also alleges that this tax is improperly being used to accept the debt of the MTA, which is expressly prohibited by the state constitution, and that the tax violates the Public Authorities Law requirement that the MTA be "self-sustaining,"

A recent study shows that New York is last in startup businesses and first in business failures and this tax is just another nail in the coffin of what used to be a competitive state. The MTA is a failed business model and no bailout can save it.

This bill is designed to repeal the MTA tax.

Prior legislative history

None

Effective date

This act shall take effect immediately; provided that the amendments to subdivision 4 of section 618 of the tax law made by section fifteen of this act shall be subject to the expiration and reversion of such subdivision pursuant to section 8 of chapter 782 of the laws of 1988, as amended, when upon such date the provisions of section sixteen of this act shall take effect; and provided further that the amendments to subdivision 4 of section 11-1718 of the administrative code of the city of New York made by section thirty-two of this act shall be subject to the expiration and reversion of such subdivision pursuant to section 8 of chapter 782 of the laws of 1988, as amended, when upon such date the provisions of section thirty-three of this act shall take effect.