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History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the tax law and the general city law, in relation to imposing the earnings tax on nonresidents
Purpose
This legislation would create a New York City Commuter Tax to fund the Triborough Bridge and Tunnel Authority's operating; and capital costs.
Summary of provisions
Section One of the bill amends the tax law. Section Three creates Article 2-E of the General City Law, providing for a city earnings tax on nonresidents and directs all tax revenue to the MTA to be used for Triborough Bridge and Tunnel Authority operating and capital costs.
Existing law
Currently, there is no earnings tax on nonresidents who produce an income within cities of over one million or more.
Justification
The New York City Commuter Tax was established in 1966 as a tax on wages and on self employment earnings. It applies to those who work within the City limits, but are not residents of the City. The rates of this taxation were increased in 1971 and continued until the time of its repeal in 1999. It was estimated that 450}000 New Yorkers were paying the commuter tax which was providing New York City wit:h $360 million dollars in revenue. The repeal has resulted in harming the City's and consequently} the State's long term fiscal health. In 2009, if the commuter tax were reinstated, the MTA could raise more than $500 million for city fiscal year 2010.
There are several reasons why a commuter tax is needed:
* Many more people work in New York City than live there. A major portion of City services and expenses go toward servicing the commuter population - many of whom use the many bridges maintained by the Triborough Bridge and Tunnel Authority on a daily basis.
* Currently, the City requires an income tax to support the level of services provided and, in some cases, mandated. This income tax provides a distortionary incentive favoring out-of-city labor, with no local income tax. over city labor. Rather than introducing an economic inefficiency in the labor market, the commuter tax actually offsets a portion of a preexisting distortion.
* The funds from this tax would be directed to the Metropolitan Transportation at a time when they are facing an unprecedented $1.2 billion operating deficit. This tax will cover all maintenance and operating costs of the Triborough Bridge and Tunnel Authority with the remaining funds directed to pay additional MTA capital costs and/or bond payments.
Legislative history
New bill.
Fiscal implications
Substantial increase of revenue to the Metropolitan Transportation Authority.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.