Phases out the imposition of the metropolitan commuter transportation mobility tax upon hospitals and not-for-profit corporations

BILL NUMBER:S3888 REVISED 3/26/13

Title of bill

An act to amend the tax law, in relation to reducing and eliminating the metropolitan commuter transportation mobility tax on hospitals and not-for-profit corporations; and providing for the repeal of certain provisions upon the expiration thereof

Purpose

This legislation phases out the imposition of the metropolitan commuter transportation mobility tax upon hospitals and not-for-profit corporations.

Summary of provisions

Section One - Section One - amends section 800 of the tax law to exempt employers which are hospitals and not-for-profit corporations from the commuter transportation mobility tax on or after January first, two thousand sixteen.

Section Two - amends section 801 of the tax law, to reduce the state the metropolitan commuter transportation mobility tax on hospitals and not-for-profit corporations to twenty-three hundredths (.23) beginning in on or after January first, two thousand fifteen.

Section Two - amends section 801 of the tax law, to reduce the state metropolitan commuter transportation mobility tax to twelve hundredths (.12) before January first, two thousand sixteen.

Section Three - states this act shall take effect immediately; except that section one of this act shall take effect January 1, 2016 when upon such date section two of this act shall expire and be deemed repealed.

Justification

Chapter 29 of the Laws of 2009 imposed within the Metropolitan Commuter Transportation District a tax of 34 cents per every $100 of payroll on nearly every employer and on the net earnings of the self-employed that exceeds $10,000 annually.

Although the tax was repealed for 80% of the tax-paying population, not-for-profit corporations and hospitals are still paying the tax in full. Not-for-profits and hospitals often operate on a tight budget and have limited resources, while providing services that are imperative throughout New York State. In addition, many of the grant opportunities that have assisted them financially over the years have dried up due to the economic downturn.

This legislation will phase out the tax for not-for-profits and hospitals in increments until January 1, 2015.

Legislative history

New Bill.

Fiscal implications

Approximately $75 Million

Effective date

This act shall take effect immediately; except that section one of this act shall take effect January 1, 2016 or on the same date and same manner as section 1 of part B of chapter 56 of the laws of 2011, whichever is later, when upon such date section two of this act shall expire and be deemed repealed.