Eliminates the metropolitan commuter transportation mobility tax; repealer

BILL NUMBER:S5926

Title of bill

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

Purpose

This legislation will repeal the metropolitan commuter transportation mobility tax (aka MTA Payroll Tax).

Summary of provisions

This legislation makes the proper repeals and amendments to the laws of New York in order to eliminate the metropolitan commuter transportation mobility tax.

Existing law

Enacted in 2009, Article 23 of the tax law imposes an onerous tax of .34% on every $100 of payroll of nearly every employer and a .34% of net-earnings that exceeds $10,000 annually for self-employed located in the Metropolitan Commuter Transportation District (the counties served by the MTA).

Justification

The MTA Payroll Tax must be eliminated. It was an ill conceived tax which should never have been voted on or signed into law. It is burdensome and has had a crippling effect on the economy, especially on small businesses and entrepreneurs in the Hudson Valley. It costs businesses and entrepreneurs $1.5 billion that could otherwise have been invested in business growth and job creation. Simply put, MTA Payroll tax is stifling economic growth in New York State.

Metro-North has been an engine for growth for decades, and mass transit has been good for the Hudson Valley and New York State's economy, environment and quality of life. In short, a healthy MTA with expanding service to the Hudson Valley is good for the Hudson Valley. However, funding that good health and expansion on the back of small business is misguided.

The tax is a major burden on businesses, not-for-profits and schools in a time where we must be reducing the cost to do business,. One by one our local businesses here in the Hudson Valley are closing their doors due to this state's excessive tax rate. The MTA Payroll Tax has cost them their ability to compete and hold onto jobs. At the same time, the MTA continues to dole out raises and overtime while cutting services and raising fares.

Legislative history

New bill

Fiscal implications

When fully implemented this bill will save small business owners, such as plumbers, restaurant owners, and small farmers and other drivers of our economy an estimated $1.5 billion is taxes.

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 nine of this act shall be subject to the expiration and reversion of such subsection pursuant to chapter 782 of the laws of

1988, as amended, when upon such date the provisions of section ten 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 twenty-two of this act shall be subject to the expiration and reversion of such subdivision pursuant to chapter 782 of the laws of 1988, as amended, when upon such date the provisions of section twenty-three of this act shall take effect.