Relates to the transfer of funds into the metropolitan transportation authority aid trust account and the public transportation system operating assistance account

Section 2: Amends subdivision 6 of section 92-ff of the state finance law by adding a new paragraph (c) that dedicates one-fourth of sales tax revenues generated by transportation network company rides in the MTA region to the Metropolitan Transportation Authority Aid Trust Account, and ensures that this account receives an amount based on historical precedent.

Section 3: Amends subdivision 5 of section 88-a of the state finance law by adding a new paragraph (d) that dedicates one-fourth of sales tax revenues generated by transportation network company rides occurring outside of the MTA region to the Public Transportation System Operating Assistance Account, while ensuring that this does not affect previous account adjustments that are indexed to regional sales tax growth.

Section 4: Provides for an immediate effective date.

Justification

In 2009, the State took action to stabilize the MTA's economic outlook to the benefit of its ridership as well as the state's economy as a whole. In addition to structural reforms, the package staved off draconian service cuts and fare increases while supporting the Authority's ability to maintain its system in good repair.

A component of this package established a $.50 surcharge on yellow taxi rides within the City of New York. With the recent advent of nontraditional transportation services, revenue from this fee and subsequent deposits into the MTA Aid Trust Account has declined. Recent projections from the MTA have indicated a loss of as much as $10 million per year from this revenue source, despite the expansion of nontraditional transportation services.

Currently, rides provided by transportation network companies - including Uber and Lyft - do not include the $.50 surcharge that goes to the MTA. Instead, they pay sales taxes which are split between the State's General Fund and affected locality. Indeed, one estimate an Uber official made is is that it will pay as much as $100 million in sales taxes in 2016. However, only a minor percentage - three-eighths of one percent - of the State's sales tax revenue is directed into MTA operating revenues.

This legislation seeks to address the loss in revenue by directing $10 million of sales and compensating use taxes collected in the twelve-county MTA region to the authority's aid trust account in 2016. Furthermore, it ensures that twenty-five percent of sales tax gross receipts generated by transportation network company rides - roughly .50 per ride - are provided to the MTA Aid Trust Account, while also ensuring that a minimum of $85 million of revenues are dedicated to the trust account in 2017. Lastly, it indexes the baseline in subsequent years to the consumer cost change factor.

In anticipation of the impacts that transportation network company activity will have on Upstate New York, this legislation also dedicates twenty-five percent of sales and compensating use taxes collected from transportation network company rides outside of the metropolitan transportation region to the Public Transportation System Operating Assistance (PTOA) account should the service be expanded. Further, these revenues shall not affect previous efforts undertaken by the State to index PTOA to sales tax growth.

Like its downstate counterparts, upstate transit providers have experienced significant ridership growth and increased needs in recent years, and this legislation intends to provide an equal rate of assistance to these providers if nontraditional transportation services proliferate Upstate.

Legislative history

New legislation

Fiscal implications

This legislation does not increase any taxes or fees. It simply dedicates a percentage of sales and compensating use tax revenues to transit-related purposes. Based on current ridership data, it is anticipated that revenues dedicated to these accounts will range from twenty-five to fifty cents per ride, depending on the region and price of the ride.

Effective date

Immediate