Relates to exempting community colleges from the imposition of the metropolitan commuter transportation mobility tax

1 Co-sponsor

• Susan Serino

Title of bill

An act to amend the tax law, in relation to the exemption of community colleges from the imposition of the metropolitan commuter transportation mobility tax

Purpose

To exempt community colleges outside of New York City from paying the Metropolitan Transit Authority (MTA) commuter transportation mobility tax.

Summary of provisions

Section 1 of the bill amends Tax Law section 800(b)(4) to include community colleges located outside a city with a population of one million or more in the exemption from having to pay the MTA commuter transportation mobility tax.

Section 2 of the bill sets forth the effective date.

Existing law

Currently, community colleges in New York City and Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester counties must pay the MTA commuter transportation mobility tax.

Justification

Under the Public Authorities Law, eligible employers within the metropolitan commuter transportation district must pay the MTA commuter transportation mobility tax. There are other educational institutions that are exempt from this tax, including public school districts, nonpublic schools, public libraries and free association libraries.

Community colleges have had a trend of declining enrollment, and having to pay this tax has hurt their budgets even further. For example, Suffolk County Community College paid $400,000 last year toward this tax. In order to keep our community colleges viable, we need to do all we can to minimize unnecessary tax burdens on these institutions. Exempting community colleges in these counties from this MTA tax will benefit both students and these institutions that provide important educational services to their regions.

Legislative history

New Bill

Fiscal implications

To be determined

Effective date

This act shall take effect immediately.