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S2551Senate2017-2018 Session

End Transit Tax for Colleges

Official title

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

Sponsor Kenneth P. LaValleSD-1+2 co-sponsorsAffects Legal
Status
In Senate Committee
Investigations And Government Operations
Impact
4/10
Low
Passage
0%

Bill progress

Step 2 of 7

In committee · Investigations And Government Operations

What's happening

This bill exempts community colleges outside New York City from the metropolitan commuter transportation mobility tax.

Why it matters

  1. Reduces operating costs for community colleges outside NYC. , potentially freeing up funds that can be redirected to educational programs, faculty, or student support services, rather than paying the Metropolitan Commuter Transportation Mobility Tax (MCTMT).

  2. May help keep tuition and fees lower. for students attending these community colleges, since the tax savings could offset budget pressures that often lead to higher student charges.

  3. Creates a clearer distinction between New York City and non-NYC institutions. for tax purposes, which could be significant for policy debates about fairness in funding and the different economic challenges faced by upstate versus downstate educational institutions.

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Who cares

  • Community colleges outside cities of one million or more

    Those subject to the metropolitan commuter transportation mobility tax would become exempt under the bill.

  • Community college budget and payroll administrators

    Administrators at qualifying colleges would need to account for the exemption, which would take effect immediately.

  • New York State tax administrators

    They would need to apply the expanded educational-institution exemption to qualifying community colleges.

Headline styles

End Transit Tax for Colleges

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Kenneth P. LaValle

Senator · Senate District 1

Chair, Higher Education

History

  1. Referred to investigations and government operations
  2. Referred to investigations and government operations

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

2551

2017-2018 Regular Sessions

IN SENATE

January 13, 2017

Introduced by Sens. LAVALLE, CROCI, SERINO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations

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

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Paragraph 4 of subsection (b) of section 800 of the tax law, as amended by section 1 of part YY of chapter 59 of the laws of 2015, is amended to read as follows:

(4) Any eligible educational institution. An "eligible educational institution" shall mean any public school district, a board of cooperative educational services, a public elementary or secondary school, a school approved pursuant to article eighty-five or eighty-nine of the education law to serve students with disabilities of school age, [or] a nonpublic elementary or secondary school that provides instruction in grade one or above, a community college, as defined in subdivision two of section sixty-three hundred one of the education law, located outside a city having a population of one million or more, all public library systems as defined in subdivision one of section two hundred seventy-two of the education law, and all public and free association libraries as such terms are defined in subdivision two of section two hundred fiftythree of the education law.

§ 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD08035-01-7

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

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. 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. Sets for the effective date.

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

2016 S.7044

Fiscal implications

TBD.

Effective date

Immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.