What's happening
This bill exempts hospitals from the metropolitan commuter transportation mobility tax in New York.
Why it matters
Reducing Financial Burden on Hospitals. By exempting hospitals from the metropolitan commuter transportation mobility tax (MCTMT), the bill could allow hospitals to redirect funds that would have gone to this tax toward patient care, staffing, or facility improvements.
Potential Impact on Hospital Operations and Community Health. Hospitals often operate on tight budgets, especially safety-net and public hospitals. This exemption could help them better serve vulnerable populations by easing a recurring financial obligation.
Shifting Revenue Sources. The MCTMT is a dedicated funding source for the Metropolitan Transportation Authority (MTA). Exempting hospitals may slightly reduce revenue for regional transit, potentially impacting transportation funding unless offset elsewhere.
Precedent for Other Exemptions. Adding hospitals to the list of exempted entities (alongside schools and public agencies) could prompt calls for further exemptions by other nonprofits or essential service providers, affecting the future scope and revenue of the tax.
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Who cares
Headline styles
End Hospital Transit Tax
Plain English, a few words. Used as the page title.
Sponsors
History
- Reported and committed to finance
- Referred to investigations and government operations
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 51–12
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1045
- Reported and committed to finance
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
End Hospital Transit Tax
In Assembly Committee · Ways And Means · Sponsor Michael Cusick
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2634
2017-2018 Regular Sessions
IN SENATE
January 13, 2017
Introduced by Sen. LANZA -- 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 exempting hospitals from 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. Paragraphs 3 and 4 of subsection (b) of section 800 of the tax law, paragraph 3 as amended by section 1 of part B of chapter 56 of the laws of 2011 and paragraph 4 as amended by section 1 of part YY of chapter 59 of the laws of 2015, are amended and a new paragraph 5 is added to read as follows:
(3) an interstate agency or public corporation created pursuant to an agreement or compact with another state or the Dominion of Canada; [or]
(4) [Any] any eligible educational institution. [An "eligible] "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 eightyfive 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, 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 fifty-three of the education law[.]; or
(5) any hospital, as defined in article twenty-eight of the public health law.
§ 2. This act shall take effect on the first of April next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02355-01-7
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 exempting hospitals from the metropolitan commuter transportation mobility tax
Purpose
Exempts hospitals from the metropolitan commuter transportation mobility tax.
Summary of specific provisions
Section one amends paragraph three and four of subsection eight-hundred of the tax law, paragraph three as amended and adds a new paragraph five.
Section two is the effective date.
Justification
Chapter 56 of the Laws of 2011 exempted public and non-public schools, employers with total payroll expenses less than $1.25 million, and self- employed taxpayers with business income less than $50,000 from the MIA payroll tax. The measure did not include hospitals, a vital sector of the economy.
This legislation seeks to add hospitals to the list of institutions that are exempt from the MTA payroll tax. Hospitals promote health and well- ness while employing many hardworking New Yorkers. By exempting hospi- tals from the ETA payroll tax, we would be saving hospitals money that could be used in providing quality, affordable health care for patients.
Legislative history
2017: S.2634 - Passed Senate / A.6533 - Ways & Means 2016: S.3316 - Passed Senate 2015: S.3316 - Passed Senate 2014: S.2467 - Passed Senate / A.4954 - Held for consideration in Ways & Means 2012: S.6461 - Referred to Investigations / A.10436 - Referred to Ways & Means
Fiscal implications
Undetermined.
Effective date
This act shall take effect on the first of April next succeeding the data on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.