What's happening
This bill lowers the metropolitan commuter transportation mobility tax rates for employers and individuals and raises the self-employment income threshold.
Why it matters
Reduces tax burden on employers. within the Metropolitan Commuter Transportation District (MCTD), which could free up funds for hiring, salary increases, or business investment, particularly benefiting small and mid-sized businesses.
Lowers tax rate for self-employed individuals. and raises the income threshold at which the tax applies, meaning fewer self-employed people will be subject to the tax and those who are will pay less—potentially making self-employment more attractive in the region.
May impact MTA funding. by reducing one of its dedicated revenue sources, possibly leading to budget shortfalls unless offset by other funding mechanisms or spending reductions—potentially affecting transit service quality or future projects.
Targets relief to those with lower payrolls and incomes. , aligning with broader goals of supporting small businesses and middle-income earners, but may shift the overall tax structure in the region.
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Who cares
Headline styles
Cut MTA Commuter Tax Rates
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 7
No co-sponsors yet.
History
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7680
IN SENATE
February 7, 2018
Introduced by Sen. PHILLIPS -- 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 imposition of tax and rate under 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. Subsection (a) of section 801 of the tax law, as amended by section 1 of part N of chapter 59 of the laws of 2012, is amended to read as follows:
(a) For the sole purpose of providing an additional stable and reliable dedicated funding source for the metropolitan transportation authority and its subsidiaries and affiliates to preserve, operate and improve essential transit and transportation services in the metropolitan commuter transportation district, a tax is hereby imposed on employers and individuals as follows: (1) For employers who engage in business within the MCTD, the tax is imposed at a rate of (A) [eleven] ten hundredths [(.11)] (.10) percent of the payroll expense for employers with payroll expense no greater than three hundred seventy-five thousand dollars in any calendar quarter, (B) [twenty-three] twenty-one hundredths [(.23)] (.21) percent of the payroll expense for employers with payroll expense greater than three hundred seventy-five thousand dollars and no greater than four hundred thirty-seven thousand five hundred dollars in any calendar quarter, and (C) [thirty-four] thirtyone hundredths [(.34)] (.31) percent of the payroll expense for employers with payroll expense in excess of four hundred thirty-seven thousand five hundred dollars in any calendar quarter. If the employer is a professional employer organization, as defined in section nine hundred sixteen of the labor law, the employer's tax shall be calculated by determining the payroll expense attributable to each client who has entered into a professional employer agreement with such organization and the payroll expense attributable to such organization itself, multiplying each of those payroll expense amounts by the applicable rate set forth in this paragraph and adding those products together. (2) For
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14561-01-8
S. 7680 2
individuals, the tax is imposed at a rate of [thirty-four] thirty-one hundredths [(.34)] (.31) percent of the net earnings from self-employment of individuals that are attributable to the MCTD if such earnings attributable to the MCTD exceed [fifty] seventy-five thousand dollars for the tax year.
§ 2. This act shall take effect immediately and shall apply to payroll expense incurred on or after October 1, 2018.
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 impo- sition of tax and rate under the metropolitan commuter transportation mobility tax
Purpose
The purpose of this bill is to reduce the Metropolitan Commuter Trans- portation Mobility Tax (MTA Payroll Tax) for all tax payers and to increase the income threshold for small businesses and sole proprietors.
Summary of specific provisions
Section 1. Subsection (a) of section 801 of the tax law would be amended as follows:
The tax rate for employers would be amended from 0.11% to 0.10% with payroll expense under $375K per quarter. The tax rate for employers would be amended from 0.23% to 0.21% with payroll expense between $375k and $437.5K per quarter. The tax rate for employers would be amended from 0.34% to 0.31% with payroll expense in excess of $437.5K per quarter. The tax rate for individuals would be amended from 0.34% to 0.31% with net earning from self employment for a tax year exceeding $75K (increas- ing limit from $50K to $75K)
Section 2: Effective date
Justification
The MTA Payroll Tax since it's imposition in 2009 has continued to be a financial burden to small businesses and sole proprietors who are engag- ing in business within the metropolitan commuter transportation district (MCTD). These amendments would allow some relief to small business in the MCTD which includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.
Prior legislative history
New Bill
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall apply to payroll expense incurred on or after October 1, 2018.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.