What's happening
This bill raises the self-employment income threshold exempt from the metropolitan commuter transportation mobility tax from $50,000 to $100,000.
Why it matters
Doubles the income threshold before self-employed individuals must pay the metropolitan commuter transportation mobility tax, potentially lowering the tax burden for freelancers, gig workers, and small business owners with incomes up to $100,000.
Could provide financial relief and greater economic flexibility for self-employed individuals, possibly encouraging entrepreneurship and supporting those who may be struggling with high living and operating costs in the metropolitan area.
May result in decreased revenue for the Metropolitan Transportation Authority (MTA), which relies on this tax for funding, potentially impacting the MTA’s ability to maintain or enhance transit services unless offset by other funding sources.
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Who cares
Headline styles
Raise Tax Exemption For Freelancers
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to ways and means
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4503
2019-2020 Regular Sessions
IN ASSEMBLY
February 4, 2019
Introduced by M. of A. GLICK, PAULIN -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to exempting self-employment earnings of one hundred thousand dollars or less 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. 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 hundredths (.11) 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 hundredths (.23) 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 hundredths (.34) 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05668-01-9
A. 4503 2
itself, multiplying each of those payroll expense amounts by the applicable rate set forth in this paragraph and adding those products together. (2) For individuals, the tax is imposed at a rate of thirty-four hundredths (.34) 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] one hundred thousand dollars for the tax year.
§ 2. This act shall take effect April 1, 2019.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.