What's happening
This bill directs a portion of sales tax revenue from transportation network companies to support the MTA and other public transportation accounts.
Why it matters
Strengthens funding for public transit by permanently dedicating a portion of sales tax revenue from ride-hailing services (like Uber and Lyft) to the MTA and other public transportation systems, rather than the state’s general fund. This could reduce funding uncertainty for transit agencies, especially as more riders use transportation network companies.
Imposes a minimum annual funding threshold for the MTA from these tax sources (starting at $85 million, with future increases tied to inflation). This ensures that, even if tax revenue from ride-hailing services falls, the state must make up the difference, providing predictable support for the MTA.
Expands the definition of “transportation service” to explicitly include transportation network companies in the state tax law. This clarifies that all sales tax revenue from these companies is subject to the new funding allocation, closing loopholes and ensuring comprehensive coverage.
Directs a similar share of sales tax revenue from transportation network companies operating outside the MTA service area to local public transit assistance accounts. By doing so, the bill provides statewide benefits, supporting transit in both urban and non-urban areas where these services operate.
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Who cares
Headline styles
Send More Money to Transit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- 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.
Fund Transit With Ride-Share Taxes
In Assembly Committee · Ways And Means · Sponsor Robert J. Rodriguez
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
302
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sen. HOYLMAN -- 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 and the state finance law, in relation to the transfer of funds into the metropolitan transportation authority aid trust account and the public transportation system operating assistance account
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 10 of subdivision (c) of section 1105 of the tax law, as added by section 2 of part U-1 of chapter 57 of the laws of 2009, is amended to read as follows:
(10) Transportation service, whether or not any tangible personal property is transferred in conjunction therewith, and regardless of whether the charge is paid in this state or out of state so long as the service is provided in this state. For purposes of this section, transportation service shall include services provided by transportation network companies.
§ 2. Subdivision 6 of section 92-ff of the state finance law is amended by adding a new paragraph (c) to read as follows:
(c) The comptroller is hereby authorized and directed to transfer from the general fund for deposit into the metropolitan transportation authority aid trust account, on or before March thirty-first of each year, an amount equal to the following:
(i) For the state fiscal year ending March thirty-first, two thousand nineteen, ten million dollars;
(ii) In each succeeding state fiscal year, the transfer shall ensure that the metropolitan transportation authority aid trust account receives a sum equal to fifty percent of gross receipts of state sales and compensating use taxes collected pursuant to section eleven hundred
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05824-01-9
S. 302 2
five of the tax law for transportation services provided by transportation network companies originating in any of the twelve counties that comprise the metropolitan transportation commuter district established pursuant to section twelve hundred sixty-two of the public authorities law, in addition to the receipts collected under section twelve hundred eighty-one of the tax law. Provided, however, that if the aggregate amount of revenues retained by the metropolitan transportation authority pursuant to paragraph ten of subdivision (c) of section eleven hundred five of the tax law and section twelve hundred eighty-one of the tax law is less than eighty-five million dollars, then the comptroller shall increase the percentage of state sales and compensating use taxes retained by the metropolitan transportation authority until it retains no less than eighty-five million dollars for the state fiscal year ending March thirty-first, two thousand twenty. Further, the comptroller shall increase the level of transfer from the general fund for subsequent state fiscal years to an amount equal to the product of the aggregate amount discussed in the previous sentence and one plus the consumer cost change factor. For purposes of this subparagraph, the consumer cost change factor is the percentage of change of the national consumer cost index for the most recent twelve month period relative to the previous twelve month period.
§ 3. Subdivision 5 of section 88-a of the state finance law is amended by adding a new paragraph (d) to read as follows:
(d) The comptroller is hereby authorized and directed to transfer fifty percent of the gross receipts of state sales and compensating use taxes collected pursuant to section eleven hundred five of the tax law on transportation services provided by transportation network companies originating outside the metropolitan transportation commuter district to the public transportation system operating assistance account established under this subdivision. These transfers shall not be included for purposes of calculating the sales tax growth factor established in paragraph (c) of this subdivision, and shall supplement the additional transfers indexed to the sales tax growth factor required under this subdivision. Transfers provided under this paragraph shall not be used to offset reduced transfers under paragraph (c) of this subdivision.
§ 4. This act shall take effect immediately.
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 and the state finance law, in relation to the transfer of funds into the metropolitan transporta- tion authority aid trust account and the public transportation system operating assistance account
Purpose
Ensures a percentage of sales tax revenue collected from transportation network company services are dedicated to the Metropolitan Transporta- tion Authority Aid Trust Account and the Public Transportation System Operating Assistance Account.
Summary of provisions
Section 1: Amends paragraph 10 of subdivision (c) of section 1105 of the tax law, as added by section 2 of part U-1 of chapter 57 of the laws of 2009 to include transportation network companies.
Read the full memo (752 words)
Section 2: Amends subdivision 6 of section 92-ff of the state finance law by adding a new paragraph (c) that dedicates one-fourth of sales tax revenues generated by transportation network company rides in the MTA region to the Metropolitan Transportation Authority Aid Trust Account, and ensures that this account receives an amount based on historical precedent.
Section 3: Amends subdivision 5 of section 88-a of the state finance law by adding a new paragraph (d) that dedicates one-fourth of sales tax revenues generated by transportation network company rides occurring outside of the MTA region to the Public Transportation System Operating Assistance Account, while ensuring that this does not affect previous account adjustments that are indexed to regional sales tax growth.
Section 4: Provides for an immediate effective date.
Justification
In 2009, the State took action to stabilize the MTA's economic outlook to the benefit of its ridership as well as the state's economy as a whole. In addition to structural reforms, the package staved off draco- nian service cuts and fare increases while supporting the Authority's ability to maintain its system in good repair.
A component of this package established a $.50 surcharge on yellow taxi. rides within the City of New York. With the recent advent of nontradi- tional transportation services, revenue from this fee and subsequent deposits into the MTA Aid Trust Account has declined. Recent projections from the MTA have indicated a loss of as much as $10 million per year from this revenue source, despite the expansion of nontraditional trans- portation services.
Currently, rides provided by transportation network companies - includ- ing Uber and Lyft - do not include the $.50 surcharge that goes to the MTA. Instead, they pay sales taxes which are split between the State's General Fund and affected locality. Indeed, one estimate an Uber offi- cial made is is that it will pay as much as $100 million in sales taxes in 2016. However, only a minor percentage - three-eighths of one percent- of the State's sales tax revenue is directed into MTA operating revenues.
This legislation seeks to address the loss in revenue by directing $10 million of sales and compensating use taxes collected in the twelve- county MTA region to the authority's aid trust account in 2016. Further- more, it ensures that twenty-five percent of sales tax gross receipts generated by transportation network company rides- roughly .50 per ride - are provided to the MTA Aid Trust Account, while also ensuring that a minimum of $85 million of revenues are dedicated to the trust account in 2017. Lastly, it indexes the baseline in subsequent years to the consum- er cost change factor.
In anticipation of the impacts that transportation network company activity will have on Upstate New York, this legislation also dedicates twenty-five percent of sales and compensating use taxes collected from transportation network company rides outside of the metropolitan trans- portation region to the Public Transportation System Operating Assist- ance (PTOA) account should the service be expanded. Further, these revenues shall not affect previous efforts undertaken by the State to index PTOA to sales tax growth.
Like its downstate counterparts, upstate transit providers have experi- enced significant ridership growth and increased needs in recent years, and this legislation intends to provide an equal rate of assistance to these providers if nontraditional transportation services proliferate Upstate.
Legislative history
S.2931 of 2017-2018 (Dilan): Died in IGO 2016 S.6470/A.9087: Referred to investigations and government operations
Fiscal implications
This legislation does not increase any taxes or fees. It simply dedi- cates a percentage of sales and compensating use tax revenues to tran- sit-related purposes. Based on current ridership data, it is anticipated that revenues dedicated to these accounts will range from twenty-five to fifty cents per ride, depending on the region and price of the ride.
Effective date
Immediate
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.