What's happening
This bill requires that a portion of sales tax from transportation network companies (like Uber and Lyft) be directed to public transit funding in New York.
Why it matters
Creates a dedicated revenue stream from ride-hailing services. By earmarking a portion of sales tax from companies like Uber and Lyft, the bill ensures that new and growing segments of the transportation economy contribute directly to public transit funding.
Targets both urban and non-urban transit needs. Funds from rides originating within the 12-county metropolitan commuter district support the MTA, while those from outside the district go to a broader public transportation assistance account, potentially benefiting transit systems statewide.
Provides a mechanism to adjust funding for inflation and shortfalls. If tax revenues fall short of a set threshold, the law requires increased transfers to the MTA, and future transfers are indexed to the consumer cost index, helping transit agencies keep pace with rising costs.
Limits potential budgetary offsets. The bill stipulates that the new transfers supplement, rather than replace, existing state transit funding, helping to ensure that this revenue represents a net gain rather than simply filling budget gaps elsewhere.
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Who cares
Headline styles
Boost Transit Funding
Plain English, a few words. Used as the page title.
Sponsors
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
1320
2025-2026 Regular Sessions
IN SENATE
January 9, 2025
Introduced by Sen. HOYLMAN-SIGAL -- 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 twenty-five, 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 five of the tax law for transportation services provided by transporta-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04181-01-5
tion 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-six. 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 transportation 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 (802 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 pack- age established a $.50 surcharge on yellow taxi. rides within the City of New York. With the recent advent of nontraditional transportation services, revenue from this fee and subsequent deposits into the MTA Aid Trust Account has declined. Recent projections from the MTA have indi- cated a loss of as much as $10 million per year from this revenue source, despite the expansion of nontraditional transportation 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 official 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. Furthermore, it ensures that twenty-five percent of sales tax gross receipts generated by transporta- tion 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 consumer 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
Died in Investigations and Government in Investigations and Government
S.164 of 2023-2024 (Hoylman-Sigal): Operations in Investigations and Government
S.4283 of 2021-2022 (Hoylman): Died Operations
S.0302 of 2019-2020 (Hoylman): Died Operations
A.2533 of 2019-2020 (Rodriguez): Died in Ways and Means
S.2931 of 2017-2018 (Dilan): Died in Investigations and Government Oper- ations
S.6470 of 2016 (Dilan): Died in Investigations and Government Operations
A.9087 of 2016 (Rodriguez): Died in Ways and Means
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.