Bill S1772A-2013

Relates to the definition of the metropolitan commuter transportation district for the purposes of the metropolitan commuter transportation mobility tax

Relates to the definition of the metropolitan commuter transportation district for the purposes of the metropolitan commuter transportation mobility tax; requires the metropolitan transportation authority to renegotiate the joint service operating agreement with the state of Connecticut.

Details

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  • Mar 26, 2014: PRINT NUMBER 1772A
  • Mar 26, 2014: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 9, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S1772A

TITLE OF BILL: An act to amend the tax law, in relation to the definition of the metropolitan commuter transportation district for the purposes of the metropolitan commuter transportation mobility tax; and to amend the public authorities law, in relation to requiring the metropolitan transportation authority to renegotiate the joint service operating agreement with the state of Connecticut

PURPOSE: This legislation would exempt all employers within the towns of Brookhaven, East Hampton, Riverhead, Shelter Island, Southampton and Southold in Suffolk County from the Metropolitan Transportation Authority's payroll tax as implemented by Chapter 25 of the Laws of 2009.

SUMMARY OF PROVISIONS:

Section 1. Legislative finds. The town of Brookhaven, East Hampton, Riverhead, Shelter Island, Southold and Southampton in the County of Suffolk already pay substantial taxes and mortgage recording taxes to the MTA for the minimal mass transit services they receive. As such, the aforementioned towns should be exempt from the newly Metropolitan commuter Transportation mobility tax.

Section 2. Amends subdivision(A) of section 800 of the tax law, as added by Section 1 of part C of Chapter 25 of the Laws of 2009 to exclude the town of Brookhaven, East Hampton, Riverhead, Shelter Island, Southampton and Southold in Suffolk County from the Metropolitan Commuter Transportation District.

Section 3. Amends Section 1266 of the public authorities law by adding a new subdivision 19 requiring the renegotiation of the joint service agreement between the MTA and the state of Connecticut relating to the operation of the Metro-North New Haven line and reducing its services and expenses by March 31, 2015.

Section 4. Provides for an immediate effective date of this act.

JUSTIFICATION: Chapter 25 of the Laws of 2009 implements various supplemental fees and taxes for the 12 county Metropolitan Commuter Transportation District (MCTD) in an effort to financially bailout the MTA. Provisions of this package include a 0.34% payroll tax for all employers in MCTD, which includes the town of Brookhaven and the towns which comprise the Peconic Bay Region located on the east end of Long Island (East Hampton, Riverhead, Shelter Island, Southampton and Southold). The Peconic Bay Region alone has a population of approximately 140,000 and represents 1.1% of the MCTD.

This measure will surely have a devastating effect on every local employer located within the Peconic Bay Region and the town of Brookhaven. This new expense will ultimately have to be passed along by those employers through higher prices and increased property taxes. Residents of these areas already heavily subsidize the MTA through increased fares, additional sales tax and a mortgage recording tax. In return for these onerous taxes and fees, they receive minimal services from the MTA. In fact, the Volpe Study on improved rail/bus service estimates that the east end pays $40 to $60 million more for services

than what is received from the MTA on an annual basis. Despite the fact that this area does not have the same level of New York City commuters, they pay the same as those who benefit from ample services.

This legislation further provides for the renegotiation of the joint service agreement between the MTA and the State of Connecticut related to the operation of the Metro North New Haven line. The monies saved by reducing services and expenses related to the Metro North new Haven lien by an amount which produces recurring savings to the MTA would help to offset the cost of exempting the towns of Brookhaven, East Hampton, Riverhead, Shelter Island, Southold and Southampton from this tax.

It is necessary to avoid any further inequitable taxation on those town undeserved by the MTA which comprise the Peconic Bay Region and the town of Brookhaven. Therefore, enactment of this legislation is necessary to exempt these areas from the MTA's employer payroll tax.

LEGISLATIVE HISTORY: 2011-12 S.2871; 2010 S.6311/A.8635B

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ S. 1772--A A. 1217--A 2013-2014 Regular Sessions S E N A T E - A S S E M B L Y (PREFILED) January 9, 2013 ___________
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print- ed, and when printed to be committed to the Committee on Investi- gations and Government Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee IN ASSEMBLY -- Introduced by M. of A. THIELE, ENGLEBRIGHT -- read once and referred to the Committee on Ways and Means -- recommitted to the Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to the definition of the metro- politan commuter transportation district for the purposes of the metropolitan commuter transportation mobility tax; and to amend the public authorities law, in relation to requiring the metropolitan transportation authority to renegotiate the joint service operating agreement with the state of Connecticut THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative findings. Pursuant to chapter 25 of the laws of 2009, the legislature did enact the metropolitan mobility tax within the twelve county region constituting the metropolitan transportation district. The legislature hereby finds that the residents of the towns of Brookhaven, East Hampton, Riverhead, Shelter Island, Southold and Southampton in the county of Suffolk receive minimal mass transit services from the metropolitan transportation authority. Further, these towns already pay substantial taxes to the MTA for these minimal services, including increased sales taxes and mortgage recording taxes.
It has been estimated these six towns contribute more than $60 million annually to the MTA than they receive back in service. In the interest of tax fairness and to avoid such additional inequita- ble taxation on these towns, it is the purpose of this act to exempt such towns from the newly adopted metropolitan commuter transportation mobility tax. S 2. Subsection (a) of section 800 of the tax law, as added by section 1 of part C of chapter 25 of the laws of 2009, is amended to read as follows: (a) Metropolitan commuter transportation district. The metropolitan commuter transportation district ("MCTD") means the area of the state included in the district created and governed by section twelve hundred sixty-two of the public authorities law, EXCEPT THAT FOR THE PURPOSES OF THIS ARTICLE, THE TOWNS OF BROOKHAVEN, EAST HAMPTON, RIVERHEAD, SHELTER ISLAND, SOUTHAMPTON AND SOUTHOLD IN SUFFOLK COUNTY SHALL BE EXCLUDED FROM THE DISTRICT FOR THE PURPOSES OF THIS ARTICLE AND ANY REVENUES PREVIOUSLY COLLECTED FROM WITHIN THESE COUNTIES SHALL BE REIMBURSED TO EACH PAYOR BY MARCH THIRTY-FIRST, TWO THOUSAND FIFTEEN. S 3. Section 1266 of the public authorities law is amended by adding a new subdivision 19 to read as follows: 19. THE AUTHORITY IS REQUIRED BY MARCH THIRTY-FIRST, TWO THOUSAND FIFTEEN TO: (A) RENEGOTIATE THE JOINT SERVICE AGREEMENT BETWEEN THE AUTHORITY AND THE STATE OF CONNECTICUT RELATED TO THE OPERATION OF THE METRO-NORTH NEW HAVEN LINE TO (I) REQUIRE CONNECTICUT TO SET NEW HAVEN LINE FARE INCREASES AT LEVELS NECESSARY TO SUSTAIN EQUIVALENT FARE LEVELS BETWEEN NEW YORK STATE RESIDENTS RIDING THE METRO-NORTH COMMUTER RAILROAD AND CONNECTICUT RESIDENTS RIDING THE METRO-NORTH COMMUTER RAILROAD, (II) REQUIRE THAT CONNECTICUT OPERATING DEFICIT SUBSIDY PAYMENTS SHALL BE BASED ON CONNECTICUT RESIDENT UTILIZATION OF THE METRO-NORTH COMMUTER RAILROAD AND CONNECTICUT RESIDENT UTILIZATION OF THE NEW YORK CITY TRAN- SIT AUTHORITY WITH SUCH SUBSIDIES TO BE DETERMINED BY MULTIPLYING THE CONNECTICUT RESIDENT UTILIZATION PERCENTAGES FOR THE METRO-NORTH COMMU- TER RAILROAD AND THE NEW YORK CITY TRANSIT AUTHORITY BY THE RESPECTIVE BASELINE OPERATING DEFICIT OF THESE OPERATING ENTITIES PRIOR TO SUBSIDY ADJUSTMENTS AND PRIOR TO INCREASED REVENUES PROVIDED TO THE AUTHORITY BY NEW YORK STATE RESIDENTS PURSUANT TO PAYMENTS MANDATED BY CHAPTER TWEN- TY-FIVE OF THE LAWS OF TWO THOUSAND NINE, AND (III) PROVIDE FOR RETROAC- TIVE LUMP SUM PAYMENTS DUE FROM THE STATE OF CONNECTICUT RELATED TO CALENDAR YEAR TWO THOUSAND NINE; OR (B) REDUCE SERVICES AND EXPENSES RELATED TO THE METRO-NORTH NEW HAVEN LINE OPERATION BY AN AMOUNT WHICH PRODUCES RECURRING SAVINGS TO THE AUTHORITY WHICH ARE EQUIVALENT TO THE INCREASED JOINT SERVICE AGREEMENT PAYMENTS WHICH WOULD BE DETERMINED UNDER PARAGRAPH (A) OF THIS SUBDIVI- SION. S 4. This act shall take effect immediately.

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