Relates to eliminating the Metropolitan commuter transportation mobility tax in certain counties and authorizing the imposition of certain bridge tolls by the city of New York.
TITLE OF BILL: An act to amend the tax law, in relation to the Metropolitan commuter transportation mobility tax and to amend the New York city charter, in relation to the imposition of certain bridge tolls
PURPOSE OR GENERAL IDEA OF BILL: To remove the Metropolitan commuter transportation mobility tax, better known as the MTA payroll tax, from Dutchess, Orange, Putnam, Suffolk, Rockland, Nassau and Westchester counties and authorize the revenue to be replaced by tolls on the Brooklyn, Manhattan, Williamsburg and Queensboro bridges over the East river.
SUMMARY OF SPECIFIC PROVISIONS: Section 1: Amends 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 to exclude the counties of Dutchess, Orange, Putnam, Suffolk, Rockland, Nassau and Westchester from the definition of the Metropolitan commuter transportation district for purposes of the metropolitan commuter transportation mobility tax.
Section 2: Amends section 28 of the New York city charter by adding a new subdivision h to authorize the New York City Council to establish tolls on Brooklyn, Manhattan, Williamsburg and Queensboro bridges over the East River, for the purpose of providing an additional dedicated source of funding for the Metropolitan Transportation Authority.
Section 3: Effective date.
JUSTIFICATION: The highly partisan, one vote margin which enacted the MTA tax in the Senate in 2009 is evidence of the divisive nature of this unreasonable tax from day one. Now, two years later, the MTA has not demonstrated it is any more efficient or effective in providing services to the Hudson Valley and Long Island area, which bears a disproportionate share of the cost of operating the MTA, versus the services received.
The MTA payroll tax amounts to taxation without transportation. It is an unwarranted burden on small businesses in the lower Hudson Valley and Long Island for which they, in particular the Hudson Valley, receive little or no benefits from. Property taxpayers have also been impacted by this tax, because property taxpayers have to contribute to localities, who are subject to the payroll tax.
PRIOR LEGISLATIVE HISTORY: New Bill.
FISCAL IMPLICATIONS: The repeal of the Metropolitan commuter transportation mobility tax in Dutchess, Orange, Putnam, Suffolk, Rockland, Nassau and Westchester counties will have a negative impact on revenues to the Metropolitan Transportation Authority. However, this will be able to be offset by
revenues from tolls on the Brooklyn, Manhattan, Williamsburg and Queensboro bridges if the New York City Council authorizes the same.
EFFECTIVE DATE: This act would take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 4774 2011-2012 Regular Sessions IN SENATE April 20, 2011 ___________Introduced by Sens. BONACIC, BALL, LARKIN, SALAND, ZELDIN -- 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 Metropolitan commuter transportation mobility tax and to amend the New York city charter, in relation to the imposition of certain bridge tolls THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. 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, BUT EXCLUDING THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM, SUFFOLK, ROCKLAND, NASSAU AND WESTCHESTER. S 2. Section 28 of the New York city charter is amended by adding a new subdivision h to read as follows: H. 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 COMMU- TER TRANSPORTATION DISTRICT, THE COUNCIL IS AUTHORIZED TO ESTABLISH TOLLS ON THE FOLLOWING BRIDGES OVER THE EAST RIVER: BROOKLYN, MANHAT- TAN, WILLIAMSBURG AND QUEENSBORO BRIDGES. THE RECEIPT OF REVENUES GENER- ATED FROM SUCH TOLLS, IS AUTHORIZED TO BE TRANSMITTED BY THE CITY TO THE METROPOLITAN TRANSPORTATION AUTHORITY FOR SUCH PURPOSES. IN THE EVENT THAT ANY OR ALL OF SUCH BRIDGES ARE CONVEYED, THE DEED OF CONVEYANCE SHALL INCLUDE A PROVISION RESERVING SUCH RECEIPTS FOR THE TRANSPORTATION USES WITHIN THE CITY OF NEW YORK. S 3. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08935-01-1