Exempts political subdivisions from the imposition of the metropolitan commuter transportation mobility tax.
BILL NUMBER:S6206 REVISED 03/06/12
TITLE OF BILL: An act to amend the tax law, in relation to the exemption of political subdivisions from the imposition of the metropolitan commuter transportation mobility tax
PURPOSE: The legislation would exempt local governments outside of New York City located within the metropolitan commuter transportation district from paying the metropolitan commuter transportation mobility tax (MTA payroll tax).
SUMMARY OF PROVISIONS: Section 1 amends Subsection (b) of section 800 of the tax law, as added by section 1 of part B of Chapter 56 of the Laws of 2011, to exempt all counties, towns, cities, villages and other political subdivisions outside of New York city from paying the metropolitan commuter transportation mobility tax.
Section 2 sets the enacting date.
JUSTIFICATION: The metropolitan commuter transportation mobility tax (MTA payroll tax) enacted in 2009, was subsequently rolled back in 2011 for 78.2% of the entities that were required to pay the tax in the Metropolitan Commuter Transportation District (MCTD), which includes the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester. Taxing existing jobs has proven to have had a crippling effect on the economy and new job creation within the MCTD. This tax is having a severe negative impact on economic recovery, and is discouraging growth of new business and job creation at a time when the government should be promoting these objectives.
To address the negative effect of this tax on jobs and economic growth as well as the effect on property taxes, the tax should be repealed for local government entities in the MCTD, and take the burden of this onerous tax off of the property taxpayers.
LEGISLATIVE HISTORY: This is a new bill.
FISCAL IMPLICATIONS: Approximately $19.8 million to the State.
EFFECTIVE DATE: This act shall take effect on the same date and in the same manner as section 1 of part B of chapter 56 of the laws of 2011 takes effect.
STATE OF NEW YORK ________________________________________________________________________ 6206 IN SENATE January 12, 2012 ___________Introduced by Sens. MARTINS, 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 exemption of political subdivisions from the imposition of the metropolitan commuter trans- portation mobility tax THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraphs 3 and 4 of subsection (b) of section 800 of the tax law, paragraph 3 as amended and paragraph 4 as added by section 1 of part B of chapter 56 of the laws of 2011, are amended and a new para- graph 5 is added to read as follows: (3) an interstate agency or public corporation created pursuant to an agreement or compact with another state or the Dominion of Canada;
[or](4) [Any]ANY eligible educational institution. An "eligible educa- tional institution" shall mean any public school district, a board of cooperative educational services, a public elementary or secondary school, a school approved pursuant to article eighty-five or eighty-nine of the education law to serve students with disabilities of school age, or a nonpublic elementary or secondary school that provides instruction in grade one or above [.]; OR (5) ANY COUNTY, TOWN, CITY, VILLAGE OR OTHER POLITICAL SUBDIVISION EXCEPT A CITY WITH A POPULATION OF ONE MILLION INHABITANTS OR MORE. S 2. This act shall take effect on the same date and in the same manner as section 1 of part B of chapter 56 of the laws of 2011, takes effect.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14008-03-2