Exempts the first $1,250,000 of earnings from self-employment during any tax year, from the metropolitan commuter transportation mobility tax.

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S6330A-2011 Actions

• May 8, 2012: PRINT NUMBER 6330C
• May 8, 2012: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Mar 26, 2012: PRINT NUMBER 6330B
• Mar 26, 2012: AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Feb 21, 2012: PRINT NUMBER 6330A
• Feb 21, 2012: AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 26, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S6330A-2011 Memo

BILL NUMBER:S6330A

TITLE OF BILL:
An  act  to  amend the tax law, in relation to exempting self-employment
earnings of three hundred twelve thousand five hundred dollars  or  less
in  any  calendar  quarter from the metropolitan commuter transportation
mobility tax

PURPOSE:
Exempts the first $312,500 of earnings from  self-employment,  from  the
Metropolitan  Commuter Transportation Mobility Tax in any calendar quar-
ter.

SUMMARY OF SPECIFIC PROVISIONS:
Section one amends subsection (a) of section 801  of  the  tax  law,  as
amended by section 2 of part B of chapter 56 of the laws of 2011.

Section is an effective date of April 1, 2012.

JUSTIFICATION:
This  measure  would create parity for the self-employed, who still have
to pay the Metropolitan Commuter Transportation  Mobility  Tax  (MCTMT).
Enactment  of  Chapter  56  of  the Laws of 2011 eliminated this tax for
employers with payroll expenses less than $312,500. This tax poses  both
a  financial  and  administrative  burden  on  New York's self-employed.
Currently, the self-employed pay a rate of .34% for  earnings  exceeding
$50,000.

Self-employed  individuals  pay their taxes as quarterly estimated taxes
throughout the year. This includes the self-employment tax, social secu-
rity and Medicare tax, at a rate of 15.3%. The year is divided into four
payment periods with specific due dates and penalties  if  payments  are
made  late.  The MCTMT also has quarterly tax due dates, but they do not
correspond to the already  established  ones.  This  creates  a  greater
administrative  burden  for the individual and may cause high accounting
fees for those who are able to afford an accountant.

This bill would level the playing field by  treating  the  self-employed
with  those  employers  with  payroll expenses less than S312,500 in any
calendar quarter.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
Undetermined.

EFFECTIVE DATE:
April 1, 2012.

S6330A-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                   6330--A

                              I N  SENATE

                              January 26, 2012
                                 ___________

  Introduced  by  Sens. LANZA, MARTINS, SQUADRON -- read twice and ordered
    printed, and when printed to be committed to the Committee on Investi-
    gations  and  Government  Operations  --  committee  discharged,  bill
    amended,  ordered reprinted as amended and recommitted to said commit-
    tee

  AN ACT to amend the tax law, in relation  to  exempting  self-employment
    earnings of three hundred twelve thousand five hundred dollars or less
    in  any calendar quarter from the metropolitan commuter transportation
    mobility tax

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Subsection (a) of section 801 of the tax law, as amended by
  section  2  of  part  B of chapter 56 of the laws of 2011, is amended to
  read as follows:

    (a) For the sole purpose of providing an additional stable  and  reli-
  able  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 metropol-
  itan commuter transportation  district,  a  tax  is  hereby  imposed  on
  employers  who  engage  in business within the MCTD (1) at a rate of (A)
  eleven hundredths (.11) percent for employers with  payroll  expense  no
  greater than three hundred seventy-five thousand dollars in any calendar
  quarter,  (B)  twenty-three  hundredths (.23) percent for employers with
  payroll expense greater than three hundred seventy-five thousand dollars
  and no greater than four  hundred  thirty-seven  thousand  five  hundred
  dollars  in  any  calendar quarter, and (C) thirty-four hundredths (.34)
  percent for employers with payroll expense in  excess  of  four  hundred
  thirty-seven  thousand five hundred dollars in any calendar quarter, and
  (2) at a rate of thirty-four hundredths (.34) percent of the  net  earn-
  ings  from  self-employment  of individuals that are attributable to the
  MCTD if such earnings attributable to  the  MCTD  exceed  [fifty]  THREE
  HUNDRED  TWELVE  thousand FIVE HUNDRED dollars [for the tax year] IN ANY
  CALENDAR QUARTER.
    S 2. This act shall take effect April 1, 2012.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD14142-02-2