S T A T E O F N E W Y O R K
________________________________________________________________________
7516
I N S E N A T E
May 30, 2012
___________
Introduced by Sens. SALAND, BONACIC, BALL -- read twice and ordered
printed, and when printed to be committed to the Committee on Investi-
gations and Government Operations
AN ACT to amend the tax law, the vehicle and traffic law and the public
authorities law, in relation to the metropolitan commuter transporta-
tion mobility tax
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 801 of the tax law is amended by adding a new
subsection (d) to read as follows:
(D) FOR THE PURPOSES OF IMPOSING THE TAX AUTHORIZED WITHIN THIS
SECTION IT IS HEREBY PROVIDED THAT:
(I) FOR CALENDAR YEAR TWO THOUSAND THIRTEEN SAID TAX FOR EMPLOYERS
WITHIN THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM AND ROCKLAND SHALL BE
IMPOSED AT A RATE OF FIFTY PERCENT OF THAT OTHERWISE AUTHORIZED UNDER
SUBSECTION (A) OF THIS SECTION;
(II) FOR CALENDAR YEAR TWO THOUSAND FOURTEEN SAID TAX FOR EMPLOYERS
WITHIN THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM, ROCKLAND, WESTCHESTER,
NASSAU AND SUFFOLK SHALL BE IMPOSED AT A RATE OF FIFTY PERCENT OF THAT
OTHERWISE AUTHORIZED UNDER SUBSECTION (A) OF THIS SECTION;
(III) FOR CALENDAR YEAR TWO THOUSAND FIFTEEN SAID TAX FOR EMPLOYERS
WITHIN THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM, ROCKLAND, WESTCHESTER,
NASSAU AND SUFFOLK SHALL BE IMPOSED AT A RATE OF TWENTY PERCENT OF THAT
OTHERWISE AUTHORIZED UNDER SUBSECTION (A) OF THIS SECTION AND FURTHER
SAID TAX FOR EMPLOYERS WITHIN THE CITY OF NEW YORK SHALL BE IMPOSED AT A
RATE OF SEVENTY-FOUR PERCENT OF THAT OTHERWISE AUTHORIZED UNDER
SUBSECTION (A) OF THIS SECTION;
(IV) FOR CALENDAR YEAR TWO THOUSAND SIXTEEN AND CALENDAR YEARS THERE-
AFTER NO TAX SHALL BE IMPOSED UNDER THIS SECTION FOR EMPLOYERS WITHIN
THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM, ROCKLAND, WESTCHESTER, NASSAU
AND SUFFOLK;
(V) FOR CALENDAR YEAR TWO THOUSAND SIXTEEN SAID TAX FOR EMPLOYERS
WITHIN THE CITY OF NEW YORK SHALL BE IMPOSED AT A RATE OF FIFTY-SIX
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15901-02-2
S. 7516 2
PERCENT OF THAT OTHERWISE AUTHORIZED UNDER SUBSECTION (A) OF THIS
SECTION;
(VI) FOR CALENDAR YEAR TWO THOUSAND SEVENTEEN SAID TAX FOR EMPLOYERS
WITHIN THE CITY OF NEW YORK SHALL BE IMPOSED AT A RATE OF TWENTY-NINE
PERCENT OF THAT OTHERWISE AUTHORIZED UNDER SUBSECTION (A) OF THIS
SECTION; AND
(VII) FOR CALENDAR YEAR TWO THOUSAND EIGHTEEN AND CALENDAR YEARS THER-
EAFTER NO TAX SHALL BE IMPOSED UNDER THIS SECTION FOR EMPLOYERS WITHIN
THE CITY OF NEW YORK.
S 2. Paragraph (b-1) of subdivision 2 of section 503 of the vehicle
and traffic law is amended by adding a new subparagraph (iii) to read as
follows:
(III) FOR THE PURPOSES OF IMPOSING THE SUPPLEMENTAL FEE AUTHORIZED
WITHIN THIS SUBDIVISION IT IS HEREBY PROVIDED THAT:
A. FOR CALENDAR YEAR TWO THOUSAND THIRTEEN SAID SUPPLEMENTAL FEE FOR
APPLICANTS WHO RESIDE WITHIN THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM,
ROCKLAND, WESTCHESTER, NASSAU AND SUFFOLK SHALL BE IMPOSED AT A RATE OF
TWENTY-FIVE PERCENT OF THAT OTHERWISE AUTHORIZED UNDER THIS SUBDIVISION
AND FURTHER FOR APPLICANTS RESIDING WITHIN THE CITY OF NEW YORK SAID
SUPPLEMENTAL FEE SHALL BE IMPOSED AT A RATE OF SEVENTY PERCENT OF THAT
OTHERWISE AUTHORIZED UNDER THIS SUBDIVISION;
B. FOR CALENDAR YEAR TWO THOUSAND FOURTEEN AND CALENDAR YEARS THERE-
AFTER NO SUPPLEMENTAL FEE SHALL BE IMPOSED FOR APPLICANTS WHO RESIDE
WITHIN THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM, ROCKLAND, WESTCHESTER,
NASSAU AND SUFFOLK;
C. FOR CALENDAR YEAR TWO THOUSAND FOURTEEN SAID SUPPLEMENTAL FEE FOR
APPLICANTS WHO RESIDE WITHIN THE CITY OF NEW YORK SHALL BE IMPOSED AT A
RATE OF THIRTY-FIVE PERCENT OF THAT OTHERWISE AUTHORIZED UNDER THIS
SUBDIVISION;
D. FOR CALENDAR YEAR TWO THOUSAND FIFTEEN AND CALENDAR YEARS THEREAFT-
ER NO SUPPLEMENTAL FEE SHALL BE IMPOSED FOR APPLICANTS WHO RESIDE WITHIN
THE CITY OF NEW YORK.
S 3. Section 499-c of the vehicle and traffic law, as added by section
1 of part B of chapter 25 of the laws of 2009, is amended to read as
follows:
S 499-c. Calculation of supplemental registration fee. The supple-
mental registration fee to be charged pursuant to section four hundred
ninety-nine-b of this article, shall be calculated at a rate of twenty-
five dollars per annum for each year or portion of a year that such
registration is valid. FOR THE PURPOSES OF IMPOSING THE SUPPLEMENTAL
FEE AUTHORIZED WITHIN THIS SECTION IT IS HEREBY PROVIDED THAT:
(I) FOR CALENDAR YEAR TWO THOUSAND THIRTEEN SAID SUPPLEMENTAL FEE
CHARGED TO REGISTRANTS WHO RESIDE WITHIN THE COUNTIES OF DUTCHESS,
ORANGE, PUTNAM, ROCKLAND, WESTCHESTER, NASSAU AND SUFFOLK SHALL BE
IMPOSED AT A RATE OF TWENTY-FIVE PERCENT OF THAT OTHERWISE AUTHORIZED
UNDER THIS SECTION AND FURTHER FOR REGISTRANTS RESIDING WITHIN THE CITY
OF NEW YORK SAID SUPPLEMENTAL FEE SHALL BE IMPOSED AT A RATE OF SEVENTY
PERCENT OF THAT OTHERWISE AUTHORIZED UNDER THIS SECTION;
(II) FOR CALENDAR YEAR TWO THOUSAND FOURTEEN AND CALENDAR YEARS THERE-
AFTER NO SUPPLEMENTAL FEE SHALL BE IMPOSED FOR REGISTRANTS WHO RESIDE
WITHIN THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM, ROCKLAND, WESTCHESTER,
NASSAU AND SUFFOLK;
(III) FOR CALENDAR YEAR TWO THOUSAND FOURTEEN SAID SUPPLEMENTAL FEE
FOR REGISTRANTS WHO RESIDE WITHIN THE CITY OF NEW YORK SHALL BE IMPOSED
AT A RATE OF THIRTY-FIVE PERCENT OF THAT OTHERWISE AUTHORIZED UNDER THIS
SECTION;
S. 7516 3
(IV) FOR CALENDAR YEAR TWO THOUSAND FIFTEEN AND CALENDAR YEARS THERE-
AFTER NO SUPPLEMENTAL FEE SHALL BE IMPOSED FOR REGISTRANTS WHO RESIDE
WITHIN THE CITY OF NEW YORK.
S 4. (a) For the purposes of this section total operating expense
shall mean the metropolitan transportation authority's annual total
operating expense before depreciation, subsidies and debt service and
shall additionally exclude operating expenses related to pensions, other
post-employment benefits, retroactive arbitration agreements and operat-
ing expenses related directly to system expansion which are not offset
by a corresponding increase in system revenue. Any reductions in transit
aid authorized within this act attributable to reductions in the metro-
politan commuter transportation mobility tax authorized under article 23
of the tax law, the supplemental learner permit/license fee in the
metropolitan commuter district region authorized under article 19 of the
vehicle and traffic law and the metropolitan commuter transportation
district supplemental registration fee authorized under article 17-C of
the vehicle and traffic law shall be offset by limiting the growth of
the metropolitan transportation authority's annual total operating
expense over the preceding fiscal year equal to the product of the total
operating expense for the preceding fiscal year and the lesser of one
hundred twenty percent of the inflation rate or two percent. Inflation
rate shall mean the annual percentage change in the consumer price
index, all urban, as published by the bureau of labor statistics, or any
successor agency. Such limitation in total operating expense shall begin
in calendar year 2012 and continue in each fiscal year thereafter,
provided however, that actual realized savings for 2012 shall be equal
to one-twelfth of that otherwise anticipated under the limitations of
growth as set forth in this section and further provided that total
operating expense for 2012 shall include reductions already approved
within the metropolitan transportation authority's 2012 total operating
budget related to metropolitan transportation authority initiatives and
policy actions totaling sixty-three million dollars.
(b) Beginning in 2012 and thereafter, all revenues resulting from the
savings related to limiting the growth in the metropolitan transporta-
tion authority's annual total operating expense shall be deposited in
the metropolitan transportation authority finance fund authorized by
section 1270-h of the public authorities law, provided however, that
revenues resulting from the savings pursuant to this section in excess
of those savings required to offset any reductions in transit aid
authorized within this act attributable to reductions in the metropol-
itan commuter transportation mobility tax authorized under article 23 of
the tax law, the supplemental learner permit/license fee in the metro-
politan commuter district region authorized under article 19 of the
vehicle and traffic law and the metropolitan commuter transportation
district supplemental registration fee authorized under article 17-C of
the vehicle and traffic law shall be deposited in the metropolitan
transportation authority finance fund authorized by section 1270-h of
the public authorities law within a separate subaccount and shall be
used exclusively to reduce the seven and one-half percent 2013 fare
increase currently contained within the metropolitan transportation
authority's 2012 approved operating budget to an increase of five and
one-half percent.
S 5. Subdivisions 2 and 3 of section 1270-h of the public authorities
law, as added by section 16 of part H of chapter 25 of the laws of 2009,
are amended to read as follows:
S. 7516 4
2. The comptroller shall deposit monthly, pursuant to appropriation,
into the metropolitan transportation authority finance fund the moneys
deposited in the mobility tax trust account of the metropolitan trans-
portation authority financial assistance fund pursuant to article twen-
ty-three of the tax law, and any other provision of law directing or
permitting the deposit of moneys in such fund. IN ADDITION TO SAID
FUNDS, THE METROPOLITAN TRANSPORTATION AUTHORITY SHALL DEPOSIT INTO THE
METROPOLITAN TRANSPORTATION AUTHORITY FINANCE FUND ALL REVENUES RESULT-
ING FROM LIMITING THE GROWTH OF THE METROPOLITAN TRANSPORTATION AUTHORI-
TY'S ANNUAL TOTAL OPERATING EXPENSE PURSUANT TO THE PROVISIONS OF
SECTION FOUR OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWELVE WHICH
AMENDED THIS SUBDIVISION, PROVIDED HOWEVER THAT REVENUES DEPOSITED
PURSUANT TO SECTION FOUR OF THE CHAPTER OF THE LAWS OF TWO THOUSAND
TWELVE WHICH AMENDED THIS SUBDIVISION WHICH ARE IN EXCESS OF THOSE
REQUIRED TO OFFSET ANY REDUCTIONS IN TRANSIT AID AUTHORIZED WITHIN SUCH
CHAPTER OF THE LAWS OF TWO THOUSAND TWELVE ATTRIBUTABLE TO REDUCTIONS IN
THE METROPOLITAN COMMUTER TRANSPORTATION MOBILITY TAX AUTHORIZED UNDER
ARTICLE TWENTY-THREE OF THE TAX LAW, THE SUPPLEMENTAL LEARNER
PERMIT/LICENSE FEE IN THE METROPOLITAN COMMUTER DISTRICT REGION AUTHOR-
IZED UNDER ARTICLE NINETEEN OF THE VEHICLE AND TRAFFIC LAW AND THE
METROPOLITAN COMMUTER TRANSPORTATION DISTRICT SUPPLEMENTAL REGISTRATION
FEE AUTHORIZED UNDER ARTICLE SEVENTEEN-C OF THE VEHICLE AND TRAFFIC LAW
SHALL BE DEPOSITED WITHIN A SEPARATE TWO THOUSAND THIRTEEN FARE INCREASE
REDUCTION SUBACCOUNT AND SHALL BE USED EXCLUSIVELY TO REDUCE THE SEVEN
AND ONE-HALF PERCENT TWO THOUSAND THIRTEEN FARE INCREASE CURRENTLY
CONTAINED WITHIN THE METROPOLITAN TRANSPORTATION AUTHORITY'S TWO THOU-
SAND TWELVE APPROVED OPERATING BUDGET TO AN INCREASE OF FIVE AND
ONE-HALF PERCENT.
3. Moneys in the fund EXCEPT THOSE DEPOSITED WITHIN THE TWO THOUSAND
THIRTEEN FARE INCREASE REDUCTION SUBACCOUNT may be (a) pledged by the
authority to secure and be applied to the payment of the bonds, notes or
other obligations of the authority issued on or after the effective date
of this section to finance capital projects of the authority and its
subsidiaries and the New York city transit authority and any subsid-
iaries; or (b) used for payment of capital costs, including debt
service, reserve requirements, if any, the payment of amounts required
under bond and note facilities or agreements related thereto, the
payment of federal government loans, security or credit arrangements or
other agreements related thereto, and the payment of all costs related
to such obligations, of or for the authority, the New York city transit
authority and their subsidiaries as the authority shall determine.
Subject to the provisions of any such pledge, or in the event there is
no such pledge, any excess moneys in this fund may be used by the
authority for payment of operating costs of, and capital costs, includ-
ing debt service and reserve requirements, if any, of or for the author-
ity, the New York city transit authority and their subsidiaries as the
authority shall determine. To the extent moneys in the fund have been
pledged by the authority to secure and pay the bonds, notes or other
obligations of the authority issued to finance capital projects of the
authority and its subsidiaries and the New York city transit authority
and any subsidiaries as herein provided, monies deposited into the fund
shall be deposited to the extent necessary to satisfy the requirements
of any debt service or reserve requirements, if any, of the resolution
authorizing such bonds, notes or other obligations.
S 6. This act shall take effect immediately.