S T A T E   O F   N E W   Y O R K
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                                  1443

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of  A.  ZEBROWSKI  --  read once and referred to the
  Committee on Ways and Means

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 FOURTEEN 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 FIFTEEN  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 SIXTEEN 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 SEVENTEEN AND CALENDAR YEARS THER-
EAFTER 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 SEVENTEEN 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.
                                                           LBD00499-01-3

A. 1443                             2

PERCENT OF THAT  OTHERWISE  AUTHORIZED  UNDER  SUBSECTION  (A)  OF  THIS
SECTION;
  (VI)  FOR  CALENDAR  YEAR TWO THOUSAND EIGHTEEN 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 NINETEEN 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 FOURTEEN 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 FIFTEEN AND CALENDAR YEARS THEREAFT-
ER 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 FIFTEEN 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 SIXTEEN 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 FOURTEEN 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 FIFTEEN 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 FIFTEEN 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;

A. 1443                             3

  (IV)  FOR CALENDAR YEAR TWO THOUSAND SIXTEEN 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 2013 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 2013 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  2014  fare
increase  currently  contained  within  the  metropolitan transportation
authority's 2013 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:

A. 1443                             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  THIRTEEN  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 THIRTEEN 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 FOURTEEN FARE INCREASE
REDUCTION SUBACCOUNT AND SHALL BE USED EXCLUSIVELY TO REDUCE  THE  SEVEN
AND  ONE-HALF  PERCENT  TWO  THOUSAND  FOURTEEN  FARE INCREASE CURRENTLY
CONTAINED WITHIN THE METROPOLITAN TRANSPORTATION AUTHORITY'S  TWO  THOU-
SAND  THIRTEEN APPROVED OPERATING BUDGET TO AN INCREASE OF FIVE AND ONE-
HALF PERCENT.
  3. Moneys in the fund EXCEPT THOSE DEPOSITED WITHIN THE  TWO  THOUSAND
FOURTEEN  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.