NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1369
SPONSOR: Zebrowski
 
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 transpor-
tation 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 one of the bill amends section 80C of the tax law, as it relates
to exempting all counties, towns, cities, villages and other political
subdivisions outside of New York city from paying the metropolitan
commuter transportation mobility tax.
Section two of the bill relates to the effective 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 exist-
ing 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as well as the effect on property taxes, the tax should be repealed for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 oner-
ous tax off of the property taxpayers.
 
LEGISLATIVE HISTORY:
A.315 of 2021-22
A.8371 of 2020
 
FISCAL IMPLICATIONS:
Approximately $19.8 million to the State.
 
EFFECTIVE DATE:
This act shall take effect immediately.