Thiele Applauds Ruling Declaring MTA Payroll Tax Unconstitutional

Thiele calls upon legislature to fully repeal the tax
August 23, 2012
New York State Assemblyman Fred W. Thiele, Jr. (I, D, WF-Sag Harbor) this week praised a State Supreme Court Justice’s ruling that the MTA payroll tax is unconstitutional.

Wednesday’s ruling states that the tax was passed unconstitutionally because home rule messages were never required from affected municipalities and it was never passed with a two-thirds vote in both houses of the State Legislature.

Assemblyman Thiele stated, “This ruling provides us with more evidence for the case we’ve been making all along- the MTA payroll tax is an unfair, job killing tax. Here on the East End, we are paying for a service we barely get.”

The payroll mobility tax, created in 2009, charges employers in the MTA region 34 cents for every $100 of payroll. In 2011 the State Legislature permanently eliminated said payroll taxes for small businesses with annual payrolls of $1.25 million or less per year. The same year the Legislature also eliminated MTA payroll taxes for those who are self-employed and earn less than $50,000 per year. In addition, it exempted schools, both public and private, from having to pay the tax.

“The next step is to permanently repeal MTA payroll. We can no longer place this burden on our counties, towns, villages and businesses. Eliminating the MTA payroll tax will put Long Island back on the path to economic prosperity. It’s time for the Legislature to act.”