(Albany, NY) Assemblymember Kevin Cahill (D-Ulster, Dutchess) applauded a plan passed today by the Legislature that would rollback the Metropolitan Transit Authority (MTA) payroll tax imposed on 12 counties in New York. The measure, imposed in 2009, placed a 34 cent tax on every $100 of payroll for businesses, not for profits, and private education institutions within the counties of MTA service territory.
“The reduction and, in some cases, elimination of the payroll tax is a step in the right direction,” said Assemblymember Cahill. “I have been fighting against this unfair tax since its inception, and this brings us closer to doing away with it entirely.”
The legislation passed today permanently eliminates the payroll tax for public, private and parochial schools, and BOCES. Businesses and not for profits with annual payrolls of less than $1.25 million are also exempted. Entities with payrolls over $1.25 million will see a significant reduction of the amount of their mandated contribution.
“While the MTA is important to our state and plays a significant role in our economy, the payroll tax placed an undue burden on underserved Hudson Valley communities, making them responsible for a system from which they receive no benefits,” said Assemblymember Cahill. “This injustice particularly impacted northern Dutchess County, and Rhinebeck specifically, where residents have no access to MTA mass transit services and minimal representation on the MTA Board.”
The payroll tax cut will save tax payers $390 million this year alone. The changes to the current system will affect close to 295,000 tax payers in the state and over 75 percent of businesses and not for profits currently paying the tax.
“I am pleased to see that this issue is nearing an equitable resolution,” said Assemblymember Cahill. “In these struggling financial times, we cannot finance the MTA at the expense of our school districts, hospitals, not for profits and businesses. I will continue to work to ensure that we maintain our commitments to these valuable institutions and bring about further reform to the way in which we fund and govern the MTA.”
- Cahill: Assembly Budget Increases Education Funding, Protects Mental Health Services and Provides Mandate Relief
- Cahill Wins Funding Pledge for Belleayre Ski Center Within Assembly Budget Proposal
- Assembly Insurance Chair Cahill Holds Roundtable Discussions on Coverage in the Event of Disaster
- Statement by Assemblyman Kevin Cahill on the Passing of Thomas Roach
- Assemblymember Cahill Helps to Pass Assembly Hydrofracking Moratorium