Assemblyman Phil Goldfeder (D-Far Rockaway) announced legislation that he supported was signed in to law by the Governor on Friday. This newly minted law permanently eliminates MTA payroll taxes for qualifying small businesses and self employed tax payers, in addition to exempting public, private and parochial schools from having to pay the tax.
“Creating a more business-friendly climate here in Queens is the best way to ensure our small businesses cannot only keep their doors open, but can grow and prosper,” Goldfeder said. “Lifting this onerous financial burden off our small businesses is a great way to do just that.”
This new law also eliminates MTA payroll taxes for those who are self-employed and earn less than $50,000 per year. Additionally, it eliminates the tax for small businesses with annual payrolls of less than $1.25 million, and provides a significant reduction for companies with payrolls less than $1.75 million.
The new law is also welcomed news to schools across the state. The Metropolitan Commuter Tax, which was enacted in 2009, is a payroll tax equal to 34 cents per $100 of payroll. Since its enactment, public and nonpublic schools were required to pay this tax. However, only public schools were eligible for reimbursement. Under provisions of this new tax package, nonpublic schools will simply be exempt from this tax.
“Exempting schools from the MTA payroll tax is the right thing to do,” Goldfeder said. “Our children deserve the absolute best we have to offer and taking money from their pockets to close the MTA shortfall was just wrong. I was happy to support this important legislation and proud to see it become law.”