Galef Supports Governor’s Proposed Changes to the MTA Mobility Tax

February 9, 2010

Assemblywoman Sandy Galef fully supports Governor Paterson’s proposed changes to the MTA mobility tax announced today. This reform will cut the tax rate in half for businesses outside of New York City in the Metropolitan Commuter Transportation District (MCTD), from 0.34 per $100 to 0.17 per $100.

Self employed individuals and partners with income below $100,000 would be exempt from the payroll tax, up from the current threshold of $10,000. As a result of Paterson’s proposed changes, an additional 400,000 small businesses would now be exempt from the payroll tax.

“I did not vote for the MTA mobility tax last year and felt that imposing a tax of this magnitude on local businesses, not for profits, and public entities was wrong and certainly anti-business and anti-taxpayer. The businesses in New York City rely on mass transit for their employees but the businesses in Westchester and Putnam counties are less reliant on mass transit, given the nature of the region, and were therefore being unfairly impacted,” stated Galef.

“This new MTA Mobility Tax was a burden on my district,” Galef continued. “Modifying the tax, as the Governor has recommended, will soften this economic blow. I will work hard to make this change and will continue to advocate for total elimination of the MTA Mobility Tax in the future.”