STATE OF NEW YORK
________________________________________________________________________
8193--A
2011-2012 Regular Sessions
IN ASSEMBLY
June 6, 2011
___________
Introduced by M. of A. LATIMER, SPANO, THIELE, GRAF, MURRAY, LOSQUADRO,
MOLINARO, CONTE -- read once and referred to the Committee on Ways and
Means -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the tax law, in relation to creating regions one and two
for the metropolitan commuter transportation mobility tax; to amend
the state finance law, in relation to aid and incentives for munici-
palities; to amend the state finance law, in relation to transfer of
moneys in the metropolitan mass transportation operating assistance
account; to amend the tax law and the state finance law, in relation
to the deposit of certain motor fuel and diesel fuel taxes; to dedi-
cate certain monies to the metropolitan transportation authority; and
to repeal section 3609-g of the education law
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 800 of the tax law, as added by section 1 of part C
2 of chapter 25 of the laws of 2009, is amended to read as follows:
3 § 800. Definitions. For the purposes of this article:
4 (a) Metropolitan commuter transportation district. The metropolitan
5 commuter transportation district ("MCTD") means [the area] the combina-
6 tion of region one and region two of the state included in the district
7 created and governed by section twelve hundred sixty-two of the public
8 authorities law.
9 (b) Region one. Region one means counties contained wholly within a
10 city with a population of one million or more.
11 (c) Region two. Region two means the counties of Dutchess, Nassau,
12 Orange, Putnam, Rockland, Suffolk, and Westchester.
13 (d) Employer. Employer means an employer required by section six
14 hundred seventy-one of this chapter to deduct and withhold tax from
15 wages, that has a payroll expense in excess of two thousand five hundred
16 dollars in any calendar quarter; other than
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11987-09-1
A. 8193--A 2
1 (1) any agency or instrumentality of the United States;
2 (2) the United Nations; [or]
3 (3) an interstate agency or public corporation created pursuant to an
4 agreement or compact with another state or the Dominion of Canada[.];
5 (4) a non-public primary or secondary school that satisfies the
6 requirements prescribed by law for non-public schools in this state, and
7 that has qualified for federal tax exemption under section 501(c)(3) of
8 the internal revenue code;
9 (5) any public school district, board of cooperative educational
10 services, or special act school district, as defined in section four
11 thousand one of the education law; or
12 (6) an employer that is located in the MCTD with twenty-five or less
13 covered employees or an individual having net earnings from self employ-
14 ment from activity within the MCTD.
15 [(c)] (e) Payroll expense. Payroll expense means wages and compen-
16 sation as defined in sections 3121 and 3231 of the internal revenue code
17 (without regard to section 3121(a)(1) and section 3231(e)(2)(A)(i)),
18 paid to all covered employees.
19 [(d)] (f) Covered employee. Covered employee means an employee who is
20 employed within region one or region two of the MCTD.
21 [(e)] (g) Net earnings from self-employment. Net earnings from self-
22 employment has the same meaning as in section 1402 of the internal
23 revenue code.
24 § 2. Section 801 of the tax law, as added by section 1 of part C of
25 chapter 25 of the laws of 2009, is amended to read as follows:
26 § 801. Imposition of tax and rate. (a) For the sole purpose of provid-
27 ing an additional stable and reliable dedicated funding source for the
28 metropolitan transportation authority and its subsidiaries and affil-
29 iates to preserve, operate and improve essential transit and transporta-
30 tion services in the metropolitan commuter transportation district, a
31 tax is hereby imposed [at a rate of thirty-four hundredths (.34) percent
32 of] on: (1) the payroll expense of every employer who engages in busi-
33 ness within the MCTD and (2) prior to January first, two thousand
34 twelve, the net earnings from self-employment of individuals that are
35 attributable to the MCTD if such earnings attributable to the MCTD
36 exceed ten thousand dollars for the tax year[.] at the following rates:
37 (i) for region one, on or after January first, two thousand nine and
38 before January first, two thousand thirteen, thirty-four hundredths
39 (.34) percent; on or after January first, two thousand thirteen and
40 before January first, two thousand fourteen, twenty-eight hundredths
41 (.28) percent; and on January first, two thousand fourteen and thereaft-
42 er, twenty-one hundredths (.21) percent.
43 (ii) for region two, on or after January first, two thousand nine and
44 before January first, two thousand twelve, thirty-four hundredths (.34)
45 percent; on or after January first, two thousand twelve and before Janu-
46 ary first, two thousand thirteen, twenty-three hundredths (.23) percent;
47 on or after January first, two thousand thirteen and before January
48 first, two thousand fourteen, twelve hundredths (.12) percent; and on
49 January first, two thousand fourteen and thereafter, zero (0) percent.
50 (b)(1) [An] Prior to January first, two thousand twelve, an individual
51 having net earnings from self-employment from activity both within and
52 without the metropolitan commuter transportation district is required to
53 allocate and apportion such net earnings to the MCTD in the manner
54 required for allocation and apportionment of income under article twen-
55 ty-two of this chapter.
A. 8193--A 3
1 (2) [In] Prior to January first, two thousand twelve, in the case of
2 individuals with earnings from self-employment, the net earnings from
3 self employment threshold in paragraph two of subsection (a) of this
4 section will be computed on an individual basis regardless of whether
5 that individual filed a joint personal income tax return.
6 (c) The determination of whether a covered employee is employed within
7 region one or region two of the MCTD will be made by utilizing the rules
8 applicable to the jurisdiction of employment for purposes of the state-
9 wide wage reporting system under section one hundred seventy-one-a of
10 this chapter, as added by chapter five hundred forty-five of the laws of
11 nineteen hundred seventy-eight, and substituting region one or region
12 two of the MCTD for the state in that application.
13 § 3. Section 3609-g of the education law is REPEALED.
14 § 4. Subdivision 10 of section 54 of the state finance law is amended
15 by adding a new paragraph j-1 to read as follows:
16 j-1. Special aid and incentives for municipalities to the city of New
17 York. In the state fiscal year commencing April first, two thousand
18 fourteen and in each state fiscal year thereafter, a city with a popu-
19 lation of one million or more shall receive one hundred fifty million
20 dollars payable on or before December fifteenth. Special aid and incen-
21 tives for municipalities to the city of New York shall be apportioned
22 and paid to the New York city transit authority for the purpose of the
23 support of mass transit in the city of New York.
24 § 5. Subdivision 7 of section 88-a of the state finance law is amended
25 by adding a new paragraph (c) to read as follows:
26 (c) In the state fiscal year commencing April first, two thousand
27 twelve, and in each state fiscal year thereafter, moneys in the metro-
28 politan mass transportation operating assistance account shall not be
29 transferred to the general fund or other state funds or accounts except
30 for the public transportation systems operating assistance account
31 provided that any moneys transferred to the public transportation
32 systems operating assistance account shall only be used to support tran-
33 sit systems. In addition, moneys in the metropolitan mass transportation
34 operating assistance account and public transportation systems operating
35 assistance account shall not be appropriated for any other purpose
36 except for the support of transit systems.
37 § 6. Subdivision (d) of section 1102 of the tax law is amended by
38 adding a new paragraph 1-a to read as follows:
39 (1-a) Except as otherwise provided, one cent per gallon of the taxes
40 collected or received in any month with respect to such prepayment per
41 gallon tax imposed by this section shall be deposited proportionately as
42 follows: (i) for motor fuel, eighty-one and five-tenths percent in the
43 special obligations and reserve and payment account of the dedicated
44 highway and bridge trust fund established pursuant to section eighty-
45 nine-b of the state finance law and eighteen and five-tenths percent in
46 the metropolitan mass transportation operating assistance account estab-
47 lished pursuant to subdivision seven of section eighty-eight-a of the
48 state finance law; (ii) for diesel motor fuel, sixty-three percent in
49 the special obligations and reserve and payment account of the dedicated
50 highway and bridge trust fund established pursuant to section eighty-
51 nine-b of the state finance law and thirty-seven percent in the metro-
52 politan mass transportation operating assistance account established
53 pursuant to subdivision seven of section eighty-eight-a of the state
54 finance law.
55 § 7. Paragraph 1-a of subdivision (d) of section 1102 of the tax law,
56 as added by section six of this act, is amended to read as follows:
A. 8193--A 4
1 (1-a) Except as otherwise provided, [one cent] two cents per gallon of
2 the taxes collected or received in any month with respect to such
3 prepayment per gallon tax imposed by this section shall be deposited
4 proportionately as follows: (i) for motor fuel, eighty-one and five-
5 tenths percent in the special obligations and reserve and payment
6 account of the dedicated highway and bridge trust fund established
7 pursuant to section eighty-nine-b of the state finance law and eighteen
8 and five-tenths percent in the metropolitan mass transportation operat-
9 ing assistance account established pursuant to subdivision seven of
10 section eighty-eight-a of the state finance law; (ii) for diesel motor
11 fuel, sixty-three percent in the special obligations and reserve and
12 payment account of the dedicated highway and bridge trust fund estab-
13 lished pursuant to section eighty-nine-b of the state finance law and
14 thirty-seven percent in the metropolitan mass transportation operating
15 assistance account established pursuant to subdivision seven of section
16 eighty-eight-a of the state finance law.
17 § 8. Paragraph 1-a of subdivision (d) of section 1102 of the tax law,
18 as amended by section seven of this act, is amended to read as follows:
19 (1-a) Except as otherwise provided, [two cents] four cents per gallon
20 of the taxes collected or received in any month with respect to such
21 prepayment per gallon tax imposed by this section shall be deposited
22 proportionately as follows: (i) for motor fuel, eighty-one and five-
23 tenths percent in the special obligations and reserve and payment
24 account of the dedicated highway and bridge trust fund established
25 pursuant to section eighty-nine-b of the state finance law and eighteen
26 and five-tenths percent in the metropolitan mass transportation operat-
27 ing assistance account established pursuant to subdivision seven of
28 section eighty-eight-a of the state finance law; (ii) for diesel motor
29 fuel, sixty-three percent in the special obligations and reserve and
30 payment account of the dedicated highway and bridge trust fund estab-
31 lished pursuant to section eighty-nine-b of the state finance law and
32 thirty-seven percent in the metropolitan mass transportation operating
33 assistance account established pursuant to subdivision seven of section
34 eighty-eight-a of the state finance law.
35 § 9. Paragraph (a) of subdivision 7 of section 88-a of the state
36 finance law, as added by chapter 481 of the laws of 1981, is amended to
37 read as follows:
38 (a) The "metropolitan mass transportation operating assistance
39 account" shall consist of the revenues derived from the taxes for the
40 metropolitan transportation district imposed by section eleven hundred
41 nine of the tax law and that proportion of the receipts received pursu-
42 ant to the tax imposed by article nine-a of such law as specified in
43 section one hundred seventy-one-a of such law, and that proportion of
44 the receipts received pursuant to the tax imposed by article nine of
45 such law as specified in section two hundred five of such law, and the
46 receipts required to be deposited pursuant to the provisions of section
47 one hundred eighty-two-a of such law, and that proportion of the
48 receipts received pursuant to the tax imposed by article twenty-eight of
49 such law as specified in section eleven hundred two of such law, and all
50 other moneys credited or transferred thereto from any other fund or
51 source pursuant to law.
52 § 10. Paragraph (a) of subdivision 3 of section 89-b of the state
53 finance law, as amended by section 2 of chapter 165 of the laws of 2008,
54 is amended to read as follows:
55 (a) The special obligation reserve and payment account shall consist
56 (i) of all moneys required to be deposited in the dedicated highway and
A. 8193--A 5
1 bridge trust fund pursuant to the provisions of sections two hundred
2 five, two hundred eighty-nine-e, three hundred one-j, five hundred
3 fifteen, eleven hundred two and eleven hundred sixty-seven of the tax
4 law, section four hundred one of the vehicle and traffic law, and
5 section thirty-one of chapter fifty-six of the laws of nineteen hundred
6 ninety-three, (ii) all fees, fines or penalties collected by the commis-
7 sioner of transportation pursuant to section fifty-two and subdivisions
8 five, eight and twelve of section eighty-eight of the highway law,
9 subdivision fifteen of section three hundred eighty-five of the vehicle
10 and traffic law, section two of the chapter of the laws of two thousand
11 three that amended this paragraph, subdivision (d) of section three
12 hundred four-a, paragraph one of subdivision (a) and subdivision (d) of
13 section three hundred five, subdivision six-a of section four hundred
14 fifteen and subdivision (g) of section twenty-one hundred twenty-five of
15 the vehicle and traffic law, section fifteen of this chapter, excepting
16 moneys deposited with the state on account of betterments performed
17 pursuant to subdivision twenty-seven or subdivision thirty-five of
18 section ten of the highway law, (iii) any moneys collected by the
19 department of transportation for services provided pursuant to agree-
20 ments entered into in accordance with section ninety-nine-r of the
21 general municipal law, and (iv) any other moneys collected therefor or
22 credited or transferred thereto from any other fund, account or source.
23 § 11. Paragraph (a) of subdivision 3 of section 89-b of the state
24 finance law, as amended by section 3 of chapter 165 of the laws of 2008,
25 is amended to read as follows:
26 (a) The special obligation reserve and payment account shall consist
27 (i) of all moneys required to be deposited in the dedicated highway and
28 bridge trust fund pursuant to the provisions of sections two hundred
29 eighty-nine-e, three hundred one-j, five hundred fifteen, eleven hundred
30 two and eleven hundred sixty-seven of the tax law, section four hundred
31 one of the vehicle and traffic law, and section thirty-one of chapter
32 fifty-six of the laws of nineteen hundred ninety-three, (ii) all fees,
33 fines or penalties collected by the commissioner of transportation
34 pursuant to section fifty-two and subdivisions five, eight and twelve of
35 section eighty-eight of the highway law, subdivision fifteen of section
36 three hundred eighty-five of the vehicle and traffic law, section
37 fifteen of this chapter, excepting moneys deposited with the state on
38 account of betterments performed pursuant to subdivision twenty-seven or
39 subdivision thirty-five of section ten of the highway law, (iii) any
40 moneys collected by the department of transportation for services
41 provided pursuant to agreements entered into in accordance with section
42 ninety-nine-r of the general municipal law, and (iv) any other moneys
43 collected therefor or credited or transferred thereto from any other
44 fund, account or source.
45 § 12. A maximum of one hundred million dollars per annum from reven-
46 ues, fees or credits gathered from resources generated within the metro-
47 politan commuter transportation district by assumed authority under
48 sections 5 and 66 of the public service law shall be dedicated to the
49 metropolitan transportation authority in order to support energy effi-
50 cient public transportation in the state fiscal year commencing April 1,
51 2012 and in each state fiscal year thereafter.
52 § 13. This act shall take effect immediately; provided, however, that
53 the provisions of sections one, six, nine, ten and eleven of this act
54 shall take effect January 1, 2012; provided, further, that sections
55 three and seven of this act shall take effect on January 1, 2013;
56 provided, further, that section eight of this act shall take effect
A. 8193--A 6
1 January 1, 2014; provided, further, that the amendments to paragraph (a)
2 of subdivision 3 of section 89-b of the state finance law, made by
3 section ten of this act, shall be subject to the expiration and rever-
4 sion of such paragraph pursuant to section 13 of part U1 of chapter 62
5 of the laws of 2003, as amended, when upon such date the provisions of
6 section eleven of this act shall take effect.
