Amd S801, Tax L; amd SS503 & 499-c, V & T L; amd S1270-h, Pub Auth L
Relates to phasing out the metropolitan commuter transportation mobility tax; reduces the rate of tax imposed on certain counties beginning in 2014 and ends the imposition of all commuter taxes beginning in 2017; reduces additional supplemental fees imposed under the vehicle and traffic law; provides for limiting growth in the MTA operating budget.
STATE OF NEW YORK
________________________________________________________________________
1443
2013-2014 Regular Sessions
IN ASSEMBLY(Prefiled)
January 9, 2013
___________
Introduced by M. of A. ZEBROWSKI -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, the vehicle and traffic law and the public
authorities law, in relation to the metropolitan commuter transporta-
tion mobility tax
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 801 of the tax law is amended by adding a new
2 subsection (d) to read as follows:
3 (d) For the purposes of imposing the tax authorized within this
4 section it is hereby provided that:
5 (i) for calendar year two thousand fourteen said tax for employers
6 within the counties of Dutchess, Orange, Putnam and Rockland shall be
7 imposed at a rate of fifty percent of that otherwise authorized under
8 subsection (a) of this section;
9 (ii) for calendar year two thousand fifteen said tax for employers
10 within the counties of Dutchess, Orange, Putnam, Rockland, Westchester,
11 Nassau and Suffolk shall be imposed at a rate of fifty percent of that
12 otherwise authorized under subsection (a) of this section;
13 (iii) for calendar year two thousand sixteen said tax for employers
14 within the counties of Dutchess, Orange, Putnam, Rockland, Westchester,
15 Nassau and Suffolk shall be imposed at a rate of twenty percent of that
16 otherwise authorized under subsection (a) of this section and further
17 said tax for employers within the city of New York shall be imposed at a
18 rate of seventy-four percent of that otherwise authorized under
19 subsection (a) of this section;
20 (iv) for calendar year two thousand seventeen and calendar years ther-
21 eafter no tax shall be imposed under this section for employers within
22 the counties of Dutchess, Orange, Putnam, Rockland, Westchester, Nassau
23 and Suffolk;
24 (v) for calendar year two thousand seventeen said tax for employers
25 within the city of New York shall be imposed at a rate of fifty-six
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00499-01-3
A. 1443 2
1 percent of that otherwise authorized under subsection (a) of this
2 section;
3 (vi) for calendar year two thousand eighteen said tax for employers
4 within the city of New York shall be imposed at a rate of twenty-nine
5 percent of that otherwise authorized under subsection (a) of this
6 section; and
7 (vii) for calendar year two thousand nineteen and calendar years ther-
8 eafter no tax shall be imposed under this section for employers within
9 the city of New York.
10 § 2. Paragraph (b-1) of subdivision 2 of section 503 of the vehicle
11 and traffic law is amended by adding a new subparagraph (iii) to read as
12 follows:
13 (iii) For the purposes of imposing the supplemental fee authorized
14 within this subdivision it is hereby provided that:
15 a. for calendar year two thousand fourteen said supplemental fee for
16 applicants who reside within the counties of Dutchess, Orange, Putnam,
17 Rockland, Westchester, Nassau and Suffolk shall be imposed at a rate of
18 twenty-five percent of that otherwise authorized under this subdivision
19 and further for applicants residing within the city of New York said
20 supplemental fee shall be imposed at a rate of seventy percent of that
21 otherwise authorized under this subdivision;
22 b. for calendar year two thousand fifteen and calendar years thereaft-
23 er no supplemental fee shall be imposed for applicants who reside within
24 the counties of Dutchess, Orange, Putnam, Rockland, Westchester, Nassau
25 and Suffolk;
26 c. for calendar year two thousand fifteen said supplemental fee for
27 applicants who reside within the city of New York shall be imposed at a
28 rate of thirty-five percent of that otherwise authorized under this
29 subdivision;
30 d. for calendar year two thousand sixteen and calendar years thereaft-
31 er no supplemental fee shall be imposed for applicants who reside within
32 the city of New York.
33 § 3. Section 499-c of the vehicle and traffic law, as added by section
34 1 of part B of chapter 25 of the laws of 2009, is amended to read as
35 follows:
36 § 499-c. Calculation of supplemental registration fee. The supple-
37 mental registration fee to be charged pursuant to section four hundred
38 ninety-nine-b of this article, shall be calculated at a rate of twenty-
39 five dollars per annum for each year or portion of a year that such
40 registration is valid. For the purposes of imposing the supplemental
41 fee authorized within this section it is hereby provided that:
42 (i) for calendar year two thousand fourteen said supplemental fee
43 charged to registrants who reside within the counties of Dutchess,
44 Orange, Putnam, Rockland, Westchester, Nassau and Suffolk shall be
45 imposed at a rate of twenty-five percent of that otherwise authorized
46 under this section and further for registrants residing within the city
47 of New York said supplemental fee shall be imposed at a rate of seventy
48 percent of that otherwise authorized under this section;
49 (ii) for calendar year two thousand fifteen and calendar years there-
50 after no supplemental fee shall be imposed for registrants who reside
51 within the counties of Dutchess, Orange, Putnam, Rockland, Westchester,
52 Nassau and Suffolk;
53 (iii) for calendar year two thousand fifteen said supplemental fee for
54 registrants who reside within the city of New York shall be imposed at a
55 rate of thirty-five percent of that otherwise authorized under this
56 section;
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1 (iv) for calendar year two thousand sixteen and calendar years there-
2 after no supplemental fee shall be imposed for registrants who reside
3 within the city of New York.
4 § 4. (a) For the purposes of this section total operating expense
5 shall mean the metropolitan transportation authority's annual total
6 operating expense before depreciation, subsidies and debt service and
7 shall additionally exclude operating expenses related to pensions, other
8 post-employment benefits, retroactive arbitration agreements and operat-
9 ing expenses related directly to system expansion which are not offset
10 by a corresponding increase in system revenue. Any reductions in transit
11 aid authorized within this act attributable to reductions in the metro-
12 politan commuter transportation mobility tax authorized under article 23
13 of the tax law, the supplemental learner permit/license fee in the
14 metropolitan commuter district region authorized under article 19 of the
15 vehicle and traffic law and the metropolitan commuter transportation
16 district supplemental registration fee authorized under article 17-C of
17 the vehicle and traffic law shall be offset by limiting the growth of
18 the metropolitan transportation authority's annual total operating
19 expense over the preceding fiscal year equal to the product of the total
20 operating expense for the preceding fiscal year and the lesser of one
21 hundred twenty percent of the inflation rate or two percent. Inflation
22 rate shall mean the annual percentage change in the consumer price
23 index, all urban, as published by the bureau of labor statistics, or any
24 successor agency. Such limitation in total operating expense shall begin
25 in calendar year 2013 and continue in each fiscal year thereafter,
26 provided however, that actual realized savings for 2012 shall be equal
27 to one-twelfth of that otherwise anticipated under the limitations of
28 growth as set forth in this section and further provided that total
29 operating expense for 2013 shall include reductions already approved
30 within the metropolitan transportation authority's 2012 total operating
31 budget related to metropolitan transportation authority initiatives and
32 policy actions totaling sixty-three million dollars.
33 (b) Beginning in 2012 and thereafter, all revenues resulting from the
34 savings related to limiting the growth in the metropolitan transporta-
35 tion authority's annual total operating expense shall be deposited in
36 the metropolitan transportation authority finance fund authorized by
37 section 1270-h of the public authorities law, provided however, that
38 revenues resulting from the savings pursuant to this section in excess
39 of those savings required to offset any reductions in transit aid
40 authorized within this act attributable to reductions in the metropol-
41 itan commuter transportation mobility tax authorized under article 23 of
42 the tax law, the supplemental learner permit/license fee in the metro-
43 politan commuter district region authorized under article 19 of the
44 vehicle and traffic law and the metropolitan commuter transportation
45 district supplemental registration fee authorized under article 17-C of
46 the vehicle and traffic law shall be deposited in the metropolitan
47 transportation authority finance fund authorized by section 1270-h of
48 the public authorities law within a separate subaccount and shall be
49 used exclusively to reduce the seven and one-half percent 2014 fare
50 increase currently contained within the metropolitan transportation
51 authority's 2013 approved operating budget to an increase of five and
52 one-half percent.
53 § 5. Subdivisions 2 and 3 of section 1270-h of the public authorities
54 law, as added by section 16 of part H of chapter 25 of the laws of 2009,
55 are amended to read as follows:
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1 2. The comptroller shall deposit monthly, pursuant to appropriation,
2 into the metropolitan transportation authority finance fund the moneys
3 deposited in the mobility tax trust account of the metropolitan trans-
4 portation authority financial assistance fund pursuant to article twen-
5 ty-three of the tax law, and any other provision of law directing or
6 permitting the deposit of moneys in such fund. In addition to said
7 funds, the metropolitan transportation authority shall deposit into the
8 metropolitan transportation authority finance fund all revenues result-
9 ing from limiting the growth of the metropolitan transportation authori-
10 ty's annual total operating expense pursuant to the provisions of
11 section four of the chapter of the laws of two thousand thirteen which
12 amended this subdivision, provided however that revenues deposited
13 pursuant to section four of the chapter of the laws of two thousand
14 twelve which amended this subdivision which are in excess of those
15 required to offset any reductions in transit aid authorized within such
16 chapter of the laws of two thousand thirteen attributable to reductions
17 in the metropolitan commuter transportation mobility tax authorized
18 under article twenty-three of the tax law, the supplemental learner
19 permit/license fee in the metropolitan commuter district region author-
20 ized under article nineteen of the vehicle and traffic law and the
21 metropolitan commuter transportation district supplemental registration
22 fee authorized under article seventeen-C of the vehicle and traffic law
23 shall be deposited within a separate two thousand fourteen fare increase
24 reduction subaccount and shall be used exclusively to reduce the seven
25 and one-half percent two thousand fourteen fare increase currently
26 contained within the metropolitan transportation authority's two thou-
27 sand thirteen approved operating budget to an increase of five and one-
28 half percent.
29 3. Moneys in the fund except those deposited within the two thousand
30 fourteen fare increase reduction subaccount may be (a) pledged by the
31 authority to secure and be applied to the payment of the bonds, notes or
32 other obligations of the authority issued on or after the effective date
33 of this section to finance capital projects of the authority and its
34 subsidiaries and the New York city transit authority and any subsid-
35 iaries; or (b) used for payment of capital costs, including debt
36 service, reserve requirements, if any, the payment of amounts required
37 under bond and note facilities or agreements related thereto, the
38 payment of federal government loans, security or credit arrangements or
39 other agreements related thereto, and the payment of all costs related
40 to such obligations, of or for the authority, the New York city transit
41 authority and their subsidiaries as the authority shall determine.
42 Subject to the provisions of any such pledge, or in the event there is
43 no such pledge, any excess moneys in this fund may be used by the
44 authority for payment of operating costs of, and capital costs, includ-
45 ing debt service and reserve requirements, if any, of or for the author-
46 ity, the New York city transit authority and their subsidiaries as the
47 authority shall determine. To the extent moneys in the fund have been
48 pledged by the authority to secure and pay the bonds, notes or other
49 obligations of the authority issued to finance capital projects of the
50 authority and its subsidiaries and the New York city transit authority
51 and any subsidiaries as herein provided, monies deposited into the fund
52 shall be deposited to the extent necessary to satisfy the requirements
53 of any debt service or reserve requirements, if any, of the resolution
54 authorizing such bonds, notes or other obligations.
55 § 6. This act shall take effect immediately.
