NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2597
SPONSOR: Eachus (MS) TITLE OF BILL:
An act to amend the tax law, in relation to the exemption of community
colleges from the imposition of the metropolitan commuter transportation
mobility tax
PURPOSE OR GENERAL IDEA OF BILL:
This bill will exempt community colleges from the MTA payroll tax.
SUMMARY OF PROVISIONS:
Section 1 of the bill amends paragraph 4 of subsection b of section 800
of the tax law as it relates to adding community colleges to the defi-
nition of "eligible educational institution". Eligible educational
institutions shall be exempt from the MTA mobility tax.
Section 2 of the bill relates to the effective date.
JUSTIFICATION:
This bill would exempt community colleges from the burdensome MTA
payroll tax. Community colleges are struggling with rising costs and
enrollment numbers. The MTA payroll tax is hurting these colleges in
their effort to keep tuition down. This bill would add community
colleges to the list of educational institutions that are already
exempt.
PRIOR LEGISLATIVE HISTORY:
2023-24 A1085: Referred to Ways and Means, S4996: Referred to Investi-
gations and Government Operations
2021-22 A810: Referred to Ways and Means, S6183: Referred to Investi-
gations and Government Operations
2019-20 A3522: Referred to Ways and Means, S639: Referred to Investi-
gations and Government Operations
2017-18 A1717: Referred to Ways and Means, S655: Referred to Investi-
gations and Government Operations
2015-16 A2075: Referred to Ways and Means, S606: Referred to Investi-
gations and Government Operations
2013-14 A7775: Referred to Ways and Means, S6752: Referred to Investi-
gations and Government Operations
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
2597
2025-2026 Regular Sessions
IN ASSEMBLY
January 21, 2025
___________
Introduced by M. of A. EACHUS, COOK, STERN, DeSTEFANO, GANDOLFO,
K. BROWN -- Multi-Sponsored by -- M. of A. McDONOUGH, PAULIN -- read
once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to the exemption of community
colleges from the imposition of 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. Paragraph 4 of subsection (b) of section 800 of the tax
2 law, as added by section 1 of part YY of chapter 59 of the laws of 2015,
3 is amended to read as follows:
4 (4) Any eligible educational institution. An "eligible educational
5 institution" shall mean any public school district, a board of cooper-
6 ative educational services, a public elementary or secondary school, a
7 school approved pursuant to article eighty-five or eighty-nine of the
8 education law to serve students with disabilities of school age, [or] a
9 nonpublic elementary or secondary school that provides instruction in
10 grade one or above, or a community college, all public library systems
11 as defined in subdivision one of section two hundred seventy-two of the
12 education law, and all public and free association libraries as such
13 terms are defined in subdivision two of section two hundred fifty-three
14 of the education law.
15 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05684-01-5
