BILL NUMBER: S1205A
SPONSOR: GOUNARDES
 
TITLE OF BILL:
An act to amend the state finance law, the public authorities law and
the tax law, in relation to directing payment of certain taxes into the
central business district tolling capital lockbox fund to be made with-
out appropriation
 
PURPOSE OR GENERAL IDEA OF BILL:
Remits funding from the internet sales tax to the Metropolitan Transpor-
tation Authority without appropriation, increasing the MTA's financial
stability.
 
SUMMARY OF PROVISIONS:
Section 1 amends section 4 of the State Finance Law by adding a new
subdivision 14 to provide that revenue from taxes imposed pursuant to
subparagraph (ii) of paragraph five of subdivision (c) of section 1261
of the Tax Law, paid in accordance with section 553-j of the Public
Authorities Law, shall be made pursuant to statute but without appropri-
ation.
Section 2 amends subdivision 3 of Section 99-ff of the State Finance Law
to provide that moneys in the MTA's central business district tolling
capital lockbox fund shall be made available without appropriation.
Section 3 amends subdivision 1 of action 553-j of the Public Authorities
Law to provide that funds from subparagraph (ii) of paragraph five of
subdivision (c) of section 1261 of the Tax Law shall be provided to the
central business district tolling capital lockbox fund without appropri-
ation.
Section 4 amends subdivision (c ) of section 1148 of the Tax Law to
provide that funds deposited by the Comptroller into the Central Busi-
ness District Trust Fund shall be made without appropriation.
Section 5 amends subparagraph (ii) of paragraph five of subdivision (c)
of section 1261 of the Tax Law, as amended by section 2 of part RR of
chapter 57 of 6 the laws of 2022, to provide that funds shall be depos-
ited monthly in equal installments without appropriation.
Section 6 amends subparagraph (ii) of paragraph 5 of subdivision (c) of
section 1261 of the Tax Law, as added by section 6-b of part G of chap-
ter 59 of the laws of 2019, to provide that funds shall be deposited
monthly in equal installments without appropriation.
Section 7 sets the effective date.
 
JUSTIFICATION:
The Metropolitan Transportation Authority (MTA) is currently facing an
operating budget crisis due to declines in ridership from the COVID-19
pandemic and the MIA's historically high debt loads.
Given the MIA's budget challenges, it is critically important for its
existing funding to be safeguarded and delivered in a timely manner.
Providing funding directly to the MTA, without appropriation, will
increase the MTA's financial stability and improve its credit ratings.
It will also reduce the risk of cuts or sweeps during the state budget
process.
Enactment of this legislation is also consistent with how many existing
state dedicated funds are provided to the MTA.
The payroll mobility tax (PMT), originally created in 2009, was newly
provided without appropriation in 2018. The State Division of the Budget
at the time stated that "Taking the PMT revenues off-budget will also
provide credit enhancement for the MTA to lower capital financing costs
as the revenues will flow more frequently, and will not be subject to
legislative appropriation".
Providing dedicated funding directly to the MTA without appropriation
will also reduce the risk of funding being raided for other state uses.
In past budget cycles, the executive budget has repeatedly transferred
dedicated transit funds to the state's general fund, reducing the
state's commitment to the MTA and other transit systems by hundreds of
millions of dollars.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
This legislation will positively benefit the MTA's financial stability
by increasing its credit ratings, therefore reducing the cost of inter-
est payments made from bonds backed by the internet sales tax.
 
EFFECTIVE DATE:
The effective date as immediately; provided that the amendments to
subparagraph (ii) of paragraph 5 of subdivision (c) of section 1261 of
the tax law made by section three of this act shall be subject to the
expiration and reversion of such subparagraph pursuant to section 5 of
part ZZ of chapter 56 of the laws of 2020, as amended, when upon such
date the provisions of section six of this act shall take effect.

Statutes affected:
S1205: 4 state finance law, 553-j public authorities law, 553-j(1) public authorities law
S1205A: 4 state finance law, 99-ff state finance law, 99-ff(3) state finance law, 553-j public authorities law, 553-j(1) public authorities law, 1148 tax law