BILL NUMBER: S7055
SPONSOR: WEBER
 
TITLE OF BILL:
An act to amend the tax law, in relation to the metropolitan commuter
transportation district and the payroll tax
 
PURPOSE:
Excludes Orange and Rockland counties from the MTA's Payroll Mobility
Tax.
 
SUMMARY OF PROVISIONS:
Section 1 amends subsection (a) of section 800 of the tax law by exclud-
ing Orange and Rockland counties from the Metropolitan Commuter Trans-
portation District (MCTD) for the purposes of the MTA's Payroll Mobility
Tax.
Section 2 amends subparagraph (A) of paragraph 1 of subsection (a) of
section 801 of the tax law to exclude Orange and Rockland counties from
the MTA's Payroll Mobility Tax for employers who engage in business in
these counties.
Section 3 amends the opening paragraph of subparagraph (A) of paragraph
2 of subsection (a) of section 801 of the tax law, to exclude Orange and
Rockland counties from the MTA's Payroll Mobility Tax for self-employed
individuals in these counties.
Section 4 provides the effective date.
 
JUSTIFICATION:
This bill seeks to provide economic relief to Orange and Rockland coun-
ties who are unjustly forced to pay into the MTA's Payroll Mobility Tax
despite receiving inadequate services compared to the other counties
represented in the Metropolitan Commuter Transportation District. Previ-
ously acknowledged by the Chair of the MTA Board himself, the commuter
rail services to the counties west of the Hudson River "stink." Further,
residents in these counties must take either a ferry to get to the
Metro-North's Hudson Line or ride on New Jersey Transit services
contracted with the MTA. Service in this region is woefully inadequate
and despite this, businesses in Rockland and Orange Counties pay the
same rate in the MTA Payroll Mobility Tax as the other counties in the
MCTD who have commuter rails, the Metro-North and the LIRR in their
backyards. Residents in these counties had previously chosen to drive
into New York City for work or recreation but now with Congestion Pric-
ing in full effect they are forced to make a difficult decision to
either extend their commute dramatically by taking a ferry to the Hudson
Line services by Metro-North or continue driving a pay $9 daily.
Residents of Rockland and Orange counties should not be beholden to the
NJ Transit where they have no representation, nor should they be forced
to pay $9 daily when they drive to work. Despite the failures by the MTA
to provide consistent and adequate service to these counties, they are
still required to pay into the Payroll Mobility Tax at the same rate as
the rest of the commuter district counties. This bill seeks to end this
unfair tax against these counties since the MTA refuses to address their
service failures and it is apparent that the money spent by these
employers will not be returned in any form to the commuters.
 
LEGISLATIVE HISTORY:
New Bill.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2025.

Statutes affected:
S7055: 800 tax law, 800(a) tax law, 801 tax law, 801(a) tax law