S T A T E   O F   N E W   Y O R K
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                                  11631

                          I N  A S S E M B L Y

                              July 6, 2010
                               ___________

Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Fields) --
  read once and referred to the Committee on Ways and Means

AN ACT to amend the tax law and part C of chapter  25  of  the  laws  of
  2009,  amending the tax law and the administrative code of the city of
  New York relating to the metropolitan commuter transportation mobility
  tax, in relation to the exemption of school districts operating within
  the metropolitan commuter transportation district from  the  metropol-
  itan  commuter  transportation  mobility  tax; and to repeal part D of
  chapter 25 of the laws of 2009, amending the education law relating to
  certain moneys apportioned to school districts  for  reimbursement  of
  article twenty-three of the tax law payments, relating thereto

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subsection (a) of section 801 of the tax law, as  added  by
section  1  of  part  C of chapter 25 of the laws of 2009, is amended to
read as follows:
  (a) For the sole purpose of providing an additional stable  and  reli-
able  dedicated  funding  source  for  the  metropolitan  transportation
authority and its subsidiaries and affiliates to preserve,  operate  and
improve  essential  transit and transportation services in the metropol-
itan commuter transportation district, a tax is hereby imposed at a rate
of thirty-four hundredths (.34) percent of (1) the  payroll  expense  of
every  employer  who engages in business within the MCTD and (2) the net
earnings from self-employment of individuals that  are  attributable  to
the  MCTD  if such earnings attributable to the MCTD exceed ten thousand
dollars for the tax year.  THIS SECTION SHALL NOT APPLY  TO  ANY  SCHOOL
DISTRICT OPERATING WITHIN THE MCTD.
  S 2. Subsection (a) of section 804 of the tax law, as added by section
1  of  part  C  of chapter 25 of the laws of 2009, is amended to read as
follows:
  (a) Employers with payroll expense. The tax  imposed  on  the  payroll
expense of employers under section eight hundred one of this article for
each  calendar  quarter  must  be paid quarterly at the same time as the
statewide wage reporting system report is  required  under  section  one

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD17638-01-0

A. 11631                            2

hundred  seventy-one-a of this chapter; provided however, that employers
subject to section nine of this chapter [other than school districts  as
defined  in section thirty-six hundred nine-g of the education law] must
pay  the  tax on the payroll expense at the same time as the withholding
tax remitted under the electronic payment reporting system and the elec-
tronic funds transfer system authorized by section nine of this chapter.
  S 3. Subdivision (a) of section 23 of part C of chapter 25 of the laws
of 2009, amending the tax law and the administrative code of the city of
New York relating to the metropolitan commuter  transportation  mobility
tax, is amended to read as follows:
  (a)  the  metropolitan  commuter  transportation  mobility tax enacted
pursuant to section one of this act that is (i)  imposed  on  employers,
shall  apply on and after March 1, 2009[, provided however, that the tax
shall apply to public school districts within the metropolitan  commuter
transportation  district (MCTD) on and after September 1, 2009] and (ii)
imposed on individuals with net earnings from  self-employment  for  tax
years  beginning  on  or after January 1, 2009, but the individual's tax
liability for the 2009 tax year will be based only  on  ten-twelfths  of
such net earnings for the 2009 tax year;
  S  4. Part D of chapter 25 of the laws of 2009, amending the education
law relating to certain  moneys  apportioned  to  school  districts  for
reimbursement  of  article  twenty-three  of  the  tax  law payments, is
REPEALED.
  S 5. This act shall take effect immediately.