NY State Senate Bill 2009-S6311

Senate Bill S6311

2009-2010 Legislative Session

Relates to the definition of the metropolitan commuter transportation district for the purposes of the metropolitan commuter transportation mobility tax

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to investigations and government operations
Nov 23, 2009	referred to rules

2009-S6311 (ACTIVE) - Details

See Assembly Version of this Bill:: A8635
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §800, Tax L; amd §1266, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S2871, A4170
2013-2014: S1772, A1217
2015-2016: S319, A92
2017-2018: S1624, A964
2019-2020: S3495, A5188
2021-2022: S5169, A5809
2023-2024: S2253, A4318
2025-2026: S3263

2009-S6311 (ACTIVE) - Summary

Relates to the definition of the metropolitan commuter transportation district for the purposes of the metropolitan commuter transportation mobility tax; requires the metropolitan transportation authority to renegotiate the joint service operating agreement with the state of Connecticut.

2009-S6311 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6311

 TITLE OF BILL :
An act to amend the tax law, in relation to the definition of the
metropolitan commuter transportation district for the purposes of the
metropolitan commuter transportation mobility tax; and to amend the
public authorities law, in relation to requiring the metropolitan
transportation authority to renegotiate the joint service operating
agreement with the state of Connecticut


 PURPOSE :
This legislation would exempt all employers within the towns of
Brookhaven, East Hampton, Riverhead, Shelter Island, Southampton and
Southold in Suffolk County from the Metropolitan Transportation
Authority's payroll tax as implemented by Chapter 25 of the Laws of
2009.

 SUMMARY OF PROVISIONS :
Section 1. Legislative finds. The town of Brookhaven, East Hampton,
Riverhead, Shelter Island, Southold and Southampton in the County of
Suffolk already pay substantial taxes and mortgage recording taxes to
the MTA for the minimal mass transit services they receive. As such,
the aforementioned towns should be exempt from the newly Metropolitan
commuter Transportation mobility tax.

Section 2. Amends subdivision(A) of section 800 of the tax law, as
added by Section 1 of part C of Chapter 25 of the Laws of 2009 to
exclude the town of Brookhaven, East Hampton, Riverhead, Shelter
Island, Southampton and Southold in Suffolk County from the
Metropolitan Commuter Transportation District.

Section 3. Amends Section 1266 of the public authorities law by adding
a new subdivision 19 requiring the renegotiation of the joint service
agreement between the MT A and the state of Connecticut relating to
the operation of the Metro-North New Haven line and reducing its
services and expenses by March 31, 2010.

Section 4. Provides for an immediate effective date of this act.

 JUSTIFICATION :
Chapter 25 of the Laws of 2009 implements various supplemental fees
and taxes for the 12 county Metropolitan commuter Transportation
District (MCTD) in an effort to financially bailout the MTA.
Provisions of this package include a 0.34% payroll tax for all
employers in MCTD, which includes the town of Brookhaven and the towns
which comprise the Peconic Bay Region located on the east end of Long
Island (East Hampton, Riverhead, Shelter Island, Southampton and
Southold). The Peconic Bay Region alone has a population of
approximately 140,000 and represents 1.1% of the MCTD.

This measure will surely have a devastating effect on every local
employer located within the Peconic Bay Region and the town of
Brookhaven. This new expense will ultimately have to be passed along
by those employers through higher prices and increased property taxes.
Residents of these areas already heavily subsidize the MTA through
increased fares, additional sales tax and a mortgage recording tax. In
return for these onerous taxes and fees, they receive minimal services
from the MTA. In fact, the volpe Study on improved rail/bus service
estimates that the east end pays $40 to $60 million more for services
than what is received from the MTA on an annual basis. Despite the
fact that this area does not have the same level of New York City
commuters, they pay the same as those who benefit from ample services.

This legislation further provides for the renegotiation of the joint
service agreement between the MTA and the State of Connecticut related
to the operation of the Metro North New Haven line.  The monies saved
by reducing services and expenses related to the Metro North new Haven
lien by an amount which produces recurring savings to the MTA would
help to offset the cost of exempting the towns of Brookhaven, East
Hampton, Riverhead, Shelter Island, Southold and Southampton from this
tax.

It is necessary to avoid any further inequitable taxation on those
town undeserved by the MTA which comprise the Peconic Bay Region and
the town of Brookhaven. Therefore, enactment of this legislation is
necessary to exempt these areas from the MTA's employer payroll tax.

 LEGISLATIVE HISTORY :
New bill.

 FISCAL IMPLICATIONS :
To be determined.

 EFFECTIVE DATE :
Immediately.

2009-S6311 (ACTIVE) - Bill Text download pdf

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

                                  6311

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            November 23, 2009
                               ___________

Introduced  by  Sen. LAVALLE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the tax law, in relation to the definition of the metro-
  politan commuter transportation  district  for  the  purposes  of  the
  metropolitan  commuter  transportation  mobility tax; and to amend the
  public authorities law, in  relation  to  requiring  the  metropolitan
  transportation  authority  to  renegotiate the joint service operating
  agreement with the state of Connecticut

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

  Section 1. Legislative findings. Pursuant to chapter 25 of the laws of
2009, the legislature did enact the metropolitan mobility tax within the
twelve   county  region  constituting  the  metropolitan  transportation
district. The legislature hereby finds that the residents of  the  towns
of  Brookhaven,  East  Hampton,  Riverhead, Shelter Island, Southold and
Southampton in the  county  of  Suffolk  receive  minimal  mass  transit
services  from the metropolitan transportation authority. Further, these
towns already pay  substantial  taxes  to  the  MTA  for  these  minimal
services,  including increased sales taxes and mortgage recording taxes.
It has been estimated these five towns contribute more than $60  million
annually to the MTA than they receive back in service.
  In the interest of tax fairness and to avoid such additional inequita-
ble  taxation  on  these  towns, it is the purpose of this act to exempt
such towns from the newly adopted metropolitan  commuter  transportation
mobility tax.
  S  2.  Subdivision  (a)  of  section  800  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)  Metropolitan  commuter  transportation district. The metropolitan
commuter transportation district ("MCTD") means the area  of  the  state
included  in the district created and governed by section twelve hundred

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14027-04-9

S. 6311                             2

sixty-two of the public authorities law, EXCEPT THAT FOR THE PURPOSES OF
THIS ARTICLE, THE TOWNS OF BROOKHAVEN, EAST HAMPTON, RIVERHEAD,  SHELTER
ISLAND,  SOUTHAMPTON  AND  SOUTHOLD  IN SUFFOLK COUNTY SHALL BE EXCLUDED
FROM  THE  DISTRICT  FOR  THE  PURPOSES OF THIS ARTICLE AND ANY REVENUES
PREVIOUSLY COLLECTED FROM WITHIN THESE COUNTIES SHALL BE  REIMBURSED  TO
EACH PAYOR BY MARCH THIRTY-FIRST, TWO THOUSAND TEN.
  S  3.  Section 1266 of the public authorities law is amended by adding
a new subdivision 19 to read as follows:
  19. THE AUTHORITY IS REQUIRED BY MARCH THIRTY-FIRST, TWO THOUSAND  TEN
TO:
  (A)  RENEGOTIATE THE JOINT SERVICE AGREEMENT BETWEEN THE AUTHORITY AND
THE STATE OF CONNECTICUT RELATED TO THE OPERATION OF THE METRO-NORTH NEW
HAVEN LINE TO (I)  REQUIRE  CONNECTICUT  TO  SET  NEW  HAVEN  LINE  FARE
INCREASES  AT LEVELS NECESSARY TO SUSTAIN EQUIVALENT FARE LEVELS BETWEEN
NEW YORK STATE RESIDENTS RIDING THE METRO-NORTH  COMMUTER  RAILROAD  AND
CONNECTICUT  RESIDENTS  RIDING  THE  METRO-NORTH COMMUTER RAILROAD, (II)
REQUIRE THAT CONNECTICUT OPERATING DEFICIT  SUBSIDY  PAYMENTS  SHALL  BE
BASED  ON  CONNECTICUT  RESIDENT UTILIZATION OF THE METRO-NORTH COMMUTER
RAILROAD AND CONNECTICUT RESIDENT UTILIZATION OF THE NEW YORK CITY TRAN-
SIT AUTHORITY WITH SUCH SUBSIDIES TO BE DETERMINED  BY  MULTIPLYING  THE
CONNECTICUT  RESIDENT UTILIZATION PERCENTAGES FOR THE METRO-NORTH COMMU-
TER RAILROAD AND THE NEW YORK CITY TRANSIT AUTHORITY BY  THE  RESPECTIVE
BASELINE  OPERATING DEFICIT OF THESE OPERATING ENTITIES PRIOR TO SUBSIDY
ADJUSTMENTS AND PRIOR TO INCREASED REVENUES PROVIDED TO THE AUTHORITY BY
NEW YORK STATE RESIDENTS PURSUANT TO PAYMENTS MANDATED BY CHAPTER  TWEN-
TY-FIVE OF THE LAWS OF TWO THOUSAND NINE, AND (III) PROVIDE FOR RETROAC-
TIVE  LUMP  SUM  PAYMENTS  DUE  FROM THE STATE OF CONNECTICUT RELATED TO
CALENDAR YEAR TWO THOUSAND NINE; OR
  (B) REDUCE SERVICES AND EXPENSES RELATED TO THE METRO-NORTH NEW  HAVEN
LINE  OPERATION  BY  AN  AMOUNT  WHICH PRODUCES RECURRING SAVINGS TO THE
AUTHORITY WHICH ARE EQUIVALENT TO THE INCREASED JOINT SERVICE  AGREEMENT
PAYMENTS  WHICH WOULD BE DETERMINED UNDER PARAGRAPH (A) OF THIS SUBDIVI-
SION.
  S 4. This act shall take effect immediately.

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