NY State Senate Bill 2015-S6470

Senate Bill S6470

2015-2016 Legislative Session

Relates to the transfer of funds into the metropolitan transportation authority aid trust account and the public transportation system operating assistance account

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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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 14, 2016	referred to investigations and government operations

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2015-S6470 (ACTIVE) - Details

See Assembly Version of this Bill:: A9087
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1105, Tax L; amd §§92-ff & 88-a, St Fin L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S2931, A663
2019-2020: S302, A2533
2021-2022: S4283, A3666
2023-2024: S164

2015-S6470 (ACTIVE) - Summary

Relates to the transfer of funds into the metropolitan transportation authority aid trust account and the public transportation system operating assistance account.

2015-S6470 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6470

 TITLE OF BILL :  An act to amend the tax law and the state finance
law, in relation to the transfer of funds into the metropolitan
transportation authority aid trust account and the public
transportation system operating assistance account

 PURPOSE :

Ensures a percentage of sales tax revenue collected from
transportation network company services are dedicated to the
Metropolitan Transportation Authority Aid Trust Account and the Public
Transportation System Operating Assistance Account.

 SUMMARY OF PROVISIONS :

Section 1: Amends paragraph 10 of subdivision (c) of section 1105 of
the tax law, as added by section 2 of part U-1 of chapter 57 of the
laws of 2009 to include transportation network companies.

Section 2: Amends subdivision 6 of section 92-ff of the state finance
law by adding a new paragraph (c) that dedicates one-fourth of sales
tax revenues generated by transportation network company rides in the
MTA region to the Metropolitan Transportation Authority Aid Trust
Account, and ensures that this account receives an amount based on
historical precedent.

Section 3: Amends subdivision 5 of section 88-a of the state finance
law by adding a new paragraph (d) that dedicates one-fourth of sales
tax revenues generated by transportation network company rides
occurring outside of the MTA region to the Public Transportation
System Operating Assistance Account, while ensuring that this does not
affect previous account adjustments that are indexed to regional sales
tax growth.

Section 4: Provides for an immediate effective date.

 EXISTING LAW :

 JUSTIFICATION :

In 2009, the State took action to stabilize the MTA's economic outlook
to the benefit of its ridership as well as the state's economy as a
whole. In addition to structural reforms, the package staved off
draconian service cuts and fare increases while supporting the
Authority's ability to maintain its system in good repair.

A component of this package established a $.50 surcharge on yellow
taxi rides within the City of New York. With the recent advent of
nontraditional transportation services, revenue from this fee and
subsequent deposits into the MTA Aid Trust Account has declined.
Recent projections from the MTA have indicated a loss of as much as
$10 million per year from this revenue source, despite the expansion
of nontraditional transportation services.

Currently, rides provided by transportation network companies -
including Uber and Lyft - do not include the $.50 surcharge that goes
to the MTA. Instead, they pay sales taxes which are split between the
State's General Fund and affected locality. Indeed, one estimate an
Uber official made is is that it will pay as much as $100 million in
sales taxes in 2016. However, only a minor percentage - three-eighths
of one percent - of the State's sales tax revenue is directed into MTA
operating revenues.

This legislation seeks to address the loss in revenue by directing $10
million of sales and compensating use taxes collected in the
twelve-county MTA region to the authority's aid trust account in 2016.
Furthermore, it ensures that twenty-five percent of sales tax gross
receipts generated by transportation network company rides - roughly
.50 per ride - are provided to the MTA Aid Trust Account, while also
ensuring that a minimum of $85 million of revenues are dedicated to
the trust account in 2017. Lastly, it indexes the baseline in
subsequent years to the consumer cost change factor.

In anticipation of the impacts that transportation network company
activity will have on Upstate New York, this legislation also
dedicates twenty-five percent of sales and compensating use taxes
collected from transportation network company rides outside of the
metropolitan transportation region to the Public Transportation System
Operating Assistance (PTOA) account should the service be expanded.
Further, these revenues shall not affect previous efforts undertaken
by the State to index PTOA to sales tax growth.

Like its downstate counterparts, upstate transit providers have
experienced significant ridership growth and increased needs in recent
years, and this legislation intends to provide an equal rate of
assistance to these providers if nontraditional transportation
services proliferate Upstate.

 LEGISLATIVE HISTORY :

New legislation

 FISCAL IMPLICATIONS :

This legislation does not increase any taxes or fees. It simply
dedicates a percentage of sales and compensating use tax revenues to
transit-related purposes. Based on current ridership data, it is
anticipated that revenues dedicated to these accounts will range from
twenty-five to fifty cents per ride, depending on the region and price
of the ride.

 EFFECTIVE DATE :
Immediate

2015-S6470 (ACTIVE) - Bill Text download pdf

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

                                  6470

                            I N  S E N A T E

                            January 14, 2016
                               ___________

Introduced  by  Sens.  DILAN, HOYLMAN -- read twice and ordered printed,
  and when printed to be committed to the  Committee  on  Investigations
  and Government Operations

AN  ACT  to  amend the tax law and the state finance law, in relation to
  the transfer of funds into the metropolitan  transportation  authority
  aid  trust  account  and  the public   transportation system operating
  assistance account

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

  Section  1. Paragraph 10 of subdivision (c) of section 1105 of the tax
law, as added by section 2 of part U-1 of chapter  57  of  the  laws  of
2009, is amended to read as follows:
  (10)  Transportation  service,  whether  or  not any tangible personal
property is transferred in  conjunction  therewith,  and  regardless  of
whether  the charge is paid in this state or out of state so long as the
service is provided in this state.  FOR PURPOSES OF THIS SECTION, TRANS-
PORTATION SERVICE SHALL  INCLUDE  SERVICES  PROVIDED  BY  TRANSPORTATION
NETWORK COMPANIES.
  S  2.  Subdivision  6  of  section  92-ff  of the state finance law is
amended by adding a new paragraph (c) to read as follows:
  (C) THE COMPTROLLER IS HEREBY AUTHORIZED AND DIRECTED TO TRANSFER FROM
THE GENERAL  FUND  FOR  DEPOSIT  INTO  THE  METROPOLITAN  TRANSPORTATION
AUTHORITY  AID  TRUST  ACCOUNT,  ON OR BEFORE MARCH THIRTY-FIRST OF EACH
YEAR, AN AMOUNT EQUAL TO THE FOLLOWING:
  (I) FOR THE STATE FISCAL YEAR ENDING MARCH THIRTY-FIRST, TWO  THOUSAND
SIXTEEN, TEN MILLION DOLLARS;
  (II)  IN  EACH SUCCEEDING STATE FISCAL YEAR, THE TRANSFER SHALL ENSURE
THAT  THE  METROPOLITAN  TRANSPORTATION  AUTHORITY  AID  TRUST   ACCOUNT
RECEIVES  A  SUM EQUAL TO FIFTY PERCENT OF GROSS RECEIPTS OF STATE SALES
AND COMPENSATING USE TAXES COLLECTED PURSUANT TO SECTION ELEVEN  HUNDRED
FIVE  OF THE TAX LAW FOR TRANSPORTATION SERVICES PROVIDED BY TRANSPORTA-
TION NETWORK COMPANIES ORIGINATING IN ANY OF THE  TWELVE  COUNTIES  THAT
COMPRISE  THE  METROPOLITAN TRANSPORTATION COMMUTER DISTRICT ESTABLISHED
PURSUANT TO SECTION TWELVE HUNDRED SIXTY-TWO OF THE  PUBLIC  AUTHORITIES

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

                                                           LBD13455-02-6

S. 6470                             2

LAW,  IN ADDITION TO THE RECEIPTS COLLECTED UNDER SECTION TWELVE HUNDRED
EIGHTY-ONE OF THE TAX LAW. PROVIDED,  HOWEVER,  THAT  IF  THE  AGGREGATE
AMOUNT OF REVENUES RETAINED BY THE METROPOLITAN TRANSPORTATION AUTHORITY
PURSUANT  TO  PARAGRAPH TEN OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED
FIVE OF THE TAX LAW AND SECTION TWELVE HUNDRED EIGHTY-ONE OF THE TAX LAW
IS LESS THAN EIGHTY-FIVE MILLION DOLLARS,  THEN  THE  COMPTROLLER  SHALL
INCREASE  THE  PERCENTAGE  OF  STATE  SALES  AND  COMPENSATING USE TAXES
RETAINED BY THE METROPOLITAN TRANSPORTATION AUTHORITY UNTIL  IT  RETAINS
NO  LESS  THAN  EIGHTY-FIVE  MILLION  DOLLARS  FOR THE STATE FISCAL YEAR
ENDING MARCH THIRTY-FIRST, TWO THOUSAND SEVENTEEN.  FURTHER,  THE  COMP-
TROLLER  SHALL  INCREASE THE LEVEL OF TRANSFER FROM THE GENERAL FUND FOR
SUBSEQUENT STATE FISCAL YEARS TO AN AMOUNT EQUAL TO THE PRODUCT  OF  THE
AGGREGATE  AMOUNT  DISCUSSED  IN  THE PREVIOUS SENTENCE AND ONE PLUS THE
CONSUMER COST CHANGE FACTOR. FOR  PURPOSES  OF  THIS  SUBPARAGRAPH,  THE
CONSUMER  COST CHANGE FACTOR IS THE PERCENTAGE OF CHANGE OF THE NATIONAL
CONSUMER COST INDEX FOR THE MOST RECENT TWELVE MONTH PERIOD RELATIVE  TO
THE PREVIOUS TWELVE MONTH PERIOD.
  S 3. Subdivision 5 of section 88-a of the state finance law is amended
by adding a new paragraph (d) to read as follows:
  (D)  THE  COMPTROLLER  IS  HEREBY  AUTHORIZED AND DIRECTED TO TRANSFER
FIFTY PERCENT OF THE GROSS RECEIPTS OF STATE SALES AND COMPENSATING  USE
TAXES  COLLECTED  PURSUANT TO SECTION ELEVEN HUNDRED FIVE OF THE TAX LAW
ON TRANSPORTATION SERVICES PROVIDED BY TRANSPORTATION NETWORK  COMPANIES
ORIGINATING OUTSIDE THE METROPOLITAN TRANSPORTATION COMMUTER DISTRICT TO
THE  PUBLIC  TRANSPORTATION  SYSTEM  OPERATING ASSISTANCE ACCOUNT ESTAB-
LISHED UNDER THIS SUBDIVISION. THESE TRANSFERS SHALL NOT BE INCLUDED FOR
PURPOSES OF CALCULATING THE SALES TAX GROWTH FACTOR ESTABLISHED IN PARA-
GRAPH (C) OF THIS  SUBDIVISION,  AND  SHALL  SUPPLEMENT  THE  ADDITIONAL
TRANSFERS  INDEXED  TO  THE  SALES TAX GROWTH FACTOR REQUIRED UNDER THIS
SUBDIVISION. TRANSFERS PROVIDED UNDER THIS PARAGRAPH SHALL NOT  BE  USED
TO OFFSET REDUCED TRANSFERS UNDER PARAGRAPH (C) OF THIS SUBDIVISION.
  S 4. This act shall take effect immediately.

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Senate Bill S6470

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Sponsored By

Martin Malavé Dilan