NY State Senate Bill 2021-S5169

Senate Bill S5169

2021-2022 Legislative Session

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

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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 05, 2022	referred to investigations and government operations
Feb 25, 2021	referred to investigations and government operations

2021-S5169 (ACTIVE) - Details

See Assembly Version of this Bill:: A5809
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:: 2009-2010: S6311, A8635
2011-2012: S2871, A4170
2013-2014: S1772, A1217
2015-2016: S319, A92
2017-2018: S1624, A964
2019-2020: S3495, A5188
2023-2024: S2253, A4318

2021-S5169 (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.

2021-S5169 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5169

SPONSOR: PALUMBO
 
TITLE OF BILL:

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

 
PURPOSE:

This legislation would exempt all employers within the towns of Brookha-
ven, 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 Commu-
ter 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 Transpor-
tation 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 MTA 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, 2023.

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, River-
head, 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 news 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 towns
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:

2020 S.3495/A.5188

2017-18 S.1624A/A.964A;

2015-16 S.319A/A.92A;

2013-14 S.1772A/A.1217A;

2011-12 5.2871; 2010 S.6311A.8635B

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Immediately.

2021-S5169 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 5169                                                  A. 5809
 
                        2021-2022 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                             February 25, 2021
                                ___________
 
 IN SENATE -- Introduced by Sen. PALUMBO -- read twice and ordered print-
   ed,  and  when  printed  to  be committed to the Committee on Investi-
   gations and Government Operations
 
 IN ASSEMBLY -- Introduced by M. of A. THIELE -- Multi-Sponsored by -- M.
   of A. COLTON, ENGLEBRIGHT -- read once and referred to  the  Committee
   on Ways and Means
 
 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 six 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05704-01-1

 S. 5169                             2                            A. 5809
 
   § 2. Subsection (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
 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 TWENTY-THREE.
   § 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
 TWENTY-THREE 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.
   § 4. This act shall take effect immediately.

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