S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7055
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 31, 2025
                                ___________
 
 Introduced  by  Sen.  WEBER  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in relation to  the  metropolitan  commuter
   transportation district and the payroll tax

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. 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,  EXCLUDING THE COUNTIES OF
 ORANGE AND ROCKLAND FOR THE PURPOSES OF THIS ARTICLE.
   § 2. Subparagraph (A) of paragraph 1 of subsection (a) of section  801
 of  the  tax law, as amended by section 1 of part Q of chapter 58 of the
 laws of 2023, is amended to read as follows:
   (A) For employers who engage in business within the MCTD, in the coun-
 ties of Dutchess, Nassau,  [Orange,]  Putnam,  [Rockland,]  Suffolk  and
 Westchester, the tax is imposed at a rate of (i) eleven hundredths (.11)
 percent  of  the  payroll  expense for employers with payroll expense no
 greater than three hundred seventy-five thousand dollars in any calendar
 quarter, (ii) twenty-three  hundredths  (.23)  percent  of  the  payroll
 expense  for  employers  with payroll expense greater than three hundred
 seventy-five thousand dollars and no greater than four  hundred  thirty-
 seven  thousand  five hundred dollars in any calendar quarter, and (iii)
 thirty-four hundredths (.34) percent of the payroll expense for  employ-
 ers with payroll expense in excess of four hundred thirty-seven thousand
 five  hundred  dollars  in  any  calendar  quarter. If the employer is a
 professional employer organization, as defined in section  nine  hundred
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11384-01-5
              

 S. 7055                             2
 
 sixteen  of  the  labor  law,  the employer's tax shall be calculated by
 determining the payroll expense attributable  to  each  client  who  has
 entered  into  a  professional employer agreement with such organization
 and the payroll expense attributable to such organization itself, multi-
 plying  each of those payroll expense amounts by the applicable rate set
 forth in this paragraph and adding those products together.
   § 3. The opening paragraph of  subparagraph  (A)  of  paragraph  2  of
 subsection (a) of section 801 of the tax law, as amended by section 1 of
 part C of chapter 59 of the laws of 2024, is amended to read as follows:
   For  individuals,  the  tax  is  imposed  at  a  rate  of  thirty-four
 hundredths (.34) percent of the net  earnings  from  self-employment  of
 individuals that are attributable to the MCTD, in the counties of Dutch-
 ess,  Nassau, [Orange,] Putnam, [Rockland,] Suffolk, and Westchester, if
 such earnings attributable to the MCTD exceed fifty thousand dollars for
 the tax year.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2025.