Senator Carlucci Calls for Exempting Libraries From Mta Payroll Tax

David Carlucci

February 23, 2012

Nanuet, NY (February 23, 2012) – Senator David Carlucci (D-Rockland/Orange) today joined with Rockland County public library directors, Rockland County Legislator Harriet Cornell, and Assemblyman Kenneth Zebrowski to call for exempting all public libraries and library systems from paying the MTA payroll tax in New York State.

Senator Carlucci has co-sponsored legislation (S.6079A) in the State Senate that would close the current loophole that exists for libraries that have payrolls greater than $1.25 million.

Last December, Governor Andrew Cuomo signed into law the Middle Class Tax Cut and Job Creation Plan that repealed the MTA payroll tax for about 78% of the business entities, self-employed taxpayers, and all public and non-public schools.  However, many public libraries were not included in this group and subsequently left on the hook to continue to pay the costly tax.

“Repealing in its entirety the costly MTA payroll tax is one of my top priorities in the State Senate,” said Senator Carlucci.  “The fact of the matter is that libraries cannot afford to bear the brunt of this any longer, particularly given the limited amount of funding they receive.  This is an issue that hits home and will generate real savings.”

Despite library usage increasing by 11% since 2007, state funding for libraries has declined by 23%.  These continued reductions in state funding has resulted in some libraries paying 50% to 105% of their library aid towards the MTA payroll tax.

Gretchen Bell, Director of the Nanuet Public Library, said, “Since libraries are educational institutions, it’s unfair for libraries to be put in the position we are in considering schools have already been exempted from the tax.”

The following libraries in Rockland County still are required to pay the MTA payroll tax:

  • Finkelstein Memorial Library (Spring Valley)
  • Haverstraw Kings Daughter's Public Library (Haverstraw)
  • Nanuet Public Library (Nanuet)
  • New City Free Library (New City)
  • Nyack Public Library (Nyack)