Senate Passes Bill to Repeal MTA Tax for Hospitals

The New York State Senate today passed a measure to eliminate the MTA payroll tax for hospitals so they can invest that significant savings in improving health care in the greater New York City metropolitan area. The bill (S3316A), sponsored by Senator Andrew Lanza (R-C-I, Staten Island), would save hospitals approximately $60 million by making them exempt from the onerous MTA payroll tax put in place when Democrats controlled all levels of state government.

Senator Lanza said, “From the moment I debated and voted against the MTA payroll tax on the floor of the Senate, I vowed to do everything I could to repeal this unfair and punitive tax on New York’s families, businesses, schools, and hospitals. Exempting hospitals from this cost-raising tax will allow them to invest their money towards providing quality, affordable health care for patients rather than our mass transit system.”
 
When Democrats were in control of the Senate in 2009, they created a new payroll tax for residents and businesses - including hospitals - in the MTA region which includes Bronx, New York, Kings, Queens, Richmond, Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties.

After Republicans regained control of the chamber in 2011, the Senate eliminated the MTA payroll tax for 80 percent of businesses (290,000 employers with payrolls of less than $1.25 million and 415,000 self-employed taxpayers) and for all public and non-public schools. This legislation would allow hospitals to also be exempt because of the community services they provide and would help generate savings which could then be put back into the region’s health care system.
 
The bill has been sent to the Assembly.