Business Leaders Join NYS Senate Republicans Representing the MTA Region To Strongly Oppose Return of the MTA Payroll Tax

(Albany, NY) – The New York State Senate Republicans are telling Governor Hochul and Democrat Leadership that under no circumstances should the full reinstatement of the MTA payroll tax be considered as a solution to closing the MTA’s budget shortfalls. 

Businesses in the Metropolitan Commuter Transportation District (MCTD) cannot afford another tax or impediment to hiring. The MTA Payroll Tax is a tax on businesses with employees working in the MCTD. The tax affects the five boroughs of New York City (Brooklyn, Bronx, Manhattan, Queens, and Staten Island) as well as the suburban counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester.

Instead of burdening hardworking taxpayers and businesses with yet another increase, tax or fee, the MTA must take accountability for its long-standing issues of mismanagement, fraud and waste.

“New Yorkers are sick and tired of being the "go to" solution when the MTA needs more money.  Rather than taxing jobs, hurting businesses and regressing back to the full implementation of an extremely unpopular tax, the MTA should be looking within and cleaning up it's own fiscal backyard," stated NYS Senator, Dean Murray, 3rd District. 

“If the Governor wants to impose another tax on hard-working New Yorkers, we need to see MTA expand services, especially in Orange County where there are no continuous single-seat train ride options into New York City for work, essential medical care and more. A return to the MTA Payroll Tax is not a solution for the MTA’s ongoing budgetary struggles and only puts another burden on the backs of Hudson Valley residents and individuals in the entire MTA region,” stated NYS Senator Rob Rolison, 39th District.

“Whenever Governor Hochul says she is 'going to put money in your pocket' what she really means is she's going to pick your pocket clean. Democrats need to stop taxing our business community and everyday New Yorkers. It's completely out of touch with today's realities and slap on the Brooklyn businesses struggling for survival in my district,” stated Senator Steve Chan, 17th Senate District.

“New York's small businesses are at an absolute breaking point," said Ashley Ranslow, NFIB's New York State Director. "And cannot afford any tax increases, certainly not an increase in the MTA payroll mobility tax. The Empire State already has some of the highest taxes in the nation, putting small businesses at a severe competitive disadvantage. The MTA payroll tax was increased just two years ago and congestion pricing began in January - it is baffling that Albany is already talking about another tax hike. NFIB adamantly opposes any kind of tax increase on hardworking small businesses, otherwise, there will be more vacant storefronts and a higher cost of living for all New Yorkers.”

“At a time when New York keeps adding to the payroll costs of employers – whether through wage mandates, benefits mandates, leave mandates or increased costs for unemployment insurance and workers compensation – the last thing we need is another tax burden on payrolls. Employers already pay some $3 billion annually in the MTA payroll tax and another $2.5 billion in business tax surcharges to support the MTA.  We recognize the importance of effective mass transit in New York City - and across the state - but we need to look at all options – not just increased taxes – in addressing the MTA’s long term financial challenge,” stated Ken Pokalsky, Vice President of The Business Council of New York State, Inc.

“The Business Council of Westchester (BCW), the county’s largest business membership organization focusing on advocacy and economic development, has been laser focused on reminding all stakeholders that if we are going to recruit and retain businesses to Westchester County and the region, we must have a reliable, safe, and affordable transportation system. Imposing a new MTA payroll tax will just be another of a long series of obstacles and burdens that we have already put on the backs of businesses of all sizes. We can’t allow that to happen. The BCW urges our legislative leaders in Albany to negotiate intelligent funding options to support the MTA’s five-year capital plan. The proposed MTA payroll tax can not be included in that framework,” stated John Ravitz, Executive Vice President and CEO, Westchester Business Council.

“Governor Hochul and Democrat Leadership must unequivocally reject any attempt to fully reinstate the MTA payroll tax. For too long, New Yorkers have been treated like the MTA’s personal ATM, forced to pay for its waste, fraud, and mismanagement. Enough is enough. Businesses and workers cannot afford another crushing tax just to cover for the MTA’s failures. Instead of demanding more from taxpayers, state leaders must demand accountability and real reforms—because throwing more money at the problem is not the solution,” stated Senator Steve Rhoads, 5th Senate District.

“Any talk of changing the MTA mobility tax is a nonstarter for me. It would hurt the employers and employees in my district who are already suffering from the lack of a one-seat-ride rail service into New York City,” stated Senator Bill Weber, 38th Senate District.

“The MTA’s long history of fiscal mismanagement is in need of real reform. We must continue to hold the MTA accountable and ensure that taxpayers and businesses are not forced to foot the bill for its ongoing failures. It would be simply unacceptable and irresponsible for the state to attempt to address the MTA’s fiscal woes through an increase in the payroll tax, rather than focusing on long-term solutions that promote fiscal responsibility and efficiency,” stated NYS Senator Patricia Canzoneri-Fitzpatrick, 9th Senate District.

“Increased tolls at our bridges, increased fares on trains, MTA payroll tax, Congestion Pricing - where does it end? If we keep giving the MTA endless streams of money, when will they ever learn to run efficiently? These taxes are driving businesses and families out of New York,” stated Senator Alexis Weik, 8th Senate District. 

*See the attached letter sent to the Governor and Democrat Leadership in the Senate and Assembly.

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