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A09725 Summary:

BILL NOA09725
 
SAME ASSAME AS S07294
 
SPONSORRamos
 
COSPNSRSolages, Hooper, Schimel, Galef, Jaffee, Murray, Lavine, Jean-Pierre, Raia, Buchwald, Abinanti
 
MLTSPNSREnglebright, Thiele
 
Amd §805, Tax L; amd §92-ff, St Fin L; amd §1277, Pub Auth L
 
Relates to guaranteed shares of revenue of the metropolitan commuter transportation mobility tax; provides that monies in the mobility tax trust account shall be paid over directly to the chief financial officer of each respective county of the district to defray certain transportation, maintenance, and operation costs.
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A09725 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9725
 
SPONSOR: Ramos (MS)
  TITLE OF BILL: An act to amend the tax law, the state finance law and the public authorities law, in relation to guaranteed shares of revenue of the metropolitan commuter transportation mobility tax   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to allow suburban counties to retain a fair share of the Metropolitan Commuter Transportation Mobility Tax (MTA Payroll Tax) to meet critical transportation needs. A portion of the MTA Payroll Tax would be returned to counties to provide a 50% subsidy of the local portion of costs for mass transit and a 50% reduction in the costs of Station Maintenance.   SUMMARY OF SPECIFIC PROVISIONS: Section 1: (a) Would deposit taxes, interest and penalties collected or received by the commissioner into either banks, banking houses or trust companies, as designated by the comptroller. (b) Calls for the amount of revenues to be paid over by the fifteenth and the final business day of each succeeding month from such account into the mobility tax trust account to each respective county of the district and to the metropol- itan transportation authority finance fund established under the public authorities law. Section 2: Monies in the "mobility tax trust account" shall be paid over directly to the chief financial officer of each respective county of the district, in the amount sufficient to defray 50% of the local share of operation and maintenance costs for the public bus service and 50% of the station operation and maintenance costs and to be transferred on a monthly basis to the metropolitan transportation authority finance fund. Section 3: If the city or county fail to make payment to the authority for station maintenance as required, the CEO of the authority shall certify to the state comptroller the amount due and owing the authority at the end of the state fiscal year and the comptroller shall withhold an equivalent amount for the next succeeding state aid allocated to such county or city for the motor fuel tax and the motor vehicle registration fee. Prior to withholding amounts due, the authority from such county or city, the comptroller shall pay in full the amount due to the state of New York municipal bond bank agency, the city university construction fund, the NYC housing development corporation and the transit construction fund. Section 4: Effective date   JUSTIFICATION: Since 2009, the MTA Payroll Tax has imposed a 0.34% tax on employers within the Metropolitan Commuter Transportation District (MCTD). To date, the counties included in the district: New York (Manhattan), Bronx, Kings (Brooklyn), Richmond (Staten Island), Queens, Nassau, Orange, Suffolk, Rockland, Putnam, Dutchess, and Westchester have contributed nearly $1.5 billion dollars to the MTA. Thanks to the efforts of our suburban delegation, the tax was dramatically reduced in 2011 to the benefit of suburban communities. Unfortunately, the MTA Payroll Tax remains law at the reduced rate. Communities outside New York City pay the MTA Payroll Tax, which results in far more money coming out of these counties than benefits received. Simultaneously, the needs of local residents have been increasing as the result of more intra-county travel and a regional shift towards transit oriented developments where downtowns are being redeveloped in an effort to spur economic development and much needed job growth. The systems also provide transportation to the most vulnerable members of our socie- ty who are wholly reliant on these systems for transportation to health care and other vital services. In addition to the MTA Payroll Tax, suburban taxpayers support the regional transit system by funding local transit operations which connect passengers to MTA bus, rail and subway stops. This is in addi- tion to other surcharges which support the MTA system, including MTA Commuter Transportation District Taxicab and Hail Vehicles Rides, MTA Auto Rentals, and MTA Corporate Surcharges in addition to bearing the costs of local transit systems that support the regional transit network.   PRIOR LEGISLATIVE HISTORY: New bill   FISCAL IMPLICATIONS: None to the state   EFFECTIVE DATE: This act shall take effect immediately.
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