By Philip Newman
Several Long Island and upstate Republican members of the state Legislature have introduced a bill to repeal the payroll tax approved two years ago which supporters called a lifesaver for the cash-strapped MTA.
Several opponents of the MTA tax have called it a “job killer” in the contention that it unfairly financially burdens small businesses.
The original legislation imposed a 34-cent tax on every $100 of payroll for employers in the 12 counties served by the MTA.
The proposed repeal would apply to Suffolk, Nassau, Westchester, Rockland, Orange, Putnam and Dutchess counties and would take effect Jan. 1, 2012. It would reduce the tax rates by steps until full repeal Jan. 1, 2014
“I have studied the MTA’s budget, consolidated balance sheets, real estate portfolios, comptroller audits, news articles and more,” said state Sen. Lee Zeldin (R-Shirley). “I am extremely confident that this bill is the legislative solution to not only repeal the MTA payroll tax, but to help shine a light on how the MTA can begin to fix its own financial house.”
The Metropolitan Transportation Authority said “the payroll mobility tax, passed by the Legislature in 2009, provides a vital $1.4 billion in annual support for public transportation across the down state region — 15 times more money than was saved by last year’s painful service reductions.
“The MTA’s focus is on using this revenue as efficiently as possible, which we are achieving by identifying savings projected to reach $1 billion annually by 2014.”
Zeldin, Sens. Jack Martin (R-Mineola) and Kenneth LaValle (R-Port Jefferson) and other Long Island lawmakers announced their legislation in Hauppauge, L.I., Sunday.
State Assemblyman Marc Molinaro (R-Brooklyn) also expressed strong support for the repeal.
“This tax has burdened families, farmers and businesses and enables the MTA to continue to operate inefficiently at the expense of taxpayers,” Molinaro said. “Further, the MTA has fallen under scrutiny for questionable policies and practices. These include exorbitant amounts of overtime for employees, the abundance of highly paid managers and supervisors and rampant inefficiencies that led the authority to near insolvency.”
The Senate version of the repeal bills is 5596 and the Assembly’s version 07965.
Gene Russianoff, attorney for the transit advocacy agency Straphangers Campaign, said repealing the tax “would create a gaping hole in the MTA’s financial picture.”
Zelden disagreed.
“There is absolutely no doubt that the MTA, without increasing fares or cutting services, can balance its books after this legislation is implemented,” he said. “One must question the motives and veracity of any individual or group that attempts to dispute this fact going forward.”
Reach contributing writer Philip Newman by e-mail at timesledgernews@cnglocal.com or phone at 718-260-4536.
