Partial Rollback Of The MTA Payroll Tax A Beginning

Two outspoken opponents of the noted the partial recent rollback. County Legislative Chairwoman Harriet Cornell and Legislator Edwin Day said on Thursday they were pleased with Gov. Cuomo and local State legislators’ efforts. 

The payroll tax, implemented in 2009, is levied in the amount of $0.34 per $100 of payroll, on all businesses, local government, schools, hospitals, and nonprofit agencies within the 12-county MTA region.  Rockland, Orange, Putnam, and Dutchess counties share one vote on the MTA Board and pay a combined estimated annual cost of $60 million. Rocklanders have been paying approximately $18 million annually. 

The revised schedules take effect January 1st for self-employed taxpayers and April 1st for businesses with payrolls.  The changes will eliminate the MTA payroll tax for businesses with an annual payroll of under $1.25 million and cut the tax by either one or two-thirds for businesses with payrolls between $1.25 and $1.75 million. All public elementary and secondary schools, and private school are exempt from paying the tax.

“Many voices were raised in protest against the unfairness of the mobility tax, particularly from Rockland which gets little benefit in transit services from the MTA,” said Cornell.  “I appreciate the efforts of our business community and our state legislators in helping to gain the support of Governor Cuomo for this rollback.  I see this as a first step, since there are still inequities as long as this payroll tax continues.” 

Legislator Day has fought to eliminate this tax since its inception, also speaking on this matter at an MTA public hearing in February, 2009; making it a platform issue as part of his 2009 minority address; introducing legislation to rollback this tax; and urging Rockland join the other four counties in litigation designed to overturn the levy. Only last month, while attending a Rockland Business Association (RBA) event, Legislator Day publicly called upon Lt. Governor Robert Duffy to “do the right thing for all of Rockland and repeal this tax”. 

Both Cornell and Day have sponsored legislation opposing the mobility tax and over the years have testified at numerous hearings.  Cornell has repeatedly called for a dedicated fund from MTA revenues to improve transit options for communities, like Rockland County, that are west of the Hudson. 

“This has been a battle which Chairwoman Cornell and I have fought since the inception of this onerous and job killing tax and while more needs to be done, I am pleased that such inroads were made that mitigated the effect on our Rockland community,” said Day.

Observing that the tax has not been fully repealed, Day said, “While the battle is not won, significant, cost mitigating inroads have been made that will have a positive affect on our citizens, and for that I am both happy and most proud. While my gratitude goes to our Governor and our local State representatives for their efforts in this matter, I will continue to push for further necessary changes to make entire MTA system fairer to Rockland and to completely eliminate this tax.”