State Sen. Jack Martins (R-Mineola) joined with lawmakers from across Long Island last week to announce his new legislation to repeal the Metropolitan Transportation Authority payroll tax at the village, town and county level.
The bill, which is co-sponsored by Lee Zeldin (R-Shirley), is intended to provide tax relief of nearly $30 million to municipalities, which currently pay 34 cents for every $100 of payroll to the MTA, Martins said last Friday during a press conference at the Nassau County Theodore Roosevelt Legislative Building in Mineola.
“We all understand that we have to support our local municipalities to pave our roads, to keep our parks operating and available and safe for our children,” Martins said. “What we can’t accept is that our taxes are going to support a third party like the MTA.”
Last month, Gov. Andrew Cuomo signed legislation, which exempted small business with a payroll of $1.25 million or less from paying the MTA payroll tax. The exemption also included private and public school systems.
“In that one step we were able to repeal the MTA payroll tax for 80 percent of those who pay it,” Martins said. “Certainly for all our small businesses, it’s a huge step up.”
Martins said last month’s legislation was a “broad stroke” and was also important because it allowed legislators the ability to “evaluate those other areas where we should be focusing on repeal.”
“One of those areas that it’s clear is that our local communities, our villages, our towns, our counties should not be paying this tax,” Martins said.
Village of Great Neck Mayor Ralph Kreitzman, who is president of the Nassau County Village Officials Association, said he agreed with Martins’ assessment of the MTA payroll tax. He spoke during the news conference to show his support of the proposed legislation.
“At the village level, New York state gives us very limited sources of revenue,” Kreitzman said. “It basically requires us to tax our people for most of our revenue. The villages, of course, provide all the essential services you see when you walk out your door. (The MTA payroll tax) is just a terrible burden on the villages.”
Martins said that Nassau County pays nearly $3 million each year to subsidize the MTA.
“It’s clear that this law has to be enacted,” Martins said. “I’m glad to have sponsored it with my colleague Lee Zeldin. I’m looking forward to a quick passage not only in the Senate, but in the Assembly.”
The passage of the bill, Martins said would create $30 million of saving, which can be passed down to village, county and town governments in Nassau and Suffolk counties.
“The MTA’s budget is somewhere around $13 billion,” Martins said. “$30 million in that budget is less than a fraction of 1 percent. Let’s think about, for the MTA to absorb and provide real tax relief to property taxpayers throughout Long Island and in the Downstate region they have to absorb $30 million.”
An increase in the real estate transfer tax to the MTA, should also help cover the $30 million of savings enacted from repealing the authority’s payroll tax.
“The only thing that stands between this bill becoming law and the MTA meeting it’s obligations, within its own means, is the will of the New York State Legislature to make this happen,” Martins said. “From the commitment you see here in this room, not only from the delegation on both sides in both chambers, but also from our local communities, I think you can see that this is going to happen.”
Village of Thomaston Mayor Robert Stern also attended the news conference and said he was encouraged by the progress, which could be attained by the passage of Martins’ bill.
“Sure, its a good thing for all those reasons,” Stern said. “All the villages are short of money … and this is an unfair tax. They ought to cut it out.”
Martins also unveiled more legislation during the news conference, which would unveil the MTA payroll tax for local libraries.
Great Neck Library Director Jane Marino said she supported the bill, which could provide real savings for her organization. She said in 2012 the library budget included $15,600 for the MTA payroll tax.
“Senator Martins has called me and, I think, several other libraries in Nassau County to ask for a statement of support, which I gave to them because I think Senator Martins is doing the right thing,” Marino said. “I hope that he gets the support in the senate to get it passed.”
