Bill Text: NY A01443 | 2013-2014 | General Assembly | Introduced
Bill Title: Relates to phasing out the metropolitan commuter transportation mobility tax; reduces the rate of tax imposed on certain counties beginning in 2014 and ends the imposition of all commuter taxes beginning in 2017; reduces additional supplemental fees imposed under the vehicle and traffic law; provides for limiting growth in the MTA operating budget.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2014-01-08 - referred to ways and means [A01443 Detail]
Download: New_York-2013-A01443-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 1443 2013-2014 Regular Sessions I N A S S E M B L Y (PREFILED) January 9, 2013 ___________ Introduced by M. of A. ZEBROWSKI -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, the vehicle and traffic law and the public authorities law, in relation to the metropolitan commuter transporta- tion mobility tax THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Section 801 of the tax law is amended by adding a new 2 subsection (d) to read as follows: 3 (D) FOR THE PURPOSES OF IMPOSING THE TAX AUTHORIZED WITHIN THIS 4 SECTION IT IS HEREBY PROVIDED THAT: 5 (I) FOR CALENDAR YEAR TWO THOUSAND FOURTEEN SAID TAX FOR EMPLOYERS 6 WITHIN THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM AND ROCKLAND SHALL BE 7 IMPOSED AT A RATE OF FIFTY PERCENT OF THAT OTHERWISE AUTHORIZED UNDER 8 SUBSECTION (A) OF THIS SECTION; 9 (II) FOR CALENDAR YEAR TWO THOUSAND FIFTEEN SAID TAX FOR EMPLOYERS 10 WITHIN THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM, ROCKLAND, WESTCHESTER, 11 NASSAU AND SUFFOLK SHALL BE IMPOSED AT A RATE OF FIFTY PERCENT OF THAT 12 OTHERWISE AUTHORIZED UNDER SUBSECTION (A) OF THIS SECTION; 13 (III) FOR CALENDAR YEAR TWO THOUSAND SIXTEEN SAID TAX FOR EMPLOYERS 14 WITHIN THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM, ROCKLAND, WESTCHESTER, 15 NASSAU AND SUFFOLK SHALL BE IMPOSED AT A RATE OF TWENTY PERCENT OF THAT 16 OTHERWISE AUTHORIZED UNDER SUBSECTION (A) OF THIS SECTION AND FURTHER 17 SAID TAX FOR EMPLOYERS WITHIN THE CITY OF NEW YORK SHALL BE IMPOSED AT A 18 RATE OF SEVENTY-FOUR PERCENT OF THAT OTHERWISE AUTHORIZED UNDER 19 SUBSECTION (A) OF THIS SECTION; 20 (IV) FOR CALENDAR YEAR TWO THOUSAND SEVENTEEN AND CALENDAR YEARS THER- 21 EAFTER NO TAX SHALL BE IMPOSED UNDER THIS SECTION FOR EMPLOYERS WITHIN 22 THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM, ROCKLAND, WESTCHESTER, NASSAU 23 AND SUFFOLK; 24 (V) FOR CALENDAR YEAR TWO THOUSAND SEVENTEEN SAID TAX FOR EMPLOYERS 25 WITHIN THE CITY OF NEW YORK SHALL BE IMPOSED AT A RATE OF FIFTY-SIX EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00499-01-3 A. 1443 2 1 PERCENT OF THAT OTHERWISE AUTHORIZED UNDER SUBSECTION (A) OF THIS 2 SECTION; 3 (VI) FOR CALENDAR YEAR TWO THOUSAND EIGHTEEN SAID TAX FOR EMPLOYERS 4 WITHIN THE CITY OF NEW YORK SHALL BE IMPOSED AT A RATE OF TWENTY-NINE 5 PERCENT OF THAT OTHERWISE AUTHORIZED UNDER SUBSECTION (A) OF THIS 6 SECTION; AND 7 (VII) FOR CALENDAR YEAR TWO THOUSAND NINETEEN AND CALENDAR YEARS THER- 8 EAFTER NO TAX SHALL BE IMPOSED UNDER THIS SECTION FOR EMPLOYERS WITHIN 9 THE CITY OF NEW YORK. 10 S 2. Paragraph (b-1) of subdivision 2 of section 503 of the vehicle 11 and traffic law is amended by adding a new subparagraph (iii) to read as 12 follows: 13 (III) FOR THE PURPOSES OF IMPOSING THE SUPPLEMENTAL FEE AUTHORIZED 14 WITHIN THIS SUBDIVISION IT IS HEREBY PROVIDED THAT: 15 A. FOR CALENDAR YEAR TWO THOUSAND FOURTEEN SAID SUPPLEMENTAL FEE FOR 16 APPLICANTS WHO RESIDE WITHIN THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM, 17 ROCKLAND, WESTCHESTER, NASSAU AND SUFFOLK SHALL BE IMPOSED AT A RATE OF 18 TWENTY-FIVE PERCENT OF THAT OTHERWISE AUTHORIZED UNDER THIS SUBDIVISION 19 AND FURTHER FOR APPLICANTS RESIDING WITHIN THE CITY OF NEW YORK SAID 20 SUPPLEMENTAL FEE SHALL BE IMPOSED AT A RATE OF SEVENTY PERCENT OF THAT 21 OTHERWISE AUTHORIZED UNDER THIS SUBDIVISION; 22 B. FOR CALENDAR YEAR TWO THOUSAND FIFTEEN AND CALENDAR YEARS THEREAFT- 23 ER NO SUPPLEMENTAL FEE SHALL BE IMPOSED FOR APPLICANTS WHO RESIDE WITHIN 24 THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM, ROCKLAND, WESTCHESTER, NASSAU 25 AND SUFFOLK; 26 C. FOR CALENDAR YEAR TWO THOUSAND FIFTEEN SAID SUPPLEMENTAL FEE FOR 27 APPLICANTS WHO RESIDE WITHIN THE CITY OF NEW YORK SHALL BE IMPOSED AT A 28 RATE OF THIRTY-FIVE PERCENT OF THAT OTHERWISE AUTHORIZED UNDER THIS 29 SUBDIVISION; 30 D. FOR CALENDAR YEAR TWO THOUSAND SIXTEEN AND CALENDAR YEARS THEREAFT- 31 ER NO SUPPLEMENTAL FEE SHALL BE IMPOSED FOR APPLICANTS WHO RESIDE WITHIN 32 THE CITY OF NEW YORK. 33 S 3. Section 499-c of the vehicle and traffic law, as added by section 34 1 of part B of chapter 25 of the laws of 2009, is amended to read as 35 follows: 36 S 499-c. Calculation of supplemental registration fee. The supple- 37 mental registration fee to be charged pursuant to section four hundred 38 ninety-nine-b of this article, shall be calculated at a rate of twenty- 39 five dollars per annum for each year or portion of a year that such 40 registration is valid. FOR THE PURPOSES OF IMPOSING THE SUPPLEMENTAL 41 FEE AUTHORIZED WITHIN THIS SECTION IT IS HEREBY PROVIDED THAT: 42 (I) FOR CALENDAR YEAR TWO THOUSAND FOURTEEN SAID SUPPLEMENTAL FEE 43 CHARGED TO REGISTRANTS WHO RESIDE WITHIN THE COUNTIES OF DUTCHESS, 44 ORANGE, PUTNAM, ROCKLAND, WESTCHESTER, NASSAU AND SUFFOLK SHALL BE 45 IMPOSED AT A RATE OF TWENTY-FIVE PERCENT OF THAT OTHERWISE AUTHORIZED 46 UNDER THIS SECTION AND FURTHER FOR REGISTRANTS RESIDING WITHIN THE CITY 47 OF NEW YORK SAID SUPPLEMENTAL FEE SHALL BE IMPOSED AT A RATE OF SEVENTY 48 PERCENT OF THAT OTHERWISE AUTHORIZED UNDER THIS SECTION; 49 (II) FOR CALENDAR YEAR TWO THOUSAND FIFTEEN AND CALENDAR YEARS THERE- 50 AFTER NO SUPPLEMENTAL FEE SHALL BE IMPOSED FOR REGISTRANTS WHO RESIDE 51 WITHIN THE COUNTIES OF DUTCHESS, ORANGE, PUTNAM, ROCKLAND, WESTCHESTER, 52 NASSAU AND SUFFOLK; 53 (III) FOR CALENDAR YEAR TWO THOUSAND FIFTEEN SAID SUPPLEMENTAL FEE FOR 54 REGISTRANTS WHO RESIDE WITHIN THE CITY OF NEW YORK SHALL BE IMPOSED AT A 55 RATE OF THIRTY-FIVE PERCENT OF THAT OTHERWISE AUTHORIZED UNDER THIS 56 SECTION; A. 1443 3 1 (IV) FOR CALENDAR YEAR TWO THOUSAND SIXTEEN AND CALENDAR YEARS THERE- 2 AFTER NO SUPPLEMENTAL FEE SHALL BE IMPOSED FOR REGISTRANTS WHO RESIDE 3 WITHIN THE CITY OF NEW YORK. 4 S 4. (a) For the purposes of this section total operating expense 5 shall mean the metropolitan transportation authority's annual total 6 operating expense before depreciation, subsidies and debt service and 7 shall additionally exclude operating expenses related to pensions, other 8 post-employment benefits, retroactive arbitration agreements and operat- 9 ing expenses related directly to system expansion which are not offset 10 by a corresponding increase in system revenue. Any reductions in transit 11 aid authorized within this act attributable to reductions in the metro- 12 politan commuter transportation mobility tax authorized under article 23 13 of the tax law, the supplemental learner permit/license fee in the 14 metropolitan commuter district region authorized under article 19 of the 15 vehicle and traffic law and the metropolitan commuter transportation 16 district supplemental registration fee authorized under article 17-C of 17 the vehicle and traffic law shall be offset by limiting the growth of 18 the metropolitan transportation authority's annual total operating 19 expense over the preceding fiscal year equal to the product of the total 20 operating expense for the preceding fiscal year and the lesser of one 21 hundred twenty percent of the inflation rate or two percent. Inflation 22 rate shall mean the annual percentage change in the consumer price 23 index, all urban, as published by the bureau of labor statistics, or any 24 successor agency. Such limitation in total operating expense shall begin 25 in calendar year 2013 and continue in each fiscal year thereafter, 26 provided however, that actual realized savings for 2012 shall be equal 27 to one-twelfth of that otherwise anticipated under the limitations of 28 growth as set forth in this section and further provided that total 29 operating expense for 2013 shall include reductions already approved 30 within the metropolitan transportation authority's 2012 total operating 31 budget related to metropolitan transportation authority initiatives and 32 policy actions totaling sixty-three million dollars. 33 (b) Beginning in 2012 and thereafter, all revenues resulting from the 34 savings related to limiting the growth in the metropolitan transporta- 35 tion authority's annual total operating expense shall be deposited in 36 the metropolitan transportation authority finance fund authorized by 37 section 1270-h of the public authorities law, provided however, that 38 revenues resulting from the savings pursuant to this section in excess 39 of those savings required to offset any reductions in transit aid 40 authorized within this act attributable to reductions in the metropol- 41 itan commuter transportation mobility tax authorized under article 23 of 42 the tax law, the supplemental learner permit/license fee in the metro- 43 politan commuter district region authorized under article 19 of the 44 vehicle and traffic law and the metropolitan commuter transportation 45 district supplemental registration fee authorized under article 17-C of 46 the vehicle and traffic law shall be deposited in the metropolitan 47 transportation authority finance fund authorized by section 1270-h of 48 the public authorities law within a separate subaccount and shall be 49 used exclusively to reduce the seven and one-half percent 2014 fare 50 increase currently contained within the metropolitan transportation 51 authority's 2013 approved operating budget to an increase of five and 52 one-half percent. 53 S 5. Subdivisions 2 and 3 of section 1270-h of the public authorities 54 law, as added by section 16 of part H of chapter 25 of the laws of 2009, 55 are amended to read as follows: A. 1443 4 1 2. The comptroller shall deposit monthly, pursuant to appropriation, 2 into the metropolitan transportation authority finance fund the moneys 3 deposited in the mobility tax trust account of the metropolitan trans- 4 portation authority financial assistance fund pursuant to article twen- 5 ty-three of the tax law, and any other provision of law directing or 6 permitting the deposit of moneys in such fund. IN ADDITION TO SAID 7 FUNDS, THE METROPOLITAN TRANSPORTATION AUTHORITY SHALL DEPOSIT INTO THE 8 METROPOLITAN TRANSPORTATION AUTHORITY FINANCE FUND ALL REVENUES RESULT- 9 ING FROM LIMITING THE GROWTH OF THE METROPOLITAN TRANSPORTATION AUTHORI- 10 TY'S ANNUAL TOTAL OPERATING EXPENSE PURSUANT TO THE PROVISIONS OF 11 SECTION FOUR OF THE CHAPTER OF THE LAWS OF TWO THOUSAND THIRTEEN WHICH 12 AMENDED THIS SUBDIVISION, PROVIDED HOWEVER THAT REVENUES DEPOSITED 13 PURSUANT TO SECTION FOUR OF THE CHAPTER OF THE LAWS OF TWO THOUSAND 14 TWELVE WHICH AMENDED THIS SUBDIVISION WHICH ARE IN EXCESS OF THOSE 15 REQUIRED TO OFFSET ANY REDUCTIONS IN TRANSIT AID AUTHORIZED WITHIN SUCH 16 CHAPTER OF THE LAWS OF TWO THOUSAND THIRTEEN ATTRIBUTABLE TO REDUCTIONS 17 IN THE METROPOLITAN COMMUTER TRANSPORTATION MOBILITY TAX AUTHORIZED 18 UNDER ARTICLE TWENTY-THREE OF THE TAX LAW, THE SUPPLEMENTAL LEARNER 19 PERMIT/LICENSE FEE IN THE METROPOLITAN COMMUTER DISTRICT REGION AUTHOR- 20 IZED UNDER ARTICLE NINETEEN OF THE VEHICLE AND TRAFFIC LAW AND THE 21 METROPOLITAN COMMUTER TRANSPORTATION DISTRICT SUPPLEMENTAL REGISTRATION 22 FEE AUTHORIZED UNDER ARTICLE SEVENTEEN-C OF THE VEHICLE AND TRAFFIC LAW 23 SHALL BE DEPOSITED WITHIN A SEPARATE TWO THOUSAND FOURTEEN FARE INCREASE 24 REDUCTION SUBACCOUNT AND SHALL BE USED EXCLUSIVELY TO REDUCE THE SEVEN 25 AND ONE-HALF PERCENT TWO THOUSAND FOURTEEN FARE INCREASE CURRENTLY 26 CONTAINED WITHIN THE METROPOLITAN TRANSPORTATION AUTHORITY'S TWO THOU- 27 SAND THIRTEEN APPROVED OPERATING BUDGET TO AN INCREASE OF FIVE AND ONE- 28 HALF PERCENT. 29 3. Moneys in the fund EXCEPT THOSE DEPOSITED WITHIN THE TWO THOUSAND 30 FOURTEEN FARE INCREASE REDUCTION SUBACCOUNT may be (a) pledged by the 31 authority to secure and be applied to the payment of the bonds, notes or 32 other obligations of the authority issued on or after the effective date 33 of this section to finance capital projects of the authority and its 34 subsidiaries and the New York city transit authority and any subsid- 35 iaries; or (b) used for payment of capital costs, including debt 36 service, reserve requirements, if any, the payment of amounts required 37 under bond and note facilities or agreements related thereto, the 38 payment of federal government loans, security or credit arrangements or 39 other agreements related thereto, and the payment of all costs related 40 to such obligations, of or for the authority, the New York city transit 41 authority and their subsidiaries as the authority shall determine. 42 Subject to the provisions of any such pledge, or in the event there is 43 no such pledge, any excess moneys in this fund may be used by the 44 authority for payment of operating costs of, and capital costs, includ- 45 ing debt service and reserve requirements, if any, of or for the author- 46 ity, the New York city transit authority and their subsidiaries as the 47 authority shall determine. To the extent moneys in the fund have been 48 pledged by the authority to secure and pay the bonds, notes or other 49 obligations of the authority issued to finance capital projects of the 50 authority and its subsidiaries and the New York city transit authority 51 and any subsidiaries as herein provided, monies deposited into the fund 52 shall be deposited to the extent necessary to satisfy the requirements 53 of any debt service or reserve requirements, if any, of the resolution 54 authorizing such bonds, notes or other obligations. 55 S 6. This act shall take effect immediately.