Senator Kemp Hannon
6th District New York
Sen. Hannon Calls for Repeal of MTA Payroll Tax

Senator Kemp Hannon (6th District) and members of the Long Island Senate Delegation today joined business owners and directors of non-profit organizations at United Cerebral Palsy Association of Nassau County to call for the repeal of the MTA payroll tax. 

“It’s an outrage that taxpayers are expected to carry this heavy burden on their backs in order to bailout the MTA,” said Senator Hannon.  “It’s especially crucial during this tough economic climate that we seek to create jobs and achieve new ways to increase taxpayer savings, but what does Albany do instead?  It levies another tax that will force businesses to eliminate jobs and take more money out of the hands of hard working New Yorkers,” continued Hannon.

Come November 2nd, thousands of businesses, the self-employed, non-profits and school districts will begin paying part of a $1.5 billion bailout of the Metropolitan Transportation Authority (MTA) through a new tax that will cost them $0.34 per $100.00 of their payroll retroactive to March 1, 2009.  

According to the NYS Comptroller’s Office, the impact of the MTA payroll tax on businesses and non-profits in Nassau is $103.9 million and in Suffolk is $87.9 million. The twelve county region surrounding New York City is required to pay the tax.

Bob McGuire, Executive Director of the United Cerebral Palsy Association of Nassau County, safely estimates that the MTA payroll tax will cost his non-profit $100,000.  “In a time where the economy is putting such tremendous stress on all aspects of our lives, placing this added burden on non-profits is devastating,” said McGuire. 

All Democrats in the Senate voted in favor of the tax including two from Long Island, Senators Craig Johnson (7th SD) and Brian X. Foley (3rd SD), while all of Long Island’s Republican Senators and throughout the state voted against it.  

Republican Senators voted against the payroll tax drafted by Senate Democrats because they said it raises taxes, can cost jobs, and jeopardizes businesses in the worst economic times. They also noted that the school tax reimbursement is not guaranteed and will further raise local school taxes. 

The payroll tax is just the latest tax hike to hit New Yorkers as a result of the 2009-10 state budget.  It follows increases in the costs of driver’s licenses and motor vehicle registrations that took effect on September 1st; increases in hunting and fishing license fees that took effect on October 1st; and the Democrats’ elimination of STAR property tax rebate checks that would have been arriving in mailboxes right now.

District Office
595 Stewart Avenue, Suite 540
Garden City, NY 11530
Albany Office
420 State Capitol Bldg.
Albany, NY 12247