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Higher Court Declares MTA Tax Constitutional

After a ruling by the Long Island Supreme Court ten months ago deeming that the MTA Payroll Mobility tax was unconstitutional, the hearing has been overturned this week by the Appellate Division of the State Supreme Court. The tax was originally deemed unconstitutional by the Long Island Supreme Court because the Legislation enacted in 2009 failed to include a “Home Rule Message” which asks for the 12 surrounding counties of NYC to levy the taxes.

Here’s what you need to know:

  • The MTA Tax is a Payroll tax enacted by the State Legislation in 2009 to fund the Metropolitan Transportation Authority (MTA)
  • The MTA Payroll tax is paid by businesses in the 12 surrounding counties of New York City
  • For every $100 in Payroll, the tax is 34 cents
  • The State Supreme Court decision ruling the MTA Tax constitutional allows for the MTA to continue collecting nearly 1.4 billion in tax annually
  • According to the four panel judge from the Appellate Division of the State Supreme Court, “Continued investment in mass transit provides direct benefits to mass transit users and to the regional and state economies.”
  • With the decision by the State Supreme Court, Nassau County is expected to appeal the MTA Payroll Tax Ruling

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