MTA rescue plan passes with payroll tax

Thursday, May 7th, 2009 at 5:02 am by

Last night both houses of the Legislature gave their approval to a financial rescue plan for the New York City area Metropolitan Transportation Authority. It will be signed by the Governor.

The plan includes a .34 percent payroll tax to be paid by employers in the MTA region, including school districts. The MTA region consists of New York City and Suffolk, Nassau, Westchester, Rockland, Putnam, Dutchess and Orange Counties.

The payroll taxes for most employers will be retroactive to March 1, while school districts will not be required to begin paying until September.

The bill provides for state reimbursement to school districts of 100 percent of their payroll tax payments. The reimbursement is to be paid to school districts on or after June 1st for all their payments up through May 1st.  With the payment coming after April, 1, this timing puts the payment in the following year’s state budget.

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