Thursday, October 29, 2009

Senator Flanagan Calls for Repeal of MTA Tax

The newest in a long line of taxes nagging small business owners is the New York State MTA Commuter Tax. With the intention of having small businesses supplement the always-running-at-a-deficit MTA (Metropolitan Transportation Authority...the organization in charge of running the LIRR, NYC Mass Transit, NYC Subways, Metro-North, Bridges & Tunnels, etc.), this tax has proven to be nothing short of a mess since it was first introduced...

It started off as a huge battles as various state politicians weighed (aka argued) the benefits of supplementing the MTA system with the downside of adding yet another tax on small businesses in an already weakened economy.

It ended up being one of the most poorly administered taxes in the history of NYS (and possibly the country). Had the tax been formally imposed back when it was introduced, the first filing would have been due on April 30th, 2009 and it would have only covered the month of March. It would have been a nice, simple one-month introduction to the tax that would have had the average small business with $100,000 of annual payroll paying approximately $28. Instead, the April 30th filing deadline came and went without the state making a decision of how they would implement the tax (as a separate line item on the NYS-45 quarterly payroll tax return or via a separate filing)...then the second filing deadline of July 31st also came and went with still no decision on how to implement the tax.

What we ended up with was a November 2nd filing deadline that now covers 7 months worth of payroll and that same company that would have only had to pay $28 the first time around is now stuck paying $198. Talk about bad first impressions...

This tax has been a mess from concept to implementation and it is the last thing that a small business owner needs at a time when every last dollar counts.

In a press release on October 15th, NYS Senator John Flanagan (R-2nd Second Senate District), who represents Smithtown, Huntington, Northport, E. Northport, Stony Brook, Centereach, Commack, and Hauppauge, among others, called for a repeal of the MTA Tax.

You can read a copy of the press release by clicking on this link:


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