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Queens Chronicle

Court upholds MTA tax

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Posted: Thursday, January 16, 2014 10:30 am

The New York State Court of Appeals on Tuesday rejected without comment a petition from Nassau County challenging the so-called commuter tax applied to all businesses in counties served by the Metropolitan Transportation Authority.

The tax collects about $1 billion per year for the MTA. Nassau was appealing a July 2013 ruling that overturned a Nassau County judge who ruled the tax unconstitutional in 2012.

“The MTA is pleased that the Court of Appeals has dismissed Nassau County’s legal challenge ...” the MTA said in a statement. “This concludes a series of court rulings confirming that the [tax] is constitutional, and that funding the operation and improvement of essential transportation services provided by the MTA is a matter of substantial state concern.”

The office of Nassau County Executive Ed Mangano on Wednesday claimed at least partial victory.

His statement said that the original lawsuit in 2011 “resulted in Gov. Cuomo and the state Legislature eliminating the burden of the MTA Payroll Tax for thousands of small businesses.”

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