• Significant Development in New York: New York Supreme Court Strikes Down MTA Payroll Tax
  • September 3, 2012
  • Law Firm: Alston Bird LLP - Atlanta Office
  • In a recent decision, the New York Supreme Court held that the Metropolitan Commuter Transportation Mobility Tax (“MTA payroll tax”) was passed unconstitutionally and thus is invalid. This decision potentially impacts all companies with operations in the New York City area and its development should be closely monitored. The MTA payroll tax was passed by the New York legislature in May 2009 to address a projected $1.8 billion gap in the MTA’s annual budget. The MTA payroll tax is a graduated tax ranging from .11 percent - .34 percent and is imposed on employers operating within the Metropolitan Commuter Transportation District, which includes all of New York City and seven surrounding counties, and having payroll expenses exceeding $312,500 during the calendar quarter. The tax is computed by multiplying the employer’s payroll expense by the applicable rate.