New York Governor Andrew Cuomo recently signed legislation that reduces the Metropolitan Transportation Authority (MTA) payroll tax for thousands of small businesses and self-employed New Yorkers. The new law “will help create jobs and get our state’s economy back on track without jeopardizing funding for the MTA,” Governor Cuomo said.
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Get Your Report Now!On December 7, the state legislature passed the Governor’s Middle Class Tax Cut and Job Creation bill, which eliminates the MTA tax for businesses with annual payroll between $10,000 and $1.25 million in the MTA regions, a provision affecting 289,000 employers. Additionally, more than 6,000 businesses with payrolls between $1.25 and $1.75 million will see their MTA payroll tax cut by either one third or two-thirds. The law also exempts schools from the MTA tax, as well as approximately 414,000 self-employed taxpayers within the state. The state will compensate MTA for revenues lost due to the tax cuts.
“We have … lifted an enormous obstacle for our small business job creators by removing the [MTA] tax from 78 percent of the businesses that paid this onerous levy,” said Assemblyman Daniel Losquadro.