In 2009, the NYS Legislature enacted a budget that included a hastily planned Metropolitan Transit Authority (MTA) Mobility Tax aimed at curing the Authority's deficit. The MTA tax imposes a 0.34 percent payroll tax on businesses within the Metropolitan Commuter Transportation District (MCTD) and does not distinguish between not-for-profits, many of which are funded primarily with public funds, and for-profit businesses. Now the Legislature is considering increasing the tax for New York City businesses to .54 percent, as proposed in the Governor’s Executive Budget. The consequences of this tax will be a reduction in the amount of funding the human services sector will have to deliver essential services to the public.
The MTA tax has had a drastic impact on nonprofits. Unlike for-profit businesses, they do not have profit margins to pay for this additional cost. And now the Governor has proposed increasing that tax, at a time when nonprofits can least afford yet another burden on their already overstretched budgets. The consequences of this tax will be a reduction in the amount of funding the nonprofit sector will have to deliver essential services to the public.
The Nonprofit Coordinating Committee of New York (NPCC) urges the NYS Legislature to exempt nonprofits from the MTA mobility payroll tax.
We, the undersigned, call on the NYS Legislature to exempt nonprofits from Governor Paterson's proposed MTA Mobility Payroll Tax. Alternatively, we would urge they implement a mechanism for the State to provide nonprofits with the funding to help offset this additional cost.
Taxing nonprofits reduces the amount of funding they have to deliver essential services to the public. This tax could not come at a worse time. The on-going economic crisis has had a profoundly negative impact on nonprofits; private and public funding is down while the demand for services continues to grow.
The Exempt Not-For-Profits From Governor Paterson's MTA Mobility Tax petition to New York State Legislature was written by Katie Martin and is in the category Government at GoPetition.