By Philip Newman
The MTA said Wednesday it was pleased the state Court of Appeals has dismissed a legal challenge to the MTA’s 12-county Payroll Mobility Tax.
“This concludes a series of court rulings confirming that the payroll 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 Metropolitan Transportation Authority said in a statement.
The Payroll Mobility Tax was adopted in 2009 when the MTA faced drastic financial straits. It generates $1.2 billion annually for the commuter railroads, subways and buses in the region.
“The MTA continues to aggressively cut costs, reducing the level of future fare increases and is working hard to negotiate net-zero labor contracts with common sense work rule changes and healthcare contributions in order to keep its budget in balance,” the MTA said.
Nassau County Executive Edward Mangano had appealed, contending the tax was unconstitutional.
The MTA said its financial conditions were such that abolition of the tax would have brought “catastrophic” travel for millions of commuters in the New York City metropolitan area.
Reach contributing writer Philip Newman by e-mail at timesledgernews@cnglocal.com or phone at 718-260-4536.
