New York State lawmakers have passed S4008 for the 2023-2024 state budget, amending the Metropolitan Commuter Transportation Mobility Tax (MCTMT) imposed upon the payroll or net earnings of certain businesses within the Metropolitan Commuter Transportation District (MCTD).

The MCTD consists of the following New York counties: Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, Westchester, and the New York City (NYC) counties of Bronx, Kings, New York, Queens, and Richmond. The amended MCTD implements different tax rates for businesses in NYC counties and businesses in all other MCTD counties for certain payroll or net earnings thresholds. The amended MCTD includes the following changes:

• Beginning July 1, 2023, employers doing business within NYC counties with payroll expenses in excess of a $437,500 threshold for any calendar quarter will have the MCTMT imposed at a rate of .60% of the employer’s pay roll expense.
• Beginning January 1, 2023, self-employed individuals doing business within NYC counties with net earnings attributable to the MCTD exceeding a $50,000 threshold for the tax year will have the MCTMT increased to a rate of .47% of their net earnings.
• Beginning January 1, 2024, self-employed individuals doing business within NYC counties with net earnings attributable to the MCTD exceeding a $50,000 threshold for the tax year will have the MCTMT increased to a rate of .60% of their net earnings.

MCTMT rates as applied to businesses that do not meet the aforementioned thresholds or do business only in Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, or Westchester MCTD counties remain unchanged from the prior year.

For more information, contact Tom Walsh at twalsh@citrincooperman.com or John Katsogiannos at ikatsogiannos@citrincooperman.com.