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Bloomberg Blasts Overhaul of MTA Payroll Tax

NEW YORK CITY-To cover a projected shortfall in 'mobility tax' revenues, the governor proposes increasing the city's share while cutting the rate for suburban counties.

By Paul Bubny | Updated on February 09, 2010

NEW YORK CITY-Mayor Michael Bloomberg voiced his opposition Tuesday to Gov. David Paterson’s plan to increase the city’s share of the “mobility tax” levied on businesses in the 12-county region served by the Metropolitan Transportation Authority. In a statement, the mayor called Paterson’s proposal “wrong-headed” and vowed to fight it.

“First the governor proposed a state budget that slashes support for New York City but not the suburbs, and now he proposes to wallop city businesses with more taxes while lightening the load for businesses in the suburbs,” Bloomberg says in his statement. The idea that the state can spare the suburbs while sacking the city is terrible economics, grossly unfair and contrary to every principle of good regional development.”

The influential Partnership for New York City last year endorsed the concept of such a tax, which now puts a 0.34% levy, or 34 cents for every $100, on payroll for all businesses in the MTA’s service area. But president Kathryn Wylde issued a statement Tuesday implying that the group would support an overhaul of the current structure only if reforming the MTA’s finances came along with it.

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