NYS Metropolitan Commuter Transportation Mobility Tax

As you may be aware, in May 2009 New York State passed the Metropolitan Commuter Transportation Mobility Tax. This newly enacted “payroll” tax is imposed on employers, partners of partnerships, and other self-employed individuals; the purpose of which was to prevent significant increases in bridge, tolls, subways and railroad fares.

For employers, this new tax is at a rate of .34% (.0034) of employees’ wages paid, during the period beginning March 1, 2009, to people who perform services within the Mobility Tax Districts. This tax is retroactive and covers wages paid from March 1 thru September 30, 2009. The first remittance date is November 2, 2009. Each subsequent filing will coincide with the quarterly payroll tax returns.

Although this is called a payroll tax, partners of partnerships and self-employed individuals who engage in business within the specified districts are also subject to this new tax. The new tax must be remitted in separate quarterly estimates, similar to the New York State Personal Income Tax estimates you currently pay. The first estimate tax payment is due no later than November 2, 2009. If you fail to remit estimates specifically for the new Metropolitan Commuter Transportation Mobility Tax, yet you are overpaid on the state personal income tax, NY State can and will assess under estimation penalties, if the new tax liability is greater than three hundred dollars.

For your convenience, we have prepared your first estimated tax voucher using information from last year’s personal income tax return or other current data you have provided to us. Please make your remittance payable to Commissioner of Taxation & Finance and mail no later than November 2, 2009 to MCTMT Processing Center, PO Box 4134, Binghamton, NY 13902-4134.

If you have any questions regarding this matter, please contact us at your earliest convenience.