Court rules MTA payroll tax unconstitutional; GOP lawmakers rejoice

JENNIFER GUSTAVSON FILE PHOTO | A state Supreme Court ruled Wednesday controversial Metropolitan Transit Authority payroll tax is unconstitutional.

Local lawmakers are celebrating this morning following a state Supreme Court decision Wednesday calling the controversial Metropolitan Transit Authority payroll tax unconstitutional.

Many legislators have challenged the fairness of the tax since its inception, claiming that eastern Long Island receives paltry service from the MTA. Approved in 2009, the tax imposed a .34 percent levy on payroll for all employers, including schools and governments, in New York City and the seven surrounding suburban counties.

In June 2011, the state Senate, which has a narrow Republican majority, passed a bill to repeal the MTA payroll tax, but the legislation didn’t pass in the Democratically dominated Assembly.

Suffolk County Legislator Ed Romaine (R-Center Moriches), who sponsored a bill to have Suffolk join Nassau County’s lawsuit, described the recent decision as “wonderful.”

“This is an illegal tax never that should never have been imposed,” Mr. Romaine said Thursday morning on his way to Mineola for a press conference about the court’s ruling.

Mr. Romaine called the MTA payroll tax “wrong, morally and legally” because East End service was cut after the tax was imposed. Since that time, Mr. Romaine said the tax has cost Suffolk County $10 million and $150 million for small businesses in the county

Mr. Romaine said although he’s pleased with the court’s recent decision, he believes the fight isn’t over because the next step would be local municipalities and business owners getting reimbursed from paying the tax over the past few years.

MTA spokesman Aaron Donovan said in a statement the MTA will “vigorously appeal” the decision.

“We believe this opinion will be overturned, since four prior challenges to the constitutionality of the law making the same argument have been dismissed,” he said.

State Assemblyman Dan Losquadro (R-Shoreham) said Thursday he’s “thrilled” about the decision and believes it will be upheld upon appeal.

“Myself and my colleagues have been fighting this egregious tax and I think [the decision] is certainly a step toward its complete removal,” Mr. Losquadro said.

jennifer@timesreview.com

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