A3009C

The New York State Senate passed a comprehensive budget bill (A3009C) on a 35-27 vote that includes a controversial increase to the MTA payroll mobility tax, expected to raise $1.4 billion annually. The measure drew sharp criticism from Republicans and some Democrats who argued it would harm businesses and accelerate job losses, particularly in Long Island and upstate regions. Sen. Murray delivered an extensive floor speech detailing the tax's impact on small and mid-sized businesses, noting that companies with as few as 17-18 employees would face increased tax burdens, with rates reaching 0.895 percent for the largest employers in New York City. He also criticized the MTA's fiscal management, citing $525-800 million in annual fare evasion losses and wasteful spending on consultants and infrastructure projects. The bill also reduces inflation refund checks from the Governor's proposed $3 billion to $2 billion and delays middle-class tax cuts from 2025 to 2026-2027. Sen. Krueger, the bill's sponsor, defended the payroll tax as necessary to fund critical MTA capital projects and explained the lockbox mechanism that dedicates 28.5 percent of the new payroll tax revenue to a separate capital account. Supporters including Sen. Comrie acknowledged concerns about MTA spending but noted the agency has improved transparency and is dealing with a centuries-old system requiring significant repair. The bill also includes housing provisions such as doubling the Low-Income Tax Credit and implementing a waiting period on institutional purchases of one- and two-family homes. All 27 votes against the bill came from Republicans and progressive Democrats, with opponents citing New York's status as the highest-taxed state and worst business climate in the nation.