Martins seeks MTA tax waiver for libraries

State Sen. Jack Martins (R-Mineola) plans to introduce legislation to carve out an exemption for libraries from the Metropolitan Transportation Authority payroll tax, which he says could force libraries to cut programs, books and materials.

"At a time when we're dealing with significant economic crisis, people rely more and more on our public libraries and community centers and centers for learning," Martins said. "They shouldn't have to make decisions to go without in order to steer resources and monies to subsidize the MTA."

In December, lawmakers exempted public and private schools from the tax as well as businesses and libraries with annual payrolls of less than $1.25 million. Those with payrolls of $1.25 million to $1.75 million paid a reduced tax.

According to data provided by Martins, 28 libraries in Nassau County and 31 in Suffolk County are still hit by the tax because their payrolls exceed $1.25 million.

The libraries subject to the tax in the 12 counties served by the MTA will have an estimated total liability this year of $1.6 million, Martins said.

The payroll tax was enacted in 2009 to help the MTA pay for capital projects. The tax hit employers in the 12 counties and has been particularly unpopular in the suburbs.

Martins' bill, a draft of which was expected to be completed by Friday, would exempt all libraries, including those in New York City, from the tax.

Jackie Thresher, director of the Nassau Library System, a 54-member cooperative, said that last year the libraries in the system had to pay payroll tax amounts equivalent to 81 percent of the state aid they received.

"They have one or two choices -- they have to use money they were given for programs and services and use it for the tax instead of programs and services, or they have to increase their budget, which is paid for by property taxes," Thresher said. "So you're taxing a tax-exempt government-funded agency and then passing the tax onto the public."

Catherine Overton, director of the Baldwin Public Library, said the MTA tax was a small part of its budget -- $6,826 out of $3.7 million -- but that with increased pension costs, health insurance premiums and utility costs, it all adds up.

"We're just trying to see what we can do without cutting services," Overton said. "Our board is always very aware of taxpayers -- everyone is pretty much tapped out."

Mark Hansen, spokesman for Senate Majority Leader Dean Skelos (R-Rockville Centre), said the Republican majority had opposed the MTA tax and would support any tax relief measures. Gov. Andrew M. Cuomo's office did not respond to requests for comment.