Sen. Zeldin wants MTA tax repealed

A group of Republican lawmakers have pledged to introduce legislation Monday to repeal a Metropolitan Transportation Authority tax on employers in the suburbs and scale it back in the city.

The tax, frequently labeled the "MTA payroll tax" or "jobs tax" by opponents, charges employers in downstate New York -- including Long Island's two counties -- 34 cents for every $100 of payroll.

State Sen. Lee Zeldin (R-Shirley), flanked by Sen. Jack Martins (R-Mineola) and Assemb. Dean Murray (R-East Patchogue), on Sunday rolled out a much-anticipated plan to eliminate the tax over 2 1/2 years. The proposal would reduce the tax to 23 cents by Jan. 1, to 12 cents by Jan. 1, 2013, and eliminate it by Jan. 1, 2014, in seven suburban counties.

In New York City, the measure -- which drew immediate skepticism from Democrats and the MTA -- would trim the tax to 28 cents by Jan. 1, 2013, and to 21 cents by Jan. 1, 2014.

"The MTA commuter tax was a taxpayer-funded bailout for a New York City-based agency," Zeldin said.

Zeldin offered a host of options to save the MTA money, including privatizing the city's bus service, cutting the number of managers, and cracking down on overtime abuse.

Zeldin added that his Senate bill is twinned with a state Assembly bill carried by the bipartisan team of Murray and a Democrat, George Latimer of Westchester County. But Austin Shafran, spokesman for the Senate Democratic Conference, said Republicans have "yet to deliver."

The tax was implemented in 2009 to help keep the financially troubled transit authority afloat. The tax "provides a vital $1.4 billion in annual support for public transportation," said Aaron Donovan, an agency spokesman.

Zeldin's proposal would fully exempt public and private schools and businesses with 25 or fewer employees from paying the tax starting Jan. 1. The exemption would apply in the city and the suburbs, Zeldin said.

Zeldin acknowledged a limited window to get his bill passed. The legislative session ends June 20.

"I'm going to remain optimistic. The easier thing to say is maybe it'd be more realistic for us to get this done next year," Zeldin said. "And maybe that's where we'll end up."