Metropolitan Commuter Transportation Mobility Tax – Reminder
By Maury Cartine, Tax Partner
New York State enacted the Metropolitan Commuter Transportation Mobility Tax on May 7, 2009. The tax applies to payroll and net earnings within the metropolitan commuter transportation district ("MCTD"). The MCTD includes New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties.
The tax is effective as of March 1, 2009 (10/12th of 2009) and is computed at the rate of 0.34% on payroll and net earnings from self-employment. The tax liability is reported on Form MTA-6. The tax on payroll is an employer tax and is not passed through to employees. The payment of the tax on payroll should be administered by the payroll service or the payroll department of the employer.
Individuals, including partners that have net earnings from self-employment, are required to make quarterly estimated tax payments. The first estimated tax payment is due on November 2, 2009 and the required payment is 75% of the total 2009 estimated tax. The final estimated tax payment for 2009 is due on February 1, 2010. Thereafter, estimated tax payments are due on April 30th, July 31st, October 31st of the current year and January 31st of the following year. The form for estimated tax payments is MTA-5.
A partnership may make an election to file a group return for a partnership by filing Form MTA-599 on or before September 15, 2009. The election will be valid if at least two partners opt-in to a group return. Other partners may opt-in before the first estimated tax payment due on November 2, 2009. However, partners that have other net earnings from self-employment may not participate in a group return for the partnership unless the only other net earnings from self-employment are derived from another partnership that is also making the election to file a group return.
The Metropolitan Commuter Transportation Mobility Tax includes de minimis exemptions for employers with net payroll that does not exceed $2,500 in any calendar quarter and individuals whose net earnings do not exceed $10,000. If a partner opts-in to a group return for a partnership, the partner must waive the $10,000 exemption.