February 2, 2015

New York Metropolitan Commuter Transportation Mobility Tax Filing and Payment Changes for 2015

New York Metropolitan Commuter Transportation Mobility Tax Filing and Payment Changes for 2015

New York State’s Budget passed in 2014 has significantly changed the filing and payment procedures for the Metropolitan Commuter Transportation Mobility Tax (MCTMT) beginning with Tax Year 2015.

The MCTMT applies to certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (New York City and the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester).

For MCTMT purposes, self-employed individuals include:

  • Sole proprietors
  • Partners in partnerships
  • Members of LLCs treated as partnerships for Federal income tax purposes
  • Single-member LLCs treated as disregarded entities for Federal income tax purposes

Self-Employed Individuals
Tax Year 2014 is the last year for which separate MCTMT forms must be filed and payments made. The final 2014 estimated MCTMT payment and Form MTA-5 are due on February 2, 2015. The final annual MTCMT return (Form MTA-6) or extension (Form MTA-7) is due on April 30, 2015.

Beginning with Tax Year 2015, MCTMT information will be reported on personal income tax returns and extensions (Forms IT-201, IT-203, and IT-370), due April 15, 2016. Estimated MCTMT payments for 2015 will be made with New York estimated personal income tax payments (Form IT-2105), due April 15, June 15, and September 15, 2015, and January 15, 2016.

Residentand Part-year Resident Partners and LLC Members
Beginning with Tax Year 2015, resident and part-year resident partners must make individual estimated MCTMT payments and report annual MCTMT information on their personal individual income tax returns as described above. Resident and part-year resident partners are no longer able to file as part of a group return. This provision also applies to grantor trusts.

Nonresident Partners and LLC Members
Nonresident partners may participate in a group return if the partnership files Form IT-203-GR. These partners may exempt themselves from a group return if their estimated MCTMT is $300 or less or by filing exemption Form MTA-405-E. They must then make estimated MCTMT payments with Form IT-2105. Otherwise, the partnership must make estimated payments for nonresident partners, even if the partnership is not filing a group return.

Should you have any questions related to the changes in the MCTMT described in this article or how these MCTMT changes may impact you, contact your Marcum State and Local Tax Advisor.

A special thanks to article contributorBarbara Pastorick, Tax & Business Services