Nassau County files lawsuit against MTA Claiming Employer Payroll Tax is Unconstitutional
Mineola, NY - Nassau County Executive Ed Mangano today announced he has filed a lawsuit against the Metropolitan Transit Authority (MTA) on behalf of Nassau’s taxpayers challenging the legality of the MTA Employer Payroll Tax.
The suit also seeks a reimbursement of more than $3 million already paid to the MTA by Nassau County. Mangano filed the lawsuit within one day of a proposal by the MTA to eliminate $26 million in funding to Nassau County, which would end public bus transportation in Nassau County.
“The MTA instituted this job-killing, oppressive tax last year for no other reason than to grab more money to fund their bloated bureaucracy,” said Mangano. “Clearly, the millions of dollars that Nassau’s businesses have handed over to the MTA have not been used for the benefit of the public.”
Nassau County has paid approximately $3 million since the implementation of the MTA Employer Payroll Tax.
“We want our money back,” said Mangano.
The lawsuit challenges the legality and constitutionality of the MTA Employer Payroll Tax on several fronts.
It is unconstitutional and illegal as it impinges upon the Home Rule Powers of local municipalities;
The payroll tax inequitably taxes and discriminates against Nassau County and all businesses that must remit the payroll tax;
The process in which the payroll tax was implemented violated the NYS Constitution.
“I will not stand by and allow the MTA to eliminate service to the people of Nassau County,” said Mangano.
“This is the first of many steps we will take to fight the MTA on behalf of the 30 million riders who rely on bus service to get to their jobs, visit their doctors and live their lives.”