Hudson Valley Business Organizations Rally to Eliminate Payroll Tax in "Quarter Pounder" Counties
November 18, 2009

Support grows for legislation to renegotiate the joint service operating agreement with the State of Connecticut

The Rockland Business Association and the Rockland Economic Development Corp. have joined with colleagues in the Hudson Valley to back legislation that could eliminate the MTA payroll tax in the “quarter pounder” counties of Dutchess, Orange, Putnam and Rockland. The four counties are known as “quarter pounders” because collectively they have one vote on the 12-county, 17-member board.

Introduced by Senators Saland, Bonacic, Larkin and Leibell, S.6267 would require the MTA to renegotiate the joint service operating agreement between the Authority and Connecticut to reflect increased fare and subsidy equity payments based on utilization. If an agreement does not produce an equitable fare increase and subsidy payments from Connecticut, the MTA is directed to reduce services to the New Haven line operation by an amount that produces recurring savings equivalent to that which would have otherwise been collected through an equitable agreement. The bill also includes an estimated 13% fare increase among transit riders in the four counties in order to ensure that the legislation remains “revenue neutral.” The legislation is sponsored in the Assembly by Assemblywoman Aileen Gunther.

Peter P. Bardunias, Executive Director, The Greater Mahopac-Carmel Chamber of Commerce said, “This is the most unfair tax that has ever been imposed upon Putnam County – forced on us with no representation. We are the smallest county, with no say in the process, and it puts an unfair burden on our businesses, many of which do not use the MTA’s services.”
John A. D’Ambrosio, President & CEO, Orange County Chamber of Commerce said, “We applaud the efforts of our Senators to take action against this atrocious tax. The MTA tax is still the No. 1 topic among our members and we’re going to continue to fight it for them, and for the entire business community as well.”

Jonathan Drapkin, President & CEO, Pattern for Progress said, “It is important to view this legislation not as anti mass transit but pro fairness. We need to make the Mid-Hudson’s contribution more equitable. In a climate in which every new tax is burdensome, this one is disproportionately painful.”

Ron Hicks, President & CEO, Rockland County Economic Development Corporation said, “The MTA Payroll Tax is a most inequitable solution to MTA’s self inflicted budget gap that has already cost New York State jobs. I commend the senators for their relentless efforts to protect the hospitals, not-for-profits and business community in the region.”

John MacEnroe, President & CEO, Dutchess County Economic Development Corporation said, “Senator Saland’s legislation begins to bring equity to our region with its small voice within the MTA service territory. While the MTA service is important to us in Dutchess, that service has a larger impact proportionally on Southern Connecticut. It seems only reasonable that the fiscal support of the railroad should be more equitably distributed relative to the benefits derived by its ridership.”

Ann Meagher, President & CEO, Greater Southern Dutchess Chamber of Commerce said, “This legislation is a creative way to alleviate the burden being felt in the Hudson Valley. With 26 percent of the Metro-North transit riders Connecticut residents, it’s clear to me that they should contribute to the MTA’s operating deficit. Hudson Valley ridership pales in comparison.”

Charles S. North, President & CEO, Dutchess County Regional Chamber of Commerce said “This bill is a great start for those of us in the quarter pounder counties to finally be treated on a fair and equitable basis. Currently, our Hudson Valley Communities contribute $32,000.00 per Metro North rider per year compared to our neighbors in Connecticut only pay $4,000.00 per rider per year. A gross inequity! We are living in the quarter pounder counties however our rate of return from the MTA is a ‘super sized big smack.’ This legislation deserves top priority and total support.”

Mike Oates, President and CEO of the Hudson Valley Economic Development Corporation said, “In these difficult economic times, the State of New York needs to provide an environment in which businesses can grow and invest. The MTA Payroll tax has put an unfair burden on the Hudson Valley. I applaud our elected officials who are working hard to fix this problem. NYS needs to say to the business community that we hear you loud and clear. We need to reduce burdens, not increase them.”

Al Samuels, President & CEO, Rockland Business Association said, “Any initiative that might lift the burden of this egregious tax must be pursued. We are obligated to explore all possibilities.”