New York Court strikes down Metropolitan Transportation Authority payroll tax

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The 10th District of the New York State Supreme Court, located in Nassau County east of New York City, struck down the state’s Metropolitan Transportation Authority payroll mobility tax on the basis that it violated home-rule provisions contained in the state’s Constitution. [Mangano et al., v. Silver, et al., New York Supreme Court, Part 4, #1444/10, 8/22/12]

In a six-page decision, Supreme Court Justice R. Bruce Cozzens Jr. ruled in favor of a coalition of municipal governments, including Nassau, Suffolk and Westchester counties, on the basis that the payroll mobility tax violated a clause in the New York State Constitution barring the state from passing special laws affecting individual municipalities if such laws have not also been approved by local legislative bodies. The ruling also struck down a variety of other fees that had been created as part of the MTA's fiscal bailout, including surcharges on vehicle registrations, taxi rides, car rentals and driver's license applications.



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