"The Height of Insanity!"

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Newsday.com

LI towns plan resolutions opposing MTA 'mobility tax'

This story was reported by staff writers STACEY ALTHERR, SUSANA ENRIQUEZ, MITCHELL FREEDMAN, EDEN LAIKIN, CHAU LAM, JENNIFER MALONEY and PATRICK WHITTLE and written by Whittle.

March 4, 2009

Several Long Island towns intend to pass resolutions opposing a proposed MTA "mobility tax," which local leaders say would cripple small businesses and burden taxpayers at exactly the wrong time.

The proposal, which a spokesman for Assembly Speaker Sheldon Silver (D-Manhattan) said could go before state legislators this week, would raise $1.5 billion a year by charging businesses in the MTA's 12-county area a tax of 33 cents on every $100 of payroll. Supporters say the MTA needs the tax because it faces a projected deficit an agency spokesman said could reach $2.6 billion by the end of 2010.

But opponents, including Brookhaven Councilman Keith Romaine, fear the payroll tax could shutter businesses, a cost that would be passed on to residents in the form of higher property taxes. Romaine and other officials also said they are concerned that town and school districts would have to pay the tax on their payrolls.

"This would be a job killer. We can't tax our way out of a hard economic time," he said.

With legislation not yet drafted, it is too early to say whether government agencies would have to pay the tax, Silver spokesman Dan Weiller said.

"The speaker feels very strongly that all who benefit from our region's public transportation system should share in its cost," Weiller said.

Brookhaven officials said they plan to vote on the resolution on Tuesday.

Officials in Islip, Oyster Bay and Huntington also said their towns are planning resolutions in opposition to the tax. Riverhead and Hempstead officials also said they oppose the tax.

Officials in other towns said they had not formed an opinion or could not be reached.

Islip Supervisor Phil Nolan, who accused the state of "trying to steal money from me" with the tax, said he will appeal to his state representatives. The Suffolk County Supervisor's Association will discuss the issue at tomorrow's scheduled meeting in Islip, he said.

Huntington Supervisor Frank Petrone called the proposed tax a "shortsighted attempt to address a singular issue by burdening small businesses, school districts, governments and not-for-profits. ... "

Concerned the tax would harm Oyster Bay businesses and residents, Supervisor John Venditto said he and the town board anticipate adopting a resolution.

"Just when you thought you've seen it all, along comes the MTA payroll tax," Venditto said. "There's this attitude of, 'I haven't handled my payroll well, so give me more money and don't tell me how to spend it.' It's the height of insanity."

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