MTA tax punishes businesses, nonprofits for growth
It feels like just yesterday that the Dutchess County Regional Chamber of Commerce fought alongside many to fully repeal the Metropolitan Transportation Authority payroll tax. We believed the tax was unfairly levied on our area and an undue burden to economic growth in Dutchess County.
Despite a strong coalition of local elected officials, business owners and other stakeholders, we were successful in achieving only a partial repeal. As it stands, all businesses with an annual payroll below $1.25 million are exempt from the MTA tax, which is good, but the assessment still exists for those that exceed the threshold. Though this partial repeal was progress, we believed then and now that the existence of the tax for anyone is harmful to our area.
As it turns out, we were right, and we can prove it. Now, ironically, the chamber itself, a not-for-profit organization, is subject to MTA taxes! Recently, through innovation, creativity and the acquisition of several key grants, our organization has grown significantly. Much of this growth came in our Workforce Development Center, which connects adults and children who need assistance achieving their educational or professional goals. The center offers mentoring, tutoring and the career guidance resources they need to be more productive members of our community.
What was the chamber’s reward for hiring more staff and helping to effect more positive change for an underserved population? Higher taxes. While we, a private membership organization and not a government agency, believe in being good corporate citizens and contributing our fair share to the local coffers, something isn’t right here.
I’m proud of the work the employees in our Workforce Development Center and Youth One Stop do every day. Yet, I’m left to lament how much more we’d be able to do if we weren’t saddled with the MTA tax to help support what in the past has proven to be a mismanaged and wasteful organization. And as I see what we’re unable to accomplish, I wonder what other organizations in our area cannot do. Is there a company out there that had to cut employee-enrichment activities to pay its MTA tax burden? Is there a charitable contribution going unsent? How many vacant positions are going unfilled?
I find the MTA tax even more troubling now that New York state seems so focused on business attraction and retention. The chamber has supported Gov. Andrew Cuomo, a man who has publicly stated his opposition to the MTA tax, on initiatives like Start-Up NY, which offer some significant breaks in an effort to relocate new businesses to our state. But it’s not fair to the businesses that have been here for years, to not get left behind and remain burdened with yet another high tax.
The businesses and organizations harmed by the MTA tax have been the cornerstones of our communities for years. They’ve earned our trust, proven they care about supporting the Hudson Valley and should be further empowered to reinvest here – not funneling their profits down the Hudson to fund an MTA that for years has proven it cannot get its fiscal house in order.
Gov. Cuomo, state Senate Majority Coalition Leader Dean Skelos and Assembly Speaker Sheldon Silver need to right this wrong as soon as possible. Let’s stop damaging business attraction, retention and expansion in the Hudson Valley and create a climate that’s attractive for everyone’s economic development – new and old business alike. Let’s once and for all repeal the MTA tax for everyone.
Charles North is president and chief executive officer of the Dutchess County Regional Chamber of Commerce.