Your guide to NYC's public proceedings.
Q&A
Council member inquires about payroll mobility tax and MTA revenue projections
0:21:39
ยท
105 sec
Council Member Brooks-Powers questions MTA officials about the increased payroll mobility tax and its projected growth. The MTA Co-Chief Financial Officer explains that the tax is part of a package to solve the MTA's fiscal deficit and is projected to provide about $1.1 billion in additional revenue annually.
- The payroll mobility tax increase was levied on NYC businesses in the 2023-2024 state budget
- The tax is projected to grow from $3.7 billion in 2024 to $4 billion in 2028
- The revenue helps backfill the drop in farebox revenue due to COVID-19
Selvena N. Brooks-Powers
0:21:39
I wanna start with cost shifts.
0:21:41
So in the 2023 to 2024 state budget, there was an increased payroll mobility tax increase levied on New York City businesses.
0:21:53
In 2024, the final estimated receipts from payroll mobility tax and MTA aid was $3,500,000,000, an $803,000,000 increase from 2023.
0:22:08
This calendar year, the MTA sees this tax growing from $3,700,000,000 this year to 4,000,000,000 in 2028.
0:22:18
Does the MTA project this revenue source to continue to grow in later years?
Demetrius Crichlow
0:22:26
I'm gonna ask Jay to take that question.
Jai Patel
0:22:28
Thank you.
0:22:30
So as part of the official cliff solve, the increase to the PMT was part of package of initiatives that the state delivered.
0:22:39
Part of it was new revenue sources, as you cited, from the payroll mobility taxes.
0:22:45
And that piece, the MTA's four hundred million dollars efficiencies, helped us solve over a billion dollars, almost $2,000,000,000 of fiscal deficit that we had.
0:22:57
The payroll mobility tax was always projected to be about 1,100,000,000 in additional revenue in the operating budget.
0:23:06
That is what is forecasted and that's what is anticipated for the financial plan.
0:23:12
It fluctuates but very slightly based on, you know, the payroll within the city and the suburbs, but constant it's about constantly about $3,000,000,000 overall.