Business & Tech
Slashing the MTA Tax Good News for Local Business
Downtown business owners say they are thankful to have one less tax to worry about.
Harrison business owners were in a good mood Monday afternoon, as recently approved cuts to the controversial MTA tax were signed into law.
The New York State Legislature approved cuts to the MTA tax last week, which eliminates the tax for MTA region businesses with a payroll between $10,000 and $1.25 million. Since 2007 those businesses were forced to pay a tax on their overall payroll toward MTA funding.
Lawmakers officially signed the tax cut Monday afternoon in New Hempstead.
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The change eliminates the tax entirely for most of Harrison's small businesses, including on Halstead Avenue, where owner Joseph Lodovico said he opposed the tax from day one.
"It didn't make any sense to begin with," said Lodovico. "It's a nuisance tax as far as I'm concerned—it's ridiculous."
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Lodovico said he had been spending upward of $1,000 per year on what he called an unnecessary tax. Now he can spend that money in other areas, which is critical in an economy where every dollar counts.
"I love it," he said. "It's probably a couple more bills that are going to be paid on time."
In total more than 290,000 of New York's small businesses and 410,000 self-employed New Yorkers will see tax relief as a result of the bill. The cut eliminates the tax completely for more than 25,000 Westchester County businesses.
Larger businesses with a payroll between $1.25 million and $1.75 million will see their share of the tax reduced by either one third or two-thirds.
The largely unpopular tax had been a sticking point for years for Westchester businesses that felt they had been unfairly burdened regardless of how often they actually use the MTA. Harrison's businesses that don't use the MTA to transport employees or gain customers had found the bill particularly unfair.
"It's definitely a good thing," said Anthony D'Arpino, owner of . "Especially if you fall under that umbrella, but people aren't using the MTA to get to your business."
New York State will still compensate the MTA for revenue lost through the tax cut.
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