County Executive Robert P. Astorino introduced legislation recently that would allow Westchester to join a lawsuit against the State of New York challenging the legality of the payroll tax being imposed on local employers by the Metropolitan Transportation Authority.   

The lawsuit, initiated in July by Nassau County, takes aim at the MTA’s mobility tax, questioning the constitutionality of the levy as a way for the agency to make up its $1.8 billion deficit. The tax affects employers in the 12-county area in and around New York City that receive transportation services from the MTA.

Astorino noted that county residents are already paying about $165 million to support the MTA as well as the highest property taxes in the nation.

“This was a poorly thought-out and hastily implemented decision by the state that makes no sense given the economics we live with every day. In fact, it’s only making things worse,” Astorino said. “Yes, the MTA is hurting, but so are we. They’re just adding insult to injury by piling on one more tax and giving businesses another reason to leave the state.”

Astorino’s proposed legislation will be submitted today. For the county to join the lawsuit, the legislation must be passed by a majority of the County Board of Legislators’ 17 members. Legislator John Testa (R-Peekskill) has been spearheading the effort among board members to have the county join the lawsuit.

“It is time that Westchester County joins its counterparts throughout the region in challenging the unconstitutionality of this unfair tax,” Testa said. “In light of the egregious waste and abuse uncovered in recent audits by the New York State Comptroller’s office, we owe it to our school districts, businesses and not-for-profits to do everything we can to ease their tax burden and save jobs.”

Legislator John Nonna (D-Mount Pleasant) joined Testa in introducing the resolution that will be considered by the legislation committee.

"I believe there are strong arguments against the constitutionality of this tax which imposes an unfair and illegal burden on Westchester businesses," Nonna said.

Passed by the State Legislature last year, the mobility tax requires all employers in New York City, as well as Westchester, Putnam, Dutchess, Rockland, Orange, Nassau and Suffolk counties, to pay 34 cents for every $100 spent in payroll to the MTA. The tax affects school districts and local municipalities, non profits and private business – which will pay over $103 million a year in new payroll taxes.

Nassau’s lawsuit claims the tax is “unconstitutional and illegal” because it impinges on the home rule powers of local municipalities and went into effect without a two-thirds vote in the State Legislature. The lawsuit has the support of Suffolk and Putnam counties, as well as several towns in Orange County. Rockland County has filed its own lawsuit.

The lawsuit will be handled by Westchester County’s attorney’s office at no additional cost.