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Bill

S 3713

Exempts institutions of higher education from the metropolitan commuter transportation mobility tax

2025 Regular Session Introduced by Andrew Lanza and 1 co-sponsor

Exempts New York colleges and universities from MTA payroll tax, potentially reducing transit funding while shifting tax burden to other employers.

REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
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Bill Summary · S 3713

Legislative bill overview

Senate Bill S 3713 would exempt colleges and universities in New York from paying the metropolitan commuter transportation mobility tax (MTA tax). This tax, established in 2019, is a payroll tax on employers in the MTA region that helps fund public transit operations. The bill would remove higher education institutions from this tax obligation.

Why is this important

The MTA tax generates hundreds of millions of dollars annually for subway, bus, and commuter rail services that many students, faculty, and staff rely on. Exempting colleges could reduce transit funding while potentially shifting tax burden to other employers, or it could lower operational costs for educational institutions that might redirect savings to other uses. New York's public transit system already faces chronic funding challenges.

Potential points of contention

  • Transit funding impact: Removing a major employer category could create a significant revenue gap for the MTA unless offset by other funding sources or increased taxes on remaining employers
  • Equity concerns: Other large employers and small businesses would effectively subsidize higher education through proportionally higher tax burdens
  • Definition scope: Unclear whether exemption covers all institutions (public, private, for-profit) or has enrollment/revenue thresholds, creating potential loopholes or unintended consequences

Compiled from official sources — confirm details with the bill’s official record.

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