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MTA Payroll Tax Ruled Unconstitutional

Zeldin says it's a tax that "should have never been passed in the first place."

It cost state Sen. Brian Foley his political career and now it's been deemed unconstitutional. The highly unpopular MTA Payroll Tax payroll tax was struck down by a State Supreme Court judge on Wednesday. 

According to Reuters, a State Supreme Court judge in Nassau County said in his ruling that because the law applies to only 12 counties in the state — and neither home rule messages nor two-thirds votes in the State Legislature were obtained — the legislation was passed illegally.

“The MTA Payroll Tax is an unconstitutional, job killing tax, which should have never been passed in the first place,” State Sen. Lee Zeldin, R-Shirley, said in a state Wednesday. “I was proud to lead the fight for a repeal in the State Legislature and am thankful that the New York State Supreme Court has ruled it unconstitutional. I congratulate the plaintiffs of the lawsuit for fighting for this decision.”

Zeldin Foley in 2010 and he slammed the Democrat constantly for voting for in favor of the MTA tax. 

The MTA reportedly plans on appealing Wednesday's ruling.

The ruling will reportedly put the MTA out about $1.5 billion per year, while that cash will remain in the pockets of businesses, municipalities, and taxing districts, many of which called the tax unnecessary.

When adopted in 2009, the tax imposed a 34-cent tax for every $100 of payroll.

After considerable outrage throughout the first couple of years of the tax, the MTA rolled it back at the end of 2011, eliminating it entirely for businesses with an annual payroll under $1.25 million. The , in a bill introduced by Zeldin, though the measure never got the required support from the Assembly.

“Today is a big victory for Long Island taxpayers,” Zeldin said Wednesday. “The MTA Payroll Tax was not only unconstitutional but also a great burden on the economy of Long Island and suburbs north of New York City. We must support our nation’s largest mass transit system, but we can’t be reckless with how we go about that important mission.

Click here to read the Reuters story.

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