06 February 2023
Impact: High
Summary
Governor Kathy Hochul’s 2024 executive budget was introduced on February 1, 2023. Among the proposed changes, the transportation budget bill proposes to increase the top rate of the Metropolitan Commuter Transportation Mobility Tax (MCTMT).
The Detail
The MCTMT is a tax imposed on certain employers and self-employed individuals engaging in business within the metropolitan commuter transportation district (MCTD). This department administers the tax for the Metropolitan Transportation Authority. The MCTD includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester. An employer is subject to the MCTMT if they are required to withhold New York State income tax from wages and their payroll expense exceeds $312,500 in any calendar quarter.
Currently, the MCTMT applies to an employer’s payroll expense for covered employees for each calendar quarter multiplied by the applicable MCTMT rate as shown in the table below:
| Payroll Expense | MCTMT Rate |
| Over $312,500 but not over $375,000 | .11% (.0011) |
| Over $375,000 but not over $437,500 | .23% (.0023) |
| Over $437,500 | .34% (.0034) |
The proposed executive budget would increase the highest rate of 0.34% to 0.5%. The increase in rate is expected to generate over $800 million in annual increased funding for the Metropolitan Transportation Authority (MTA).
How we can help
The MCTMT is currently reviewed on NYS Withholding and MCTMT payroll audits, and we’ve seen employers pay large assessments due to improper employee tax setup or not taxing deferred compensation when employees relocate out of NYS and the MCTD. Vialto can assist you with ensuring compliance with the MCTMT.
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
• Tina Schrob, Partner | cristina.g.schrob@vialto.com
• Greg Fetter, Partner | gregory.fetter@vialto.com
• Ligeia Donis, Partner | ligeia.m.donis@vialto.com
• Jessica Castro, Director | jessica.j.castro.acevedo@vialto.com
• Jacob Webb, Senior Manager | jacob.d.webb@vialto.com
Further information on Vialto Partners can be found here: www.vialtopartners.com
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