The zombie lawsuit to overturn the MTA payroll mobility tax has finally hit a dead end. New York’s Court of Appeals, the state’s top judicial body, has upheld the tax. The measure, a 34-cent tax on every $100 of payroll, has not been popular amongst Republican suburban legislators, but the MTA has long maintained, as they did last June, that “removal of the tax’s revenues would have had a catastrophic impact” on the region’s economy and transit system. Today’s dismissal, without comment from any judges, is a victory and should put an end to the legal wrangling over the tax.
The PMT grew out of the MTA’s last financial crisis when state legislators approved a mix of fees and taxes to bolster the agency’s bottom line. It was deeply unpopular outside of the city, and after a variety of unsuccessful challenges, plaintiffs found a sympathetic ear on Long Island. While one judge found the tax unconstitutional on shaky legal grounds, the Appellate Division revsered course. For the tax to fall now, politicians will have to step in with better solutions and replacement funds.
In responses to today’s ruling, those politicians are well aware of what awaits. Lee Zeldin, who has made a career out of opposition to the payroll tax, spoke against the court’s decision, and Nassau County Executive Ed Mangano declared a Pyrrhic victory as the structure of the tax has changed over the years. Meanwhile, other state reps from north of the city have recognized that the tax is, absent a significant amount of horse-trading, here to stay.