Statement of the Partnership on the Proposed Increase in the Payroll Mobility Tax

“The Partnership for New York City opposes any increase in the Payroll Mobility Tax (PMT) to replace the $1 billion annual revenues that were to be generated by congestion pricing tolls. Taxes on business and real estate already account for 44% of the MTA revenues. Rider fares represent another 27%. Tolls from vehicles are only 13% of MTA funding, an inequitable allocation that congestion pricing would have helped correct. The MTA was depending on congestion pricing tolls to fund a portion of the current, $50 billion capital program, but the next five-year capital program is unfunded and will likely require an increase in the PMT in 2025. The size of needed increases in the PMT are not “tweaks.” Without congestion pricing tolls, the dependence on the PMT to fund all the MTA needs is unsustainable. In addition, the proposed PMT increase is targeted solely at employers in the five boroughs with payrolls of $1.75 million or more, as opposed to taxing the entire MTA region. A third of the employees who work in Manhattan do not live in the city but in the surrounding suburbs, including New Jersey and Connecticut. Congestion pricing spread the MTA funding burden equitably across all the constituencies that benefit from the mass transit system that supports the tri-state regional economy. The PMT burden is entirely on New York City, which is already the most highly taxed city in the country. The Governor should allow congestion pricing to move forward.”