Government

Senate passes bill to exempt libraries from MTA payroll tax

JENNIFER GUSTAVSON FILE PHOTO | State Senator Ken LaValle voted in favor Monday of exempting libraries from the MTA payroll tax.

The state Senate passed legislation Monday to exempt libraries from the controversial Metropolitan Transit Authority payroll tax.

Approved in 2009, the tax currently imposes a .21 percent levy on payroll for employers, including schools and governments in Suffolk County with payrolls above $1.25 million.

The new legislation aims to help libraries meet the needs of their communities since library usage has increased by 11 percent since 2007 while state funding for libraries has declined by 23 percent, according to the bill.

Senator Ken LaValle (R-Port Jefferson) said in a press release that he supported the legislation sponsored by fellow Long Island Republican Jack Martins.

“Repealing the tax would save libraries in the downstate MTA region $1.3 million annually,” Mr. LaValle said.

Now that the bill has passed in the Senate, where Republicans have a narrow majority, it has been introduced in the Democratically dominated Assembly.

In January, the Senate passed a bill co-sponsored by Mr. LaValle to repeal the MTA payroll tax for certain small businesses, public and private schools and other entities with payrolls under $1.25 million.

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