United States

New York: MTA Surcharge Increased for 2017 Tax Year

Jan 16, 2017
From KPMG TaxWatch

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The Metropolitan Transportation Business Tax Surcharge (MTA Surcharge) is imposed on the portion of New York State franchise tax (before the deduction of credits) allocated to the Metropolitan Commuter Transportation District (MCTD). Under the state’s 2014 tax reform legislation, for tax years beginning on or after January 1, 2016, the MTA surcharge rate is to be determined by the Commissioner by regulation so as to ensure that the revenues attributable to the surcharge remain revenue neutral.

In December 2016, the New York Department of Taxation and Finance amended regulations (as an emergency measure) providing that for tax years beginning on or after January 1, 2017, and before January 1, 2018, the MTA surcharge rate has increased from 28 percent to 28.3 percent. It should be noted that on the generally applicable 6.5 percent business income tax rate for 2017, the surcharge equates to an additional 1.839 percent. These regulations were published in the state register on December 21, 2016. This rate will remain in effect until the Commissioner sets a new rate. Please see TSB-M-17(1)C or contact Russ Levitt at 212-872-6717 with additional information.

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.