New York Local Metropolitan Commuter Transportation Mobility Tax (NY Local MCTMT) for Employers

The New York Local Metropolitan Commuter Transportation Mobility Tax (NY Local MCTMT) is intended to support the extensive transportation infrastructure in the New York metropolitan area. Employers within this district are obligated to calculate and pay this tax, and its rate is determined by the specific zones in which the employer does business.

Key Takeaways

1. Zone-Based Taxation: The NY Local MCTMT rate varies based on the zone in which the employer engages in business. Zone 1 covers New York City boroughs, while Zone 2 includes surrounding counties. Understanding the employer's zone is crucial for determining the tax rate.

2. Default Rate: Unless rates are determined to be different, employers are subject to the maximum default tax rate, which also varies by zone. Zone 1 has a default rate of 0.60%, Zone 2 has a default rate of 0.34%

3. Administrative Control: To customize their NY Local MCTMT rates, employers can adjust tax rates easily and make decisions on whether changes should be applied zone-wide or limited to specific counties. This customization allows employers to optimize their tax liabilities based on their specific circumstances.

Zone Classification

The NY Local MCTMT rate varies depending on the zone in which the employer's base of operations is located:

Zone 1

Zone 1 includes the following counties:

• New York (Manhattan)
• Bronx
• Kings (Brooklyn)
• Queens
• Richmond (Staten Island)

Zone 2

Zone 2 includes the following counties:

• Rockland
• Nassau
• Suffolk
• Orange
• Putnam
• Dutchess
• Westchester

Default Tax Rate

NY Local MCMT ER will only use the defaulted rate [maximum] for the determined zone, unless the rate is overwritten. The default rate for this tax is set at 0.60% for Zone 1 and 0.34% for Zone 2.

Rate Customization

If an employer determines that they qualify for a lower rate, the system has the flexibility to configure each county in Zone 1 and Zone 2 under:

Admin Tools > Employer > Tax > Tax Rate

Overriding the Default Rate

Employers can configure the tax rate for each county within Zones 1 and 2 individually. When modifying the MCTMT rate for one county within a specific zone, the user will be prompted to decide whether they want to apply this override rate to all counties within that same zone or just to the individual county:

• • Yes: Selecting "Yes" will result in applying the new MCTMT rate to all counties in that zone. This is a convenient option for employers who wish to maintain uniformity in tax rates across their operations within a zone.

  • No: Choosing "No" will apply the new MCTMT rate only to the specified county, leaving the rates for other counties in that zone unaffected. This option grants employers granular control over their tax liabilities.