Cortlandt Business Owners Laud the MTA Tax Break

MONTROSE, N.Y. – Business owners and elected officials are lauding the MTA Payroll Tax cut enacted by Governor Andrew Cuomo on Monday. Many business owners agree that every little bit helps when the cost of doing business appears to be rising across the board.

“Thank god,” said Danny Alo of Two Brothers Trattoria in Montrose, about the payroll tax cut. “It’s a ridiculous tax. I never used that train in my life. I’m going to call my accountant, I’m going to celebrate.” Alo said he spent $900 a year or more on the tax, as a pizza parlor is a labor intensive business model.

“Between that and all the fees, liquor license, health department license, workers comp, every year the fees go up and up and up. As a business owner, I don’t know how we’re supposed to survive,” he said.

Until the recent change in the law, the MTA Payroll tax cost small business owners 34 cents for every $100 in payroll. The tax will be eliminated for small businesses, which are defined as businesses with an annual payroll between $10,000 and $1.25 million, according to the governor’s official website.  The elimination of the tax affects more than 25,000 businesses in Westchester County.  Businesses with payrolls between $1.25 and $1.75 million will have their payroll taxes cut by either 1/3 or 2/3, according to the governor’s website. 

John Mattis, a financial service professional who works with a number of small businesses in the area said, “Any tax cut is helpful, especially in these economic conditions. It’s particularly helpful for small businesses who are struggling today. It certainly isn’t going to boost the economy, but some small businesses and sole proprietors, right now, that $900 to $2,000 is a big number.”

He continued, “This may make the difference between a company offering a fringe benefit and not offering a fringe benefit, margins in small businesses are very, very tight.”

Public and private schools will also be exempt from the tax. Public schools were reimbursed for the cost of the tax, but still had to plan for the expense upfront. Larger employers, like the Hudson Valley Hospital Center, will be impacted less dramatically by the tax.

Some transit officials have criticized the move by the governor, saying the reimbursement the state will provide will not grow revenue the way a payroll tax might.

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