New York Income Tax: Appellate Court Upholds MCTMT

A New York appellate court has reversed a lower court’s ruling that the metropolitan commuter transportation mobility tax (MCTMT) was unconstitutionally passed by the Legislature without a home rule message. The lower court found that the tax was a special law that did not serve a substantial state interest. However, the appellate court concluded that the law, which provides a funding source for the preservation, operation, and improvement of essential transit and transportation services in the Metropolitan Commuter Transportation District, does serve a substantial state concern. Therefor, the law was not unconstitutionally passed without a home rule message.

Mangano v. Silver, Appellate Division of the Supreme Court of New York, Second Department, Nos. 2012-09463 and 2012-09991, June 26, 2013