Westchester May Join Suit Against MTA Tax

Westchester County Executive Robert Astorino wants to join a lawsuit challenging the legality of a tax enacted last year to help fund mass transit capital projects in the New York City area, he announced Wednesday.

The tax has been unpopular in suburban counties hit by the payroll mobility tax, which taxes employers’ payrolls in the 12 counties served by the Metropolitan Transit Authority.

The MTA disclosed last month in an official statement that two counties, a school district and four towns had filed suits since June seeking declaratory relief from the tax and barring of future collections.

Astorino announced in a press release Wednesday that he would introduce legislation to allow the county to join a lawsuit, but did not specify which one. Nassau and Rockland counties, the William Floyd Union Free School District and the Suffolk County towns of Brookhaven, Southampton, Southold and Huntington filed suits against Gov. David Paterson, the state, the MTA and other officials regarding the tax.

The tax was passed by the Legislature as part of a rescue package intended to support $6 billion of bonds as part of the agency’s $26.27 billion, five-year capital plan. The MTA has sold short-term debt using the tax as partial security, but has not yet sold long-term bonds. Agency officials have said they intend to create a separate credit using the revenue stream for long-term debt.

Earlier this year the authority disclosed that tax receipts were expected to come in $350 million lower in 2010 than the projected $1.54 billion.

MTA spokesman Aaron Donovan said the lawsuits were without merit and the authority would litigate them vigorously.

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