START-UP NY: MCTMT exemption for self-employed individuals (including partners)
The metropolitan commuter transportation mobility tax (MCTMT) exemption eliminates the MCTMT on your net earnings from self-employment attributable to your approved business location within the metropolitan commuter transportation district (MCTD) for a tax benefit period of 10 consecutive years. The exemption begins with the tax year the approved business locates in the tax-free NY area.
How to compute your MCTMT
You must still report annual MCTMT information if your total net earnings from self-employment allocated to the MCTD (both inside and outside the tax-free NY area) exceed $50,000 for the tax year. However, your net earnings attributable to the tax-free NY area within the MCTD are excluded from the computation of your MCTMT liability.
| Step1 | Calculate your total net earnings from self-employment in the MCTD, including earnings inside and outside the tax-free NY area. Use this amount to determine if you exceed the $50,000 threshold and are subject to MCTMT. |
| Step 2 | Subtract from your total net earnings the net earnings from self-employment from the tax-free NY area within the MCTD. |
| Step 3 | Multiply the amount calculated in Step 2 by .34%. |
Example: Taxpayer A is a partner in two partnerships. Taxpayer A has total net earnings from self-employment within the MCTD of $100,000 of which $60,000 is from a partnership in the tax-free NY area within the MCTD. Taxpayer A's MCTMT is $136 ($40,000 x .34%).
How to claim the exemption
Complete Form IT-6-SNY, Metropolitan Commuter Transportation Mobility Tax (MCTMT) for START-UP NY, to report the amount of net earnings from self-employment earned in the tax-free NY area within the MCTD. Any remaining net earnings subject to the MCTMT, not earned in a tax-free NY area in the MCTD, will be reported on your New York State personal income tax return, Form IT-201, Resident Income Tax Return, or Form IT-203, Nonresident and Part-Year Resident Income Tax Return.
