START-UP NY: MCTMT exemption for employers
The metropolitan commuter transportation mobility tax (MCTMT) exemption eliminates the MCTMT on the payroll expense attributable to an approved business location within the MCTD* for 40 consecutive calendar quarters. The exemption begins with the calendar quarter during which the business locates in the tax-free NY area.
How to compute your MCTMT
Step 1 Calculate your total payroll expense for employees within the MCTD.
Include all employees within the MCTD, including those inside and outside the tax-free NY area.
Use this amount to determine the rate at which your tax is calculated (.11%, .23% or .34%; see Employers: MCTMT).
Step 2 Then subtract from the total payroll expense the amount of payroll expense from the tax-free NY area within the MCTD.
Step 3 Multiply the amount in Step 2 by the rate determined in Step 1.
Example: Taxpayer A has payroll expense of $500,000 in the MCTD of which $300,000 is payroll expense attributable to a tax-free NY area within the MCTD. Since the payroll expense is over the threshold of $437,500 the applicable rate is .34%. Taxpayer A's MCTMT is $680 ($200,000 x .34%).
How to claim the exemption
You must have an Online Services account and Web File your quarterly MCTMT return. This will allow you to provide complete information to compute your tax correctly.
Web upload filers you may not include START-UP NY businesses in upload files. You must separately Web File for those businesses.
*MCTD is the Metropolitan Commuter Transportation District