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(08/23/12) YONKERS – The MTA payroll tax has been ruled unconstitutional by a state Supreme Court judge.
The tax was supposed to save the cash-strapped MTA during the height of the recession, but widespread criticism helped lead to its partial repeal.
Last December, the state Senate passed the bill that repealed the MTA payroll tax for 80 percent of the businesses that pay it, but municipalities and their payrolls were not exempt. Lawsuits were then filed by a half a dozen of the municipalities.
Now, local politicians who worked to overturn the tax say they want a refund. If a refund is granted, the MTA could lose $1.5 billion.