Supreme Court judge rules MTA payroll tax unconstitutional

PEEKSKILL - The Metropolitan Transit Authority (MTA) payroll tax has been ruled unconstitutional by a state Supreme Court judge. The MTA stands to lose $1.2 billion if the state Supreme Court ruling stands and the controversial payroll tax goes away. The tax, designed to close the agency's $1.8 billion budget gap, allowed the MTA to collect 34 cents for every $100 of payroll from employers in the service area. Now, politicians who worked to overturn the tax want to see all that money refunded.The MTA, which operates Metro-North, the Long Island Rail Road and the New York City Transit System, is vowing to vigorously appeal the ruling.While small business owners are rejoicing, commuters are wondering if the Supreme Court ruling will affect their pockets in the form of higher fares. Without the tax, MTA officials say they may be forced to make service cuts and hike fares.

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