Taypayer Revolt: Putnam Legislature Refuses to Pay MTA Mobility Tax

It's being called a taxpayer's revolt. In a shocking and surprise move, the Putnam County Legislature Monday voted to refrain from paying the Metropolitan Transportation Authority a "single penny" for the state's recently enacted MTA Mobility Tax that will cost businesses in the commuter region millions of dollars.

Legislator Mary Ellen Odell of Carmel described her colleague's actions as "an act of civil disobedience."

Legislator Vincent Tamagna of Cold Spring told a small audience attending the Legislature's Audit and Administration Committee meeting, "We must draw the line. This levy is taxation without representation. The tax is grossly unfair and is a geographic issue. The MTA doesn't care about the residents north of the Big Apple, which is too bad."

Under the state's plan, 34 cents of every $1,000 earned by residents of the counties surrounding New York City will be paid to the MTA.

Legislature Chairman Tony Hay of Southeast called the state's decision "egregious" for the mobility tax to propose that Putnam employers be taxed at the same rate as counties that have a full vote on the MTA Board.

The board consists of 16 members but appointees to the commission from Putnam, Dutchess, Orange, and Rockland have one shared vote.

Hay also blasted the MTA for "taking revenue from notfor profit organizations that serve the handicapped and disabled, which will significantly reduce their limited funds and services to the most needy segment of the county's population."

Despite the lawmakers' decision, Commissioner of Finance William Carlin forecast that the local taxpayer will lose in the end because the state will withhold the amount due to the MTA from other reimbursements.

Legislator Hay piped up, "Shame on them!"

Carlin called the action a "fact of life. Albany is holding our purse strings."

Legislator Tamagna replied, "Let's take the MTA to court. Until we take a step forward and tell the state— 'sorry Charlie—not this time'—the morass will continue. Putnam County must become the 'little engine that could!' It is grossly unfair that the MTA be allowed to waste the money uncontrolled without any oversight. The Attorney General and State Comptroller must begin an immediate audit of the MTA to stop the business-as-usual mentality that is bankrupting this state."

Chairman Hay said, "Putnam must take a stand. All we hear is more of the same rhetoric and nonsense. The people of our county have to realize that we are doing our job by looking out for their best interests. The mobility tax is unfair, unreasonable and unwarranted."

Legislator Mary Conklin of Patterson, who chairs the Audit Committee, voted to eliminate the tax because, "local business will suffer. The tax will put some businesses out of business."

Contacted in Albany Monday night, State Senator Vincent Leibell praised the Putnam Legislature's action: "I understand their frustration. Hopefully with this strong statement, refusal to pay, and determination to succeed, some attention will be received from Governor Paterson."

Assemblyman Greg Ball, meanwhile, has demanded the creation of a fiscal oversight control board to increase the MTA's accountability and efficiency.

Ball wants the board to freeze salaries and benefits for MTA employees and approve MTA contracts exceeding $100,000 as well as conducting forensic audits of MTA finances.

The Putnam legislation that will be formally adopted at next week's full meeting of the nine-member governing body also calls on the State Legislature to enact legislation enabling Putnam to withdraw from the Metropolitan Commuter Transportation District.