Commuter tax: Difference between revisions
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A '''commuter tax''' is a [[tax]] (generally on either income or wages) levied upon persons who work in a [[jurisdiction]], but who do not live (are not domiciled) in that jurisdiction. For example, [[Philadelphia]] has a 3.928% wage tax on residents and a 3.4985% tax on non-residents for wages earned in the city as of July 2010.<ref> |
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| ⚫ | A '''commuter tax''' is a [[tax]] (generally on either income or wages) levied upon persons who work, but do not live, in a particular jurisdiction. The argument for a commuter tax is that it pays for public services, such as police, fire, and sanitation, received by and beneficial to people who work within the jurisdiction levying the commuter tax. Arguments against such a tax are that it acts as an incentive for businesses to relocate outside of the jurisdiction, along with their residents.<ref> |
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{{cite web |
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|url=http://www.ntu.org/main/press_papers.php?PressID=148&org_name=NTUF |
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| ⚫ | The argument for a commuter tax is that it pays for |
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}}</ref> In some cases, individual cities may be barred from enacting a commuter tax even though the state governments may impose a non-resident income tax. States may choose to enter "reciprocal tax agreements" to exempt non-residents from some local taxes.<ref>{{cite web|last=Ditmer|first=Robert W.|title=State Tax Reciprocal Agreements|url=http://www.payroll-taxes.com/articles/175-state-tax-reciprocal-agreements.htm|publisher=Payroll-Taxes.com|access-date=10 July 2012}}</ref> |
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Until 1999, [[New York City]] had a commuter tax, and there are periodic calls for its reinstatement.<ref> |
Until 1999, [[New York City]] had a commuter tax, and there are periodic calls for its reinstatement.<ref> |
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{{cite news |
{{cite news |
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|url= https://www.nytimes.com/2008/11/24/nyregion/24mta.html?_r=1&scp=1&sq=%22the%20new%20york%20city%20comptroller%22&st=cse |
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|title= Proposal to Raise Car Fees |
|title= Proposal to Raise Car Fees |
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|work= [[The New York Times]] |
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{{cite news |
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|url= http://www.silive.com/opinion/letters/index.ssf/2011/02/tax_commuters_to_defray_new_yo.html |
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|title= Tax commuters to defray New York City costs |
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|date=2011-02-16 |
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}}</ref> A commuter tax in New York City would have to have support from the State Legislature in order for reinstatement, and since the majority of state legislators represent people who do not live in New York City, the tax tends to be unpopular.<ref> |
}}</ref> A commuter tax in New York City would have to have support from the State Legislature in order for reinstatement, and since the majority of state legislators represent people who do not live in New York City, the tax tends to be unpopular.<ref> |
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{{cite news |
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|url= https://www.nytimes.com/2002/12/09/opinion/the-commuter-s-fair-share.html |
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|title= The Commuter's Fair Share |
|title= The Commuter's Fair Share |
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|work= The New York Times |
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|date= 2002-12-09 |
|date= 2002-12-09 |
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While the city of New York is barred from charging its own commuter tax, the state of New York does impose an income tax on non-residents that work in the state.<ref>{{cite web|last=Noonan|first=Timothy P.|title=The Ins and Outs of New York Nonresident Allocation Issues|url=http://www.hodgsonruss.com/Home/Practice_Areas/Alphabetical_Listing/State_Local_Tax/NoonansNotes/TheInsandOutsofNewYorkNonresidentAllocationIssues|work=State Tax Notes|publisher=Hodgson Russ LLP|access-date=10 July 2012|date=February 26, 2010}}</ref> In 2009, New York enacted the Metropolitan Commuter Transportation Mobility Tax, a 0.34% levy on payrolls and self-employment earnings in New York City and Nassau, Suffolk, Westchester, Rockland, Orange, Putnam, and Dutchess counties. This tax, known popularly as the "mobility tax", or the "MTA tax", is intended to provide funds for the [[Metropolitan Transportation Authority]], which transports many of the region's commuters.<ref>{{citation |url=http://www.mrweiser.com/SiteObjects/1B0BC596BF2601E94C167813D55BB623/Weiser%20Tax_Metropolitan%20Commuter%20Transportation%20Mobility%20Tax.pdf |archive-url=https://web.archive.org/web/20120417132033/http://www.mrweiser.com/SiteObjects/1B0BC596BF2601E94C167813D55BB623/Weiser%20Tax_Metropolitan%20Commuter%20Transportation%20Mobility%20Tax.pdf |url-status=dead |archive-date=2012-04-17 |title=Metropolitan Commuter Transportation Mobility Tax |work=Weiser Tax |date=May 2009 }}</ref> |
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[[Philadelphia]] has a 3.924% wage tax on residents and a 3.495% tax on non-residents for wages earned in the city as of August 2013.<ref> |
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|url= http://www.phila.gov/Revenue/businesses/taxes/Pages/WageTax.aspx |
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|access-date= 2013-08-21 |
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| ⚫ | [[Washington, D.C.]], has sought to enact a commuter tax to recover costs of providing city services to the approximately 300,000 people who commute to the city from suburban [[Maryland]] and [[Virginia]]. However, in the 1973 [[District of Columbia Home Rule Act]], the [[U.S. Congress]] barred the city from enacting such a tax .<ref>Eric M. Weiss, [https://www.washingtonpost.com/wp-dyn/content/article/2005/11/04/AR2005110401052.html D.C.'s Bid To Impose Commuter Tax Denied], ''[[The Washington Post]]'', Saturday, November 5, 2005; Page A01</ref> |
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==See also== |
==See also== |
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* [[Employer transportation benefits in the United States]] |
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* [[Income tax]] |
* [[Income tax]] |
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* [[Payroll tax]] |
* [[Payroll tax]] |
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[[Category:Personal taxes]] |
[[Category:Personal taxes]] |
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[[Category:Taxation in the United States]] |
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Latest revision as of 19:40, 31 January 2022
A commuter tax is a tax (generally on either income or wages) levied upon persons who work, but do not live, in a particular jurisdiction. The argument for a commuter tax is that it pays for public services, such as police, fire, and sanitation, received by and beneficial to people who work within the jurisdiction levying the commuter tax. Arguments against such a tax are that it acts as an incentive for businesses to relocate outside of the jurisdiction, along with their residents.[1] In some cases, individual cities may be barred from enacting a commuter tax even though the state governments may impose a non-resident income tax. States may choose to enter "reciprocal tax agreements" to exempt non-residents from some local taxes.[2]
Until 1999, New York City had a commuter tax, and there are periodic calls for its reinstatement.[3][4][5] A commuter tax in New York City would have to have support from the State Legislature in order for reinstatement, and since the majority of state legislators represent people who do not live in New York City, the tax tends to be unpopular.[6]
While the city of New York is barred from charging its own commuter tax, the state of New York does impose an income tax on non-residents that work in the state.[7] In 2009, New York enacted the Metropolitan Commuter Transportation Mobility Tax, a 0.34% levy on payrolls and self-employment earnings in New York City and Nassau, Suffolk, Westchester, Rockland, Orange, Putnam, and Dutchess counties. This tax, known popularly as the "mobility tax", or the "MTA tax", is intended to provide funds for the Metropolitan Transportation Authority, which transports many of the region's commuters.[8]
Philadelphia has a 3.924% wage tax on residents and a 3.495% tax on non-residents for wages earned in the city as of August 2013.[9]
Washington, D.C., has sought to enact a commuter tax to recover costs of providing city services to the approximately 300,000 people who commute to the city from suburban Maryland and Virginia. However, in the 1973 District of Columbia Home Rule Act, the U.S. Congress barred the city from enacting such a tax .[10]
See also
[edit]References
[edit]- ^ Gessing, Paul (June 18, 2003). "Commuter Taxes: Milking Outsiders for All They're Worth". NTUF Policy Paper 141. Archived from the original on September 28, 2007. Retrieved March 13, 2008.
- ^ Ditmer, Robert W. "State Tax Reciprocal Agreements". Payroll-Taxes.com. Retrieved July 10, 2012.
- ^ McMahon, E.J. "Wrong Time For A Commuter Tax". Retrieved March 13, 2008.
- ^ Moynihan, Colin (November 23, 2008). "Proposal to Raise Car Fees". The New York Times. Retrieved April 30, 2010.
- ^ "Tax commuters to defray New York City costs". February 16, 2011.
- ^ "The Commuter's Fair Share". The New York Times. December 9, 2002. Retrieved March 13, 2008.
- ^ Noonan, Timothy P. (February 26, 2010). "The Ins and Outs of New York Nonresident Allocation Issues". State Tax Notes. Hodgson Russ LLP. Retrieved July 10, 2012.
- ^ "Metropolitan Commuter Transportation Mobility Tax" (PDF), Weiser Tax, May 2009, archived from the original (PDF) on April 17, 2012
- ^ "Philadelphia Department of Revenue". Retrieved August 21, 2013.
- ^ Eric M. Weiss, D.C.'s Bid To Impose Commuter Tax Denied, The Washington Post, Saturday, November 5, 2005; Page A01
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