The state Court of Appeals declined today to hear a direct appeal from counties in the New York City area hit with a payroll tax for being serviced by the Metropolitan Transportation Authority.
Nassau County has led a lawsuit against the MTA payroll tax implemented by the state Legislature in 2009. The supporters won a repeal in state Supreme Court, but were overturned in appeals court in June.
The plaintiffs sought an automatic right of appeal to the state’s highest court, saying the issue is a “substantial constitutional question.”
But in a ruling today, the Court of Appeals rejected that argument. Nassau County and the other plaintiffs can still ask that the Court of Appeals hear the case; they have 30 days to file an appeal.
Business in the Hudson Valley and Long Island have railed against the tax, which charges a 34-cent tax for every $100 of payroll.
Much of the tax was repealed in 2011 in a deal between Gov. Andrew Cuomo and the state Legislature, but it remains for large employers.
The 12-county MTA region includes Westchester, Rockland, Putnam and Dutchess counties. Most of the counties signed onto the lawsuit.