Date: Fri 04-Jun-1999

Publication: Bee

Author: CURT

Quick Words:

AP-NY-commuter-tax

Full Text:

State To Sue NY Over Commuter Tax Repeal

By Adam Gorlick

Associated Press

HARTFORD -- Gov. John G. Rowland and Attorney General Richard Blumenthal said

last week they will sue New York over that state's decision to exempt only New

York residents from that state's commuter tax.

New York Gov. George Pataki signed a bill May 27 that exempts only New York

State residents who work in New York City from paying the tax. The partial

repeal does not apply to Connecticut and New Jersey commuters who will

continue paying the 0.45 percent tax on income earned in New York City.

Blumenthal called the tax unconstitutional and said he will file a lawsuit

against New York as early as next week.

"This kind of burdensome and unfair tax is exactly the kind of discriminatory,

selective taxation that the framers sought to prevent," Blumenthal said. "The

repeal of the New York commuter tax in this selective way violates three

specific clauses of the Constitution, and there is no question that it will be

struck down."

Blumenthal said he is coordinating legal action with New Jersey, but expects

the states to file separate lawsuits.

He said the states still have not decided whether to bring the case in New

York state court or the U.S. Supreme Court.

A Pataki spokesman did not return a telephone call to the Associated Press.

Anticipating that federal courts might rule it illegal to tax only

out-of-state commuters, New York included a provision in the bill that says

the repeal would apply to all commuters if that happens.

Commuters who earn income in New York City currently pay a 0.45 percent tax,

which is about one-seventh of what someone living in the city must pay in

local taxes. A commuter earning an annual salary of $50,000 pays about $225 in

commuter tax.

Rowland said New York nets about $360 million through the tax. About $100

million of that comes from Connecticut commuters, he said.

"I feel very confident that we will win this fight," Rowland said. "I feel

very confident that Connecticut residents will actually end up getting a break

along with New Jersey."