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Updated 02/09/2010 09:06 AM

Governor Looks To Switch Gears On "Mobility Tax"

By: NY1 News

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City businesses may be left to foot the bill on a proposal by Governor David Paterson to change a tax that currently helps fund the Metropolitan Transportation Authority.

The governor wants to change the so-called "Mobility Tax" so businesses in the suburbs would pay only half of what they're paying now.

As a result, city businesses would see their contribution go up.

The governor says the move will provide a fair distribution of taxes, since the city is the destination for more than 90 percent of weekday ridership.

Mayor Michael Bloomberg has blasted the proposal, calling it wrongheaded and terrible economics.

Mass transit advocates say while the MTA needs more funding, there are other ways to get it.

"What clearly needs to be done I think is to use stimulus money, use money from a jobs bill and the state Legislature and the City Council both need to step up to the plate to provide more funding to move 600,000 school children, which is what student MetroCards do every year," said Gene Russianoff of the Straphangers Campaign.

The tax was part of Albany's MTA bailout last year.

The MTA says the changes could lessen the need for additional cuts on top of those passed in December.