City Council:
A RESOLUTION REQUESTING THE ENACTMENT
OF SPECIAL LEGISLATION AUTHORIZING THE
CITY OF MOUNT VERNON, NEW YORK, TO
ADOPT AND IMPLEMENT A NONRESIDENT
COMMUTER EARNINGS TAX
To the Honorable Members of the New York State Legislature:
Pursuant to Article IX of the New York State Constitution and the Municipal Home Rule Law, the City Council of the City of Mount Vernon hereby respectfully requests the enactment of special enabling legislation authorizing the City to adopt and implement a nonresident commuter earnings tax.
Fiscal Context and Need.
WHEREAS, the City of Mount Vernon is actively exploring strategies to address ongoing fiscal strain while minimizing additional burden on its residents; and
WHEREAS, recent budgets and financial planning efforts reflect persistent structural budget gaps, constrained reserves, rising fixed costs related to labor, public safety, and infrastructure maintenance, increased reliance on cost-containment measures, and escalating healthcare obligations and unfunded mandates; and
WHEREAS, City leadership has already implemented austerity-driven actions, including spending reductions, operational efficiencies, and service prioritization, which, while necessary, are insufficient alone to ensure long-term fiscal sustainability; and
WHEREAS, the City seeks to identify new, sustainable revenue sources that do not disproportionately impact its resident taxpayers, many of whom face ongoing affordability pressures;
Statutory Framework and Comparable Model
WHEREAS, under the New York State Tax Law, the City of Yonkers has been authorized by the State Legislature to impose a nonresident earnings tax on individuals who work within the city but reside elsewhere; and
WHEREAS, the Yonkers model, with a rate of approximately 0.5%, ensures that nonresident commuters who benefit from municipal infrastructure and services contribute to their cost; and
WHEREAS, this approach has proven effective in diversifying municipal revenue, reducing reliance on property taxes, and aligning tax contributions with service usage; and
WHEREAS, the City of Mount Vernon shares key characteristics with Yonkers, including a substantial inbound commuter workforce and its role as a regional transportation hub, supported by multiple Metro-North Railroad stations, numerous bus routes, and proximity to the New York City Subway;
Proposed Structure
WHEREAS, the City proposes that the Legislature authorize Mount Vernon to adopt a commuter earnings tax structured as follows:
• Rate: Up to 0.25%-0.50% on wages earned within the City of Mount Vernon
• Income Protections: Exemptions and/or thresholds for low-income earners
• Administration: Collection administered by the New York State Department of Taxation and Finance
• Employer Withholding: Integration into existing payroll withholding systems
and
WHEREAS, this structure is designed to remain regionally competitive while generating meaningful and stable revenue;
Policy Considerations
WHEREAS, the proposed commuter tax would provide revenue without increasing the tax burden on residents by requiring nonresidents who utilize City infrastructure and services to contribute; and
WHEREAS, such a policy aligns with existing austerity measures by complementing cost-containment efforts with a revenue-generating mechanism; and
WHEREAS, the tax would promote revenue diversification and stability, as it would grow with economic activity rather than rely solely on property taxation; and
WHEREAS, the use of an existing State-administered framework would minimize administrative complexity and local implementation costs; and
WHEREAS, the City acknowledges potential concerns regarding economic competitiveness and workforce sensitivity, including the cumulative effect of payroll-based taxes such as the Metropolitan Commuter Transportation Mobility Tax, and is committed to implementing the policy in a balanced and measured manner; NOW, THEREFORE, BE IT
RESOLVED, that the City Council of the City of Mount Vernon hereby respectfully requests that the New York State Legislature enact special legislation authorizing the City of Mount Vernon to impose and administer a nonresident commuter earnings tax consistent with the framework outlined herein; and BE IT FURTHER
RESOLVED, that such legislation shall provide the City with the authority necessary to establish rates, exemptions, and administrative procedures in coordination with the New York State Department of Taxation and Finance; and BE IT FURTHER
RESOLVED, that the City Clerk is hereby directed to transmit certified copies of this Home Rule Request to the Governor of the State of New York, the Temporary President of the Senate, the Speaker of the Assembly, and the members of the State Legislature representing the City of Mount Vernon; and BE IT FINALLY
RESOLVED, that the City of Mount Vernon respectfully calls upon the Legislature to give prompt consideration to, and enact, such legislation in order to promote the City’s long-term fiscal stability and ensure a fair and equitable distribution of tax responsibility; and be it further
RESOLVED, that this Resolution shall take effect immediately upon adoption.