The payroll tax unfairly burdens private, religious and parochial schools because while public school systems are reimbursed for the payroll tax at the end of the year, private schools operate as independent entities and are responsible for their own payroll tax.
Non-public schools provide a service to all taxpayers and public school systems by relieving them of the burden of educating those additional students. But instead of being rewarded for that enormous contribution, they’re targeted by such discriminatory measures as the selective MTA bailout bill.
Senator Andrew Lanza and Assemblyman Lou Tobacco are sponsoring legislation that would treat public and private schools the same with regard to the payroll tax. Senate bill S.5832 would enable all non-public and private elementary and secondary schools to be entitled to the same reimbursements as public school districts. Other important bills Lanza and Tobacco support which help private schools include:
* S.2998 - Reimburses independent and religious schools their costs in complying with state administrative mandates and participating in the state's testing and evaluation program
* S.1594 - Establishes a tuition tax credit in the amount of 10% of the earned income credit when a taxpayer’s children attend private or public school (up to $500 dollars). The bill also establishes a tuition tax deduction
* S.2743 - Establishes a tax deduction for taxpayers whose children attend private and public elementary and secondary schools