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LONG ISLANDS TAX BURDEN:
How Much We Pay in Federal and State Taxes
and How Much Federal and State Expenditures
We Get Back in Return
2013 Balance of Payments
Summary of Findings
Long Island Association Research Institute
300 Broadhollow Road Suite 110W Melville NY 11747
T:(631) 493-3000 W:www.longislandassociation.org
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INTRODUCTION
Long Island is a high-cost area in which to live and do business. In 2003,the Long Island Regional Planning Board prepared a Balance of Payments
study for the Long Island Index which showed how much in tax revenues
Long Islanders sent to Albany and Washington, D.C. and how much our
region received back in terms of state and federal expenditures. It was
ascertained that the imbalance to Albany was approximately $2.9 billion
and the imbalance to Washington, D.C. (since modified) was $14 billion,
for a combined deficit balance of almost $17 billion.
The Long Island Associations Research Institute has updated those
figures for 2013 and the results are even more discouraging because, as
shown in this report, the balance of payments deficit has grown to
almost $28 billion; a 64.7 percent increase in just the last decade alone!
Aggregate income for Long Island increased only 38 percent over the last
decade. Thus, the deficit rose almost twice as fast as personal incomegrowth in the last ten years.
This imbalance can only be corrected if changes to our state and federal
income tax codes, as well as changes to the formulaic and discretionary
ways Albany and Washington,D.C. redistribute Long Island tax dollars to
other regions of the state and country, are made.
Long Island Association
Research Institute
January 2015
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EXECUTIVE SUMMARY
Combined Federal and State Payments Deficit with LongIsland
In 2013, the federal and state governments received $57.5 billion in revenue from Long Island but
spent only $29.8 billion in the region, for a balance of payments deficit of $27.7 billion.
Total Federal/State Balance of Payments Deficit with Long Island
To give this $27.7 billion deficit some context, the total property tax levy in Nassau and Suffolk
Counties is approximately $12 billion. If the federal and state payments deficit was simply reduced by
half, the entire property tax burden for every property owner on Long Island could be eliminated.
Every $1 billion of our tax dollars that our region can recapture could provide for direct tax relief to our
beleaguered taxpayers and the multiplier effect of these recaptured funds would help stimulate ourlocal economy even further. In addition, the recaptured funds could provide monies for critical
infrastructure investments needed in both Nassau and Suffolk Counties to help our region grow.
0.00
10,000,000,000.00
20,000,000,000.00
30,000,000,000.00
40,000,000,000.00
50,000,000,000.00
60,000,000,000.00
70,000,000,000.00
Revenues 2013 Expenditures 2013
$57,526,660,876
$29,797,938,324
State
Federal
State
Federal
Long Island sent
Albany and
Washington $27.7
billion more dollars
than Albany and
Washington sent back
to Long Island in 2013
1
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U.S. GOVERNMENT
I. Federal Revenues and Expenditures
1 In 2013, Long Island sustained a $23.1 billion deficit with the federal government, sending $42.5
billion to Washington and receiving only $19.4 billion back.
2
In 2013, the State of New York sustained a $67.7 billion deficit with the federal government,sending $231.9 billion to Washington and receiving only $164.2 billion back.
3 Long Islands deficit accounts for approximately 34.2 percent of New York States deficit with
the federal government, yet only has 14.6 percent of New Yorks population.
4 Long Island receives only 11.8 percent of all federal funding coming to New York State despite
constituting 14.6 percent of New Yorks population.
TOTAL REVENUES 2013 TOTAL EXPENDITURES 2013 BALANCE OF PAYMENTS/DEFICIT
NEW YORK $231,879,832,001 $164,240,123,544 $67,639,708,457
LONG ISLAND $42,487,512,001 $19,421,391,640 $23,066,120,361
Source: U.S. Internal Revenue Services Data Book, 2013, Table 5; Consolidated Federal Funds Report 2010, issued September 2011,
adjusted for changes in federal spending through 2013.
$42,487,512,001
$19,421,391,640
$0
$5,000,000,000
$10,000,000,000
$15,000,000,000
$20,000,000,000
$25,000,000,000
$30,000,000,000
$35,000,000,000
$40,000,000,000
$45,000,000,000
Revenues 2013 Expenditures 2013
Total Total
Long Island sent
Washington $23.1
billion more than
Washington sent back
to Long Island in 2013.
II. Federal Balance of Payments Deficit with Long Island
2
III. Federal Balance of Payments with NYS and Long Island
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FEDERAL EXPENDITURES ON LONG ISLAND
ESTIMATED FEDERAL EXPENDITURES ON LONG ISLAND 20131
Retirement Other Direct Salaries and
and Disability Payments Grants Procurement Wages Total
Nassau $3,478,266,148 $2,751,712,908 $1,319,437,476 $1,529,877,020 $508,618,124 $9,587,911,6
Suffolk $3,726,111,284 $2,208,214,512 $1,695,087,352 $1,447,950,280 $756,115,724 $9,833,479,
Long Island $7,204,377,432 $4,959,927,420 $3,014,524,828 $2,977,827,300 $1,264,733,848 $19,421,390,Source: Consolidated Federal Funds Report for Fiscal Year 2010, issued September 2011, adjusted for changes in federal spendin
through 2013
1See the Appendix for a discussion of Superstorm Sandy funds.
ESTIMATED REVENUES COLLECTED BY FEDERAL GOVERNMENT
BUSINESS
INCOME TAXES
INDIVIDUAL
INCOME TAX
WITHELD AND
FICA
INDIVIDUAL
INCOME TAX
PAYMENTS AND
SECA
UNEMPLOYMENT
INSURANCE TAX
RAILROAD
RETIREMENT TA
LONG ISLAND 2013 $2,950,227,001 $29,701,209,000 $8,390,181,000 $108,151,000 $69,877,000
NEW YORK STATE 2013 $25,432,999,001 $154,693,800,000 $43,698,862,000 $563,288,000 $363,943,000
LI PERCENTAGE OF NEW
YORK TOTAL 2013
11.6 19.2 19.2 19.2 19.2
ESTATE AND
INCOME TAX ESTATE TAX GIFT TAX EXCISE TAXES
TOTAL INTERNA
REVENUE
COLLECTIONSLONG ISLAND 2013 $462,310,000 $282,057,000 $90,470,000 $433,030,000 $42,487,512,001
NEW YORK STATE 2013 $2,407,867,000 $1,439,068,000 $655,580,000 $2,624,425,000 $231,879,832,00
LI PERCENTAGE OF NEW
YORK TOTAL 2013
19.2 19.6 13.8 16.5 18.3
Source: U.S. Internal Revenue Services (IRS) Data Book 2013, Table 5.
FEDERAL REVENUES COLLECTED FROM LONG ISLAND
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NEW YORK STATE GOVERNMENT
I. State Revenue and Expenditures
1. In 2013, Long Island sustained a $4.7 billion deficit with the State of New York, as the state spent an
estimated $10.4 billion in Nassau-Suffolk while it collected revenues from the bi-county region of more
than $15 billion.
2. Long Islands $15 billion contribution to New York States budget amounts to approximately 18 percentof total state revenue (from in-state sources) of $83.6 billion, despite having only 14.6 percent of the
states total population.
3. Long Island received approximately 11.5 percent of total state spending despite constituting 14.6
percent of the states total population.
4. In addition, Long Island has 17 percent of student population but receives only 12 percent of the school
aid appropriated by the state.
II. State Balance of Payments Deficit with Long Island$15,039,148,875
$10,376,546,684
$0
$2,000,000,000
$4,000,000,000
$6,000,000,000
$8,000,000,000
$10,000,000,000
$12,000,000,000
$14,000,000,000
$16,000,000,000
Revenues 2013 Expenditures 2013
Total Total
Total Revenues
Collected from Long
Island
2013
Total Expenditures spent
on Long Island
2013
Balance of Payments
Deficit
LONG ISLAND $15,039,148,875 $10,376,546,684 $4,662,602,191
Source: U.S. Internal Revenue Services Data Book, 2013, Table 5; Consolidated Federal Funds Report 2010, issued September 2011,
adjusted for changes in federal spending through 2013.
4
III. New York State Balance of Payments
Long Island sent
Albany $4.7 billion
more than Albany sent
back to Long Island in
2013
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State Revenues Collected from Long IslandALCOHOLIC
BEVERAGE CONTROL
LICENSE FEES
ALCOHOLIC
BEVERAGE TAX
BANK
TAX
BUSINESS
CORPORATION
TAXES ARTICLE 9-A
CIGARETTE AN
TOBACCO
PRODUCTS
NYS 2013 $61,224,000 $246,240,056 $1,596,889,206 $2,610,867,609 $1,550,588,946
LONG ISLAND 2013 $8,632,584 $33,734,888 $81,441,350 $302,860,643 $181,418,907
LI PERCENTAGE 2013 14.1 13.7 5.1 11.6 11.7
CORPORATION AND
UTILITIES TAXES
ARTICLE 9
CORPORATION TAXES
ARTICLE 13
ESTATE
TAX FINES GIFT TAX
NYS 2013 $946,660,635 $12,814,918 $1,014,028,574 $890,903,000 $833,507
LONG ISLAND 2013 $109,812,634 $1,486,530 $198,749,601 $130,071,838 $115,024
LI PERCENTAGE 2013 11.6 11.6 19.6 14.6 13.8
HCRA RELATED
RECEIPTS HIGHWAY USE TAX
INSURANCE TAXES
ARTICLE 33 LOTTERY/GAMING
MISCELLANEOU
RECEIPTS
NYS 2013 $4,100,000,000 $213,156,529 $1,272,244,112 $3,212,140,000 $144,395,495
LONG ISLAND 2013 $598,600,000 $43,483,932 $162,847,246 $1,317,000,000 $21,081,742
LI PERCENTAGE 2013 14.6 20.4 12.8 41. 14.6
MOTOR FUEL TAXESMOTOR VEHICLE
LICENSES AND FEES MTA TAXES
NYS
DEPARTMENTALREVENUES
OFF-TRACKBETTING
NYS 2013 $49,52,12,587 $1,152,371,000 $2,349,636,553 $4,976,559,000 7,769,093
LONG ISLAND 2013 $98,052,092 $235,083,684 $352,445,483 $726,577,000 $3,814,625
LI PERCENTAGE 2013 19.8 20.4 15.0 14.6 49.1
OTHER LICENSES AND
FEES PARI-MUTUAL TAX
PERSONAL
INCOME TAX
PETROLEUM
BUSINESS TAXES
PROCEEDS FRO
ABANDONED
PROPERTIES
NYS 2013 $1,421,890,000 $14,500,359 $40,226,714,989 $1,139,724,150 $830,554,000
LONG ISLAND 2013 $207,595,940 $4,074 $7,723,529,278 $225,665,382 $142,024,734
LI PERCENTAGE 2013 14.6 28.1 19.2 19.8 17.1
REAL PROPERTYGAINS TAX
REAL PROPERTYTRANSFER TAX TOTAL
REFUNDS ANDREIMBURSEMENTS
SALES AND USETAX TOTAL REVENU
NYS 2013 $209,151 $756,354,761 $1,043,846,000 $11,346,313,952 $83,634,642,182
LONG ISLAND 2013 $28,863 $104,376,957 $152,401,516 $1,872,141,802 $15,039,148,875
LI PERCENTAGE 2013 13.8 13.8 14.6 16.5 18.0
Sources: New York State Comptrollers Office; New York State Department of Taxation and Finance.
Other sources used in making estimates for Long Island share are listed in the report narrative.
PAYMENTS TOVENDORS* MEDICAID
PERSONALSERVICE COSTS*
UNEMPLOYMENTINSURANCE* TOTAL
NASSAU 2013 $1,639,322,842 $1,750,782,308 $622,745,679 $284,645,857 $4,297,496,686
SUFFOLK 2013 $2,568,987,005 $1,887,002,140 $1,314,694,507 $308,366,346 $6,079,049,998
LONG ISLAND 2013 $4,208,309,848 $3,637,784,448 $1,937,440,186 $593,012,203 $10,376,546,684
* STATE EDUCATION AID IS INCLUDED IN PAYMENTS TO VENDORS, PERSONAL SERVICE COSTS AND UNEMPLOYMENT INSURANC
SOURCE: NEW YORK STATE COMPTROLLERS OFFICE
5
State Expenditures on Long Island 2012-2013
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Alcohol Beverage Control License Fees: The U.S. Census Bureaus County Business Patterns for 2011 reports the number of
alcohol serving establishments in Nassau-Suffolk (including NAICS codes 7221, 7724, 72241, 722410). Nassau had 1,611
establishments while Suffolk had 1,486, for a regional total of 3,097. The New York statewide total for alcohol serving
establishments was 21,979, which means Nassau-Suffolk accounted for 14.1 percent of such establishments. Total revenues
for New York State deriving from Alcohol Beverage Control License Fees was $61,224,000 in 2013 and $59,078,000 for
2012, according to the New York State Comptrollers Cash Basis Report. It is estimated, therefore, that Long Island accounts
for $8,632,584 of Alcohol Beverage Control License Fee revenue for 2013 and $8,329,998 for 2012.
Alcohol Beverage Taxes: There is more than one way to estimate the revenues attributable to Long Island for this tax. As
stated above, Nassau-Suffolk accounted for 14.1 percent of such establishments. Using this percentage, Nassau-Suffolk
accounted for $34,719,848 of alcohol beverage taxes out of the states total Alcohol Beverage Tax revenue for 2013 of
$246,240,056, as determined from the New York State Department of Taxation and Finances collections, policy and
statistical reports.
Another way to determine Nassau-Suffolks contribution might be to calculate the regions total annual payroll from alcohol
serving establishments as a percentage of the state total. In that case, for 2011 Suffolk had payroll of $441,634,000, Nassau
had $415,434,000, together accounting for 13.7 percent of the New York state total payroll of $6,261,514,000. Applying this
percentage to the total revenues for New York State for Alcohol Beverage Taxes would mean that the region contributed
$33,734,888 of these revenues in 2013.
Still another method for deriving Nassau-Suffolks share of this revenue source could be through the New York State
Department of Health Services Behavioral Risk Factor Surveillance System 2008-2009, which gives the number of smokers
and those who drink alcohol by county. Table 57a of this report shows that Suffolk had 213,400 binge drinkers -- defined
as five or more drinks once or more within the past month -- or 19.8 percent of the adult population, while Nassau County
reported 171,100 drinkers or 17.1 percent of the adult population. New York state reported 2,602,000 every day drinkers,
or 17.7 percent of the adult population. Together, Nassau-Suffolk accounted for 384,400 of the states 2.6 million binge
drinkers, or 14.8 percent. Using this method, New York States total receipts from Alcohol Beverage Taxes of $246,240,057
for 2013 would yield a Nassau-Suffolk contribution of $36,443,528.
For the purposes of this report, the total annual payroll method is used.
Business Taxes: Receipts for these taxes for the state are provided by the New York State Department of Taxation and
Finances collections, policy and statistical reports.
Banking Tax: The distribution of revenues is derived by taking Long Islands percentage of total payroll for the banking
industry (NAICS code 52211) from the U.S. Census Bureaus County Business Patterns survey. The statewide annual payroll
is $16,367,270,000. Nassau Countys annual payroll for this industry sector is $396,865,000. Suffolk Countys annual payroll
is $442,355,000, for total Nassau-Suffolk payroll of $839,220,000, or 5.1 percent of the statewide payroll for this sector.
When this percentage is applied to total banking tax receipts for 2013 of $1,596,889,206 and $1,162,709,401 for 2012 ityields a Nassau-Suffolk contribution of $81,441,350 and $59,298,179 for those years respectively.
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Article 9-a: Long Islands share of the Article 9-a and Article 9 corporate franchise tax liability is based on Long Islands 2011
and 2012 share of private sector wages from the Quarterly Census of Employment and Wages (QCEW) provided by the New
York State Department of Labor. In 2011 Long Islands share of private sector wages and salaries was $51,441,392,116 out
of the state total of $444,503,931,341, or 11.6 percent. In 2012, Long Islands share of private sector wages was
$53,237,378,854 out of the state total of $459,683,826,062, or 11.6 percent. New York State Business Corporation Taxes
Article 9-revenues for 2013 were $2,610,867,609 and $2,718,582,205 for 2012. Using the 2012 wage percentages, Long
Islands share of this tax is estimated to be $302,860,643 in 2013 and $315,355,536 in 2012 .
Article 9: The Article 9 corporate franchise and utilities tax revenues for all of New York State was $946,660,635 in 2013 and$877,001,368 in 2012. Using QCEW wage percentages, Long Islands share of this tax is estimated to be $109,812,634 in
2013 and $101,732,159 in 2012.
Article 13: Using the QCEW wage percentages, Long Islands share of the States Article 13 taxes of $12,814,918 in 2013 and
$5,174,016 in 2012, was $600,186 in 2012 and $1,486,530 in 2013.
Insurance Tax Article 33 and 33a: Using the QCEW, Long Islands share of insurance industry wages was $1,760,359,977 in
2012 out of the statewide total of $13,754,752,023, or 12.8 percent. When the 12.8 percent for 2012 is applied to total
revenues reported for the New York State Insurance Tax Articles 33 and 33-a ($1,182,469,682), Long Islands share of this
tax amounts to $151,356,119. When the 12.8 percent is applied to total Insurance Tax revenues for 2013 ($1,272,244,112),
Long Islands share amounts to $162,847,246.
Petroleum Business Tax: New York States Petroleum Business Tax revenues provided by the New York State Department of
Taxation and Finances collections, policy and statistical reports were $1,139,724,150 in 2013 and $1,100,356,460 in 2012.
As with the Motor Fuel Tax, the Long Island share of the Petroleum Business Tax was allocated based on 2011 gasoline sales
by county, as reported by New York State Energy Research and Development Authority Final Report (June 2013), Patterns
and Trends New York State Energy Profiles: 19972011 (Appendix C: Estimated Annual Gasoline Sales by County in New
York State, 20092011):
Long Islands share of these revenues was calculated using the 19.8 percent of total sales of gasoline. Long Islands share of
Petroleum Business Taxes was $225,665,382 in 2013 and $217,870,579 in 2012.
Thousands of Gallons2011
NYS = 5,548,356
Suffolk = 598,640
Nassau = 497,383
LI = 1,096,023
% of Total = 19.8
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Cigarette, Tobacco Tax: The New York State Department of Health Services Behavioral Risk Factor Surveillance System 2008-
2009 provides the number of smokers and those who drink alcohol by county and for the entire state. Table 54a of this
report shows that in Suffolk there were an estimated 191,400 smokers, or 17.5 percent of adult population in 2000, while
Nassau reported 99,700 smokers, or 10 percent of the adult population. New York in total had an estimated 2,483,500
smokers or 16.8 percent of adult population. Together, the Nassau-Suffolk region accounts for 291,100 every day smokers
out of the states 2.5 million, or 11.7 percent. Out of the states revenues of cigarette and tobacco products taxes provided
by the New York State Department of Taxation and Finance reports for 2013 of $1,550,588,946, the Nassau-Suffolk regioncontributes an estimated $181,418,907.
Estate Tax: This tax is reported by county by the New York State Department of Taxation and Finance. Nassau and Suffolk
Counties together account for $199,442,065 in 2013, or 19.6 percent of the statewide total. Including the unclassified
county amounts, in 2013 New York State reported collecting $1,014,028,574 and $1,078,426,195 in 2012. Nassau and
Suffolk Counties, using the county proportions of revenues, contributed $198,749,601 in 2013 and $211,371,534 in 2012.
Fines: According to the New York State Comptrollers Cash Basis Report, revenue from state fines totaled $890,903,000 in
2013 and $466,791,000 in 2012. Using Long Islands percentage of statewide population, 14.6 percent of these revenues are attributed to Nassau and Suffolk counties. It is estimated that Nassau and Suffolk counties accounted for $130,071,838
in revenues for 2013 and $68,151,486 in 2012.
Gift Tax: The Gift Tax contribution of Nassau and Suffolk counties are given in the same proportion as the Real Estate
Property Transfer Tax, or 13.8 percent of the total reported by the New York State Department of Taxation and Finance of
$833,507 in 2013 and $91,262 in 2012 ($12,594 for 2012 and $115,024 for 2013). This tax was eliminated in 2000 and these
numbers are residuals.
HCRA (Health Care Reform Act): The total of $4.1 billion of the states Health Care Reform Act revenues for 2013, $4.0billion for 2012, and $3.9 billion for 2011 (which are derived from surcharges and assessments on hospital and nursing
home revenues, and a covered lives assessment paid by health insurers and their policy holders), are distributed based
upon Long Islands percentage of the population (14.6 percent). Thus, Long Islands contribution to this source of revenue is
estimated to be $598,600,000 for 2013, $584,000,000 for 2012, and $569,400,000 for 2011. (Health facility cash assessment
data from the New York State Department of Health by county was not available at the time of writing.)
Highway Use Tax and Auto Rental Tax: Highway Use and Auto Rental taxes are distributed to the region using motor vehicle
registrations. The New York State Department of Motor Vehicles reported that in 2013, Nassau County had 987,914 total
motor vehicle registrations while Suffolk had 1,235,945, for a regional total of 2,223,859. This constitutes 20.4 percent of all
vehicle registrations in New York for that year (10,876,551). These taxes are inclusive of Truck Mileage Tax, Vehicle Permits,and Fuel Use. Long Islandspercentage was then applied to the total revenues from those taxes of $213,156,529 for 2013
and $198,566,004 for 2012, yielding $43,483,932 and $40,507,465 in revenues for Nassau-Suffolk Counties in those years,
respectively
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Lottery/Gaming: According to the Comptrollers Cash Basis Report, lottery and gaming revenues for the state totaled
$3,212,140,000 in 2013 and $2,974,810,000 in 2012. The New York State Gaming Commission was able to furnish sales and
commissions for the Long Island region for 2013.
NYS Revenues for Lottery andGames (2013 in millions)
Lottery Retailer
Sales Commissions Total
Nassau $568 $34 $602
Suffolk $674 $40 $715
Total $1,242 $75 $1,317
Source: New York State Gaming Commission, April 1, 2014.
These numbers indicate that Nassau-Suffolk contributed 41 percent of all lottery and gaming revenues for 2013.
Miscellaneous Receipts: Miscellaneous revenues are distributed by percentage of total population in the state for the Long
Island region. These receipts include the following:
2012 2013Racing Admissions Tax (includes OTB Teletheater) 354,855 371,105
Boxing & Wrestling Exhibitions Tax 412,840 658,073
Hazardous Waste Assessments 7,104,253 2,627,718
Waste Tire Management and Recycling Fees 23,573,063 24,902,626
Wireless Communication Service Surcharge 0 0
Returnable Beverage Container Deposits 103,643,145 114,232,288
Tax Return Preparer Registration Fees 1,145,441 1,603,684
OGS Procurement Fees 17,402 0
Source: New York State Department of Taxation and Finance
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Nassau and Suffolk account for 14.6 percent of the states population using the U.S. Census Bureaus Population Estimates
program for 2012. New York State totals for 2013 of Miscellaneous Revenues are $144,395,495 and $136,250,999 for 2012.
Nassau-Suffolk contributions to these revenues are $21,081,742 for 2013 and $19,892,646 for 2012.
Motor Fuel Tax: As with the Petroleum Business Tax, the state Motor Fuel Tax is allocated based on 2011 gasoline sales by
county (19.8 percent for Nassau-Suffolk), as reported by New York State Energy Research and Development Authority FinalReport June 2013, Patterns and Trends New York State Energy Profiles: 19972011 (Appendix C: Estimated Annual Gasoline
Sales by County in New York State, 20092011).
In 2013 the Motor Fuel Tax revenue for New York State was $495,212,587 and in 2012 it was $504,371,913. Long Islands
share of this tax was $99,865,639 in 2012 and $98,052,092 in 2013. This tax includes Petroleum Testing Fees.
Motor Vehicle Licenses and Fees: Motor Vehicle Licenses and other fees are distributed to the Long Island region using
motor vehicle registrations (20.4 percent of the state total). In 2013, the State of New York collected $1,152,371,000 in
motor vehicle licenses and fees and in 2012 it collected $999,046,000. It is estimated that Long Island accounted for
$235,083,684 in revenues from this source in 2013 and $203,805,384 in 2012.
MTA Taxes: Metropolitan Transportation Authority taxes fall on the 12 counties of the MTA region. Revenues are
distributed according to the share of total wages for the 12 counties attributed to each member county according to the
U.S. Census Bureaus County Business Patterns survey for the year 2011, the latest data available. See the table below :
County Total Wages Percent ofTotal
Bronx $9,721,574,000 2.8
Dutchess $4,081,285,000 1.2
Kings $19,013,551,000 5.5
Nassau $25,186,498,000 7.3
New York $202,981,197,000 59.0
Orange $3,787,814,000 1.1
County Total Wages Percent ofTotal
Putnam $840,543,000 0.2
Queens $21,377,466,000 6.2
Richmond $3,478,755,000 1.0
Rockland $4,352,912,000 1.3
Suffolk $26,443,450,000 7.7
Westchester $22,585,059,000 6.6
Total MTA $343,850,104,000 99.9
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Nassau and Suffolk Counties account for 15 percent of total wages in the MTA region. Therefore, it is estimated that the
Long Island region contributes 15 percent of the following revenues flowing to New York State for MTA functions.
MTA Taxes Long Island Share Total:
Nassau-Suffolk Share 2011 2012 2013
MTA Commuter Transportation District Taxicab and Hail
Vehicles Rides
$12,171,207 $13,027,418 $12,441,830
MTA Commuter Transportation District Mobility Tax $207,308,860 $209,707,750 $184,094,502
MTA Auto Rental $5,250,595 $5,934,547 $6,216,545
MTA Corporate Surcharge $124,162,971 $142,718,887 $149,692,605
MTA Total $348,893,633 $371,388,602 $352,445,482
New York State Revenues from Departments: Revenues collected by various state departments include Patient/Client Care
Reimbursements, Medical Care Provider Assessments, Industry Assessments-Regular, Motor Vehicle Assessments, Industry
AssessmentsTemporary Utility Surcharge, Miscellaneous Sales, Rentals and Leases, Gifts, and All Other. This category does
not include revenues from tuition to SUNY and CUNY schools. These departmental revenues totaled $4,976,559,000 in 2013
and $4,994,240,000 in 2012. Using the state population percentage attributable to Nassau-Suffolk (14.6 percent), it is
estimated that Long Island residents contributed $726,578,000 of these revenues in 2013 and $729,159,000 in 2012.
Revenues Collected By Federal GovernmentBusiness Individual Income Individual Income Unemployment Railroad
Income Tax Withheld Tax Payments Insurance Retirement
Source Taxes and FICA and SECA Tax Tax
Long Island 2013 $2,950,227,001 $29,701,209,000 $8,390,181,000 $108,151,000 $69,877,00
NYS State 2013 $25,432,999,001 $154,693,800,000 $43,698,862,000 $563,288,000 $363,943,00
LI Percentage of
New York Total 2013 11.6 19.2 19.2 19.2 19.2
Estate and Total Internal
Trust Income Estate Gift Excise Revenue
Source Tax Tax Tax Taxes Collections
Long Island 2013 $462,310,000 $282,057,000 $90,470,000 $433,030,000 $42,487,512,00
NYS State 2013 $2,407,867,000 $1,439,068,000 $655,580,000 $2,624,425,000 $231,879,832,00
LI Percentage of
New York Total 2013 19.2 19.6 13.8 16.5 18.3
Source: U.S. Internal Revenue Services(IRS) Data Book 2013, Table 5.
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Off Track Betting: The New York State Department of Taxation and Finance reports distribute revenue for Off Track Betting
proceeds by county. For 2011, Nassau proceeds were $2,569,889 and Suffolks proceeds were $1,506,082, for a total of
$4,075,971. For 2012 (the latest year reported at the time of publication) revenues were $2,320,247 for Nassau and
$1,382,545 for Suffolk, for a total of $3,702,792. In 2013, though not reported by county, the total for New York state
revenues was $7,769,093. Using the 2012 percentage of revenues from Nassau-Suffolk against the 2013 total state number
(49.1 percent), in 2013 it is estimated that Nassau-Suffolk contributed $3,814,625.
Other Licenses and Fees: According to the Comptrollers Cash Basis Report revenue from licenses and fees other than that
of motor vehicle and alcohol beverage control licenses totaled $1,421,890,000 in 2013 and $1,611,267,000 in 2012. This
report attributes 14.6 percent of these revenues to Nassau and Suffolk counties, according to the regions percentage of
the state population. Accordingly, it is estimated that Nassau and Suffolk counties accounted for $207,595,940 of these
revenues in 2013 and $235,244,982 in 2012.
Para-Mutual Tax: The New York State Department of Taxation and Finance reports total taxes by racing venue. The only
racing venue on Long Island is Belmont in the community of Elmont, where in 2012 total collections were $3,945,387, or
28.1 percent of the states total tax revenue of $14,056,791. Applying this percentage to the states total tax of $14,500,359
in 2013, Nassau (as the one county on Long Island that has a racing venue), accounts for $4,074,601.
Personal Income Tax: In 2010, the latest year available from the New York State Department of Taxation and Finance,
Nassau and Suffolk Counties combined had a personal income tax liability of $5,808,515,000 or 19.2 percent of New Yorks
total $30,272,866,000 personal income tax liability. When applied to New Yorks total personal income tax revenue of
$40,226,714,989 in 2013 and $38,767,826,942 in 2012, Long Islands share of the New York State personal income tax
amounts to $7,723,529,278 in 2013 and $7,443,422,773 in 2012. This number represents income by place of residence,
rather than by place of work.
Proceeds from Abandoned Properties: Proceeds from abandoned property, primarily reflecting financial assets assumed by
the state, are allocated based on Nassau-Suffolks share of statewide personal income, as provided by the U.S. Bureau of
Economic Analysis (BEA). In 2012 BEA reports that Nassau-Suffolk totaled $178,264,489,000 in personal income, or 17.1
percent of New Yorks total personal income of $1,041,930,542,000. It is estimated that Nassau -Suffolk contributed
$142,024,734 of the states Proceeds from Abandoned Properties of $830,554,000 in 2013 and $146,525,283 of the states
$856,873,000 in 2012, as reported by the Comptrollers Cash Basis Report.
Real Property Gains Tax: The proportion of taxes contributed to the state Real Estate Transfer Tax (13.8 percent) is applied
against the total state revenues for Real Property Gains taxes for 2013 ($209,151) and for 2012 ($13,857), showing that
Nassau and Suffolk counties contributed $1,912 in 2012 and $28,863 in 2013.
Real Property Transfer Tax: This revenue source is reported for all counties by the New York State Department of Taxation
and Finance for 2013. Nassau and Suffolk together accounted for $95,767,300, or 13.8 percent of the states total from all
counties of $696,198,157. The total of the Real Property Transfer Tax (including that which was unclassified by county) was
$756,354,761 in 2013 and $610,047,675 in 2012, which means Nassau-Suffolk contributed $104,376,957 in 2013 and
$84,186,579 in 2012.
Refunds and Reimbursements: The Comptrollers Cash Basis Report shows that New York State received $1,043,846,000 in
2013 and $1,229,610,000 in 2012 from refunds and reimbursements, made mostly for various forms of state aid. This
revenue source is allocated to Nassau-Suffolk based on population. Long Island contributed $152,401,516 in 2013 and
$179,523,060 in 2012.
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Sales and Compensating Use Tax: The New York State Department of Taxation and Finance reports data on taxable sales
and purchases by county. At the time of this analysis the latest available county data was for 2010-2011 (fiscal year
3/1/2010-2/29/2011). The percentage of the total statewide taxable sales and purchases for 2011 attributed to Nassau and
Suffolk counties for state purposes (16.5) was applied to total state sales tax revenue for 2013 of $11,346,313,952 and
$11,168,121,899 for 2012, yielding regional sales tax contributions to the state from Long Island of $1,872,141,802 and
$1,842,740,113, respectively.
2013 (New York States share of sales and use tax is 4 percent).
Source: New York State Department of Taxation and Finance
New York State Government Expenditures on Long Island
Data on New York State government expenditures on Long Island was obtained from the New York State Comptrollers
Office through a FOIL request (Public Officers Law, article 6) and from the Comptrollers Cash Basis Report. The
Comptrollers office, through its Director of State Expenditures, Mr. Bernie McHugh and his staff, provided a summary of
payments, by account code, to vendors that received payment using a zip code within Nassau or Suffolk Counties. The
analysis does not include vendors who may have provided services in Nassau or Suffolk County but did not have a mailing
address in either county. The Comptrollers office also provided information on Medicaid payments to Long Island
recipients. For the service period 4/1/2011-3/31/2012 Medicaid payments to Suffolk County were $2,249,015,351 and to
Nassau County were $2,198,698,618; for the service period 4/1/2012-3/31/2013 Medicaid payments to Suffolk County
were $2,287,275,321 and to Nassau County were $2,122,160,373. The approximate local funding share of these Medicaid
costs was 17.5 percent, which was subtracted from these totals.
The summary level data for personal service costs provided by the Comptroller for Nassau and Suffolk counties is as follows:
the total gross wages for the l3,247 state employees living in Nassau was $622,745,679; and the total gross wages for the
28,233 state employees in Suffolk was $1,314,694,507.
Unemployment insurance, as reported in the Comptrollers Cash Basis Report, showed that the federal government
provided $3,135,752,580 of New Yorks total cost of $7,197,480,000. The percentage of Long Islands share of
unemployment insurance payments is allocated on the basis of its proportion of the state population (14.6 percent).
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This analysis shows that New York State spent $10.4 billion on Long Island for the fiscal year 2012-2013 out of approximate
state funded expenditures of $90.3 billion. Long Island received approximately 11.5 percent of state spending despite
constituting 14.6 percent of the state population. This data is detailed in the following table.
NYS Expenditures on Long Island 2012-2013
Payments to Personal Service Unemployment
Vendors Medicaid Costs Insurance Total
Nassau 2013 $ 1,639,322,842 $ 1,750,782,308 $ 622,745,679 $ 284,645,857 $4,297,496,686
Suffolk 2013 $ 2,568,987,005 $ 1,887,002,140 $ 1,314,694,507 $ 308,366,346 $6,079,049,998
Long Island 2013 $ 4,208,309,848 $ 3,637,784,448 $ 1,937,440,186 $ 593,012,203 $10,376,546,685
Source: New York State Comptroller's Office
The following table shows that when total state tax revenues coming from Long Island are compared with state
expenditures on Long Island, the Nassau-Suffolk region sustains a $4.7 billion deficit with the state. This deficit amounts to
approximately 3.6 percent of Long Islands estimated gross regional product. (Sources for gross regional or area product:
U.S. Bureau of Economic Analysis and the 2010 Nassau County Master Plan).
New York State Balance of Payments
Total Revenues 2013 Total Expenditures 2013 Total Deficit
Long Island $15,039,148,875 $10,376,546,684 $4,662,602,191
$15,039,148,875
$10,376,546,684
$0
$2,000,000,000
$4,000,000,000
$6,000,000,000
$8,000,000,000
$10,000,000,000
$12,000,000,000
$14,000,000,000
$16,000,000,000
Revenues 2013 Expenditures 2013
Total Total
Long Island sent
Albany $4.7 billion
more than Albany
sent to Long Island
in 2013
New York State Balance of Payments Deficit with Long Island
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II. Federal Government Revenue from Long Island and New York State
In order to estimate the amount of revenue that the federal government collects from Long Island and New York State,
this report relies on the United States Internal Revenue Services (IRS) Data Book 2013, specifically Table 5. Gross
Collections, by Type of Tax and State, Fiscal Year 2013. This table breaks down into the following categories the
collection of all federal taxes by state each fiscal year.
Business
income
taxes
Individual
income
tax
withheld
and FICA
tax
Individual
income
tax
payments
and SECA
tax
Unemployment
insurance tax
Railroad
retirement
tax
Estate
and trust
income
tax
Estate
tax
Gift
tax
Excise
taxes
Total
Internal
Revenue
Collections
Since New York States tax code has many of the same or similar taxes as the federal government, total tax collections going
to the federal government from Long Island were determined using the same percentage of tax revenue coming from Long
Island that goes to the state for similar taxes. Accordingly, since New York States individual (personal) income tax largely
piggy backs on the federal governments individual income tax (not including FICA), Long Islands percentage of the
states personal income tax of 19.2 percent was applied to total federal individual income tax revenue coming from New
York State, as published in the IRS Data Book. The following percentages of federal tax collections for New York are
attributed to Long Island based on this reports analysis of Long Islands share of the state tax burden:
Business Income Taxes: 11.6 percent
Individual Income Tax Withheld and FICA: 19.2 percent
Individual Income Tax Payments and SECA: 19.2 percent
Unemployment Insurance Tax: 19.2 percent
Railroad Retirement Tax: 19.2 percent
Estate and Trust Income Tax: 19.2 percent
Estate Tax: 19.6 percent
Gift Tax: 13.8 percent
Excise Tax: 16.5 percent
Total Revenue Collections (average): 18.3 percent- It should be noted that the Data Book does not include several fees and
other revenues that residents might pay to the federal government (e.g. federal park fees). These numbers are considered a
small portion of revenue coming from Long Island and New York State and their exclusion from this analysis does not
materially change its findings.
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As the following table illustrates, total federal tax revenue collected from New York State totaled $224.8 billion in the
federal fiscal year ending 2013. Long Islands contribution to that total calculates to $41.2 billion, or 18.3 percent of
New Yorks federal tax burden.
Federal Government Expenditures on Long Island and New York State
(Please see the appendix for a discussion of Superstorm Sandy disaster relief spending.)
The primary document used to determine federal expenditures by state and county has long been the Consolidated
Federal Funds Report: State and County Areas. The last of these reports wereissued in September of 2011 for the 2010
fiscal year, when the series was cancelled due to budget cuts. The CFFR is the most comprehensive presentation of
data on federal government expenditures or obligations in state, county, and sub county areas of the United States and
covers federal government expenditures or obligations for the object categories listed below.
Retirement and disability
Other direct payments
Grants
Procurement contracts
Salaries and wages
Direct loans
Guaranteed or insured loans
Insurance
Data from the federal government sponsored website USAspending.gov was utilized to adjust the 2010 expenditure
numbers for Nassau and Suffolk counties contained in the CFFR report. USAspending.gov receives and displays data
pertaining to obligations (amounts awarded for federally sponsored projects during a given budget period), not outlays
or expenditures (actual cash disbursements made against each project), and therefore is not comprehensive. However,
since the website does cover most large federal projects and lists them by state for fiscal years through 2013, thechange in the amount of federal funding awarded to New York between 2010 and 2013 is considered a viable proxy for
changes in total federal spending on Long Island and in New York during that period, as determined in the CFFR report.
This is likely a more accurate measure of federal expenditures for Long Island and New York than simply inflating the
2010 federal expenditure numbers by the New York metro area consumer inflation rate, or some other such general
price index.
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FEDERAL OBLIGATIONS IN NEW YORK STATE
% Change
Year Amount Since 2010
2010 $152,014,242,064
2011 $154,552,461,768 1.7
2012 $159,725,682,713 5.1
2013 $123,366,464,265 -18.8
Source: USASpending.gov
The data from USAspending.gov shows that federal obligations in New York State dropped by 18.8 percent between 2010
and 2013, from $152 billion to $123.4 billion.
Total Federal Estimated Total Federal
Government Expenditures Government Expenditures
Source 2010 2013
New York $202,266,162,000 $164,240,123,544
Long Island $23,917,970,000 $19,421,391,640
In 2010 the CFFR determined that the federal government spent a total of $23.9 billion in Nassau and Suffolk Counties
combined, and $202.3 billion in the state. When the drop in federal obligations of 18.8 percent is applied to the 2010 CFFR
numbers, it is estimated that the federal government spent a total of $19.4 billion on Long Island in 2013, and $164.2 billion
in New York State. Long Island receives approximately 11.8 percent of all federal funding coming to New York State despite
constituting 14.6 percent of New Yorks population.
The following table shows that when total federal tax revenues coming from Long Island and New York are compared with
expenditures for these regions, Long Island sustains a $23.1 billion deficit with the federal government and New York
sustains a $67.6 billion deficit. This deficit amounts to approximately 17.5 percent of Long Islands estimated gross regional
product of $132 billion compared to 5.6 percent for New Yorks gross domestic product of $1.2 trillion. (Sources for gross
product: U.S. Bureau of Economic Analysis and the 2010 Nassau County Master Plan).
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FEDERAL BALANCE OF PAYMENTS
Total Total Total
Receipts 2013 Expenditures 2013 Deficit
New York $ 231,879,832,001 $ 164,240,123,544 $67,639,708,457
Long Island $ 42,487,512,001 $ 19,421,391,640 $23,066,120,361
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Combined Federal/State Balance of Payments Deficit
Together, in 2013 the federal and state governments received $57.5 billion in revenue from Long Island and
spent $29.8 billion, for a balance of payments deficit for Long Island of $27.7 billion. This $27.7 billion loss in
resources amounts to approximately 21 percent of Long Islands entire economy (gross regional product -
$132 billion).
TOTAL FEDERAL/STATE BALANCE OF PAYMENTS DEFICIT
NYS and Federal
Revenues 2013 Expenditures 2013 Deficit 2013
Long Island $56,526,660,876 $29,797,938,324 $27,728,722,552
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