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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

    3

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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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