November 22, 2002
Tied to Commuter Hike, Unions Aim to Undo Nonresident
‘Tax”
By Mark Daly
Sensing an opportunity in Mayor Bloomberg’s proposal for
a new type of commuter tax, the leaders of the city’s uniformed
forces are lobbying for the repeal of a City Charter provision that
requires their members who live in the suburbs to pay an amount
equal to the city income tax.
A total of 24-city unions support the effort, in which union leaders
are demanding that any new tax on commuters be designed to supplant
the special fee levied on nonresident city employees under Section
1127 of the City Charter.
‘A Take-Home Hike’
“We as a coalition are not opposed to the commuter tax. This
is a way to give the cops and firefighters, who need it, a take-home
raise,” said Tony Garvey, the president of the Lieutenants’
Benevolent Association and the coordinator for the effort.
The nonresident payment, currently about 3.65 percent of income,
has been required since 1973 adds a condition of employment for
cops and firefighters, who under state law are allowed to live outside
the city. Other employees who are exempted from the city residency
requirements also must pay that amount.
The workers who must pay it deride the Section 1127 fee as an unfair
tax, although state court decisions have repeatedly upheld the city’s
contention that it is voluntary.
Advocates for repeal of the payment say their position is simple:
if the commuter tax is reinstated, “Let’s tax all workers,
public and private sector, equally and fairly,” said Martin
Stedman, a lobbyist for the fire officers’ union.
Unions in Support
The coalition lobbying to overturn Section 1127 includes Robert
Ganley, vice president of the Sergeants’ Benevolent Association;
Peter Gorman, president of the Uniformed Fire Officers’ Association;
Joseph Mannion, president of the Sanitation Officers’ Association;
Peter Meringolo, president of the Correction Captains’ Association;
James Slevin, vice president of the Uniformed Firefighters’
Association; and Robert Zink, recording secretary of the Patrolmen’s
Benevolent Association.
Mr. Zink acknowledged the group faces an uphill battle in convincing
Mayor Bloomberg or City Council Speaker Gifford Miller to support
their idea. If the city imposed a 1-percent commuter tax and kept
the 1127 payment, it would get an additional $40 million over the
commuter tax alone, he said. Mr. Bloomberg has proposed levying
the city’s personal income tax on commuters, which would yield
considerably more.
The city’s leaders “are facing a $6 billion deficit.
That’s their focus,” Mr. Zink said.
Still, the unions plan to send lobbyists to Albany to fight for
their position. Mr. Garvey calls the 1127 payment “basically
a kickback,” since employees must pay it or face the penalty
of being fired. “If a huge corporation tried to impose this
kind of requirement, it would be called unlawful,” he said.
A bill to overturn Section 1127 failed to clear the State Legislature
this year, but leaders of the movement argue that the unfairness
of the payment has grown starker with the passage of time.
A Double Hit
Until the commuter tax was rescinded in 1999, nonresident city
employees had to pay both amounts. The Section 1127 payment was
adjusted so the total of both payments equaled the 3.65-percent
city income tax.
When a contentious State Senate race in a district covering both
Rockland and Orange counties prompted Governor Pataki, Senate Majority
Leader Joseph L. Bruno and Assembly Speaker Sheldon Silver to support
the elimination of the commuter tax in 1999, the city ratcheted
up the 1127 payment to equal the city tax. The city’s non-resident
cops and firefighters “didn’t get the benefit of the
repeal of the law,” said Mr. Ganley.
More recently, Mr. Ganley, a transit cop, has waged a successful
legal battle to prevent the city from imposing the Section 1127
payments on members of the former New York City Transit and Housing
Authority police forces. Before their jobs were transferred to the
Police Department, transit and housing cops did not have to make
Section 1127 payments.
EMS Personnel Exempt
In a similar case, a state court said the payments could not be
imposed on Paramedics and Emergency Medical Technicians who were
transferred to the Fire Department from the Health and Hospitals
Corporation.
About half of the unions in the lobbying coalition filed a Federal
lawsuit this summer in which they argue the 1127 payment violates
their due-process rights under the U.S. Constitution.
The 13 unions in the lawsuit contend it is unfair for the Finance
Department to require payments from their members while excluding
the city’s Teachers and employees of the District Attorneys,
County Clerks and Public Administrators in the five boroughs. A
ruling on motions for summary judgment in the case is expected by
the end of next year.

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