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LONG ISLAND’S 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

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 Association’s 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 income
growth 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

EXECUTIVE SUMMARY
Combined Federal and State Payments Deficit with Long
Island
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
Long Island sent
Albany and
Washington $27.7
billion more dollars
than Albany and
Washington sent back
to Long Island in 2013

70,000,000,000.00

$57,526,660,876

60,000,000,000.00
50,000,000,000.00
40,000,000,000.00

Federal

30,000,000,000.00

$29,797,938,324
Federal

20,000,000,000.00
10,000,000,000.00

State

State

0.00
Revenues 2013

Expenditures 2013

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 our
local 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.

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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 Island’s deficit accounts for approximately 34.2 percent of New York State’s deficit with
the federal government, yet only has 14.6 percent of New York’s 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 York’s population.

II. Federal Balance of Payments Deficit with Long Island
Long Island sent
Washington $23.1
billion more than
Washington sent back
to Long Island in 2013.

$45,000,000,000

$42,487,512,001

$40,000,000,000
$35,000,000,000
$30,000,000,000
$25,000,000,000
$19,421,391,640

$20,000,000,000
$15,000,000,000
$10,000,000,000
$5,000,000,000
$0
Revenues 2013

Expenditures 2013

Total

Total

III. Federal Balance of Payments with NYS and Long Island
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 Service’s Data Book, 2013, Table 5; Consolidated Federal Funds Report 2010, issued September 2011,
adjusted for changes in federal spending through 2013.

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FEDERAL REVENUES COLLECTED FROM LONG ISLAND
ESTIMATED REVENUES COLLECTED BY FEDERAL GOVERNMENT
INDIVIDUAL
INCOME TAX
WITHELD AND
FICA

BUSINESS
INCOME TAXES

INDIVIDUAL
INCOME TAX
PAYMENTS AND
SECA

UNEMPLOYMENT
INSURANCE TAX

RAILROAD
RETIREMENT TAX

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 INTERNAL
REVENUE
COLLECTIONS

LONG 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

$231,879,832,001

LI PERCENTAGE OF NEW
YORK TOTAL 2013

19.2

19.6

13.8

16.5

18.3

Source: U.S. Internal Revenue Service’s (IRS) Data Book 2013, Table 5.

FEDERAL EXPENDITURES ON LONG ISLAND
ESTIMATED FEDERAL EXPENDITURES ON LONG ISLAND 20131
Retirement

Other Direct

Salaries and

and Disability

Payments

Grants

Procurement

Nassau

$3,478,266,148

$2,751,712,908

$1,319,437,476

$1,529,877,020

$508,618,124

$9,587,911,676

Suffolk

$3,726,111,284

$2,208,214,512

$1,695,087,352

$1,447,950,280

$756,115,724

$9,833,479,152

Long Island

$7,204,377,432

$4,959,927,420

$3,014,524,828

$2,977,827,300

$1,264,733,848

$19,421,390,828

Wages

Total

Source: Consolidated Federal Funds Report for Fiscal Year 2010, issued September 2011, adjusted for changes in federal spending
through 2013

1

See the Appendix for a discussion of Superstorm Sandy funds.

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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 Island’s $15 billion contribution to New York State’s budget amounts to approximately 18 percent
of total state revenue (from in-state sources) of $83.6 billion, despite having only 14.6 percent of the
state’s total population.
3. Long Island received approximately 11.5 percent of total state spending despite constituting 14.6
percent of the state’s 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
Long Island sent
Albany $4.7 billion
more than Albany sent
back to Long Island in
2013

$16,000,000,000

$15,039,148,875

$14,000,000,000
$12,000,000,000

$10,376,546,684

$10,000,000,000
$8,000,000,000
$6,000,000,000
$4,000,000,000
$2,000,000,000
$0
Revenues 2013

Expenditures 2013

Total

Total

III. New York State Balance of Payments

LONG ISLAND

Total Revenues
Collected from Long
Island
2013

Total Expenditures spent
on Long Island
2013

Balance of Payments
Deficit

$15,039,148,875

$10,376,546,684

$4,662,602,191

Source: U.S. Internal Revenue Service’s Data Book, 2013, Table 5; Consolidated Federal Funds Report 2010, issued September 2011,
adjusted for changes in federal spending through 2013.

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State Revenues Collected from Long Island
ALCOHOLIC
BEVERAGE CONTROL
LICENSE FEES

ALCOHOLIC
BEVERAGE TAX

BANK

NYS 2013

$61,224,000

LONG ISLAND 2013

$8,632,584
14.1

LI PERCENTAGE 2013

TAX

BUSINESS
CORPORATION
TAXES ARTICLE 9-A

CIGARETTE AND
TOBACCO
PRODUCTS

$246,240,056

$1,596,889,206

$2,610,867,609

$1,550,588,946

$33,734,888

$81,441,350

$302,860,643

$181,418,907

13.7

5.1

11.6

11.7

ESTATE
TAX

FINES

GIFT TAX

CORPORATION AND
UTILITIES TAXES CORPORATION TAXES
ARTICLE 9
ARTICLE 13
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

11.6

11.6

19.6

14.6

13.8

HCRA RELATED
RECEIPTS

HIGHWAY USE TAX

INSURANCE TAXES
ARTICLE 33

LOTTERY/GAMING

MISCELLANEOUS
RECEIPTS

$4,100,000,000

$213,156,529

$1,272,244,112

$3,212,140,000

$144,395,495

$598,600,000

$43,483,932

$162,847,246

$1,317,000,000

$21,081,742

14.6

20.4

12.8

41.

14.6

MTA TAXES

NYS
DEPARTMENTAL
REVENUES

OFF-TRACK
BETTING

LI PERCENTAGE 2013

NYS 2013
LONG ISLAND 2013
LI PERCENTAGE 2013

MOTOR VEHICLE
MOTOR FUEL TAXES LICENSES AND FEES
NYS 2013
LONG ISLAND 2013
LI PERCENTAGE 2013

$49,52,12,587

$1,152,371,000

$2,349,636,553

$4,976,559,000

7,769,093

$98,052,092

$235,083,684

$352,445,483

$726,577,000

$3,814,625

19.8

20.4

15.0

14.6

49.1

PERSONAL
INCOME TAX

PETROLEUM
BUSINESS TAXES

PROCEEDS FROM
ABANDONED
PROPERTIES

OTHER LICENSES AND
FEES
PARI-MUTUAL TAX
NYS 2013
LONG ISLAND 2013
LI PERCENTAGE 2013

$1,421,890,000

$14,500,359

$40,226,714,989

$1,139,724,150

$830,554,000

$207,595,940

$4,074

$7,723,529,278

$225,665,382

$142,024,734

14.6

28.1

19.2

19.8

17.1

SALES AND USE
TAX

TOTAL REVENUES

REAL PROPERTY
GAINS TAX

REAL PROPERTY
REFUNDS AND
TRANSFER TAX TOTAL REIMBURSEMENTS

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

13.8

13.8

14.6

16.5

18.0

LI PERCENTAGE 2013

Sources: New York State Comptroller’s 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.

State Expenditures on Long Island 2012-2013
PAYMENTS TO
VENDORS*

MEDICAID

PERSONAL
SERVICE COSTS*

UNEMPLOYMENT
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

$10,376,546,684

* STATE EDUCATION AID IS INCLUDED IN PAYMENTS TO VENDORS, PERSONAL SERVICE COSTS AND UNEMPLOYMENT INSURANCE
SOURCE: NEW YORK STATE COMPTROLLER’S OFFICE

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Methodology
A Note on Terminology
While terms such as “receipts,” “revenues,” “disbursements,” “expenditures,” “outlays,” and “obligations” have different
meanings in accounting and budgeting nomenclature, and government reports utilized in this study use a wide variety of
these terms, this report refers primarily to “revenues” and “expenditures.” Unless otherwise specified, these terms refer to
the total amount of money going into government coffers and the total amount of money coming out of those coffers,
respectively, as can best be determined given the available data. This report uses interchangeably the terms “NassauSuffolk” or “Long Island” to refer to the region made up of Nassau and Suffolk Counties.
Fiscal Years
This report focuses on the single state fiscal year ending March 31, 2013 and the federal fiscal year ending September 30,
2013, the latest year for which most budgetary information is available. For comparison and control purposes most of the
same data at the state level was collected for 2012 and is occasionally reported in the narrative below. For the sake of
simplicity, the only data reported in the tables and figures is for 2013.

I. New York State Revenues from Long Island - Sources
In order to estimate the amount of revenue that New York State (NYS) collects from Nassau and Suffolk Counties, this
report relies most heavily on the New York State Comptroller’s Annual Report to the Legislature on State Funds Cash Basis of
Accounting (Pursuant to Section 8(9) of the State Finance Law) for the fiscal year ended March 31, 2013 (available at
http://www.osc.state.ny.us/finance/cashrpt/annual2013.pdf and referred to hereinafter as the Comptroller’s Cash Basis
Report). This report provides data for the fiscal years 2012 and 2013. Also utilized are the New York State Department of
Taxation and Finance’s collections, policy and statistical reports available from the Department’s web site
(http://www.tax.ny.gov/research/stats/statistics/collect_policy_stat_reports.htm), for revenues collected by that
department.
Other data sources include the U.S. Census Bureau’s Population Estimates program, the U.S. Bureau of Economic Analysis,
the U.S. Census Bureau’s County Business Patterns, the New York State Department of Health, the New York State Energy
Research and Development Authority, the New York State Department of Transportation, and the National Highway and
Safety Administration. For its methodology, explained in the narrative below, this report also makes use of previous studies
that were published on the topic of the regional distribution of New York State revenues and expenditures, particularly
those conducted by the Center for Governmental Research of Rochester, New York, the Nelson A. Rockefeller Institute of
Government in Albany, New York, and the Center for Regional Policy Studies at Stony Brook University in Stony Brook, New
York.
New York State revenues included in this analysis include all tax revenues, whether deposited into the state’s general fund,
state special revenue funds, debt service funds, or capital projects funds. Excluded from state-level analysis of this report
are roughly $41 billion in federal assistance. Other revenues that are included in the Comptroller’s Cash Basis Report but
excluded from this analysis include roughly $3.6 billion in bond proceeds and other revenues from public authorities that
the New York State Comptroller classifies within its “miscellaneous receipts” category. Developing useful estimates of the
regional distribution of such revenues and for debt service payments would require data and assumptions that are beyond
the scope of this study.

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Alcohol Beverage Control License Fees: The U.S. Census Bureau’s 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 Comptroller’s 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 state’s total Alcohol Beverage Tax revenue for 2013 of
$246,240,056, as determined from the New York State Department of Taxation and Finance’s collections, policy and
statistical reports.
Another way to determine Nassau-Suffolk’s contribution might be to calculate the region’s 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-Suffolk’s 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 state’s 2.6 million binge
drinkers, or 14.8 percent. Using this method, New York State’s 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
Finance’s collections, policy and statistical reports.

Banking Tax: The distribution of revenues is derived by taking Long Island’s percentage of total payroll for the banking
industry (NAICS code 52211) from the U.S. Census Bureau’s County Business Patterns survey. The statewide annual payroll
is $16,367,270,000. Nassau County’s annual payroll for this industry sector is $396,865,000. Suffolk County’s 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 it
yields a Nassau-Suffolk contribution of $81,441,350 and $59,298,179 for those years respectively.

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Article 9-a: Long Island’s share of the Article 9-a and Article 9 corporate franchise tax liability is based on Long Island’s 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 Island’s 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 Island’s 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
Island’s 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 Island’s 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 Island’s share of the State’s 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 Island’s 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 Island’s 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 Island’s share amounts to $162,847,246.

Petroleum Business Tax: New York State’s Petroleum Business Tax revenues provided by the New York State Department of
Taxation and Finance’s 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: 1997–2011 (Appendix C: Estimated Annual Gasoline Sales by County in New
York State, 2009–2011):

Thousands of Gallons – 2011
NYS

=

5,548,356

Suffolk

=

598,640

Nassau

=

497,383

LI

=

1,096,023

% of Total =

19.8

Long Island’s share of these revenues was calculated using the 19.8 percent of total sales of gasoline. Long Island’s share of
Petroleum Business Taxes was $225,665,382 in 2013 and $217,870,579 in 2012.

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Cigarette, Tobacco Tax: The New York State Department of Health Services Behavioral Risk Factor Surveillance System 20082009 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 state’s 2.5 million, or 11.7 percent. Out of the state’s 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 region
contributes 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 Comptroller’s Cash Basis Report, revenue from state fines totaled $890,903,000 in
2013 and $466,791,000 in 2012. Using Long Island’s 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 state’s Health Care Reform Act revenues for 2013, $4.0
billion 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 Island’s percentage of the population (14.6 percent). Thus, Long Island’s 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 Island’s percentage 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 Comptroller’s 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 and
Games (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

2013

Racing Admissions Tax (includes OTB Teletheater)

354,855

371,105

Boxing & Wrestling Exhibitions Tax

412,840

658,073

7,104,253

2,627,718

23,573,063

24,902,626

0

0

103,643,145

114,232,288

1,145,441

1,603,684

17,402

0

Hazardous Waste Assessments
Waste Tire Management and Recycling Fees
Wireless Communication Service Surcharge
Returnable Beverage Container Deposits
Tax Return Preparer Registration Fees
OGS Procurement Fees
Source: New York State Department of Taxation and Finance

10

Nassau and Suffolk account for 14.6 percent of the state’s population using the U.S. Census Bureau’s 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 Final
Report June 2013, Patterns and Trends New York State Energy Profiles: 1997–2011 (Appendix C: Estimated Annual Gasoline
Sales by County in New York State, 2009–2011).

In 2013 the Motor Fuel Tax revenue for New York State was $495,212,587 and in 2012 it was $504,371,913. Long Island’s
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 Bureau’s County Business Patterns survey for the year 2011, the latest data available. See the table below:

Percent of
Total

County

$9,721,574,000

2.8

Putnam

$840,543,000

0.2

Dutchess

$4,081,285,000

1.2

Queens

$21,377,466,000

6.2

Kings

$19,013,551,000

5.5

Richmond

$3,478,755,000

1.0

Nassau

$25,186,498,000

7.3

Rockland

$4,352,912,000

1.3

New York

$202,981,197,000

59.0

Suffolk

$26,443,450,000

7.7

Orange

$3,787,814,000

1.1

Westchester

$22,585,059,000

6.6

Total MTA

$343,850,104,000

99.9

County

Total Wages

Bronx

11

Total Wages

Percent of
Total

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
Assessments –Temporary 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 Government
Business
Source
Long Island 2013
NYS State 2013

Individual Income

Income
Taxes
$2,950,227,001
$25,432,999,001

Tax Withheld
and FICA
$29,701,209,000
$154,693,800,000

Individual Income
Tax Payments
and SECA
$8,390,181,000
$43,698,862,000

Unemployment
Insurance
Tax
$108,151,000
$563,288,000

Railroad
Retirement
Tax
$69,877,000
$363,943,000

LI Percentage of
New York Total 2013

11.6

19.2

19.2

19.2

Estate and
Trust Income
Source
Long Island 2013
NYS State 2013

19.2
Total Internal

Estate

Gift

Excise

Revenue

Tax
$462,310,000

Tax
$282,057,000

Tax
$90,470,000

Taxes
Collections
$433,030,000 $42,487,512,001

$2,407,867,000

$1,439,068,000

$655,580,000

$2,624,425,000 $231,879,832,001

LI Percentage of
New York Total 2013

19.2

19.6

Source: U.S. Internal Revenue Service’s (IRS) Data Book 2013, Table 5.

12

13.8

16.5

18.3

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 Suffolk’s 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 Comptroller’s 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 region’s 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 state’s total tax revenue of $14,056,791. Applying this percentage to the state’s 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 York’s
total $30,272,866,000 personal income tax liability. When applied to New York’s total personal income tax revenue of
$40,226,714,989 in 2013 and $38,767,826,942 in 2012, Long Island’s 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-Suffolk’s 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 York’s total personal income of $1,041,930,542,000. It is estimated that Nassau-Suffolk contributed
$142,024,734 of the state’s Proceeds from Abandoned Properties of $830,554,000 in 2013 and $146,525,283 of the state’s
$856,873,000 in 2012, as reported by the Comptroller’s 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 state’s 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 Comptroller’s 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.

13

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 State’s 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 Comptroller’s
Office through a “FOIL” request (Public Officers Law, article 6) and from the Comptroller’s Cash Basis Report. The
Comptroller’s 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 Comptroller’s 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 Comptroller’s Cash Basis Report, showed that the federal government
provided $3,135,752,580 of New York’s total cost of $7,197,480,000. The percentage of Long Island’s share of
unemployment insurance payments is allocated on the basis of its proportion of the state population (14.6 percent).

14

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
Vendors

Personal Service

Unemployment

Costs

Insurance

Medicaid

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 Island’s 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

Long Island

Total Revenues 2013

Total Expenditures 2013

Total Deficit

$15,039,148,875

$10,376,546,684

$4,662,602,191

New York State Balance of Payments Deficit with Long Island
Long Island sent
Albany $4.7 billion
more than Albany
sent to Long Island
in 2013

$16,000,000,000

$15,039,148,875

$14,000,000,000
$12,000,000,000

$10,376,546,684

$10,000,000,000
$8,000,000,000
$6,000,000,000
$4,000,000,000
$2,000,000,000
$0
Revenues 2013

Expenditures 2013

Total

Total

15

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 Service’s (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 State’s 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 State’s individual (personal) income tax largely
“piggy backs” on the federal government’s individual income tax (not including “FICA”), Long Island’s percentage of the
state’s 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 report’s analysis of Long Island’s 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.

16

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 Island’s contribution to that total calculates to $41.2 billion, or 18.3 percent of
New York’s federal tax burden.

1
1

00
00

0
0

0
0

2013

0
0

00
00

0
0

1
1

2013

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 were issued 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

• Salaries and wages

• Other direct payments

• Direct loans

• Grants

• Guaranteed or insured loans

• Procurement contracts

• 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, the
change 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.

17

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

2010

2013

New York

$202,266,162,000

$164,240,123,544

Long Island

$23,917,970,000

$19,421,391,640

Source

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 York’s 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 Island’s estimated gross regional
product of $132 billion compared to 5.6 percent for New York’s gross domestic product of $1.2 trillion. (Sources for gross
product: U.S. Bureau of Economic Analysis and the 2010 Nassau County Master Plan).

18

FEDERAL BALANCE OF PAYMENTS
Total
Receipts 2013

Total
Expenditures 2013

Total
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

19

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 Island’s entire economy (gross regional product $132 billion).

TOTAL FEDERAL/STATE BALANCE OF PAYMENTS DEFICIT
NYS and Federal
Revenues 2013
Long Island

Expenditures 2013

$56,526,660,876

$29,797,938,324

20

Deficit 2013
$27,728,722,552

Appendix
The New York State Comptroller’s Office, which provided the state expenditures data for this report, advised that disaster
relief money that came to Long Island from the state for Superstorm Sandy is included in the state numbers presented in
this report. Sandy relief monies are not included in our estimate of federal 2013 spending on Long Island. However, it
should be noted that monies flowing to Long Island for emergency disaster relief through the state is mostly federal “passthrough” money coming from the U.S. Department of Housing and Urban Development and other federal agencies.
Disentangling one-shot disaster relief funding, determining the year and the place funding is distributed, and whether the
source of that funding is the federal or state governments was challenging, but certainly could not be counted twice.
The chart below from the Congressional Research Service shows that New York City, Long Island, New Jersey, and other
recipients of Sandy relief, are slated to receive somewhere on the order of $11.97 billion when all commitments are
2
accounted for . But the vast majority of that money will not be spent on Long Island.

Disasters Costing FEMA $500 Million or More 1996-2013 (in billions of dollars)

Source: Congressional Research Service, “FEMA’s Disaster Relief Fund: Overview and Selected Issues,” May 7, 2014.
Still, for illustrative purposes we thought it prudent to include a federal balance of payment figure with estimated federal
expenditures for disaster relief stemming from Sandy. As the figure below shows, even if we generously allocated $3 billion
for the 2013 fiscal year, the federal balance of payments deficit with Long Island would still total $20.1 billion.

2

President Obama signed a $50.5 billion Sandy bill on January 29, 2013. Parts of the east coast as far south as Georgia and as far north as
Upstate New York are entitled to parts of this aid package. While the bulk of the funds will go to New York and New Jersey, New York
City will likely receive the lion’s share of the funds earmarked for New York State.

21