New York MTA Approves First Bond Sale Backed by Payroll Tax

New York’s Metropolitan Transportation Authority Wednesday approved issuing as much as $2.9 billion of bonds backed by a payroll tax to cover revenue lost during the coronavirus outbreak.

• MTA’s board voted on allowing the agency to sell debt backed by the payroll mobility tax, a fee imposed on employers in New York City, the northern suburbs and Long Island, according to board documents posted on the MTA’s website
• The board also approved, in anticipation of such a long-term bond sale, $2.9 billion of short-term debt repaid with PMT revenue that could be sold to the Federal Reserve’s Municipal Liquidity Facility, ...