Southampton - Praising a local businessman for taking a stand against what he called an "unfair, unethical, and unconstitutional" tax, Councilman Chris Nuzzi wants Southampton Town to join the fight.

Last December, Bill Schoolman, owner of Hampton Luxury Liners and Classic Coach bus companies, filed a lawsuit against several New York State officials over the new Metropolitan Transportation Authority payroll tax. Proposed by the Ravitch Commission and supported by leading state Democrats, a fee of $33 is levied on each $1,000 of payroll for entities operating within the 12-county area of the MTA. All businesses, not-for-profits, governments, schools, universities, and libraries have been affected.

"The Town of Southampton on behalf of its residents and businesses needs to fight this tax more aggressively," said Nuzzi, urging the municipality's involvement with the suit. "We're in a recession, laying off employees and trying to reduce costs. But the MTA just took another $50,000 from the Southampton taxpayer."

Councilman James Malone, who took office on January 1, concurred, noting that recent figures from the Southampton Business Alliance, show Town's unemployment rate over 10 percent. "Government should be thinking of ways to create jobs, rather than dreaming up new taxes," he said. "When Southampton tax dollars are used to pay the MTA, it means a cut in service. When a school pays, it's a hike in property taxes. When a business pays, it means higher prices for consumers and diminished wages for workers."

Schoolman, who started Classic Coach in 1976 and bought the Luxury Liner last year, said it was illegal and unconstitutional for the State to force him to subsidize a competitor. "This is the best example of New York State government at its absolute worst," he said in a statement. "At one time when things were dark, I actually had a third mortgage at 23 percent on my house. I was willing to take a risk with my house, but I'm not willing to take a risk with the MTA."

According to a Town transportation study, 95 percent of East End residents only use automobiles and comprise less than one percent of the Long Island Railroad's total ridership.

"We don't use their services, but they take our money anyway," said Councilwoman Nancy Graboski, who also backs involvement in the suit. According to the Suffolk County Legislature's Budget Review Office, residents already contribute nearly $100 million a year in sales tax revenue to the MTA. In 2008, the County Clerk sent more than $60 million in mortgage tax revenue and another $47 million in 2009. It was estimated that the tax will add $24 million in expenses to Long Island's school districts and more than $4 million to Suffolk County.

"It's a bad idea, with bad implications that could not have come at a worse time," concluded Nuzzi. "We're trying to do more with less, and can't afford to bail out the New York City transit system."