News Details - Legislature Opposes Governor’s Proposal Regarding IDA Sales Tax Abatements
The Legislature went on record in opposition to proposed changes in the Governor’s Executive Budget that would constrain the authority of local Industrial Development Agencies, such as the Tompkins County IDA, to abate sales tax for qualifying projects. The vote was 14-1, with Legislator Dooley Kiefer voting no.
IDAs currently are authorized to abate local property taxes, the State and local share of sales taxes on construction materials and equipment, and the mortgage recording tax to support new and expanding businesses as they invest to create new jobs in New York State.
Budget committee chair, and IDA member, Jim Dennis noted the proposed change would eliminate the ability of local IDAs to abate the state portion of sales tax for construction costs; that decision would have to be made by the Regional Economic Development Council, which would created delays and hamper local IDAs and their ability to get projects going. Legislator Nathan Shinagawa, also a member of the IDA, pointed out that such a policy would be especially limiting for small community projects, such as the Lansing Market and Neighborhood Pride store.
Legislator Kiefer said she views it at appropriate that the State want to control its own portion of the sales tax, and that was the reason behind her “no” vote.