Relates to the recovery of governmental costs from industrial development agencies.
TITLE OF BILL: An act in relation to the recovery of state governmental costs from industrial development agencies; and to repeal section 2975-a of the public authorities law relating thereto
PURPOSE OR GENERAL IDEA OF BILL: This bill would repeal section 2975-a of the public authorities law that allows the state to seek recovery of governmental costs from industrial development agencies.
JUSTIFICATION: This bill repeals section 2975-a of the public authorities law. Under this section, the New York State Department of Taxation and Finance is authorized to seek reimbursement from IDA's for supposed state costs attributable to our IDA's.
Often times, the IDA is one of the only economic development tools that counties have to offer companies that are looking to expand or relocate here. So, for the state to begin assessing charges on IDA's would harm their ability to promote economic development and tax base expansion. To that end, this bill recognizes that by repealing this unneeded fee on economic development.
PRIOR LEGISLATIVE HISTORY: S.6962A of 2009-2010
FISCAL IMPLICATIONS: Section 2975-a allows for recovery from IDA's of up to $5 million.
EFFECTIVE DATE: Immediately, with provisions.
STATE OF NEW YORK ________________________________________________________________________ 1910 2011-2012 Regular Sessions IN SENATE January 14, 2011 ___________Introduced by Sens. VALESKY, ADAMS -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT in relation to the recovery of state governmental costs from industrial development agencies; and to repeal section 2975-a of the public authorities law relating thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 2975-a of the public authorities law is REPEALED. S 2. All monies paid by or on behalf of any industrial development agency or authority to reimburse to New York state an allocable share of state governmental costs attributable to the provision of services to industrial development agencies as determined in section 2975-a of the public authorities law shall be reimbursed to the paying entity within ninety days of the effective date of this act. S 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2010.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06460-01-1