Bill S840-2013

Restricts the formation of new development agencies in Erie county

Restricts the formation of new development agencies in Erie County.

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  • Jan 8, 2014: REFERRED TO LOCAL GOVERNMENT
  • Jan 9, 2013: REFERRED TO LOCAL GOVERNMENT

Memo

BILL NUMBER:S840

TITLE OF BILL: An act to amend the general municipal law, in relation to restricting the formation of new development agencies in Erie county

PURPOSE OR GENERAL IDEA OF THE BILL: This bill would allow only the Erie County Industrial Development Agency to exempt state and county taxes, without prior approval. Further, this bill would require any town Industrial Development Agencies within Erie County to seek approval if they wish to exempt any taxes other than the individual town's property taxes.

SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends section 891-a of the general municipal law by limiting the authority of town industrial development agencies located within Erie County to exempt certain taxes.

Section 2 amends section 898-a of the general municipal law stating section 891-a is controlling law in the event of any inconsistencies.

Section 3 amends section 901-a of the general municipal law stating section 891-a is controlling law in the event of any inconsistencies.

Section 4 amends section 914-a of the general municipal law stating section 891-a is controlling law in the event of any inconsistencies.

Section 5 amends section 925-t of the general municipal law stating section 891-a is controlling law in the event of any inconsistencies.

Section 6 amends section 925-v of the general municipal law stating section 891-a is controlling law in the event of any inconsistencies,

JUSTIFICATION: Currently, Erie County has 5 town IDAs (Amherst, Clarence, Concord, Hamburg, and Lancaster) in addition to the Erie County IDA. The ECIDA has power and authority to act on a county wide basis while the town IDAs can only act on projects within the boundaries of their town. This leads to competition between the town IDAs in attempting to lure businesses to their municipalities. The taxes generally waived by these town IDAs consist of-state and county taxes, as well as, the taxes of school districts and other municipalities. This results in the town IDAs competing to exempt taxes from the same general pool of tax revenue. The ECIDA is in a better position to oversee the tax exemptions granted to businesses and implement regional strategies for economic growth.

PRIOR LEGISLATIVE HISTORY: 2012: A.10560 Referred to Rules

FISCAL IMPLICATIONS:

No fiscal implications to the state. State tax revenues should increase as the ECIDA will be the sole IDA which can exempt state taxes.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 840 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the general municipal law, in relation to restricting the formation of new development agencies in Erie county THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 891-a of the general municipal law is amended by adding a new subdivision 3 to read as follows: 3. (A) NOTWITHSTANDING THE PROVISIONS OF SECTION EIGHT HUNDRED FIFTY- SIX OF THIS ARTICLE OR ANY OTHER LAW, RULE OR REGULATION TO THE CONTRA- RY, NO NEW INDUSTRIAL DEVELOPMENT AGENCY MAY BE FORMED WITHIN ERIE COUN- TY. (B) NOTWITHSTANDING THE PROVISIONS OF SECTION EIGHT HUNDRED SEVENTY-FOUR OF THIS ARTICLE OR ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY, WITHIN ERIE COUNTY, ONLY PROJECTS THAT ARE UNDERTAKEN BY THE ERIE COUNTY INDUSTRIAL DEVELOPMENT AGENCY: (1) MAY BE EXEMPT FROM THE FOUR PERCENT SALES AND COMPENSATING USE TAX IMPOSED FOR THE BENEFIT OF NEW YORK STATE BY ARTICLE TWENTY-EIGHT OF THE TAX LAW; (2) MAY BE EXEMPT FROM THE THREE PERCENT, ADDITIONAL ONE PERCENT AND THE ADDITIONAL THREE-QUARTERS OF ONE PERCENT SALES AND COMPENSATING USE TAX IMPOSED BY SECTION TWELVE HUNDRED TEN OF THE TAX LAW; (3) MAY BE EXEMPT FROM REAL PROPERTY TAXES IMPOSED BY THE COUNTY OF ERIE, PROVIDED HOWEVER, COUNTY REAL PROPERTY TAX RELIEF MAY BE GRANTED BY A TOWN INDUSTRIAL DEVELOPMENT AGENCY FOR PROJECTS LOCATED WITHIN SUCH TOWN, IF THE ERIE COUNTY INDUSTRIAL DEVELOPMENT AGENCY CONSENTS ON A PROJECT BY PROJECT BASIS BY RESOLUTION AT A REGULAR OR SPECIAL MEETING TO SUCH REAL PROPERTY TAX EXEMPTION; (4) MAY BE EXEMPT FROM REAL PROPERTY TAXES IMPOSED BY A VILLAGE, PROVIDED HOWEVER, VILLAGE REAL PROPERTY TAX RELIEF MAY BE GRANTED ON A
PROJECT BY PROJECT BASIS BY A TOWN INDUSTRIAL DEVELOPMENT AGENCY FOR PROJECTS LOCATED WITHIN A VILLAGE WHICH IS PART OF SUCH TOWN, IF SUCH VILLAGE CONSENTS BY A RESOLUTION DULY ADOPTED AT A REGULAR OR SPECIAL MEETING OF SUCH VILLAGE BOARD TO SUCH REAL PROPERTY TAX EXEMPTION; (5) MAY BE EXEMPT FROM REAL PROPERTY TAXES IMPOSED BY A SCHOOL DISTRICT, PROVIDED HOWEVER, SCHOOL DISTRICT REAL PROPERTY TAX RELIEF MAY BE GRANTED ON A PROJECT BY PROJECT BASIS BY A TOWN INDUSTRIAL DEVELOP- MENT AGENCY FOR PROJECTS LOCATED WITHIN A SCHOOL DISTRICT WHICH IS PART OF SUCH TOWN, IF SUCH SCHOOL DISTRICT CONSENTS BY A RESOLUTION DULY ADOPTED AT A REGULAR OR SPECIAL MEETING OF THE BOARD OF SUCH SCHOOL DISTRICT TO SUCH REAL PROPERTY TAX EXEMPTION; AND (6) MAY BE EXEMPT FROM THE MORTGAGE RECORDING TAX IMPOSED BY ARTICLE ELEVEN OF THE TAX LAW. (C) NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO THE CONTRARY, TOWN INDUSTRIAL DEVELOPMENT AGENCIES WITHIN ERIE COUNTY ARE AUTHORIZED TO ENTER INTO COOPERATIVE AGREEMENTS WITH THE ERIE COUNTY INDUSTRIAL DEVEL- OPMENT AGENCY WHEREBY THE RIGHTS, OBLIGATIONS, DUTIES, AND ASSETS OF SUCH TOWN INDUSTRIAL DEVELOPMENT AGENCY ARE TRANSFERRED IN WHOLE OR IN PART TO THE ERIE COUNTY INDUSTRIAL DEVELOPMENT AGENCY SO LONG ANY PLEDGE THAT MAY HAVE BEEN PROVIDED BY THE STATE, SUCH MUNICIPALITY, OR SUCH TOWN INDUSTRIAL DEVELOPMENT AGENCY PURSUANT TO THE PROVISIONS OF SECTION EIGHT HUNDRED SIXTY-EIGHT OF THIS ARTICLE IS NOT ADVERSELY AFFECTED. INSOFAR AS THE PROVISIONS OF THIS PARAGRAPH ARE INCONSISTENT WITH ANY OF THE PROVISIONS OF SECTION EIGHT HUNDRED NINETY-EIGHT-A, NINE HUNDRED ONE-A, NINE HUNDRED FOURTEEN-A (AS ADDED BY CHAPTER FIVE HUNDRED SEVEN- TY-NINE OF THE LAWS OF NINETEEN HUNDRED SEVENTY-THREE), NINE HUNDRED TWENTY-FIVE-T OR NINE HUNDRED TWENTY-FIVE-V OF THIS TITLE, THE PROVISIONS OF THIS PARAGRAPH SHALL BE CONTROLLING. S 2. Section 898-a of the general municipal law, as added by chapter 995 of the laws of 1972, is amended to read as follows: S 898-a. Town of Lancaster industrial development agency. For the benefit of the town of Lancaster in the county of Erie, and the inhabit- ants thereof, an industrial development agency, to be known as the TOWN OF LANCASTER INDUSTRIAL DEVELOPMENT AGENCY, is hereby established for the accomplishment of any or all of the purposes specified in title one of THIS article [eighteen-A of this chapter]. It shall constitute a body corporate and politic, and be perpetual in duration. It shall have the powers and duties now or hereafter conferred by title one of THIS article [eighteen-A of this chapter] upon industrial development agen- cies and provided that the exercise of the powers by such agency with respect to the acquisition of real property whether by purchase, condem- nation or otherwise, shall be limited to the corporate limits of the Town of Lancaster, and such agency shall take into consideration the local zoning and planning regulations as well as the regional and local comprehensive land use plans. It shall be organized in a manner prescribed by and be subject to the provisions of title one of THIS article [eighteen-A of this chapter]. Its members shall be appointed by the governing body of the Town of Lancaster. The agency, its members, officers and employees and its operations and activities shall in all respects be governed by the provisions of title one of article eigh- teen-A of this chapter. INSOFAR AS ANY OF THE PROVISIONS OF THIS SECTION ARE INCONSISTENT WITH THE PROVISIONS OF PARAGRAPH THREE OF SECTION EIGHT HUNDRED NINETY-ONE-A OF THIS TITLE, THE PROVISIONS OF SUCH PARAGRAPH SHALL BE CONTROLLING. S 3. Section 901-a of the general municipal law, as added by chapter 364 of the laws of 1973, is amended to read as follows:
S 901-a. Town of Clarence, Erie county, industrial development agency. For the benefit of the town of Clarence, Erie county, and the inhabit- ants thereof, an industrial development agency, to be known as the TOWN OF CLARENCE, ERIE COUNTY, INDUSTRIAL DEVELOPMENT AGENCY, is hereby established for the accomplishment of any or all of the purposes speci- fied in title one of THIS article [eighteen-A of this chapter]. It shall constitute a body corporate and politic, and be perpetual in duration. It shall have the powers and duties now or hereafter conferred by title one of THIS article [eighteen-A of this chapter] upon industrial devel- opment agencies and provided that the exercise of the powers by such agency with respect to the acquisition of real property whether by purchase, condemnation or otherwise, shall be limited to the corporate limits of the town of Clarence, and such agency shall take into consid- eration the local zoning and planning regulations as well as the regional and local comprehensive land use plans. It shall be organized in a manner prescribed by and be subject to the provisions of title one of THIS article [eighteen-A of this chapter]. Its members shall be appointed by the governing body of the town of Clarence. The agency, its members, officers and employees and its operations and activities shall in all respects be governed by the provisions of title one of THIS arti- cle [eighteen-A of this chapter]. INSOFAR AS ANY OF THE PROVISIONS OF THIS SECTION ARE INCONSISTENT WITH THE PROVISIONS OF PARAGRAPH THREE OF SECTION EIGHT HUNDRED NINETY-ONE-A OF THIS TITLE, THE PROVISIONS OF SUCH PARAGRAPH SHALL BE CONTROLLING. S 4. Section 914-a of the general municipal law, as added by chapter 579 of the laws of 1973, is amended to read as follows: S 914-a. Town of Amherst industrial development agency. For the bene- fit of the town of Amherst in the county of Erie, and the inhabitants thereof, an industrial development agency, to be known as the TOWN OF AMHERST INDUSTRIAL DEVELOPMENT AGENCY, is hereby established for the accomplishment of any or all of the purposes specified in title one of THIS article [eighteen-A of this chapter]. It shall constitute a body corporate and politic, and be perpetual in duration. It shall have the power and duties now or hereafter conferred by title one of THIS article [eighteen-A of this chapter] upon industrial development agencies and provided that the exercise of the powers by such agency with respect to the acquisition of real property whether by purchase, condemnation or otherwise, shall be limited to the corporate limits of the town of Amherst, and such agency shall take into consideration the local zoning and planning regulations as well as the regional and local comprehensive land use plans. It shall be organized in a manner prescribed by and be subject to the provisions of title one of THIS article [eighteen-A of this chapter]. Its members shall be appointed by the governing body of the town of Amherst. The agency, its members, officers and employees and its operations and activities shall in all respects be governed by the provisions of title one of THIS article [eighteen-A of this chapter]. INSOFAR AS ANY OF THE PROVISIONS OF THIS SECTION ARE INCONSISTENT WITH THE PROVISIONS OF PARAGRAPH THREE OF SECTION EIGHT HUNDRED NINETY-ONE-A OF THIS TITLE, THE PROVISIONS OF SUCH PARAGRAPH SHALL BE CONTROLLING. S 5. Section 925-t of the general municipal law is amended by adding a new subdivision 3 to read as follows: 3. INSOFAR AS ANY OF THE PROVISIONS OF THIS SECTION ARE INCONSISTENT WITH THE PROVISIONS OF PARAGRAPH THREE OF SECTION EIGHT HUNDRED NINETY- ONE-A OF THIS TITLE, THE PROVISIONS OF SUCH PARAGRAPH SHALL BE CONTROL- LING.
S 6. Section 925-v of the general municipal law is amended by adding a new subdivision 3 to read as follows: 3. INSOFAR AS ANY OF THE PROVISIONS OF THIS SECTION ARE INCONSISTENT WITH THE PROVISIONS OF PARAGRAPH THREE OF SECTION EIGHT HUNDRED NINETY- ONE-A OF THIS TITLE, THE PROVISIONS OF SUCH PARAGRAPH SHALL BE CONTROL- LING. S 7. This act shall take effect immediately; provided, however, it shall not apply to any project approved by a town industrial development agency prior to the effective date of this act.

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