What's happening
This bill prohibits the formation of new industrial development agencies in Erie County and centralizes certain tax exemptions and approvals under the Erie County Industrial Development Agency.
Why it matters
Centralizes oversight and restricts local autonomy. By prohibiting new industrial development agencies (IDAs) in Erie County and giving the Erie County Industrial Development Agency (ECIDA) exclusive authority over key tax exemptions, the bill significantly reduces the ability of individual towns and villages to independently spur development and tailor incentives to local priorities.
Tightens control over tax breaks. Only projects approved by the ECIDA will be eligible for major tax exemptions (sales tax, real property tax, mortgage recording tax), limiting the proliferation of tax breaks and potentially increasing oversight and uniformity, but possibly making it more difficult for smaller or niche projects to qualify for incentives.
Imposes new requirements for local tax relief. Town and village IDAs can only grant real property tax exemptions if both the ECIDA and, where relevant, the affected village or school district give explicit, project-specific consent by formal resolution, increasing transparency and local stakeholder involvement but adding procedural hurdles.
Facilitates consolidation of existing agencies. The bill allows town IDAs in Erie County to transfer some or all of their powers, duties, and assets to the ECIDA through cooperative agreements, potentially streamlining economic development efforts and reducing administrative redundancy, but also raising questions about local representation and responsiveness.
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Who cares
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Limit Erie County Development Agencies
Plain English, a few words. Used as the page title.
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History
- Referred to local government
- Referred to local government
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
572
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
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 Assembly, 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 fiftysix of this article or any other law, rule or regulation to the contrary, no new industrial development agency may be formed within Erie county.
(b) Notwithstanding the provisions of section eight hundred seventyfour 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02607-01-9
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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 development 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 Development 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 seventy-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.
§ 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:
§ 898-a. Town of Lancaster industrial development agency. For the benefit of the town of Lancaster in the county of Erie, and the inhabitants 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 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 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 this article [eighteen-A of this chapter]. Insofar as any of the provisions of this section are inconsistent with the provisions of subdivision three of section eight hundred ninety-one-a of this title, the provisions of such subdivision shall be controlling.
§ 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. 572 3
§ 901-a. Town of Clarence, Erie county, industrial development agency. For the benefit of the town of Clarence, Erie county, and the inhabitants 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 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 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 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 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 article [eighteen-A of this chapter]. Insofar as any of the provisions of this section are inconsistent with the provisions of subdivision three of section eight hundred ninety-one-a of this title, the provisions of such subdivision shall be controlling.
§ 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:
§ 914-a. Town of Amherst industrial development agency. For the benefit 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 subdivision three of section eight hundred ninety-one-a of this title, the provisions of such subdivision shall be controlling.
§ 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 subdivision three of section eight hundred ninety-one-a of this title, the provisions of such subdivision shall be controlling.
S. 572 4
§ 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 subdivision three of section eight hundred ninety-one-a of this title, the provisions of such subdivision shall be controlling.
§ 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.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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 countywide 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 busi- nesses 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 2013-14: S.840 REFERRED TO LOCAL GOVERNMENT: 2015-16: S.766 REFERRED TO LOCAL GOVERNMENT 2017-18: S.1833/A.7072
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.