What's happening
This bill repeals certain provisions and limits financial assistance from industrial development agencies to retail projects only when goods or services are otherwise inaccessible.
Why it matters
Narrows eligibility for industrial development agency (IDA) financial aid to retail projects only when local residents lack reasonable access to the goods or services. meaning support is now focused on addressing true retail “deserts” rather than broader economic development.
Removes the ability for IDAs to fund retail projects simply because they are located in “highly distressed areas,”. potentially reducing investment in economically challenged neighborhoods unless they also lack access to essential goods or services.
Repeals a subdivision of law that may have previously defined or expanded the scope of eligible retail projects,. likely tightening oversight and restricting the use of public subsidies for retail development.
May shift local economic development strategies and public resources away from retail projects toward other sectors or approaches,. since fewer retail projects will qualify for financial assistance under the new criteria.
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Who cares
Headline styles
Limit Retail Tax Breaks
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit IDA Retail Assistance
In Assembly Committee · Local Governments · Sponsor Jonathan Rivera
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
177
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sen. S. RYAN -- 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 financial assistance from an industrial development agency; and to repeal certain provisions of such law relating thereto
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 18 of section 854 of the general municipal law is REPEALED.
§ 2. Paragraph (b) of subdivision 2 of section 862 of the general municipal law, as added by section 1 of part J of chapter 59 of the laws of 2013, is amended to read as follows:
(b) Notwithstanding the provisions of paragraph (a) of this subdivision, financial assistance may, however, be provided to a project where facilities or property that are primarily used in making retail sales of goods or services to customers who personally visit such facilities to obtain such goods or services constitute more than one-third of the total project cost, where[: (i)] the predominant purpose of the project would be to make available goods or services which would not, but for the project, be reasonably accessible to the residents of the city, town, or village within which the proposed project would be located because of a lack of reasonably accessible retail trade facilities offering such goods or services[; or (ii) the project is located in a highly distressed area].
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S LBD00441-01-5
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 financial assistance from an industrial development agency; and to repeal certain provisions of such law relating thereto
Purpose or general idea of bill
This bill would prevent retail establishments from utilizing the "highly distressed area" exemption to the retail ban for industrial development agencies.
Summary of specific provisions
Section 1 repeals subdivision 18 of section 854 of the general municipal law.
Section 2 removes references to "highly distressed areas" from paragraph (b) of subdivision 2 of section 862 of the general municipal law. Section 3 is the effective date.
Justification
Industrial development agencies, or IDAs, are public benefit corpo- rations created under the general municipal law and the public authori- ties law. Since their creation in 1969, they have offered billions of dollars of incentives to large multi-national corporations. The only data the state receives regarding job creation and economic benefits as a result of IDA activity is self-reported, and IDAs' exact effectiveness in this area is unknown.
In the 2013-2014 budget, language was added to the general municipal law to prohibit IDAs from providing incentives to projects where the facili- ties or property would be primarily used for retail sales of goods or services. Exceptions to this retail ban were carved out as well. Per the budget briefing book, the goal of these changes was to "make IDAs more accountable by limiting the industries to which IDAs can offer State sales and other use benefits to...key sectors."
Despite this ban, many IDAs continue to offer incentives to retail and food service establishments. According to the U.S. Bureau of Labor Statistics, the median wage for a food service worker nationwide in 2021 was $28,780 per year. The reason for the "highly distressed area" exemption to the retail ban is ostensibly to improve the conditions in the area by creating more jobs that will lift residents out of poverty. $28,780 per year is not enough to lift an individual out of poverty, never mind a family. Providing incentives to retail and food service entities does not benefit highly distressed communities. We need to prioritize high-wage jobs that have a proven record of lifting people out of poverty.
Legislative history
2023-2024: S4868/A6391
Fiscal implications
None.
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.