senate Bill S2682
(R, C, IP) 61st Senate District
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
Repeals certain provisions relating to the assessment and reimbursement of state expenditures and requires reimbursement of monies previously paid.
TITLE OF BILL:
to repeal section 2975-a of the public authorities law,
relating to the assessment and
reimbursement of state expenditures
PURPOSE OR GENERAL IDEA OF BILL:
An act to repeal part UU of Chapter 59
of the Laws of 2009; relating to the cost recovery assessment placed
on IDAs. The 2009-2010 State Budget contained a maximum $5 million
statewide "cost recovery" assessment on IDAs to be calculated by
multiplying the gross revenues of each IDA for 2008 by 4.7 percent.
SUMMARY OF SPECIFIC PROVISIONS:
This legislation will repeal certain
provisions relating to the assessment and reimbursement of state
expenditures and requires reimbursement of monies previously paid.
All monies paid by or on behalf of any industrial agency or authority
as of the effective date of this act 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.
IDA fee-based income is used to support important
local job creation initiatives, including paying for the operation of
the IDA; paying for infrastructure of economic development projects;
building industrial and technology parks; administering business
marketing programs; and conducting job fairs. The IDA tax is
arbitrary, unfair and severely flawed. The tax is applied against
200B revenue for 2009-2010 services provided to IDAs and there is no
conceivable way an IDA could have budgeted for this charge. The fee is
being imposed upon revenues statutorily, or agreed upon as
"pass-through" revenues and do not reflect real revenue of the IDA.
IDAs are required to pay the Bond Insurance Charge, enacted as a cost
recovery source of revenue, thereby making the subject tax
duplicative in purpose and excessive in application furthermore the
$5 million collected from the "cost recovery" charge is more than 300
percent greater than the total budget of the Authority Budget Office
and the charge does not reflect any rational basis for actual costs
incurred by the state for providing services to IDAs. This tax is an
unfunded mandate which will require municipalities to make larger
contributions in support of their economic development
PRIOR LEGISLATIVE HISTORY:
2010 - S.7073/A.10099 -- CORPS/Corps
This bill will result in the loss of $5 million to
the General Fund annually.
This act shall take effect immediately and shall be
deemed to have be in full force and effect on and
after April 1, 2009.
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