The State Department of Taxation and Finance notified Industrial Development Agencies (IDAs) earlier this month of a “cost recovery” tax on revenues, included in the 2009-2010 State Budget, to cover costs of State government services; even though State statute required the notification by November 1, 2009.
Senator Ranzenhofer has issued the following statement:
“The most recent development in New York’s tax epic is to punish development agencies for helping businesses locate in our community and create jobs. The “cost recovery” tax is nothing but a tax on job creation, effectively hurting efforts of community business leaders to bring jobs to Western New York.
Revenues generated by IDAs are reinvested. The “cost recovery” tax steals economic development dollars from our community. Even worse, the tax is based on revenues for 2008, most of which have already been reinvested.
Local industrial development agencies already pay a Bond Issuance Charge to the State for government services. The “cost recovery” tax forces local agencies to pay double and this is excessive. After the Authority Budget Office collects the job creation tax, their budget will increase by 300 percent.
Over the next few days and weeks, I plan to work with my colleagues in State government to defeat yet another job-killing tax.”