Amd §§891-a, 898-a, 901-a, 914-a, 925-t & 925-v, Gen Muni L
Restricts the formation of new development agencies in Erie County; limits the authority of town industrial development agencies located within Erie County to exempt certain taxes.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1551
SPONSOR: Rivera 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 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 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 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 2013-14: S.840 REFERRED TO LOCAL
GOVERNMENT: 2015-16: S366 REFERRED TO LOCAL GOVERNMENT 2017-18:
S.1833/A.7072 2019-20: 5.572 Referred to Local Government: 2021-22:
A7617/53973 Referred to Local Government
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
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.
STATE OF NEW YORK
________________________________________________________________________
1551
2023-2024 Regular Sessions
IN ASSEMBLY
January 17, 2023
___________
Introduced by M. of A. RIVERA -- read once and referred to the Committee
on Local Governments
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:
1 Section 1. Section 891-a of the general municipal law is amended by
2 adding a new subdivision 3 to read as follows:
3 3. (a) Notwithstanding the provisions of section eight hundred fifty-
4 six of this article or any other law, rule or regulation to the contra-
5 ry, no new industrial development agency may be formed within Erie coun-
6 ty.
7 (b) Notwithstanding the provisions of section eight hundred seventy-
8 four of this article or any other law, rule or regulation to the contra-
9 ry, within Erie county, only projects that are undertaken by the Erie
10 County Industrial Development Agency:
11 (1) May be exempt from the four percent sales and compensating use tax
12 imposed for the benefit of New York state by article twenty-eight of the
13 tax law;
14 (2) May be exempt from the three percent, additional one percent and
15 the additional three-quarters of one percent sales and compensating use
16 tax imposed by section twelve hundred ten of the tax law;
17 (3) May be exempt from real property taxes imposed by the county of
18 Erie, provided however, county real property tax relief may be granted
19 by a town industrial development agency for projects located within such
20 town, if the Erie County Industrial Development Agency consents on a
21 project by project basis by resolution at a regular or special meeting
22 to such real property tax exemption;
23 (4) May be exempt from real property taxes imposed by a village,
24 provided however, village real property tax relief may be granted on a
25 project by project basis by a town industrial development agency for
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01677-01-3
A. 1551 2
1 projects located within a village which is part of such town, if such
2 village consents by a resolution duly adopted at a regular or special
3 meeting of such village board to such real property tax exemption;
4 (5) May be exempt from real property taxes imposed by a school
5 district, provided however, school district real property tax relief may
6 be granted on a project by project basis by a town industrial develop-
7 ment agency for projects located within a school district which is part
8 of such town, if such school district consents by a resolution duly
9 adopted at a regular or special meeting of the board of such school
10 district to such real property tax exemption; and
11 (6) May be exempt from the mortgage recording tax imposed by article
12 eleven of the tax law.
13 (c) Notwithstanding any law, rule or regulation to the contrary, town
14 industrial development agencies within Erie county are authorized to
15 enter into cooperative agreements with the Erie County Industrial Devel-
16 opment Agency whereby the rights, obligations, duties, and assets of
17 such town industrial development agency are transferred in whole or in
18 part to the Erie County Industrial Development Agency so long any pledge
19 that may have been provided by the state, such municipality, or such
20 town industrial development agency pursuant to the provisions of section
21 eight hundred sixty-eight of this article is not adversely affected.
22 Insofar as the provisions of this paragraph are inconsistent with any of
23 the provisions of section eight hundred ninety-eight-a, nine hundred
24 one-a, nine hundred fourteen-a (as added by chapter five hundred seven-
25 ty-nine of the laws of nineteen hundred seventy-three), nine hundred
26 twenty-five-t or nine hundred twenty-five-v of this title, the
27 provisions of this paragraph shall be controlling.
28 § 2. Section 898-a of the general municipal law, as added by chapter
29 995 of the laws of 1972, is amended to read as follows:
30 § 898-a. Town of Lancaster industrial development agency. For the
31 benefit of the town of Lancaster in the county of Erie, and the inhabit-
32 ants thereof, an industrial development agency, to be known as the TOWN
33 OF LANCASTER INDUSTRIAL DEVELOPMENT AGENCY, is hereby established for
34 the accomplishment of any or all of the purposes specified in title one
35 of this article [eighteen-A of this chapter]. It shall constitute a
36 body corporate and politic, and be perpetual in duration. It shall have
37 the powers and duties now or hereafter conferred by title one of this
38 article [eighteen-A of this chapter] upon industrial development agen-
39 cies and provided that the exercise of the powers by such agency with
40 respect to the acquisition of real property whether by purchase, condem-
41 nation or otherwise, shall be limited to the corporate limits of the
42 Town of Lancaster, and such agency shall take into consideration the
43 local zoning and planning regulations as well as the regional and local
44 comprehensive land use plans. It shall be organized in a manner
45 prescribed by and be subject to the provisions of title one of this
46 article [eighteen-A of this chapter]. Its members shall be appointed by
47 the governing body of the Town of Lancaster. The agency, its members,
48 officers and employees and its operations and activities shall in all
49 respects be governed by the provisions of title one of this article
50 [eighteen-A of this chapter]. Insofar as any of the provisions of this
51 section are inconsistent with the provisions of subdivision three of
52 section eight hundred ninety-one-a of this title, the provisions of such
53 subdivision shall be controlling.
54 § 3. Section 901-a of the general municipal law, as added by chapter
55 364 of the laws of 1973, is amended to read as follows:
A. 1551 3
1 § 901-a. Town of Clarence, Erie county, industrial development agency.
2 For the benefit of the town of Clarence, Erie county, and the inhabit-
3 ants thereof, an industrial development agency, to be known as the TOWN
4 OF CLARENCE, ERIE COUNTY, INDUSTRIAL DEVELOPMENT AGENCY, is hereby
5 established for the accomplishment of any or all of the purposes speci-
6 fied in title one of this article [eighteen-A of this chapter]. It shall
7 constitute a body corporate and politic, and be perpetual in duration.
8 It shall have the powers and duties now or hereafter conferred by title
9 one of this article [eighteen-A of this chapter] upon industrial devel-
10 opment agencies and provided that the exercise of the powers by such
11 agency with respect to the acquisition of real property whether by
12 purchase, condemnation or otherwise, shall be limited to the corporate
13 limits of the town of Clarence, and such agency shall take into consid-
14 eration the local zoning and planning regulations as well as the
15 regional and local comprehensive land use plans. It shall be organized
16 in a manner prescribed by and be subject to the provisions of title one
17 of this article [eighteen-A of this chapter]. Its members shall be
18 appointed by the governing body of the town of Clarence. The agency, its
19 members, officers and employees and its operations and activities shall
20 in all respects be governed by the provisions of title one of this arti-
21 cle [eighteen-A of this chapter]. Insofar as any of the provisions of
22 this section are inconsistent with the provisions of subdivision three
23 of section eight hundred ninety-one-a of this title, the provisions of
24 such subdivision shall be controlling.
25 § 4. Section 914-a of the general municipal law, as added by chapter
26 579 of the laws of 1973, is amended to read as follows:
27 § 914-a. Town of Amherst industrial development agency. For the bene-
28 fit of the town of Amherst in the county of Erie, and the inhabitants
29 thereof, an industrial development agency, to be known as the TOWN OF
30 AMHERST INDUSTRIAL DEVELOPMENT AGENCY, is hereby established for the
31 accomplishment of any or all of the purposes specified in title one of
32 this article [eighteen-A of this chapter]. It shall constitute a body
33 corporate and politic, and be perpetual in duration. It shall have the
34 power and duties now or hereafter conferred by title one of this article
35 [eighteen-A of this chapter] upon industrial development agencies and
36 provided that the exercise of the powers by such agency with respect to
37 the acquisition of real property whether by purchase, condemnation or
38 otherwise, shall be limited to the corporate limits of the town of
39 Amherst, and such agency shall take into consideration the local zoning
40 and planning regulations as well as the regional and local comprehensive
41 land use plans. It shall be organized in a manner prescribed by and be
42 subject to the provisions of title one of this article [eighteen-A of
43 this chapter]. Its members shall be appointed by the governing body of
44 the town of Amherst. The agency, its members, officers and employees and
45 its operations and activities shall in all respects be governed by the
46 provisions of title one of this article [eighteen-A of this chapter].
47 Insofar as any of the provisions of this section are inconsistent with
48 the provisions of subdivision three of section eight hundred
49 ninety-one-a of this title, the provisions of such subdivision shall be
50 controlling.
51 § 5. Section 925-t of the general municipal law is amended by adding a
52 new subdivision 3 to read as follows:
53 3. Insofar as any of the provisions of this section are inconsistent
54 with the provisions of subdivision three of section eight hundred nine-
55 ty-one-a of this title, the provisions of such subdivision shall be
56 controlling.
A. 1551 4
1 § 6. Section 925-v of the general municipal law is amended by adding a
2 new subdivision 3 to read as follows:
3 3. Insofar as any of the provisions of this section are inconsistent
4 with the provisions of subdivision three of section eight hundred nine-
5 ty-one-a of this title, the provisions of such subdivision shall be
6 controlling.
7 § 7. This act shall take effect immediately; provided, however, it
8 shall not apply to any project approved by a town industrial development
9 agency prior to the effective date of this act.
