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 2009-10 budget, to cover costs of state government services; even though the state statute required the notification by Nov. 1, 2009.
In regard to this, Sen. Michael 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, its 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.”
