It's called a "cost recovery fee," and critics say it is damaging the ability of Industrial Development Agencies to create jobs.
The fee is a tax on operating revenue and is calculated before IDA expenses are deducted, according to this story Star-Gazette in Elmira.
Albany stuck the cost recovery fee in the 2009-10 budget as a line item and many IDAs were surprised to get bills for 5 percent of their revenue.
Assemblyman Steve Hawley introduced legislation this week to repeal the fee.
"To add these assessments during this difficult economy will only lead to further job losses across New York, especially in the Upstate region.," Hawley said in a press release. "Albany needs to wake up and understand that job creation for New Yorkers should be their number one priority, not more unfair taxes and fees.”
Albany expects the IDA fee to generate $5 million in revenue for the State.
Hawley's legislation, if passed, would repeal the fee and reimburse IDAs for any fees already paid.
IDAs are set up in regions throughout the state to spur business development through tax breaks and other incentives, as well as organizing and promoting development opportunities.
