BILL NUMBER: S4667

SPONSOR: SKOUFIS
 
TITLE OF BILL:  An act to amend the general municipal law, in relation
to preventing the use of funds, financial incentives, subsidies or tax
exemptions for project occupants which are not public

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would prohibit industrial development agencies (IDAs) from
giving financial assistance to projects where the project occupant is
kept secret from the public. Taxpayers should know which companies their
money is going to support.

 
SUMMARY OF PROVISIONS:

Section 1: Adds a new subdivision to section 862 of the general munici-
pal law stating that IDAs may not give financial incentives or subsidies
to a project in which the project occupant is not publicly disclosed at
the time of the required public hearing for the project.

              

Section 2: Adds a new subdivision to section 874 of the general munici-
pal law stating that IDAs may not grant tax exemptions to a project in
which the project occupant is not publicly disclosed at the time of the
required public hearing for the project.

Section 3: Effective date.

 
JUSTIFICATION:

Each year, local industrial development agencies grant millions of
dollars of financial assistance in the form of tax incentives, payment
in lieu of taxes (PILOT) agreements,. and others, to projects seeking
assistance. Sometimes, these incentives are given out without any way
for the public to know what company is receiving them. For example, in
the Town of Montgomery in Orange County, the local IDA is offering
incentives to developers of a 1-million square foot warehouse. Although
the developers have indicated they will pass the benefits of the incen-
tives to the future occupant of the warehouse, they are refusing to
identify which company that will be even though they admit that the
occupant is known to them.

New Yorkers have a right to know what companies are getting publicly-
funded incentives or sales tax exemptions. This bill would prohibit IDAs
from giving incentives or exemptions to a project unless the occupant of
the project is publicly known.

 
PRIOR LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.