• LinkedIn
  • Twitter
  • Facebook

716-285-9141

Niagara USA Chamber

Niagara County’s Chamber: Advocacy. Opportunity. Choice.

Niagara USA Chamber
  • About Our Chamber
    • A Message From Our President…
    • Our Mission
    • Our Team
      • Officers
      • Executive Leadership
      • Board of Directors
    • News
      • Chamber News
      • Legislative News
      • Members in the News
    • Partners & Affiliates
      • Niagara USA Chamber Resources eBook
      • Niagara Business Organizations
      • Business Resources & Networking
    • Events
    • Calendar
  • Membership
    • Why Join
      • Health Insurance
      • Small Business Support
      • More Benefits & Savings
    • Apply Now
    • Membership Rates
    • Member Directory
    • Members in the News
  • Get Involved
    • Become a Member
    • Network & Learn
    • Join a Committee
    • Sponsor or Advertise
  • Advocacy
    • Development Issues
    • Tax Issues
    • Energy Policies
    • Local Assets
    • Health Insurance
    • Legislative News
    • Elected Representatives for Niagara County
  • Niagara County at a Glance
    • Weather
    • Relocating to Niagara County
    • Visiting Niagara

Governor Cuomo’s barrier to smart growth development

  • By Elena Woods
  • February 13, 2013
  • Legislative News

The Niagara USA Chamber has been working with various advocacy groups and the County’s IDA office to ask the Governor to withdraw a provision in his executive Budget regarding the ability of IDAs to abate the state portion of New York State Sales Tax. This provision would prohibit IDAs from abating the state sales tax on a project unless that project is eligible to receive Excelsior Jobs tax credits. It would also give the Regional Economic Development Council and ESD the authority to give final approval on any abatement.

As Sam Ferraro, Executive Director of the Niagara County IDA has stated, “As a County IDA one of the main tools we have in assisting our local businesses to expand and in attracting outside investment is our ability to abate sales tax on construction materials, equipment, furniture, and fixtures. Depending on the specific project the abatement often serves to make the entire project viable.” In fact, the Niagara County IDA has recently worked with companies including GreenPac, Franks Vacuum Truck Service, and Olin Chlor Alkali which are important to the economy of Niagara County, and relied on sales tax abatement to move these projects to successful completion. None of these projects, along with several more in the works, would be eligible for tax abatement as they do not qualify for Excelsior Jobs tax credits.   Clearly Part J of the Revenue Budget Bill will have a negative effect on the continued success of the IDAs to assist in the economic growth and recovery of our region. This provision must be removed from the Executive budget.

 

Below is an excerpt of a statement by Andrew Rudnick, President & CEO of the Buffalo Niagara Partnership relating to this issue. Please take a moment to follow the link at the bottom to join all of us in asking the Governor to withdraw this proposal from his budget.

———————————————————————————————————

The governor’s proposal would 1) prohibit state sales tax abatements unless a project is in a specific industry eligible for Excelsior tax credits (think ‘bureaucracy’ and ‘hurts small business’ here…), 2) require additional approvals by the relevant Regional Economic Development Council (REDC) and Empire State Development (think ‘unnecessary oversight and delays’ here…), and 3) shift the abatement of state sales tax to a refund that might be issued sometime down the road (think ‘uncertainty’ and ‘cashflow’ here…).

 

Some of the basic problems in the Governor’s proposal are:

  • Another round of required approvals which will delay projects: projects which have already been approved by the relevant REDC will also need to be sent to ESD for further review 
  • The specifics of qualifying for Excelsior credits are especially difficult for small technology companies needing to purchase equipment for R&D
  •  State sales tax abatements on equipment are often viewed by banks as owner equity, and are needed to secure conventional funding
  • There are limitations on smart growth projects which are summarized below

 

While we all can agree that some tax abatement retooling is in order to stop enticing retailers to move from one municipality to the next, the Governor’s proposal stops many “placemaking” projects this region has strongly embraced.

Moreover, Cuomo’s proposal, if it had been in effect from 2010-2012, would have prevented support for more than 70% of the Erie County IDA’s approved projects located in the City of Buffalo, including those such as the acclaimed Hotel @ the Lafayette.

We hear the Governor’s people tell him this proposal is an opportunity to recoup $1 billion in state sales taxes annually that would otherwise be lost. But considered differently, that’s $1 billion in spending that would stimulate private investment and growth, but is now proposed to sit on the sideline.

Over 2+ years, Governor Cuomo has built a strong track record of which he should certainly be proud. Indeed, his proposed 2013/2014 budget includes several good economic development policies such as an extension of state historic preservation tax credits- something whose impact will be almost completely negated by this ham handed IDA proposal. So, I ask that you join us in strongly encouraging the Governor to stop this IDA proposal in its tracks.

 

Specifically, please take 90 seconds to join us in telling Governor the unintended consequences of this proposal are reason to drop it altogether.  

 

 

Share

Related Posts

What You Need To Know And Do About The Cares Act

March 31, 2020

COVID-19 Business Resources

March 19, 2020

Niagara USA Chamber Postpones Awards Gala

March 12, 2020

Economic Vision 2020 and Beyond: Creating a Vibrant Future

November 7, 2019

Recent Posts

  • Niagara USA Chamber Golf Classic
    August 5, 2020 - 1:19 pm
  • Copier Fax Business Technologies StayWell Initiative
    May 23, 2020 - 10:34 pm
  • US Chamber of Commerce Foundation Announces $5,000 Grant Application to Small Business
    April 17, 2020 - 3:27 pm
  • What You Need To Know And Do About The Cares Act
    March 31, 2020 - 7:34 pm
  • Niagara USA Chamber has been deemed an essential business.
    March 23, 2020 - 3:36 pm

Archives

  • August 2020
  • May 2020
  • April 2020
  • March 2020
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • November 2018
  • October 2018
  • September 2018
  • April 2018
  • March 2018
  • January 2018
  • November 2017
  • October 2017
  • August 2017
  • July 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • March 2016
  • February 2016
  • January 2016
  • February 2015
  • September 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • August 2011
  • July 2011
  • June 2011
  • April 2011

Calendar

February 2013
M T W T F S S
« Jan   Mar »
 123
45678910
11121314151617
18192021222324
25262728  

Categories

  • Breaking News
  • Business
  • Chamber News
  • Community News
  • Events
  • Events
  • Featured
  • Legislative News
  • Members in the News
  • Uncategorized
  • Home
  • Blog
  • Legislative News
  • Governor Cuomo’s barrier to smart growth development

Privacy Policy

© 2019 - Niagara USA Chamber

  • LinkedIn
  • Twitter
  • Facebook
  • About Our Chamber
  • Membership
  • Get Involved
  • Advocacy
  • Niagara County at a Glance
  • About Our Chamber
    • A Message From Our President…
    • Our Mission
    • Our Team
      • Officers
      • Executive Leadership
      • Board of Directors
    • News
      • Chamber News
      • Legislative News
      • Members in the News
    • Partners & Affiliates
      • Niagara USA Chamber Resources eBook
      • Niagara Business Organizations
      • Business Resources & Networking
    • Events
    • Calendar
  • Membership
    • Why Join
      • Health Insurance
      • Small Business Support
      • More Benefits & Savings
    • Apply Now
    • Membership Rates
    • Member Directory
    • Members in the News
  • Get Involved
    • Become a Member
    • Network & Learn
    • Join a Committee
    • Sponsor or Advertise
  • Advocacy
    • Development Issues
    • Tax Issues
    • Energy Policies
    • Local Assets
    • Health Insurance
    • Legislative News
    • Elected Representatives for Niagara County
  • Niagara County at a Glance
    • Weather
    • Relocating to Niagara County
    • Visiting Niagara
  • LinkedIn
  • Twitter
  • Facebook

716-285-9141