Home owners taxes subsidize IDA gifts

[4248]

Click here for full report:Annual Performance Report on New York State’s

Industrial Development Agencies
Executive Summary:

Second paragraph:

In 2010, the 114 active IDA's located throughout the State supported 4,444 projects and provided total tax exemptions of nearly $1.3 billion. These tax exemptions were offset by PILOTs of $785 million made on behalf of the assisted projects for total net exemptions of nearly $500 million, over 90 percent of which represents exemptions from property taxes.

When a property is exempt from paying taxes to the local governments in which it is located, the amount that would have been paid generally is shifted to the remaining property taxpayers.

This translates to local taxpayers (home owners included) having to pay up to $140 more per year, depending on where they live.

On average, taxpayers downstate pay an average of $71 more each year in taxes to compensate for the exemptions that were granted to IDA-assisted projects, while taxpayers upstate pay an average of $82 more each year.
(End quote)

Thanks RES - one only has to read this to see proof positive we subsidize these IDA give aways - what do we as a home owner get in return?

[reformthi$]

in the video at penora pizzeria
hoffman stated that in 2 months it would pay for itself and recoup the sales tax

so, if that is the case with the above mentioned on how it costs the taxpayers,
i wonder then what the benefit in $'s

one benefit would be sustainability for the businesses...
but what is it in dollars...

[gshowell]

It takes a State report to tell us what we the taxpayers have been saying for years?

[WNYresident]

Thanks RES - one only has to read this to see proof positive we subsidize these IDA give aways - what do we as a home owner get in return?

That report sums up the BS we are fed.

IDA's need to go away. All they do is mask the issue we have in NYS/local governments. Taxes are simply too high to be competitive to other communities.

That whole layer of "ida's" have a whole group of people in our pockets..

Did you read this part of the report.

Operating Expenses

IDAs reported operating expenses totaling $54.3 million, or nearly $500,000 on average, in 2010. The
majority of these expenses reflect salaries and other benefits paid to IDA employees, and professional
service contracts. These expenses are largely covered by revenue generated through charges for services
and income from rents and financing. Total operating expenses equated to $12,209 per project and
about $299 for each job gained by IDA projects. Notably, the five IDAs that reported no active projects
did report expenses, the highest being for Village of Fairport IDA, which had almost $482,000 in
expenses despite having no active projects for at least the last five years. At the other extreme, two IDAs
– City of Dunkirk and City of Port Jervis – reported no operating expenses even though they did have
active projects.

$54.3 million dollars spent on a "quasi" government group..

Total operating expenses equated to $12,209 per project and
about $299 for each job gained by IDA projects.

This is misleading by a long shot. Correct me if I am wrong but didn't a fair number of IDA project NOT generate the intended jobs they said they would?

[TheNewGuy]

so, if that is the case with the above mentioned on how it costs the taxpayers,
i wonder then what the benefit in $'s

Exactly. the idas never do a cost benefit analysis to show the benefit that the taxpayers will receive as a result of assiting these companies. shouldn't this be mandatory before approval?

its time to end the arbitrary ida. the incentives never result in the job creation they promise. also, under the former supervisor, just about everyone who applied for idas got one, in my opinion, although i disagree with this approach, it is actually and arguably more objective that is currently going on with the new supervisor. now the ida is very subjective, picking winners and losers. bellavista got a tax break for another decaded because of favoritism displayed by the current supervisor/bella vist biz partner fudoli. however, penoras was tossed to the curb just so the new sup could say its not the "same old same old". penoras got the shaft, not because their plan was worse than bella vistas, but because of subjectivity and favoritism.

its time to do away with the local ida.

[WNYresident]

Of the 114 IDAs operating in New York State in 2010, 111 filed required reports with the Office of the
State Comptroller. Three IDAs – Town of Erwin IDA, City of Newburgh IDA, and City of Oneida
IDA – have not filed reports from 2007 to 2010, and have subsequently had their power to grant
exemptions from State taxes suspended, as required by law. Statewide, the IDAs that reported to OSC:

• Supported 4,444 projects valued at $72.9 billion, reflecting a decline in the number of projects
(133) and total project value ($643 million) from the year before.
• Provided $1.3 billion in total tax exemptions in 2010, which were offset by $785 million in PILOTs,
resulting in net tax exemptions of $483 million. Between 2009 and 2010, net exemptions declined
by $13 million, or 2.6 percent.
• Employed 666,623 full-time equivalent workers in 2010, a cumulative net gain of 181,712 jobs over
the life of these IDA projects.
• Had issued debt outstanding totaling $21.2 billion, of which $343 million represents new debt
issued in 2010.

How do they know 181,712 jobs were created? From items we have read in the past a large number of business receiving IDA incentives never hit their goals. Are the 181,712 jobs really created or just the total of possible jobs created when businesses filed for incentives?

http://www.labor.ny.gov/stats/pressreleases/prlaus.shtm

Unemployment Rates* (%), April 2011 and April 2012

New York State April 2011 7.7% and in April 2012 we are currently at 8.1%

Buffalo-Niagara Falls April 2011 7.6% April 2012 8.3%

http://www.labor.ny.gov/stats/pressr.../pruistat.shtm

Albany, NY (June 14, 2012) -

New York State's private sector continues steady growth while the labor force expands at a rapid pace, the State Labor Department reported today. New York State's economy added 6,100 private sector jobs, or 0.1%, in May 2012. Since the beginning of the state's economic recovery in November 2009, New York State has added 336,900 private sector jobs and regained all of the private sector jobs it lost during the recession. The state's private sector job count now stands at 7,321,400 - an all-time high.

In May 2012, New York State's labor force increased by 28,200, the largest jump in monthly labor force levels since late 2001. This increase impacted the state's unemployment rate, which rose from 8.5% in April to 8.6% in May 2012.

Why don't the numbers add up? IF jobs are being added why is unemployment going up?




And who is on the hook for $21.2 billion of debt? The tax payer, the IDA's or the businesses themselves?

[Lee Chowaniec]

Unlike those of you that believe that IDAS serve no useful purpose, except to drain taxpayer money, I believe they do serve a purpose if they are managed according to their original intent – not in the manner the five towns have abused the system since creating enhanced development zones, and where Lancaster’s last IDA administration handed out IDAS to successful retail, restaurants, car dealers, etc. following such policy abuse.

Current LIDA Chair and Town of Lancaster Supervisor Dino Fudoli is trying to take the LIDA in another direction, putting an end to such abuse.
What bothers the most in the document posted by 4248 is the first paragraph where it states:

Industrial Development Agencies (IDAs) are public benefit corporations created to facilitate economic development in specific areas by attracting, retaining or expanding businesses. To accomplish this mission, IDAs can offer financial assistance in the form of tax-exempt debt financing and exemptions from property, sales and mortgage recording taxes. In return, many of the projects that benefit from IDA assistance include agreements to create new jobs or retain existing jobs in the community and make an annual payment-in-lieu-of-taxes (PILOT) to help offset the loss of revenues from the tax exemptions provided.

I have to believe the “expanding businesses” verbiage here does not refer to town enhanced development zones.

However, if anyone believes that the IDA system will be done away with in New York they are whistling in the dark. All other states have like incentive programs and New York, the high tax state, needs an incentive program to stay competitive. It needs to bring in businesses, retain businesses and help expand businesses that create the jobs promised and with jobs that pay a living wage.

There is so just so much demand for pizza’s and subs in the area. Making Penora’s even more successful on the taxpayer dime takes away from its competitors. The expansion should come on Penora’s dime.

BTW - The LIDA does a cost-benefit analysis under this administration. I have posted several of those on the Lancaster IDA threads. As much as I have disagreed with Bella Vista's development projects in the past, I disagree with entirely on the merit of the new IDA and the ten year PILOT - not 15.

[4248]

The ax has to start cutting some where - some where with proven return impact for tax payers. It seems every time some tax funded "Volunteer Government Agency is created - it starts out having perceived merit - then it gets abused by insiders (hidden benefits,salaries,stipends and even retirement enhancements) - when tax payers find out its not what the "Volunteer Politicians" say it is or what they have told us it was - some taxpayers speak out.

As with the IDA - we first hear how little it costs - what great benefit it creates - and everyone involved is just doing it for the community. Once just once we need to push to set an example - to stop the drips that keep filling the bucket.

We are buying jobs that don't get created - we subsidize business owners who some times are even released from repayment, in whole or in part - our homes are over taxed so business can avoid paying theirs while increasing profits - our properties are reassessed and our taxes increased because developers built new subdivisions.

Where does it stop? You cant keep saying, "Well I like this program - so lets keep it" - either stand up and cut even when it hurts or sit back and write the check. School taxes + Town Taxes = a monthly payment that out paces the actual mortgage.

So if we do hang on long enough we can count on paying a large strangling monthly payment our whole life. Is this where we are headed - is this what we want - when does it end - where do we start cutting?

[TheNewGuy]

Great post 4248.

Best line:

We are buying jobs that don't get created - we subsidize business owners who some times are even released from repayment, in whole or in part - our homes are over taxed so business can avoid paying theirs while increasing profits - our properties are reassessed and our taxes increased because developers built new subdivisions.

its lines like this, that sometimes, make a few of us want you back on the TB.

Where does it stop? You cant keep saying, "Well I like this program - so lets keep it" - either stand up and cut even when it hurts or sit back and write the check. School taxes + Town Taxes = a monthly payment that out paces the actual mortgage.

with all his campaign rhetoric you would think that this statement would be a perfect quote to come out of the new supvr's mouth. instead of purging the IDA or doing whatever he could to eliminate the obvious waste, he'd rather take it in a "new direction." aka he found himself like the title ida chair and will use the ida to benefit his friends and business partners an he will choose winners and losers. so much for differentiating himself from the last guy...and the beat goes.

sorry lee, i usually try to avoid speaking directly to other posters unless it is complimentary, but you obviously did not read through the most recent state report concerning idas and the dozens of articles that predicated this newest blow to the idas. you are in a minority when it comes to this view. idas are not the way to inspire businesses to move to ny, they're simply a vessel for the private sector and the public sector to collude for arbitrary. non-sustainable benefits. but you do have the right to you opinion, and you use that right quite often.

[reformthi$]

newguy, am in agreement--would love
to have 42 back on the tb

reform is a new lingo for now, we can't be so hot on this trail without understanding what
happens on the other side---poloncarz wants to put the unions back on top if we regionlize
the ida

i always say, watch out for what you wish for....

[WNYresident]

with all his campaign rhetoric you would think that this statement would be a perfect quote to come out of the new supvr's mouth. instead of purging the IDA or doing whatever he could to eliminate the obvious waste, he'd rather take it in a "new direction." aka he found himself like the title ida chair and will use the ida to benefit his friends and business partners an he will choose winners and losers. so much for differentiating himself from the last guy...and the beat goes.

Well keep on top of him. People can easily be mis-guided by others.

We need cuts not "reform" not "new direction".. cuts. The issue is the "amount" of money being spent... not in some cases "how it is spent".... it is still being spent. Make sense?

Now that I have read that IDA report from the NY state comptrollers office just solidifies why IDA need to go for the most part.

Seeing the IDA as a whole carries a 21 billion dollar debt will people like Dino and others who hand out the breaks be the ones liable for that debt? If not stop giving it out.

[WNYresident]

newguy, am in agreement--would love
to have 42 back on the tb

reform is a new lingo for now, we can't be so hot on this trail without understanding what
happens on the other side---poloncarz wants to put the unions back on top if we regionlize
the ida

i always say, watch out for what you wish for....

"reform" = "we want to spend YOUR money the way we want" versus just not spending it.

[reformthi$]

reform- behave better

"reform" is starting to become a "dirty" word
why? because we all cringe when we hear the word "reform"

we know that reform really means to us morons--spend more money to figure out how we can restructure the cost of riping you off

[WNYresident]

you should get a prize for that post...

[WNYresident]

Think about this. For the most part there would be no skin off anyone teeth if the IDA's were abolished.

Right off the bat the group of people who live off the IDA's would not be able to put our community on the hook for anymore debt.

According to that NY report the "ida's" have a debt load of 21 Billion dollars. Who is supposed to pay that debt off?