New York State department of taxation AND Finance - Office of Real Property Tax Services -
real property tax incentive programs: municipal industrial agencies/IDA-owned properties

Purpose

This program seeks to promote, encourage, develop, or assist in acquiring, constructing, reconstructing, improving, maintaining, equipping, or furnishing industrial, manufacturing, warehousing, commercial, research, civic, or recreation facilities, including industrial pollution control facilities, educational or cultural facilities, civic facilities, continuing care retirement community facilities, railroad facilities, and horse racing facilities.

Eligibility

As provided in General Municipal Law section 874, property that is owned or under the control of a municipal industrial development agency (IDA) and is located and used as required is exempt from taxation.  However, such property, except for certain railroad property, is liable for special ad valorem levies and special assessments.

Prior to financing any new property improvement project, the IDA must establish a uniform tax exemption policy, with input from affected taxing jurisdictions, which provides guidelines for the claiming of property tax exemptions.  In adopting a tax exemption policy, the IDA must consider such issues as: (1) the extent to which the project will create or retain permanent, private sector jobs, (2) the estimated value of any tax exemptions to be provided, (3) whether affected taxing jurisdictions will be reimbursed by the project occupant if the project does not fulfill the purposes for which an exemption was provided, (4) the impact of the proposed project on existing and proposed businesses and economic development projects in the vicinity,(5) the amount of private sector investment generated or likely to be generated by the proposed project, (6) the demonstrated public support for the proposed project, (7) the likelihood of accomplishing the proposed project in a timely fashion, (8) the effect of the proposed project on the environment, (9) the extent to which the proposed project will require the provision of additional services (including, but not limited to, additional educational, transportation, police, emergency medical, or fire services), and (10) the extent to which the proposed project will provide additional sources of revenue for municipalities and school districts.

Contact          

NYS Office of Real Property Tax Services
Local Industrial Development Agency

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