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For Immediate Release                                     Jon Greenbaum 880-8731

 

 

Momentum Grows to Tighten Rules for IDA Rules

Sponsors say accountability should accompany tax breaks

 

 

Some local business owners and area residents are mobilizing to change New York States Industrial Development Agency Law. IDA’s were created to encourage job growth through tax breaks but a recent report shows that the County of Monroe Industrial Agency (COMIDA) is not producing the jobs.

 

The report, entitled COMIDA  isn’t Spanish for Free Lunch, shows that Monroe County government and local towns and school districts gave up over $24 million in tax breaks during the years 2002-04. School districts lost out on $13.6 million in revenue during that period of time. Henrietta Town Supervisor Jim Breese says that in the years 200-04 Henrietta homeowners paid an additional $524 due to COMIDA tax breaks in that town. Brighton Town Councilperson Ray Tierney reports that the 2005 COMIDA tax breaks in Brighton were the equivalent of 142 homes being taken off the tax rolls.

 

The report also shows that 63% of COMIDA projects hadn’t delivered the jobs that the businesses promised and that 27% of the projects actually lost jobs. COMIDA has not attempted to recoup the tax money, instead offering the businesses extensions.

 

Some local business owners are upset with the IDA system, pointing out that subsidies frequently go to businesses in fixed markets, which doesn’t create new jobs and in fact leads to an unlevel playing field. COMIDA has given tax breaks to dentists, CPA’s, restaurants and spas. Bob Wood, a local CPA says, “Providing tax subsidies to existing accounting and other financial services gives unfair competitive advantage to a select few.”

 

Senator Maziarz has sponsored legislation that would tighten IDA rules and hold IDA’s accountable for job creation. The bill is also sponsored in the by Assembly Local Governments Committee Chair Robert Sweeney as well as Senator Robach, Assemblymembers Koon and John. The bill would:

  • Require repayment of assistance if a company fails to meet promised goals
  • Give local taxing jurisdictions veto power over proposed tax breaks for companies.
  • Require local hiring at prevailing wages on all subsidized construction
  • Require “Community Impact Reports” in order to determine the subsidy’s impact on other local businesses, the community and environment.

 

Metro Justice, 167 Flanders Street, Rochester NY 14619
phone:585-325-2560 fax:585-325-2561
email: metroj@frontiernet.net
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