Report finds IDAs continue to grow tax exemptions

ALBANY — New York State’s 109 industrial development authorities worked on nearly 4,500 projects and granted $1.3 billion in tax exemptions in 2016, according to an annual report from State Comptroller Thomas P. DiNapoli.

The $1.3 billion in exemptions was largely granted through payment in lieu of taxes (PILOT) agreements, which allow businesses or other entities to pay an IDA less than they would in property taxes. According to the report, the net difference between payments made to IDAs and what would have been owed on property taxes was $715 million. That’s an increase of 2.9 percent, or 

$20 million, from 2015.

The report said the net tax exemptions granted in Central New York in 2016 were $39.1 million. In the Mohawk Valley, it was $17.4 million. In the North Country, the figure was $5.2 million, and in the Southern Tier, $38 million.

“IDA projects continue to produce new jobs across the state, but the pace has slowed in several upstate areas,” said DiNapoli in a release accompanying the report.

The report found that job growth in the Mohawk Valley and Southern Tier, as well as the Finger Lakes and Western New York, was slower in 2016 than in 2015. The North Country, the report said, “suffered a decline in job creation for the fourth straight year.”

Across the state, IDA-linked projects were credited with helping create 234,038 jobs and retaining 311,166 jobs. In addition, the comptroller estimated the work involved also created more than 40,000 temporary construction jobs.

The cost for every job created varied around the region and across the state. The net tax exemption — the exempted property tax minus PILOT payments made by a project — for each job created in the Southern Tier was $3,079. In Central New York it was $3,334 and in the Mohawk Valley, $4,456. The Mohawk Valley figure is 30 percent more than the state average of $3,424.

 Because the North Country lost 799 jobs in 2016, despite net tax exemptions of $5.2 million, there is no cost-per-job figure.

The report also noted that while Downstate IDAs granted $794 million in total tax exemptions and Upstate IDAs just $527 million, “Downstate IDAs had significantly lower net tax exemptions on a per capita basis — $29 — compared to Upstate — $52.”

“Although IDAs do not impose taxes, their activities can nonetheless affect taxpayers in their communities,” the report’s executive summary said. “In particular, property tax exemptions can temporarily reduce a local government or school district’s property tax base, which may then increase other residents’ property tax bills. It is therefore important for New Yorkers to be aware of and understand the financial activities associated with IDAs and their projects.” 

ALBANY — New York State’s 109 industrial development authorities worked on nearly 4,500 projects and granted $1.3 billion in tax exemptions in 2016, according to an annual report from State Comptroller Thomas P. DiNapoli.

The $1.3 billion in exemptions was largely granted through payment in lieu of taxes (PILOT) agreements, which allow businesses or other entities to pay an IDA less than they would in property taxes. According to the report, the net difference between payments made to IDAs and what would have been owed on property taxes was $715 million. That’s an increase of 2.9 percent, or 

$20 million, from 2015.

The report said the net tax exemptions granted in Central New York in 2016 were $39.1 million. In the Mohawk Valley, it was $17.4 million. In the North Country, the figure was $5.2 million, and in the Southern Tier, $38 million.

“IDA projects continue to produce new jobs across the state, but the pace has slowed in several upstate areas,” said DiNapoli in a release accompanying the report.

The report found that job growth in the Mohawk Valley and Southern Tier, as well as the Finger Lakes and Western New York, was slower in 2016 than in 2015. The North Country, the report said, “suffered a decline in job creation for the fourth straight year.”

Across the state, IDA-linked projects were credited with helping create 234,038 jobs and retaining 311,166 jobs. In addition, the comptroller estimated the work involved also created more than 40,000 temporary construction jobs.

The cost for every job created varied around the region and across the state. The net tax exemption — the exempted property tax minus PILOT payments made by a project — for each job created in the Southern Tier was $3,079. In Central New York it was $3,334 and in the Mohawk Valley, $4,456. The Mohawk Valley figure is 30 percent more than the state average of $3,424.

 Because the North Country lost 799 jobs in 2016, despite net tax exemptions of $5.2 million, there is no cost-per-job figure.

The report also noted that while Downstate IDAs granted $794 million in total tax exemptions and Upstate IDAs just $527 million, “Downstate IDAs had significantly lower net tax exemptions on a per capita basis — $29 — compared to Upstate — $52.”

“Although IDAs do not impose taxes, their activities can nonetheless affect taxpayers in their communities,” the report’s executive summary said. “In particular, property tax exemptions can temporarily reduce a local government or school district’s property tax base, which may then increase other residents’ property tax bills. It is therefore important for New Yorkers to be aware of and understand the financial activities associated with IDAs and their projects.”