Senators Introduce Bill To Repeal 4.7% IDA Tax

Six Democratic state senators, including Darrel J. Aubertine, introduced legislation Wednesday to repeal the 4.7 percent tax on industrial development agencies that was included in the 2009-2010 budget.

The sextet from upstate and Long Island say the implementation of the tax is flawed because it's calculated on an agency's gross receipts, which includes "pass-through" revenues that IDAs collect for local jurisdictions without taking a cut.

In Jefferson County, the bill was $89,006. The St. Lawrence County IDA was charged $27,912. Lewis County IDA estimated their bill to be $28,000. The Development Authority of the North Country will be hardest hit;

The group said it is also pushing for a repeal because the Department of Budget was statutorily required to notify all IDAs of the tax by Nov. 1, but instead sent notifications in early February.

Besides Mr. Aubertine, the group includes Sens. David J. Valesky, Oneida; William Stachowski, Lake View; Antoine Thompson, Buffalo; Brian X. Foley, Blue Point; and Craig M. Johnson, Nassau.

All six legislators voted for the state budget, which included the tax. Sen. Joseph A. Griffo, R-Rome, said he voted against the budget because of "ridiculous" taxes, such as the IDA assessment.

"I was opposed to it and I remain opposed to it," he said.

"What troubles me is, I'm wondering if this isn't a lot of political posturing, even if the end result serves our best interests."

Andrew G. Mangione, Mr. Aubertine's spokesman, said the caucus's intent in introducing the bill was to "correct" a provision as part of "their ongoing effort to govern responsibility and create jobs."

The tax is expected to generate $5 million for the 2009-10 budget. There is, as of yet, no Assembly companion bill.