NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10044
SPONSOR: Solages TITLE OF BILL:
An act to amend the general municipal law, in relation to the preserva-
tion of regionally significant projects
PURPOSE:
Relates to the preservation of regionally significant projects with
respect to agencies drawing on funds for new building projects.
SUMMARY OF PROVISIONS:
Section 1 amends the General Municipal Law to define regionally signif-
icant projects. Regionally significant projects are defined as a
location or facility (i) where the agency board has determined with the
benefit of an independent third-party analysis of costs versus benefits
that shows more benefits to the community than costs, that the project
is likely to attract a significant number of visitors from outside the
economic development region in which the project is located and that
undertaking the project will serve the public purposes by preserving
permanent, private sector jobs or increasing the overall number of
permanent, private sector jobs in the state; and (ii) where the agency
board makes a finding, prior to providing financial assistance to the
project.
Section 2. Is the enacting clause
JUSTIFICATION:
Under current law, developers of retail businesses such as car dealer-
ships and self-storage facilities are receiving tax breaks through a
"tourism loophole" that exists in the statute. The resulting tax bene-
fits do not stimulate sufficient local economic growth or net economic
benefit to warrant the disbursement of public dollars for such projects.
In Nassau County in particular, this loophole in the law is being readi-
ly abused by businesses attracting customers from Queens County, and
taxpayers are stuck with the bill.
This bill closes the tourism loophole by requiring both the local Chief
Executive Officer and the agency board where the project is located to
determine that the project is likely to attract a significant number of
visitors from outside the economic development region and that the
project will preserve or increase permanent, private sector jobs within
the state. These additional determinations will keep the economic bene-
fits intended through the original legislation while preventing the
granting of tax breaks without adequate justification.
EQUITY & COMMUNITY IMPACT:
This legislation promotes equity by helping ensure that public financial
assistance is directed toward projects that provide meaningful and meas-
urable benefits to the broader community. Misuse of economic development
incentives can reduce resources available for essential public services
that many communities, including communities of color and low- and
moderate-income residents, rely upon. By closing the tourism loophole
and requiring stronger cost-benefit analysis and local oversight, this
bill supports more accountable use of public resources and economic
development practices that more fairly benefit residents, workers and
taxpayers.
PRIOR LEGISLATIVE HISTORY:
2021-22: A 7253
2019-20: A 7963
FISCAL IMPLICATIONS:
None to the state
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
10044
IN ASSEMBLY
January 30, 2026
___________
Introduced by M. of A. SOLAGES -- read once and referred to the Commit-
tee on Local Governments
AN ACT to amend the general municipal law, in relation to the preserva-
tion of regionally significant projects
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of subdivision 2 of section 862 of the gener-
2 al municipal law, as added by section 1 of part J of chapter 59 of the
3 laws of 2013, is amended to read as follows:
4 (a) Except as provided in paragraph (b) of this subdivision, no finan-
5 cial assistance of the agency shall be provided in respect of any
6 project where facilities or property that are primarily used in making
7 retail sales to customers who personally visit such facilities consti-
8 tute more than one-third of the total project cost. For the purposes of
9 this article, "retail sales" shall mean: (i) sales by a registered
10 vendor under article twenty-eight of the tax law primarily engaged in
11 the retail sale of tangible personal property, as defined in subpara-
12 graph (i) of paragraph four of subdivision (b) of section eleven hundred
13 one of the tax law; or (ii) sales of a service to such customers.
14 Except, however, that [tourism destination] regionally significant
15 projects shall not be prohibited by this subdivision. For the purpose of
16 this paragraph, ["tourism destination"] "regionally significant project"
17 shall mean a location or facility [which is likely to attract a signif-
18 icant number of visitors from outside the economic development region as
19 established by section two hundred thirty of the economic development
20 law, in which the project is located] where: (i) the agency board has
21 determined with the benefit of an independent third-party analysis of
22 costs versus benefits that shows more benefits to the community than
23 costs, that the project is likely to attract a significant number of
24 visitors from outside the economic development region as established by
25 section two hundred thirty of the economic development law, in which the
26 project is located and that undertaking the project will serve the
27 public purposes of this article by preserving permanent, private sector
28 jobs or increasing the overall number of permanent, private sector jobs
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09872-01-5
A. 10044 2
1 in the state; and (ii) where the agency board makes such a finding,
2 prior to providing financial assistance to the project by the agency,
3 the chief executive officer of the city, town or village where the
4 project is located shall confirm the proposed action of the agency.
5 § 2. This act shall take effect immediately.
