NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9490
SPONSOR: Magnarelli TITLE OF BILL: An act to amend the general municipal law, the public
authorities law, and the tax law, in relation to certain recording taxes
PURPOSE:
This legislation will not allow Industrial Development Agencies (IDAs)
to exempt the .25% of the mortgage recording tax that is allocated to
New York transit authorities.
SUMMARY OF PROVISIONS:
Section 1: Amends § 874(1) of the General Municipal Law to eliminate the
IDA exemption from the mortgage recording tax for the .25% that is allo-
cated to transit authorities.
Section 2: Amends § 1963(1) of the Public Authorities Law to eliminate
the Troy Industrial Development Agency's exemption from the mortgage
recording tax for the .25% that is allocated to transit authorities.
Section 3: Amends § 2326(1) of the Public Authorities Law to eliminate
the Auburn Industrial Development Agency's exemption from the mortgage
recording tax for the .25% that is allocated to transit authorities.
Section 4: Amends § 252 of the Tax Law to eliminate the ability of IDAs
to exempt the .25% of the mortgage recording tax for properties located
in Metropolitan Commuter Transportation District, the Niagara Frontier
Transportation District, the Rochester-Genesee Transportation District,
the Capital Region Transportation District and the Central New York
Transportation District.
Section 5: Amends § 253(2)(a) of the Tax Law to eliminate the ability of
IDAs to exempt the .25% of the mortgage recording tax for properties
located in the Metropolitan Commuter Transportation District, the
Niagara Frontier Transportation District, the Rochester-Genesee Trans-
portation District, the Capital Region Transportation District and the
Central New York Transportation District.
Section 6: Establishes the effective date.
JUSTIFICATION:
New York law gives .25% of the mortgage recording tax for each trans-
action to our regional transportation companies. The goal was to provide
our transportation authorities with a reliable recurring source of
revenue to fund operations and capital expenses. However in recent
years, IDAs have begun providing many economic development projects and
businesses exemptions to the mortgage recording tax. This deprives our
transportation authorities of needed revenue at a time when they are
experiencing great fiscal stress.
It is estimated that transit authorities in Upstate NY have lost the
following amounts from these exemptions. The Central NY Regional Transit
Authority (Centro) estimated a loss of $323,000 per year over the last
three fiscal years. In Buffalo, the Niagara Frontier Transportation
Authority (NFTA) estimated a loss of $454,000 per year in fiscal years
2012 and 2013. The Rochester-Genesee Regional Transportation Authority
(RGRTA) estimated a loss of $610,000 per year in fiscal years 2014 and
2015. In Albany, the Capital District Transportation Authority (CDTA)
estimated a loss of $888,000 in fiscal year 2014. These are significant
financial losses for Upstate Transportation Authorities; funds that
could go to new bus purchases, staffing, maintenance and capital costs.
This legislation will not allow IDAs to exempt the .25% portion of the
mortgage recording tax that goes to transportation authorities. This
will restore this recurring revenue stream for the transportation
authorities, and allow them to make additional investments in improving
service.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
None to the State.
EFFECTIVE DATE:
This act shall take effect immediately.
