Relates to prohibiting the use of funds, financial incentives or subsidies where facilities or property are used primarily for e-commerce storage and transfers, or the facilitation thereof.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1048
SPONSOR: Solages TITLE OF BILL:
An act to amend the general municipal law, in relation to prohibiting
the use of funds, financial incentives or subsidies where facilities or
property are used primarily for e-commerce storage and transfers, or the
facilitation thereof
PURPOSE:
The purpose of this bill is to prevent industrial development agencies
from providing subsidies to large multinational corporations to build
storage and warehouse facilities.
SUMMARY:
Section 1. Amends 862 of the general municipal law is amended by adding
a new subdivision 3.
Section 2. Sets the effective date.
JUSTIFICATION:
Industrial development agencies, or IDAs, exist primarily to incentivize
economic development by attracting businesses and creating jobs. The
incentives offered by IDAs often include waiving state and local taxes,
which results in significant loss over the term of the incentive, and in
return often only provides a few minimum wage or low wage jobs.
Additionally, many incentives have recently been given to multinational
corporations at the expense of New York Taxpayers. New York IDA subsi-
dies given to Amazon have diverted a quarter billion dollars in just the
past two years. This was not the legislative intent when IDAs were
established in 1969 to improve economic conditions and facilitate
economic development in localities.
This bill will prohibit IDAs from offering incentives for e-commerce
storage and transfer facilities often given to large, multi-billion-dol-
lar corporations with dubious economic growth projections at the expense
of local municipalities and their residents.
RACIAL JUSTICE IMPACT:
The tax bases of state and local governments are being eroded by subsi-
dies to multinational e-commerce companies. These tax dollars could
instead be used to fund programming that supports our state's most
vulnerable communities.
GENDER JUSTICE IMPACT:
TBD.
LEGISLATIVE HISTORY:
2021-22: A9636; referred to local governments.
FISCAL IMPLICATIONS:
None to the State.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
1048
2023-2024 Regular Sessions
IN ASSEMBLY
January 13, 2023
___________
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 prohibiting
the use of funds, financial incentives or subsidies where facilities
or property are used primarily for e-commerce storage and transfers,
or the facilitation thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 862 of the general municipal law is amended by
2 adding a new subdivision 3 to read as follows:
3 (3) No funds, financial incentives or subsidies of the agency shall be
4 used in respect of any project where facilities or property are used
5 primarily for electronic commerce (e-commerce) storage and transfers, or
6 the facilitation thereof.
7 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01855-01-3
