May 9, 2012 —
ALBANY, NY — According to an annual performance report released by state comptroller Thomas P. DiNapoli on New York’s Industrial Development Agencies (IDAs), there appears to be limited correlation between higher IDA tax exemptions and job creation.
Although $1.3 billion in tax exemptions provided in 2010 were offset by $785 million in payments-in-lieu of taxes, local taxpayers picked up a $483 million tab to compensate for the IDA-supported projects. Additionally, the average cost per job gained was $2,659, an increase of 9% from the previous year.
This is DiNapoli’s fifth annual report examining the performance of the state’s IDAs. The report analyzes the aggregate net tax exemptions provided by IDAs in each region compared to the average home value in the region to gauge the additional taxes a typical homeowner may be paying to cover the exemptions.
DiNapoli has proposed legislation (A. 9690) he says will provide taxpayers with the ability to evaluate whether IDAs operating within their communities are delivering promised economic benefits. A copy of the report is available at tinyurl.com/87x7f5s.