A New York state Assemblyman says he will introduce legislation next week to repeal Governor Andrew Cuomo’s START-UP New York program that gives tax-free incentives to new businesses.
A recent report from Governor Cuomo’s Division of Budget fueled Republican Assemblyman Kieran Lalor’s mission. He says had had not planned to draft repeal legislation until seeing the numbers.
The budget report was the first to quantify START-UP New York’s potential impact on budget projections since the program was passed. START-UP New York creates certain tax-free zones for new businesses for 10 years on or near qualifying college campuses. Lalor insists the administration had claimed there would be no impact to taxpayers.
In the state’s Fiscal Year 2014 Financial Plan, First Quarterly Report, there is a projection that START-UP New York, over the course of three years, would cut tax revenues by $323 million. The projection does not widen the budget gap according to a Division of Budget spokesman, who said, in a statement, quote "START-UP works because SUNY property is already tax free, and local communities would not lose out on revenue. We’ve consistently said the only entity that would potentially lose out on revenue is the state, and out-year revenue projections would be readjusted to reflect that. That, along with a $272 million reduction in next year’s deficit, was included in this most recent budget update.” End quote. Assemblyman Lalor insists the cost looks to be high.
Assemblyman Lalor says he has received support over the last few days via numerous e-mails and calls, including from several businesses and union members. He also says a number of his Republican colleagues in the assembly have vowed to sign on as co-sponsors. Lalor says he is drafting the legislation and plans to introduce it next week.
