Job Incentive Program
Adopted March 30, 1999
The City of Mechanicville and Town of Stillwater Industrial
Development Agency (the "Agency") is a public benefit
corporation established pursuant to Article 18-A of the General
Municipal Law and Chapter 582 of the 1978 Laws of the State
of New York.
The Agency possesses a broad range of powers, enabling it
to fulfill its purpose to promote, develop, encourage and
assist in the construction, expansion, and equipping of economically
sound industrial and commercial facilities. This, in turn,
advances the job opportunities, general prosperity, and economic
welfare of the citizens of the City of Mechanicville and the
Town of Stillwater.
The Agency uses its financial and tax incentives to:
The issuance of industrial revenue bonds generally results
in an Agency taking title to the property, which it then leases
back to the company under an installment sale agreement. Property
owned by an Agency is exempt from local and school real estate
taxes under the provisions of Section 412-a of the Real Property
Tax Law and Section 874 of the General Municipal Law. This
exemption does not apply to special district taxes
and/or special ad valorem levies. Real property owned by the
Agency is listed on Roll Section 8 (wholly exempt).
The Agency and all recipients of its financial assistance
enter into a payment in lieu of tax agreement (PILOT agreement),
which provides for annual payments in lieu of taxes (PILOT),
in amounts which are based on formulas contained in the Agency's
economic development job incentive program.
Legislation enacted in July 1993 requires an Agency to adopt
a uniform tax exemption policy after considering issues involving
the number of private sector jobs created or retained by a
project; the value of the tax exemptions to be provided; the
project's impact on existing businesses; the amount of private
sector investment generated by a project; the additional public
services which may be required to serve the project; and the
additional revenues a project will provide for municipalities
and school districts. The Agency is also required to seek
and consider input on its uniform tax exemption policy from
affected taxing jurisdictions prior to its formal adoption.
State legislation additionally requires an Agency to provide
each affected tax jurisdiction with a copy of the PILOT agreement
within 15 days of signing. Under the most recent legislation,
PILOT payments must be allocated to affected taxing jurisdictions
in the same proportion to the amount of real property tax
which would have been received by the taxing jurisdiction
had the property not been tax exempt. All PILOT payments received
by the Agency must be remitted to the affected taxing jurisdictions
within 30 days of receipt.
General Provisions
Manufacturing
Commercial Services
Sales Tax
Deviation Procedures
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