Friday, July 19, 2013

New York’s New Tax Break: An Attempt to Draw Businesses to College Campuses

Property Tax Reduction Consultants
125 Jericho Turnpike, Jericho, NY 11753
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In June, Governor Andrew Cuomo signed a revolutionary bill into law, allowing new businesses on college campuses to run tax-free for the next ten years. Under the provisions of Start-Up NY, an attempt to transform universities into business centers, new or relocated businesses are exempt from property, sales, and businesses taxes. 

According to CNBC, this bill will be the first ever to extinguish taxes for businesses around college properties. This bill will also excuse the employees of these new businesses from paying income tax for five years. The goal of this advance is to stimulate job creation and foster entrepreneurial efforts around universities in New York State.
            
According to Joanne Mahoney, the county executive from Onondaga County in upstate New York, this bill will act as an incentive to keep the young people our school systems have educated from leaving New York State to pursue their business ventures elsewhere. Unfortunately, union leaders find this bill unfair, since existing businesses cannot take advantage of these benefits. Morris Peters, on the other hand, a spokesperson for the NY State Division of Budget, believes that the law will bring energy and hope to these college communities. He notes the success of New York’s university system, but realizes that we have not been able to transform our fostered business ideas to the job market. Much of the state’s population lives close to a SUNY campus, so this tax break will be groundbreaking in stimulating jobs and transforming our public education system.
            
How do you think this bill will affect New York State’s job market? Let us know your feelings about this new Property Tax Law on our Facebook page

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