Developers win
Bad deal for Jefferson County taxpayers
Jefferson County homeowners, dairy farmers and small businesses will pay the price in higher taxes to subsidize tax breaks for developers of the Galloo Island Wind Farm under the terms of a tax agreement worked out with the Jefferson County Industrial Development Agency.
The county, town of Hounsfield and Sackets Harbor School District will lose out on tens of millions of dollars in property taxes on the nearly $500 million project under the terms of the JCIDA agreement with Upstate NY Power Corp. for payments in lieu of taxes.
Jefferson County and the town of Hounsfield will lose an immediate $10.5 million on mortgage and sales taxes that could be used now to balance budgets, lower taxes, build roads or improve services. The proposed PILOT agreement with Upstate NY Power Corp. would also cut the state out of almost $12 million in mortgage and sales taxes.
In return, Upstate NY promises to share with the county, school and town $2.14 million a year in payments-in-lieu-of-taxes beginning in the next twoor three years. It is a fraction of the fair share they would pay if the property were fully assessed.
It's a lousy deal for taxpayers, and it gets worse.
PILOTs and other preferential treatment for developers are meant to foster job growth, but the wind farm will generate a handful of permanent jobs beyond the short-term construction work. Businesses, farmers and homeowners will have to live with the consequences of the wind farm and related transmission line passing through some of the best farmland in the county without the benefit of cheaper, reliable power generated in their backyard at their expense.
Besides the nearly $23 million in tax abatements, Upstate NY will reap a taxpayer-funded windfall from the federal government. The developer and JCIDA are pushing for quick approval of the PILOT so Upstate NY can cash in on a 30 percent subsidy from the federal Treasury for development costs, if some of the turbines are built by the end of next year.
Beyond the PILOT for the wind farm's construction, another anticipated tax break agreement would let Upstate NY avoid paying mortgage recording and sales taxes on the $153 million transmission line needed to connect the wind farm to the power grid. More lost revenue for the county, town and state.
In fairness to taxpayers, the county should reject this tax giveaway.
Jefferson County homeowners, dairy farmers and small businesses will pay the price in higher taxes to subsidize tax breaks for developers of the Galloo Island Wind Farm under the terms of a tax agreement worked out with the Jefferson County Industrial Development Agency.
The county, town of Hounsfield and Sackets Harbor School District will lose out on tens of millions of dollars in property taxes on the nearly $500 million project under the terms of the JCIDA agreement with Upstate NY Power Corp. for payments in lieu of taxes.
Jefferson County and the town of Hounsfield will lose an immediate $10.5 million on mortgage and sales taxes that could be used now to balance budgets, lower taxes, build roads or improve services. The proposed PILOT agreement with Upstate NY Power Corp. would also cut the state out of almost $12 million in mortgage and sales taxes.
In return, Upstate NY promises to share with the county, school and town $2.14 million a year in payments-in-lieu-of-taxes beginning in the next twoor three years. It is a fraction of the fair share they would pay if the property were fully assessed.
It's a lousy deal for taxpayers, and it gets worse.
PILOTs and other preferential treatment for developers are meant to foster job growth, but the wind farm will generate a handful of permanent jobs beyond the short-term construction work. Businesses, farmers and homeowners will have to live with the consequences of the wind farm and related transmission line passing through some of the best farmland in the county without the benefit of cheaper, reliable power generated in their backyard at their expense.
Besides the nearly $23 million in tax abatements, Upstate NY will reap a taxpayer-funded windfall from the federal government. The developer and JCIDA are pushing for quick approval of the PILOT so Upstate NY can cash in on a 30 percent subsidy from the federal Treasury for development costs, if some of the turbines are built by the end of next year.
Beyond the PILOT for the wind farm's construction, another anticipated tax break agreement would let Upstate NY avoid paying mortgage recording and sales taxes on the $153 million transmission line needed to connect the wind farm to the power grid. More lost revenue for the county, town and state.
In fairness to taxpayers, the county should reject this tax giveaway.
posted by SARTRE at 5:03 PM - permanent link
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