A new law is now on the books that should give the Niagara Frontier Transportation Authority a bit of a lift.
The law signed by Governor Andrew Cuomo, recently, bars Industrial Development Agencies from exempting the full amount of the mortgage recording tax on new IDA projects. The legislation was co-sponsored by Assemblyman Sean Ryan.
"As I was doing research and trying to find ways to increase funding for transit statewide, we realized that we should stop the resources that are intended to go to the transit authorities from being diverted," Ryan said.
Now the NFTA, and other transit agencies, will receive 25% of the mortgage recording tax on all IDA projects. Ryan says transit's been deprived of much needed revenue, for far too long, because of tax breaks handed out by IDAs.
"And we've noticed there was this increased use of the mortgage recording tax. And it was slowly, but surely, shorting transit agencies throughout New York state - certainly including the NFTA," Ryan said.
NFTA Spokesperson, Helen Tederous says, the new law's expected to boost revenues by about $250,000 annually. Tederous says it will be well utilized.
"It will help us with things like bus routes, new technology and maintenance. So it is well welcome funding. And it's funding that we really do appreciate greatly," Tederous said.
Ryan says, under the new law, IDAs can only exempt 75% of the total recording tax for each project.