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Cuomo signs law to protect NFTA funding from mortgage tax

The Niagara Frontier Transportation Authority is getting a break when local industrial development agencies grant tax breaks.

A new law signed by Gov. Andrew Cuomo and co-sponsored by Assemblyman Sean Ryan, D-Buffalo, bars IDAs from including the mortgage tax revenue dedicated to fund transit agencies in any incentive packages they offer to companies, beginning in July 2017.

In Erie and Niagara counties, that means that local IDAs will not be able to include the portion of the mortgage recording tax that is dedicated to fund the NFTA, which receives 25 cents from every $1 in mortgage tax revenue.

IDA tax break packages routinely include exemptions for mortgage taxes, as well as property and sales tax breaks. Ryan estimated that the NFTA lost about $454,000 in mortgage tax revenue because of IDA tax breaks from 2012 to 2013.

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