Did you know the following qualifies for Tax Abatements under  County of Sullivan Industrial Development Agency’s (IDA) Straight Lease incentive program?

The major activity the IDA has used to help businesses acquire, construct and equip their facilities and thus create and retain jobs, and provide for economic development, growth, and stability in the community is the Straight Lease transaction.  Straight leases enable companies to receive the benefits of the IDA project status.  Through a lease agreement, the Agency takes title to the property and/or the machinery and equipment and can provide property, sales and mortgage tax relief to the company.

1)  Real Property Tax Exemptions

  • Transferring record of the property to the Agency as part of a straight lease transaction or of a bond transaction, the Agency becomes the “owner of record” of the property
  • the Applicant will not be required to pay normal real property taxes for as long as the title of the property is in the name of the Agency
  • The PILOT will usually require the Applicant to pay a portion of what it would normally pay in real property taxes, especially in the earlier years of the project.  This benefit affords the Applicant initial tax relief for its capital investment in Sullivan County.  The Agency will attempt to balance the cash flow needs of the Applicant with the local municipality’s need for a stable and secure tax base.

2)  Sales and Use Tax Exemptions

  • All purchases of construction materials and equipment rentals and purchases of a project related equipment and furnishings are made as agent for the Agency
  • Operating and maintenance expenses of project are not incurred as agent of the Agency and no sales tax exemption is provided for those expenses
  • Letters of Sales Tax Exemption will be issued by the Agency for a predetermined length of time, or until the project certificate of occupancy is issued whichever is a shorter period

3)  Mortgage Tax Exemptions

  • The Agency can exempt the mortgage recording tax on all project related financing to the full extent permitted by New York State Law
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