Uniform Tax Exemption Policy
Uniform Tax Exemption Matrix
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The UCIDA is authorized to issue taxable and tax-exempt industrial development revenue bonds for qualified projects. Qualified projects include commercial, industrial, manufacturing and tourism. Banks, investment bankers, insurance companies and other financial institutions selected by the company to benefit, purchase the bonds. The UCIDA then sells or leases the project back to the benefiting company, with the lease or purchase payments equivalent to the debt service payments on the bonds.

New York State Tax Exemptions

The UCIDA offers both taxable and tax-exempt bond financing. Both types of financing give you the following New York State tax exemptions:

Mortgage Recording Tax Exemptions
New York State law imposes a mortgage recording tax in Ulster County of 3/4% of the amount of the loan secured by a mortgage. Financing your project with bonds issued by the IDA would exempt any mortgage securing the bonds from this tax. On a project involving a mortgage securing a UCIDA bond in the amount of $1,500,000, the mortgage recording tax exemption results in savings of $11,250.

Sales Tax Exemption
Financing your project with bonds issued by the UCIDA would exempt purchases from the Ulster County sales and use tax of 81/4% This exemption extends to all equipment purchased by the benefited company, as an agent of the UCIDA, and all materials incorporated into the facility, as well as items consumed in the construction of the building (such as fuel) and tools rented for the purpose of construction. On a project where $1,000,000 of project costs is subject to sales and use tax, the sales tax exemption results in a savings of $80,000.

County, Municipal, and School Real Property Tax Abatement

UCIDA bond financing also provides your project with an abatement of real property taxes. By entering into a Payment in Lieu of Taxes (PILOT) agreement, your company will receive abatement consistent with the UCIDA's Uniform Tax Exemption Policy. These payments will be directed to the affected taxing jurisdiction. The amount of the real property tax abatement is determined according to the following formula, where X is the existing assessed value and Y is the increase in assessed value caused by undertaking the project.

Tax Exempt UCIDA Bond Financing Offers Lower Interest Rates

If your project is for a manufacturing facility, a not-for-profit facility, or an exempt facility (i.e. airport, dock or wharf, mass commuting facility, solid waste disposal facility or hazardous waste facility) as defined by the Internal Review Code, the use of tax-exempt IDA bonds could lower your interest rate by 2 to 3% per year.

Access to Public Markets

By using letter of credit-backed taxable or tax-exempt industrial development revenue bonds, companies can sell their debt in the public market without incurring the cost of registration with the Securities and Exchange Commission, allowing them to obtain affordable long-term, fixed rate financing.

Contract for Services

The UCIDA periodically receives requests for direct grant funding assistance to worthy organizations. Funding assistance provided from the fund balance of the UCIDA is not guaranteed and all requests must conform to the following legal prohibitions:

All monies must be used to fund operations or projects which would constitute a “project” under the IDA statute. Legal counsel must provide an opinion on all requests, finding the funding assistance request consistent with all applicable laws.

No funds of an IDA shall be (a) used to prevent establishment of an industrial or manufacturing plant, (b) given to any group which is attempting to prevent the establishment of an industrial or manufacturing plant or (c) used for advertising or promotional materials which contain the picture of any elected or appointed governmental official.

Requests for assistance must be submitted in writing to the Chief Executive Officer of the UCIDA. The request will be forwarded to the UCIDA Board and be reviewed at their next meeting. Upon request, applicants may be asked to present their request and answer additional questions at a regularly scheduled meeting of the UCIDA Board. Each written request must include the following information:

  1. Name of the organization, mission statement, officers and board members of the organization.
  2. Amount requested and purpose of the funding.
  3. A brief narrative relating this request to the goals and objectives of the UCIDA mission statement and/or the Ulster Tomorrow economic development strategy.
  4. Organizational budget including a complete listing of all funding sources.
  5. Will this be a recurring request? If necessary, how will the organization sustain funding for this project in future years?

The UCIDA must vote on all requests. At the commencement of the project or no later than one year later, applicants are asked to provide a brief narrative to the UCIDA Board describing the outcomes and/or progress of their UCIDA supported project.