2023 New York Laws › GMU - General Municipal › Article 18-B - New York State Empire Zones › 963 - Local Administration of Empire Zones.

§ 963. Local administration of empire zones. (a) The local empire zone
administrative board shall:
(i) develop short-term goals for zone activities on an annual basis;
(ii)  prepare,  or  cause  to be prepared, an annual report and submit
copies to the department of audit and control,  department  of  taxation
and  finance,  the temporary president of the senate, the speaker of the
assembly and department of economic development on or before  the  first
day  of  July  next  succeeding  the  year to which the report pertains,
regarding empire zone  activities,  including  information  which  would
allow  for  substantive  review of the zone's strategies and progress of
the zone in meeting its short-term objectives, and an  analysis  of  the
extent  to  which  the  long-term  goals  set  forth  in the empire zone
application have been met. The zone administrative  entities  and  other
local  officials  and  agencies  shall  fully  cooperate  with  the zone
administrative board in the annual performance review and in the board's
performance of its other duties. Local officials,  state  agencies,  and
certified  businesses  shall  provide  information requested by the zone
administrative board which is necessary for  such  review.  Such  report
shall  also include a current description of the specific strategies and
priorities for economic revitalization of the zone, including,  but  not
limited to: the number of jobs created; the number of jobs retained; the
amount  of  private  capital  leveraged with public funds; the number of
businesses expanded or retained and new businesses created, and the type
of businesses expanded, retained or created, as well as consideration of
the improvements  in  the  physical  infrastructure  of  the  zone.  The
commissioner  shall  promulgate  rules  and  regulations  to  set  forth
standards to be used to measure performance  against  objectives  on  an
annual basis in order to facilitate the requirements of this paragraph;
(iii)   undertake   efforts  to  ensure  meaningful  participation  by
minority-owned and  women-owned  business  enterprises  in  empire  zone
activities;
(iv)  enter  into an agreement with the office of business permits and
regulatory assistance to participate in  a  business  permit  assistance
program  to  be  provided to applicants for business permits required by
the state or a county, city, town or village for a business undertaking,
project or activity in an empire zone;
(v)  enter  into  agreements  with  the  commissioners   of   economic
development,  labor,  and  social  services, local departments of social
services, and local education agencies as defined in  paragraph  (b)  of
subdivision  one  of  section three thousand thirty-two of the education
law,  local  community-based  organizations,  private  employers,  labor
unions,  the  administrative entity and private industry council for the
service delivery area established under the job training partnership act
(P.L. 97-300, as amended) that includes the empire zone, and  any  other
person  or  state  or  federal  agency  for the purpose of establishing,
implementing and coordinating job  training  programs  for  workers  and
businesses  to be located in an empire zone; provided, however, that (A)
any agreement to establish a job training program designed to  meet  the
specific  needs  of  a  private  employer shall require such employer to
retain in its employ for not less than six months an  employee  who  has
satisfactorily  completed  a  course  of  training  for a particular job
opening unless such employee voluntarily leaves such  employment  or  is
discharged  for  misconduct  or  other  good cause; (B) any job training
program established pursuant to this  section  shall  make  use  of  the
community  service  division  of  the  labor department as well as other
sources for the purpose of recruitment;
(vi) in cooperation with local social services officials, establish  a
job  training  opportunities  program  sponsored by private employers in

accordance with the provisions of section one  hundred  sixty-four-b  or
three hundred fifty-l of the social services law;
(vii)  enter into agreements with local departments of social services
or  community-based  organizations  to  facilitate  the   provision   of
ancillary  or enhanced social services, including licensed and certified
child day care, in any such zone;
(viii)  ensure  that  job  training   programs   meet   standards   of
instructional  quality  established  in  regulations  promulgated by the
commissioner of education;
(ix) organize or use an existing human  resource  development  network
within  the  zone,  including  a  committee  of representatives of human
resource agencies and organizations serving the  zone,  organized  labor
and  business  representatives, to develop strategies and activities for
improving the coordination and delivery of human services  to  residents
of the zone and zone businesses;
(x)  prepare and implement a small business development and assistance
plan;
(xi) in conjunction with zone  administrative  entities,  develop  and
implement  a  system  for  continuous  monitoring and evaluation of zone
performance at the local level consistent with the guidelines set  forth
in  subdivisions  (k)  through (o) of section nine hundred fifty-nine of
this article;
(xii) provide within the zone, or contract  with  a  new  or  existing
community-based  local  development  corporation  or  entity to provide,
strategic economic development planning  for  the  zone,  marketing  and
promotion of the zone, assistance to companies in applying for available
benefits, preparation of applications for financing assistance and other
technical assistance services; coordination of the delivery of state and
local  programs  within  the zones; and operation of such other economic
development assistance  programs  in  furtherance  of  the  empire  zone
development  plan  as  may be appropriate. Provided, however, within the
amount appropriated therefor  and  allocated  by  the  director  of  the
budget,  the  commissioner,  through  annual  administrative  contracts,
shall, to the maximum extent feasible, make equally available  financial
support,   through   contracts  or  other  means,  to  assist  with  the
administrative expenses of  the  local  zone  administrative  bodies  or
community-based  development  organizations.  No  funds  shall  be  made
available for this purpose unless the amount to  be  provided  has  been
matched by private or governmental sources, other than state sources, in
amounts  at  least  equalling  that  to  be  provided by the state. Such
matching funds shall be earmarked and used  exclusively  for  the  local
administration  of  the  zone  program  or  for  activities  of the zone
program. At least fifty percent of such matching funds shall be in cash,
provided  that  the  commissioner  may  waive   this   requirement   for
communities  with  populations  of  twenty-five  thousand  or  less, and
provided, further,  that  any  amounts  appropriated  for  minority  and
women-owned  business  development within the zones shall be distributed
by the commissioner pursuant  to  a  competitive  proposal  solicitation
process.
(b)  The  annual  report of the local empire zone administrative board
required by subdivision (b) of this section shall, subject  to  the  tax
secrecy  provisions  referred  to  in  subdivision  (d) of this section,
include, but not be limited to, the following information  with  respect
to  the  year immediately preceding the year which is the subject of the
report:
(i) a complete list of all property within the zone, if  any,  granted
an  exemption  under  section  four  hundred  eighty-five-e  of the real
property tax law, together with  the  assessed  value  thereof  and  the

amount  of  such exemption, for each municipal corporation which granted
such exemption.   Such list shall also  set  forth  for  each  municipal
corporation  granting  such  exemption: (1) the tax rate for the year to
which  the  report  pertains;  (2)  the amount of real property tax that
would have been paid in the aggregate by the  owners  of  real  property
granted  an  exemption  under  section four hundred eighty-five-e of the
real property tax law if the property was fully taxable  at  that  rate;
and (3) the amount of tax actually paid in the aggregate by such owners;
(ii)  the  total  incremental value, if any, as defined in subdivision
(e) of section nine hundred sixty-seven of this chapter, of taxable real
property in each city, town, village or county within the  empire  zone,
together  with  the  total amount of tax increments which are segregated
pursuant to subdivision (g) of such section;
(iii) the total dollar value of the refund or credit of taxes  imposed
pursuant  to  the  authority  of  article  twenty-nine of the tax law on
receipts from the  sale  of  certain  materials  used  in  constructing,
expanding  or  rehabilitating  certain  business property located in the
empire zone, as authorized by clause six of subdivision (a)  of  section
eleven hundred nineteen of the tax law;
(iv)  the  total dollar value of the refund or credit of taxes imposed
under article twenty-eight of the tax law on receipts from the  sale  of
materials  used  in  constructing,  expanding  or rehabilitating certain
business property located in the empire zone, as  authorized  by  clause
six  of  subdivision  (a)  of section eleven hundred nineteen of the tax
law;
(v) the number of taxpayers claiming each of the following tax credits
or refunds, together with the total amount of  each  credit  claimed  by
taxpayers  in the aggregate against their taxes in the year to which the
report pertains, resulting from taxpayer activity in the empire zone  or
investments made by taxpayers in the capital corporation established for
that empire zone:
(A)  credits  against  the tax imposed under article nine-A of the tax
law, based on investments in certain  eligible  property  in  an  empire
zone, as authorized by subdivisions twelve-B and twelve-C of section two
hundred ten of the tax law;
(B)  credits  against  the tax imposed under article twenty-two of the
tax law, based on investments in certain eligible property in the empire
zone, as authorized by subsection (j) of section six hundred six of  the
tax law;
(C)  credits  against taxes imposed under articles nine-A, twenty-two,
thirty-two and thirty-three of the tax  law,  based  on  wages  paid  to
certain  employees  employed by a business located in an empire zone, as
authorized  by  subdivision  nineteen  of  section  two   hundred   ten,
subsection  (k)  of  section  six hundred six, subsection (e) of section
fourteen hundred  fifty-six  and  subdivision  (g)  of  section  fifteen
hundred eleven, respectively, of the tax law;
(D)  credits  against  the  tax  law  imposed  under  articles nine-A,
twenty-two, thirty-two  and  thirty-three  of  the  tax  law,  based  on
investments  in  the  stock  of  an  empire zone capital corporation, as
authorized by subdivision twenty of section two hundred ten, subdivision
(1) of section six hundred  six,  subsection  (d)  of  section  fourteen
hundred fifty-six, and subdivision (h) of section fifteen hundred eleven
of the tax law;
(vi)  the  total  amount  of reductions in utility costs of non-retail
business customers in the empire  zone,  as  authorized  by  subdivision
eight of section one hundred eighty-six-a of the tax law;
(vii)   a   statement   summarizing   all  amounts  received  as,  and
expenditures made from, financial support  for  administrative  expenses
pursuant to paragraph (vii) of subdivision (b) of this section; and
(viii)  any  other  information regarding empire zone activities which
the department of economic development may require upon its own  request
or  that  of the department of audit and control, department of taxation
and finance, or the legislative commission on expenditure review.
In addition to the information  required  by  paragraphs  (i)  through
(viii)  inclusive of this subdivision, such report shall also set forth,
with respect to all previous years for  which  reports  were  issued,  a
cumulative summary of the total amount of real property taxes that would
have  been received by each municipal corporation within the zone if the
real  property  granted  an  exemption  under   section   four   hundred
eighty-five-e  of  the real property tax law had been fully taxed at the
tax rate for the appropriate year, the total amount  of  tax  increments
segregated  for  infrastructure improvements by each city, town, village
or county within the zone, the total amount of each of  the  credits  or
refunds  set  forth in paragraphs (iii) through (vi) of this subdivision
for activities or investments within the zone,  and  the  total  amounts
received  and  expenditures  made from any financial support pursuant to
paragraph (vii) of subdivision (b) of this section.
(c) At the request of any local empire zone administrative board,  the
department   of   taxation  and  finance,  the  department  of  economic
development, the public service commission and any municipal corporation
within the empire zone shall, to the extent that it possesses any of the
information required by subdivision (c) of  this  section,  and  to  the
extent  that  such  information  can  be disclosed without violating the
secrecy provisions contained in sections two hundred  two,  two  hundred
eleven,  six  hundred  ninety-seven, one thousand one hundred forty-six,
one thousand two hundred fifty, one thousand  four  hundred  sixty-seven
and  one  thousand  five  hundred  eighteen of the tax law, provide that
information to the local empire zone administrative board for  inclusion
in  its annual report. The amount of any real property taxes required to
be set forth in the report pursuant to subdivision (c) of  this  section
shall  be  computed  and furnished to the zone's administrative board by
the municipality which levied the tax. The failure of  any  empire  zone
administrative  board  to  prepare  and  submit  a report as required by
subdivision  (b)  of  this  section  shall  make  the  board  or   other
community-based  development  organization  ineligible  to  receive  any
financial support for administrative expenses  authorized  by  paragraph
(vii)  of  subdivision (b) of this section; provided, however, that such
financial assistance shall not be withheld on account  of  the  report's
failure  to include any information which is required by subdivision (c)
of this section but is not available to the empire  zone  administrative
board.
(d)  The  department  of  economic  development  shall  provide to the
temporary president of the senate, the speaker of the assembly  and  the
commissioner  of  the  department of taxation and finance a consolidated
statewide report of the information required pursuant to paragraph  (ii)
of  subdivision  (b) and subdivision (c) of this section. Such report by
the department shall contain an analysis of the performance of each zone
using the information obtained pursuant to paragraph (ii) of subdivision
(b) and subdivision (c) of this section. Such report shall include,  but
not be limited to, the number of jobs created, as derived from paragraph
one  of  subdivision  (b)  of  section  fourteen of the tax law, for all
businesses in each zone, and the number of new businesses in each zone.
(e) No designated empire zone shall  require  or  solicit  funds  from
businesses,  whether  certified  or  not,  for  use  in the empire zones

program as created by this article. No business shall be required to pay
any funds to participate in the empire zones program.
(f)  All  certified  businesses,  with  the  exception  of those whose
benefit period as a QEZE business enterprise has expired,  are  required
to  provide  a  certified annual report to the local zone administration
board which report shall include but not be limited to the following:
(i) Business certification information to include: organization  name,
organization   address   in   the  zone,  contact  information,  federal
employment ID number, New  York  state  unemployment  insurance  number,
state  of  formation or incorporation, verification that the business is
authorized to conduct business in the state of New York;
(ii) Employment numbers calculated in the same  manner  in  which  the
employment  number  is  required to be calculated by section fourteen of
the tax law including: total existing full-time equivalent jobs  in  the
zone  as  of  the date of certification within that zone, total existing
jobs in the zone for the year for which the report  is  being  provided,
total  remuneration  paid  to  employees in the zone each quarter of the
reported year, total number of employees  in  all  zones,  total  annual
remuneration  in  all  zones, total annual remuneration paid in New York
state for the reported year, total employment number in New  York  state
for  the  reported year as shown on each business' NYS-45 wage reporting
form filed with the department of labor;
(iii) Capital investment to include: total investment made in the zone
for the reported year;
(iv) Tax benefits used and refunded:  provide  an  estimation  of  the
amount  of  the  tax benefits used and refunded for the reported year by
the certified  business,  or  by  the  taxpayers  within  the  certified
business including its shareholders, members, partners or the owner of a
sole  proprietorship  including  the  wage  tax  credits, investment tax
credits, employment incentive tax credits, real property tax credit, tax
reduction credit; and
(v) The sales tax credits and refunds for the reported year.