Plan for Tax-free Zones Wins Broad Support

New York Gov. Andrew Cuomo finishes his remarks during a news conference at the College of Nanoscale Science and Engineering at the University at Albany on Wednesday, May 22, 2013, in Albany, N.Y. Cuomo wants to create tax-free entrepreneurial zones tied to State University of New York campuses. (AP Photo/Mike Groll)

NEW YORK—In order to attract new businesses to university campuses and communities across New York State, Gov. Andrew Cuomo is pushing a plan to create tax-free zones.

Cuomo released a list of supporters on May 28, which includes 27 of New York’s 62 mayors, New York Conference of Mayors executive director Peter Baynes, New York Association of Counties executive director Stephen Acquario, and a long list of other officials.

“On behalf of the 62 counties of New York, which are sponsors of our community colleges and home to our state colleges and universities, we appreciate the Governor's continued community-based economic development emphasis in all areas of the state,” Acquario said in a press release.

The plan, Tax-Free NY, will create 200,000 square-foot areas around campuses, making all businesses that start up in the zones exempt from business, property, and sales taxes for 10 years. Employees within the zones won’t have to pay income taxes for 5 years.

If passed, the tax-free zones would be set up around State University of New York (SUNY) campuses, as well as other participating community colleges.

“Tax-Free NY will transform communities across Upstate New York into magnets for new businesses, start-ups and investment, and generate an unprecedented level of economic activity and job creation in our counties, cities and towns,” Cuomo said, in a press release.

The program aims to attract businesses, start-ups, venture capital, and investments to cities in New York State that are falling behind economically.