Please Comment on this Tax Rebate Deal

[Jw2]

Wauconda to share tax with expanding business, but owner isn't happy

http://dhbusinessledger.com/Content/Suburban-Trends-and-Issues/Suburban-Trends-and-Issues/Article/Wauconda-to-share-tax-with-expanding-business-but-owner-isn-t-happy-/87/172/15213

A Wauconda business planning a significant expansion has struck an unusual tax-sharing deal with village officials to help pay for a new fire sprinkler system.

Monster Powersports, a motor-vehicle retailer at 315 N. Rand Road, is expanding from its current 8,000-square-foot space into the rest of the building.


By law, owner Scott Cook needs to add a sprinkler system that could cost between $80,000 and $100,000, Village Administrator Doug Maxeiner said.

The tax-sharing deal will help Cook defray those costs. It also gives him 10 years to install the equipment, even though local regulations require sprinklers to be in place before occupancy.

Even so, Cook isn't happy with the deal. He's frustrated village officials are forcing him to install sprinklers.

Agreeing to the deal will cost less than fighting the village in court, he said.

"I have no other choice," Cook said.

Without the tax-sharing deal, Cook said he either wouldn't expand or would move the business to another town.

But he also acknowledged he'll be safer with sprinklers in the building.

The expansion already has begun, Cook said, and it could conclude this summer.

The village board approved the deal Tuesday night.

Under the agreement, the village will continue to collect all of the local sales tax generated by Monster Powersports until that total reaches $16,000 annually.

Once that threshold is crossed, the village and the business will split the tax revenue equally.

Monster Powersports' share of the cash will go into an escrow account controlled by the village. The business will get the money in the account once the sprinklers are installed, Maxeiner said.

The pact assumes sales -- and thus sales-tax revenue -- will increase once the business has more space for more inventory, Maxeiner said.

"By limiting the shared revenues to the new sales-tax revenues, the village is not losing any existing sales-tax revenues and we get an expanded business in the community," Maxeiner said.

According to the deal, the tax sharing will stop by May 1, 2025, or once the money in the account reaches $50,000.

"The sales-tax sharing with the owner will not exceed the cost of the sprinkler system and will likely be considerably less," Maxeiner said.

[D2D]

Under the disastrous Obamanomy businesses need all the help they can get and cities need all the tax revenue they can get!

Never heard of "Start up New York"?

http://startup-ny.com/

ALBANY, N.Y. – 
An unlikely coalition from New York's political right and left has called for the suspension of Gov. Andrew Cuomo's Start-Up NY economic development program following reports of modest initial success and significant marketing costs.
   
The group represents the broadest attack on Cuomo's program so far and includes the state Conservative Party and the state chapter of the National Federation of Independent Businesses from the right along with the left-leaning Working Families Party and Fiscal Policy Institute.
   
Created in 2013, Start-Up NY creates tax-free zones at colleges and universities to encourage businesses to start or expand in New York or relocate to the state. This month the state reported that in 2014, its first full year of operation, businesses participating in Start-Up created 76 of the nearly 2,100 new jobs promised over the next five years.
   
State officials insist Start-Up is in its early stages and has great potential, but its critics have seized on the report as evidence of its failures. And they have criticized the $53 million spent on advertising and marketing to promote it.
   
"Fifty-three million dollars for 76 jobs? That's not economic development; that's lunacy," Bill Lipton, executive director of the Working Families Party said in a statement first released Wednesday to The Associated Press.

http://www.foxbusiness.com/markets/2015/04/15/groups-from-left-right-join-to-blast-cuomo-start-up-ny-development-program/

Businesses are all too aware the promises made by liberals are entirely worthless!

http://www.aesopsretreat.com/forum/index.php?topic=207350.msg1646951#msg1646951

[jst-the-fax]

yup...i want to start a business in the fascist republic of new york...not

[chuck_curtis]

Without the tax-sharing deal, Cook said he either wouldn't expand or would move the business to another town.

An estimate of the costs to the economy of lack of expansions, untold, would be very sad to see.