Start-Up NY was pitched as a way for companies to locate on or near college campuses and grow their businesses. The companies don’t have to pay any state and local taxes for 10 years. Their workers don’t have to pay state income tax for 10 years.
The governor believes this will attract jobs. Though the program will cost the state $323 million through 2017 and cost localities untold millions, supporters say Start-Up will pay for itself through increased economic activity.
There are tremendous issues with fairness with this program. The first company to be announced in Rochester, Datto, does not appear to provide services not offered by other local companies, which have to pay full taxes. Datto is not even a start-up, having been founded in 2007. But despite Start-Up NY’s name, relocations and expansions of established firms are permissible.
We are getting some troubling evidence Start-Up does not have such a narrow focus on college campuses. The board overseeing the program approved the University of Rochester’s request for two StartUp locations. They are located at Eastman Business Park and Lennox Tech Center.
NEITHER OF THESE LOCATIONS ARE NEAR THE U OF R, NOR ARE THEY OWNED BY THE U OF R.
Note that if a piece of property is not currently part of an academic institution’s campus, it may be possible under special circumstances for that property to become affiliated with a sponsoring academic institution…
I am considering a move to a location in New York that is not located near a college or university. Should I still consider this state and/or the START-UP NY program?
Yes. Participation in START-UP NY does not necessarily require that your business be on or next to a campus, but it must be located on property affiliated with a university.
There’s your loophole.
Here’s what’s going to happen: Start-Up locations “affiliated” with colleges will be dispersed around the area. Colleges will be the pass-through agencies to get them approved. You want to use our labs every now and then? Cool! Can you take on some of our students as interns? Cool! You’re good to go. Eventually, you’ll Start-Up locations in pockets across the county.
EMPIRE ZONES, ANYONE?
Stats of the Day:
Links of the Day:
– Texas A&M could sue a Buffalo Bills fan over trademark issues. The fan is a double amputee and cancer survivor.
– A judge ordered Lyft and Uber to shut down in Pittsburgh. Lyft is now operating in Rochester, but city officials have not yet taken action.
– I’m really glad I wasn’t in the same room as this guy! What a sexist jerk.
– A peregrine falcon’s first flight in downtown Rochester was scary!
Tweet of the Day:
Today is the birthday of WXXI-AM (1370) launched on this date in 1984 by the WXXI Public Broadcasting Council.
— Tom Proietti (@tpmedia) July 2, 2014