Duffy pitches governor’s tax-free zones plan

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While acknowledging the burden that existing businesses face paying taxes, Lt. Gov. Robert Duffy said state tax-free zones to attract new businesses near SUNY campuses could help all boats rise to the top in the long run.

Duffy, former mayor of Rochester, pitched the governor’s plan Thursday at the SUNY College at Brockport Rochester Educational Opportunity Center.

New businesses or businesses planning to expand would pay no business or corporate tax, no property tax and no franchise fees by developing properties on or near SUNY college, community college and some private college campuses. Also, there would be no income tax for business owners and their employers.

The tax breaks would last for 10 years, according to the plan, which would have to be passed by the state Legislature.

“It’s a pretty enormous cost savings,” Duffy said, although he admitted it’s fair for existing businesses who are not eligible for breaks to question the fairness of the program.

“I’m not going to sugar coat it,” Duffy said.

“The plan is a work in progress … A lot of questions have to be answered,” Duffy said. “There is work to be done.”

There is no net cost to the state or local municipalities because SUNY property is tax free as it is, Duffy said. The opportunity to attract new businesses and jobs may offset the loss of some potential revenue, he said.

“I think that will pump money into local economies,” Duffy said.

An estimated 120 million square feet of space is available — including 20 other state-owned properties that once housed jails, for example — which is larger than the amount of available commercial space in Buffalo, Syracuse and Rochester combined, Duffy said.

The intent is to replicate, to a degree, the economic success at the University of Albany’s nanotech center, which resulted in billions of dollars of private investment in the nanotech industry.

Duffy said the state wants to attract businesses and start-ups that match the colleges’ areas of study.

SUNY Brockport President John Halstead said high-tech companies could benefit by having highly trained workers nearby. Also, students could find internship opportunities at these businesses.

Brockport alone has about 460 acres available for potential development, Halstead said.

“This opens a door for whole new ventures beyond what would come anyway,” Halstead said.