YORKTOWN, NY – In an effort to keep moving Yorktown forward, the Yorktown Town Board unanimously approved a New York State Real Property Tax Law section 485b tax abatement program geared toward helping small businesses get off the ground. According to the Small Business Administration, 50% of all small businesses fail during their first two years. The 485b program will give new businesses some breathing room to make sure they can survive for the long term.
The specifics of the program are that any business that invests money to physically improve the structures will obtain a tax abatement on the increased assessed value that are a result of the improvements. The abatement will decrease over ten years and the base property taxes will not be affected or reduced.
Yorktown Supervisor Michael Grace said, “The implementation of this program has been nine months in the making. I applaud the Industrial and Commercial Incentive Board for their diligent work in examining this proposal. We are committed to moving Yorktown forward and this program will not only help new businesses in town but signals yet again that Yorktown is open for business.”
The Town’s Industrial and Commercial Incentive Board comprised of five members and an alternate. The members were selected by the Town Board because of their extensive experience on a local as well as state level. They were tasked with identifying the types of businesses that should be offered limited business exemption credits and the geographical areas in the Town where the incentives should be concentrated. Their report, which was released on January 9th, supported the townwide implementation of the 485b tax abatement program as a way to incentivize and support new businesses.
Yorktown Councilman Greg Bernard said, “Sometimes government can provide a helping hand that people need. This program is perfect example of government giving local businesses the protection they need to make sure they get past its infancy stage. Working with the Industrial and Commercial Incentive Board, as well as the Chamber of Commerce, the Town has done its due diligence on this matter.”
Yorktown Councilman Tom Diana, a small business owner himself said, “Whenever we can support our local businesses here in Town its a good thing. Since I joined the town board we have been very successful in attracting new businesses and developments to Yorktown. However, this program just gives us another tool in our arsenal to attract more businesses, increase our commercial tax base, and keep moving Yorktown forward.”
Yorktown Councilman Ed Lachterman said, “This is a smart, well thought out proposal, that will support our growing economy. I have worked with businesses here in town and know firsthand that offering this type of abatement will provide real relief. For many businesses, this type of abatement is what will keep their doors open at the end of year one and keep them open through years two and three.”
Now that the town board has approved the measure it will be sent to the local school boards for consideration. At last night’s town board meeting, Supervisor Grace said his conversations with the local school boards were positive about its implementation. Further, the program cannot be offered to any existing businesses but only new businesses coming to town after its adoption.