Suffolk eyes more generous biz tax breaks

Suffolk County, seeking to keep companies on Long Island and to create jobs, is considering more generous tax breaks for expanding businesses.

The board of directors of the county's industrial development agency approved a draft proposal yesterday that empowers it to reduce a company's current property tax bill. Previously, the agency could only freeze taxes and limit increases over a number of years.

Board members, acknowledging the impact of tax reductions on school districts and local governments, vowed to use the property-tax cut sparingly -- in cases where the business is crucial to Suffolk.

The proposal was among those offered to revise the development agency's tax exemption policy, established in 1993. Other changes include lengthening property-tax breaks from 10 to 15 years and requiring companies to meet multiple goals for job creation and investment in buildings and equipment over the life of the tax incentives.

"Corporations have a choice of where they want to set up shop and to bring the jobs," said IDA secretary Steve Rossetti, who led a four-member committee putting forward the changes.

"Our neighborhoods and our communities benefit from having these corporations. We also have to recognize that [tax cuts for businesses] are being done elsewhere," he said.

IDA chairman Jim Morgo agreed, likening Suffolk to a boat in an ocean filled with rival states acting like sharks: "There is a real danger of losing major employers."

Morgo also said the tax breaks would create jobs as the economy emerges from the recession and help to grow companies that are having difficulty in securing loans from banks.

Copies of the new tax exemption policy are to be sent to towns, villages, school districts and others for feedback. That input will likely lead to amendments.

The new policy applies only to property taxes and doesn't change breaks on sales tax and the mortgage recording tax.

David Rosenberg, the IDA's vice chairman, said it was codifying some practices used recently to support the new Canon headquarters in Melville and to bring hearing-aid maker Widex to Hauppauge from Queens.

Still, Rosenberg and others promised to be "judicious" in awarding tax reductions because of their impact on school districts.

Suffolk County Executive Steve Bellone hailed the action of the IDA, which he does not control.

"With other states setting up shop in Suffolk County to poach our businesses, our new policy will give us an additional tool to fight back," he said.

The IDA also Thursday approved a "Long Island First" policy, encouraging, but not requiring, businesses that receive government help to purchase goods and services locally.