The Business Council of New York State, the State’s leading statewide business and industry association, supports this legislation that would amend the public authorities law in relation to exempting mass transit authorities from bond issuance charges
Current state law allows mass transit public authorities across the state to issue public debt for capital and operating proposes. However, state law requires these same public authorities to pay the state a fee each time they issue bonds. The issuance fees can total almost 1% of the bond's amount, depending on the amount of the issuance.
Over the years many public transit authorities, including the Capital District Transportation Authority and the Niagara Frontier Transportation Authority, have sought an exemption from bond issuance fees and legislation, supported by The Business Council, has been introduced. However, none of these individual authority bills have been passed and signed into law. This bill takes a new and comprehensive route – it covers all public authority transit, transportation and transportation-related authorities.
The diversion of fees previously going towards bond issuance charges will enable transit authorities across the entire state to better fund various projects. Thus, under this new exemption, tens of millions of dollars that previously went towards bond fees will be instead utilized for operating and capital needs.
For the above reasons, The Business Council supports this legislation and urges its passage.