TAX REVENUES DURING THE CONSTRUCTION PERIOD

The construction activity associated with the mall would generate additional tax revenues for Nassau County, the Metropolitan Transportation Agency (MTA), and New York State. Based on aggregate data on economic activity and on tax receipts realized by Nassau County and New York State from development projects, it is estimated that the $25.8 million in total public revenues generated by construction of the proposed mall would equal approximately 5.40 percent of the project's total economic activity in Nassau County (see Table 2-3).

As shown in Table 2-3, over the full construction period, the plan presented in the DEIS would generate approximately $27.55 million in tax revenues (in 2000 dollars) for Nassau County, the MTA, and New York State (exclusive of real property taxes). Construction of the revised plan would generate about $1.74 million less than the plan presented in the DEIS, or approximately $25.81 million. For either plan, the largest portion of tax revenues would come from sales tax on construction materials and other purchases, as well as personal income taxes, and corporate, business, and related taxes on direct and indirect economic activity. Nassau County would be projected to receive about $6.38 million in tax revenues (exclusive of property taxes) from construction of the revised plan. In addition to Nassau County taxes, construction of the revised plan would generate approximately $655,000 for the MTA (which collects 0.25 percent sales tax and tax surcharges on business and utility taxes within Nassau County and the MTA 12-county region), and New York State would receive approximately $18.77 million. In addition, public revenues to be received during the pre-construction and construction period for either plan would include fees for permits and approvals paid to the Town, County and other agencies. In total, fees to public agencies for reviewing, inspecting, and monitoring the development of the project could total $1 million or more. This analysis, however, treats these amounts as fees, not added revenue. It is assumed for the purpose of this analysis that fees paid are offset by the cost to public agencies in rendering their services. Therefore the amount of these fees has not been included in the estimated $27.55 million in tax revenue for the plan presented in the DEIS and $25.81 million for the revised plan, described above.



Source: The Mall at Oyster Bay FEIS (May 2000)