KINGSTON – Ulster County Comptroller Elliott Auerbach’s office has begun to look into the Ulster Tobacco Asset Securitization Corporation after discovering that the local development corporation has had its tax exempt status revoked for failure to file an annual return with the IRS for three consecutive years.
The agency, created by the county legislature in September 2000, was originally excused from filing an annual return until being notified by the IRS in 2011 of a change in the law requiring the filing of an annual form. The IRS followed up twice in 2013 and issued a notice of revocation in August 2014.
Following an audit for 2015 and submitted last month, the tobacco asset LDC wrote that “Management is taking the appropriate steps to reinstate the corporation’s tax exempt status and believes this determination will be reversed.”
The tobacco assets corporation was formed to acquire the future rights, title and interest of millions of dollars of the county’s Tobacco Settlement Revenues that were a result of a settlement agreement that resolved cigarette smoking-related litigation.
Putnam sales tax revenue declines
May 1, 2024
