MONTICELLO — The Sullivan County Industrial Development Agency may reconsider its policy of granting mortgage recording tax exemptions to businesses receiving financial assistance, potentially allowing local governments to collect additional revenue from development projects.

The issue was raised during the agency’s October 19 meeting, when board member Joe Perrello (who is also a county legislator) discussed reducing the exemptions rather than eliminating them entirely.

Under the IDA’s Uniform Tax Exemption Policy, eligible development projects can receive a full exemption from mortgage recording taxes on project-related financing.

Perrello proposed reducing the exemption to 50 percent, allowing taxing jurisdictions to collect a portion of the revenue otherwise forgone.

Resident Ken Walters, a regular attendee of county meetings, suggested during public comment that allowing municipalities to retain a portion of mortgage tax revenue from IDA-assisted projects could encourage towns to accommodate greater commercial development.

However, IDA counsel Walter Garigliano explained that changing the policy would require a formal amendment to the agency’s Uniform Tax Exemption Policy. Existing project agreements would remain unaffected.

Board members also questioned whether the additional revenue would justify the administrative work involved.

One member suggested reviewing mortgage tax exemptions granted over the previous three years to determine how much additional revenue a partial exemption might generate.

The discussion also highlighted Sullivan County’s competition with neighboring Pennsylvania, which does not impose a mortgage recording tax.

Garigliano said the tax difference is a recurring concern when attracting businesses to Sullivan County rather than locations across the Delaware River.

Board members agreed the issue warranted further examination, potentially during a broader review of the agency’s tax exemption policies.

No changes were adopted Monday.