Senate Bill S1299

2011-2012 Legislative Session

Requires certain corporations to file tax-related information with the secretary of state and provides for publication thereof

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Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to investigations and government operations
Jan 06, 2011	referred to investigations and government operations

2011-S1299 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §8-a, Tax L
Versions Introduced in 2009-2010 Legislative Session:: S1350

2011-S1299 (ACTIVE) - Summary

Requires corporations obligated to file corporate franchise tax returns to file tax-related information, including gross profit and net taxable income, with the secretary of state and provides for publication of all forms filed pursuant thereto and the list of corporations required to file such forms; provides for cooperation between the commissioner of taxation and finance and the secretary of state in the administration of this law.

2011-S1299 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S1299

TITLE OF BILL:
An act
to amend the tax law, in relation to the reporting of tax
information by certain corporations

SUMMARY OF PROVISIONS:
This legislation would amend the tax law to add
a new section 8-a. This bill would require that information concerning
income earned in the State of New York and taxes paid to New York
State, inclusive of credits and deductions, by corporations filing
under Article 9A of the Corporate franchise tax law be made available
to the public. The New York information made public would be the same
as that made public for Federal tax purposes through SEC 10k filing.

EXISTING LAW:
There is currently no provision in the tax law requiring
corporations to disclose to the public income taxes paid to New York
State.

JUSTIFICATION:
Secrecy provisions in the tax law were intended to
protect individuals, not corporations. In fact, corporations are
currently required to publicly disclose information regarding
federal income and taxes under the Securities and Exchange Act of

1934 through the SEC 10K disclosure. If it is not an invasion of
privacy for corporations to disclose income taxes at the federal
level, then it cannot be an invasion of privacy to provide the same
disclosure at the State level. Without knowledge of income, taxes
paid, and credits used by individual corporations, it is impossible
to engage in the same cost benefit analysis as can be done for
spending programs. Since tax expenditure programs, in particular, are
tantamount to public spending programs, the public has a right to
know to whom credits are being given, how much an individual
Corporation receives and what the economic benefits or disadvantages
of these programs are. Thus a Sound and reasoned policy, not only
with respect to taxation but also with respect to economic
development effects of taxation, is impossible to develop in the
context of such secrecy. Analyses of tax expenditure data indicate
that, prior to corporate tax reform in 1987, there had been significant
reductions in tax liabilities due to loopholes and minimum tax
provisions in the law by some of the State's largest corporations.
Without disclosure of corporate tax and income data it will be
impossible to evaluate the effectiveness of these reforms.

PRIOR LEGISLATIVE HISTORY:
2003:  S.2834 (Duane), Died in Investigations and Govt. Ops
2004:  S.2834 (Duane), Died in Investigations and Govt. Ops
2005:  S.2820 (Duane), Died in Investigations and Govt. Ops
2006:  S.2820 (Duane), Died in Investigations and Govt. Ops
2007:  S.2823 (Duane), Died in Investigations and Govt. Ops
2008:  S.2823 (Duane), Died in Investigations and Govt. Ops
2009:  S.1350 (Duane), Died in Investigations and Govt. Ops
2010:  S.1350 (Duane), Died in Investigations ane Govt. Ops


FISCAL IMPLICATIONS:
None or negligible.

EFFECTIVE DATE:
180 days after this act shall become law, with provisions.

2011-S1299 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1299

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             January 6, 2011
                               ___________

Introduced  by  Sen.  DUANE  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to the reporting of tax  infor-
  mation by certain corporations

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The tax law is amended by adding a new section 8-a to  read
as follows:
  S  8-A.  REPORTING  OF TAX INFORMATION BY CORPORATIONS. 1. EACH CORPO-
RATION OBLIGATED TO FILE A CORPORATE FRANCHISE TAX  RETURN  PURSUANT  TO
ARTICLE  NINE-A  OF  THIS  CHAPTER  (OR,  IN  THE  CASE OF A CORPORATION
EXEMPTED FROM THE ARTICLE NINE-A TAX PURSUANT  TO  SUBDIVISION  FOUR  OF
SECTION  TWO  HUNDRED  NINE  OF  SUCH  ARTICLE, SUBJECT TO ANY OTHER TAX
REFERRED TO IN SUCH SUBDIVISION) SHALL, WITHIN SEVEN  MONTHS  AFTER  THE
CLOSE  OF  ITS  FISCAL  YEAR,  SUBMIT  TO THE SECRETARY OF STATE CERTAIN
INFORMATION FROM SUCH CORPORATION'S TAX RETURN ON A FORM PREPARED BY THE
SECRETARY OF STATE.
  2. THE FORM SHALL CONTAIN: THE NAME OF THE CORPORATION AND THE  STREET
ADDRESS  OF  ITS PRINCIPAL OFFICE; ITS TOTAL GROSS PROFIT; ANY DEDUCTION
OR OTHER OFFSET WHICH REDUCES INCOME SUBJECT TO TAXATION OR  ANY  CREDIT
WHICH  REDUCES THE TAX LIABILITY BY GREATER THAN FIVE PERCENT; ITS TOTAL
NET TAXABLE INCOME; THE PERCENTAGE USED TO  ESTABLISH  WHAT  PORTION  OF
TOTAL  NET  TAXABLE  INCOME IS APPORTIONED TO NEW YORK STATE; ITS INCOME
TAXABLE IN NEW YORK STATE; THE VALUE OF THE  TANGIBLE  PROPERTY  OF  THE
CORPORATION TAXABLE IN NEW YORK STATE OR TAXABLE NET WORTH, WHICHEVER IS
APPLICABLE;  THE TOTAL FRANCHISE TAX (OR OTHER TAX SPECIFIED IN SUBDIVI-
SION FOUR OF SECTION TWO HUNDRED NINE OF THIS CHAPTER) DUE TO  NEW  YORK
STATE  FOR  THE  TAX  YEAR  IN QUESTION; ITS NET INCOME ACCORDING TO ITS
BOOKS REPORTED ON ITS FEDERAL TAX RETURN.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00964-01-1

S. 1299                             2

  3. ANY CORPORATION COVERED BY THIS SECTION WHICH CHOOSES TO SUPPLEMENT
THE FOREGOING INFORMATION WITH ADDITIONAL INFORMATION FROM ITS CORPORATE
FRANCHISE TAX RETURN MAY REQUEST, IN WRITING, OF THE SECRETARY OF  STATE
THAT  SUCH CORPORATION BE ALLOWED TO INCLUDE ON THE FORM SUCH ADDITIONAL
INFORMATION.
  BY  JANUARY  FIFTEENTH OF EACH YEAR, THE COMMISSIONER SHALL FORWARD TO
THE SECRETARY OF STATE A LIST OF  ALL  CORPORATIONS  OBLIGATED  TO  FILE
UNDER  THIS  SECTION.  THE  SECRETARY  OF STATE MAY ASK THE COMMISSIONER
WHETHER THE FORMS SUBMITTED PURSUANT TO THIS SECTION BY  CERTAIN  CORPO-
RATIONS  DESIGNATED  BY THE SECRETARY OF STATE CONTAIN ACCURATE INFORMA-
TION. SHOULD THE COMMISSIONER DISCOVER THAT SUCH FORMS  ARE  INACCURATE,
HE  SHALL  CORRECT  SUCH INACCURACIES AND REPORT SUCH CORRECTIONS TO THE
SECRETARY OF STATE; PROVIDED, HOWEVER, THAT THE COMMISSIONER  IN  MAKING
SUCH  REPORT  SHALL  COMMUNICATE ONLY THE INFORMATION FROM THE CORPORATE
FRANCHISE TAX RETURN THAT IS NECESSARY TO FULLY INFORM THE SECRETARY  OF
STATE OF SUCH CORRECTIONS.
  4.  BY  MARCH FIRST OF EACH YEAR, THE SECRETARY OF STATE SHALL PUBLISH
(A) ALL FORMS FILED PURSUANT TO THIS SECTION WITH THE SECRETARY OF STATE
BY DECEMBER THIRTY-FIRST OF THE PREVIOUS YEAR; AND (B) A LIST  OF  THOSE
CORPORATIONS REQUIRED TO FILE PURSUANT TO THIS SECTION BUT WHICH FOR THE
MOST  RECENT TAX YEAR HAVE NOT DONE SO WITHIN THE TIME LIMITS PRESCRIBED
BY THIS SECTION.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided that the commissioner  of  taxation
and  finance  and  the  secretary  of  state  are authorized jointly and
severally to promulgate any and all rules and regulations and  take  any
other  measures necessary to implement this act on its effective date on
or before such date.

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Senate Bill S1299

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

2011-S1299 (ACTIVE) - Details

2011-S1299 (ACTIVE) - Summary

2011-S1299 (ACTIVE) - Sponsor Memo

2011-S1299 (ACTIVE) - Bill Text download pdf

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Sponsored By

Thomas K. Duane

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

2011-S1299 (ACTIVE) - Details

2011-S1299 (ACTIVE) - Summary

2011-S1299 (ACTIVE) - Sponsor Memo

2011-S1299 (ACTIVE) - Bill Text download pdf

Comments