S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5937
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                May 8, 2017
                                ___________
 
 Introduced  by  Sen.  JACOBS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to direct the commissioner of taxation and finance to  utilize  a
   third-party evaluator for investigating the effectiveness of state tax
   incentives

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The commissioner of taxation and finance  shall  utilize  a
 third-party  evaluator  to prepare reports, pursuant to the schedule set
 forth in section two of this act, which shall include the following:
   (a) a listing and description of tax exemption, abatement,  credit  or
 other  benefits  allowed  against state tax liability for the purpose of
 spurring economic development, whether against the rate of the tax,  the
 subject on which the rate is applied or the payment amount due;
   (b)  the eligibility requirements for, and general objectives of, each
 such tax benefit;
   (c) aggregate data regarding utilization of each such tax benefit. For
 benefits with respect to which taxpayers  are  eligible  to  carry  over
 benefits  into  future tax years, aggregate amounts carried over per tax
 benefit shall be identified;
   (d) the total amount  of  tax  benefits  received  by  taxpayers  with
 respect to each such tax benefit;
   (e) an assessment, including such data and supporting documentation as
 is  meaningful  and  available, regarding the economic effectiveness and
 other consequences of the provision of such tax benefit currently and as
 anticipated going forward;
   (f) an analysis of similar incentives and benefits provided  in  other
 states and cities, including an assessment of the success of such incen-
 tives  in  such  states and cities in comparison with comparable current
 state programs; and
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11474-01-7

 S. 5937                             2
 
   (g) recommendations as to which state incentives and  benefits  should
 be maintained, changed or eliminated in order to best promote the objec-
 tives of the state with respect to the use of such programs.
   §  2.  The first report shall be a fully comprehensive report covering
 all tax incentive and exemption programs in effect as of  the  first  of
 January preceding the effective date of this act, and shall be submitted
 to  the  legislature  no  later  than the first of January following the
 effective date of this act.   A  report  evaluating  materially  changed
 state  incentives  and benefits, and any other materially changed condi-
 tions, shall be provided every  three  years  to  the  legislature  with
 respect to the period since the last report.
   §  3. This act shall take effect one year after it shall have become a
 law.