NY State Senate Bill 2019-S7695

Senate Bill S7695

2019-2020 Legislative Session

Authorizes the independent budget office of the city of New York to obtain certain tax data for purposes of evaluation

download bill text pdf

Archive: Last Bill Status - In Senate Committee Cities 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 07, 2020	referred to cities

co-Sponsors

2019-S7695 (ACTIVE) - Details

Current Committee:: Senate Cities
Law Section:: New York City Administrative Code
Laws Affected:: Amd §§11-538, 11-688 & 11-1116, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2021-2022: S509
2023-2024: S2013

2019-S7695 (ACTIVE) - Summary

Authorizes the independent budget office of the city of New York to obtain certain tax data for purposes of evaluation.

2019-S7695 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7695

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York, in
relation to authorizing the independent budget office of the city of New
York to obtain certain tax data for purposes of evaluation

 
PURPOSE:

This bill amends the Administrative Code of the City of New York to
allow the Independent Budget Office to obtain and evaluate certain
information.

 
SUMMARY OF PROVISIONS:

Section 1 of this bill amends section 11-538 to include the Independent
Budget Office of the City of New York to the list of agencies able to
inspect certain business tax filings.

Section 2 of this bill amends section 11-688 to include the Independent
Budget Office in certain confidentiality requirements related to certain
business tax filings

Section 3 of the bill amends section 11-1116 to Independent Budget
Office of the City of New York to the list of agencies able to inspect
certain Utility Tax filings.

Section 4 of this bill provides an effective date of immediately.

 
JUSTIFICATION:

New York City annually invests in several economic development projects,
regularly in the form of grants, loans or tax expenditures.  However, it
is difficult to ascertain the extent and effectiveness of this spending
because business tax data is protected and can't be accessed by the
Independent Budget Office. This makes it difficult to evaluate whether
they are providing the City with an adequate return on investment,
usually in the form of new or retained jobs.

This legislation authorizes the Independent Budget Office to evaluate
and report on certain tax filings to determine the effectiveness of
certain economic development programs.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

To Be Determined

 
EFFECTIVE DATE:
Immediately

2019-S7695 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7695
 
                             I N  S E N A T E
 
                             February 7, 2020
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Cities
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation  to  authorizing the independent budget office of the city of
   New York to obtain certain tax data for purposes of evaluation

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 1 of section 11-538 of the administrative code
 of the city of New York, as amended by chapter 808 of the laws of  1992,
 is amended to read as follows:
   1.  Except  in  accordance  with proper judicial order or as otherwise
 provided by law, it shall be unlawful for the commissioner  of  finance,
 the  department  of  finance of the city, any officer or employee of the
 department of finance of the city, any person  engaged  or  retained  by
 such  department  on  an  independent  contract basis, any depository to
 which any return may be delivered as provided  in  subdivision  four  of
 this  section,  any  officer  or  employee  of  such depository, the tax
 appeals tribunal, any commissioner or employee of such tribunal, or  any
 person who, pursuant to this section, is permitted to inspect any report
 or  return  or to whom a copy, an abstract or a portion of any report or
 return is furnished, or to whom any information contained in any  report
 or  return  is  furnished,  to  divulge  or make known in any manner the
 amount of income or any particulars set forth or disclosed in any report
 or return required under this chapter. The  officers  charged  with  the
 custody of such reports and returns shall not be required to produce any
 of  them  or  evidence  of  anything  contained in them in any action or
 proceeding in any court, except on behalf of the city in  an  action  or
 proceeding  under  the provisions of this chapter or in any other action
 or proceeding involving the collection of a tax due under  this  chapter
 to which the city is a party or a claimant, or on behalf of any party to
 any  action  or proceeding under the provisions of this chapter when the
 reports, returns or facts shown thereby are directly  involved  in  such
 action  or  proceeding, in any of which events the court may require the
 production of, and may admit in  evidence,  so  much  of  said  reports,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD15118-01-0

 S. 7695                             2
 
 returns or of the facts shown thereby, as are pertinent to the action or
 proceeding  and  no  more. Nothing herein shall be construed to prohibit
 the delivery to a taxpayer or to the taxpayer's duly  authorized  repre-
 sentative  of  a  certified  copy  of  any  return  or  report  filed in
 connection with his or her tax or to prohibit the publication of statis-
 tics so classified  as  to  prevent  the  identification  of  particular
 reports  or  returns  and  the  items  thereof, or the inspection by the
 corporation counsel or other legal representatives of the  city  of  the
 report  or return of any taxpayer who shall bring action to set aside or
 review the tax based thereon, or against whom an  action  or  proceeding
 under  this  chapter has been recommended by the commissioner of finance
 or the corporation counsel or has been instituted, or the inspection  of
 the  reports  or  returns required under this chapter by the duly desig-
 nated officers or employees of the city for purposes of an  audit  under
 this  chapter or an audit authorized by the enacting of this chapter, OR
 THE INSPECTION OF THE REPORTS OR RETURNS OF ANY TAXPAYER  BY  THE  INDE-
 PENDENT  BUDGET OFFICE OF THE CITY OF NEW YORK, OR THE ENTITY DESIGNATED
 TO BE THE EVALUATOR PURSUANT TO  SECTION  11-2901  OF  THIS  TITLE,  FOR
 PURPOSES  OF  A  TAX  EXPENDITURE EVALUATION AUTHORIZED BY SUCH SECTION.
 Reports and returns shall be preserved for three  years  and  thereafter
 until the commissioner of finance orders them to be destroyed.
   § 2. Subdivision 1 of section 11-688 of the administrative code of the
 city  of  New  York,  as  amended by chapter 808 of the laws of 1992, is
 amended to read as follows:
   1. Except in accordance with proper judicial  order  or  as  otherwise
 provided  by  law, it shall be unlawful for the commissioner of finance,
 the department of finance of the city, any officer or  employee  of  the
 department of finance of the city, the tax appeals tribunal, any commis-
 sioner  or  employee  of such tribunal, any person who, pursuant to this
 section, is permitted to inspect any report or return, or  to  whom  any
 information  contained  in any report or return is furnished, any person
 engaged or retained by such department on an independent contract basis,
 or any person who in any manner may acquire knowledge of the contents of
 a report filed pursuant to this chapter, to divulge or make known in any
 manner the amount of income or any particulars set forth or disclosed in
 any report or return, under this chapter. The officers charged with  the
 custody of such reports and returns shall not be required to produce any
 of  them  or  evidence  of  anything  contained in them in any action or
 proceeding in any court, except on behalf of the city in  an  action  or
 proceeding  involving  the collection of a tax due under this chapter to
 which the city is a party or a claimant, or on behalf of  any  party  to
 any  action  or proceeding under the provisions of this chapter when the
 reports, returns or facts shown thereby are directly  involved  in  such
 action  or  proceeding, in any of which events the court may require the
 production of, and may admit in evidence, so much  of  said  reports  or
 returns  or  of  facts  shown  thereby as are pertinent to the action or
 proceeding, and no more. Nothing herein shall be construed  to  prohibit
 the  delivery  to  a taxpayer or its duly authorized representative of a
 copy of any report filed by it,  nor  to  prohibit  the  publication  of
 statistics  so classified as to prevent the identification of particular
 reports or returns and the items  thereof,  or  the  inspection  by  the
 corporation  counsel  or  other legal representatives of the city of the
 report or return of any taxpayer which shall bring action to  set  aside
 or  review the tax based thereon, or against which an action or proceed-
 ing under this chapter or under any local law of  the  city  imposed  as
 authorized  by the act authorizing the adoption of this chapter has been

 S. 7695                             3
 
 recommended by the commissioner of finance or the corporation counsel or
 has been instituted, or the inspection of the reports or returns of  any
 taxpayer  by  the  duly designated officers or employees of the city for
 purposes  of  an  audit under this chapter or an audit authorized by the
 act authorizing the adoption of this chapter, OR THE INSPECTION  OF  THE
 REPORTS  OR  RETURNS OF ANY TAXPAYER BY THE INDEPENDENT BUDGET OFFICE OF
 THE CITY OF NEW YORK, OR THE  ENTITY  DESIGNATED  TO  BE  THE  EVALUATOR
 PURSUANT TO SECTION 11-2901 OF THIS TITLE, FOR PURPOSES OF A TAX EXPEND-
 ITURE  EVALUATION  AUTHORIZED  BY  SUCH  SECTION;  and  nothing  in this
 subchapter or chapter eleven of this title shall be construed to prohib-
 it the publication of the issuer's allocation percentage, as defined  in
 subparagraph one of paragraph (b) of subdivision three of section 11-604
 of  this  chapter,  of any corporation which may be required to be allo-
 cated within the city for purposes of the tax  imposed  by  any  of  the
 named subchapters or chapter eleven of this title.
   §  3.  Subdivision  a of section 11-1116 of the administrative code of
 the city of New York, as amended by chapter 808 of the laws of 1992,  is
 amended to read as follows:
   a.  Except  in  accordance  with proper judicial order or as otherwise
 provided by law, it shall be unlawful for the commissioner  of  finance,
 the  tax  appeals tribunal, or any officer or employee of the department
 of finance or the tax appeals tribunal to divulge or make known  in  any
 manner,  the  receipts or any other information relating to the business
 of a taxpayer contained in any return required under this  chapter.  The
 officers  charged with the custody of such returns shall not be required
 to produce any of them or evidence of anything contained in them in  any
 action  or  proceeding in any court, except on behalf of the city or the
 commissioner of finance, or on behalf of any  party  to  any  action  or
 proceeding  under  the  provisions  of  this chapter when the returns or
 facts shown thereby are directly involved in such action or  proceeding,
 in  either of which events, the court may require the production of, and
 may admit in evidence, so much of said returns or  of  the  facts  shown
 thereby, as are pertinent to the action or proceeding and no more. Noth-
 ing  herein shall be construed to prohibit the delivery to a taxpayer or
 his or her duly authorized representative of a  certified  copy  of  any
 return  filed  in  connection  with  his or her tax, nor to prohibit the
 publication of statistics so classified as to prevent the identification
 of particular returns and the items thereof, or the  inspection  by  the
 corporation  counsel  of the city or other legal representatives of such
 city of the return of any taxpayer who shall bring action or  proceeding
 to  set aside or review the tax based thereon, or against whom an action
 or proceeding has been instituted or is contemplated for the  collection
 of  a  tax,  penalty  or  interest,  OR THE INSPECTION OF THE REPORTS OR
 RETURNS OF ANY TAXPAYER BY THE INDEPENDENT BUDGET OFFICE OF THE CITY  OF
 NEW  YORK,  OR  THE  ENTITY  DESIGNATED  TO BE THE EVALUATOR PURSUANT TO
 SECTION 11-2901 OF THIS TITLE, FOR PURPOSES OF A TAX EXPENDITURE  EVALU-
 ATION  AUTHORIZED BY SUCH SECTION.  Returns shall be preserved for three
 years and thereafter until the commissioner of finance permits  them  to
 be destroyed.
   § 4. This act shall take effect immediately.

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Senate Bill S7695

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Sponsored By

Liz Krueger