NY State Senate Bill 2021-S509

Senate Bill S509

2021-2022 Legislative Session

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

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Archive: Last Bill Status - In Senate Committee Cities 1 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to cities 1
Jan 06, 2021	referred to cities 1

co-Sponsors

2021-S509 (ACTIVE) - Details

Current Committee:: Senate Cities 1
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:: 2019-2020: S7695
2023-2024: S2013

2021-S509 (ACTIVE) - Summary

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

2021-S509 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S509

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:

2019-20: 5.7695 - referred to cities

 
FISCAL IMPLICATIONS:

To Be Determined

 
EFFECTIVE DATE:
Immediately

2021-S509 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    509
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by Sens. KRUEGER, GOUNARDES -- read twice and ordered print-
   ed, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD03498-01-1

 S. 509                              2
 
 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,
 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

 S. 509                              3
 
 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
 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 S509

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Sponsored By

Liz Krueger