NY State Senate Bill 2021-S6354

Senate Bill S6354

2021-2022 Legislative Session

Directs the commissioner of taxation and finance to utilize a third-party evaluator for investigating the effectiveness of state tax incentives

download bill text pdf

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to investigations and government operations
Apr 23, 2021	referred to investigations and government operations

2021-S6354 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Taxation
Versions Introduced in Other Legislative Sessions:: 2017-2018: S5937
2019-2020: S1560

2021-S6354 (ACTIVE) - Summary

Directs the commissioner of taxation and finance to utilize a third-party evaluator for investigating the effectiveness of state tax incentives.

2021-S6354 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6354

SPONSOR: AKSHAR
 
TITLE OF BILL:

An act to direct the commissioner of taxation and finance to utilize a
third-party evaluator for investigating the effectiveness of state tax
incentives

 
PURPOSE:

The purpose of this legislation is to provide oversight and measure the
effectiveness of the state's tax incentives

 
SUMMARY OF PROVISIONS:

1 - Directs the commissioner of taxation and finance to utilize a third-
party evaluator to prepare reports on the state's tax incentives, with
such reports to include the following:

a) a listing and description of the state's various tax incentives

created for the purpose of spurring economic development;

b) the eligibility requirements and objectives of each tax incentive;

c) aggregate data regarding utilization of each tax incentive;

d) the total amount of tax benefits received by the taxpayers with
respect to each tax incentive;

e) an assessment of the economic effectiveness and other consequences of
a tax incentive currently and as anticipated;

f) an analysis of similar incentives provided in other states and
cities, an assessment of the success or failure of the foreign incen-
tives as compared to New York's incentives; and

g) recommendations as to which incentives should be maintained, changed
or eliminated in order to accomplish the state's objective with regard
to each incentive.

§ 2 - Directs that the first such report undertaken by the commissioner
of taxation and finance shall be fully comprehensive of all the state's
tax incentive programs in currently in effect, to be submitted to the
legislature no later than January 1 following the effective date herein;
with ensuing reports to be undertaken and reported to the legislature,
every three years with respect to the period since the last report

§ 3 - Establishes the effective date.

 
JUSTIFICATION:

Every year New York provides millions of dollars in tax incentives as a
means of spurring economic growth, or achieving other state Objectives.
Currently, however, no oversight exists outside of the executive to
inform New Yorkers how effective such incentives actually are in accom-
plishing their purported objective. This bill would establish such
outside oversight so that New Yorkers and their elected representatives,

as stewards of the public's money, can most prudently and responsibly
design the state's tax incentive structure.

 
LEGISLATIVE HISTORY:

S.1560 Jacobs (2019 - 2020) - Referred to Investigations and Government
Operations
S.5937 Jacobs (2017-2018)- Passed Senate

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect one year after it shall have become a law.

2021-S6354 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6354
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 23, 2021
                                ___________
 
 Introduced  by  Sen.  AKSHAR -- 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.

                                                            LBD11017-01-1

 S. 6354                             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.

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