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A09574 Summary:

BILL NOA09574
 
SAME ASSAME AS S02013
 
SPONSORBraunstein
 
COSPNSR
 
MLTSPNSR
 
Amd 11-538, 11-688 & 11-1116, NYC Ad Cd
 
Authorizes the independent budget office of the city of New York to obtain certain tax data for purposes of evaluation.
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A09574 Actions:

BILL NOA09574
 
03/20/2024referred to cities
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A09574 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9574
 
SPONSOR: Braunstein
  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: 2021-22: S.509 - referred to Cities 2019-20: S.7695 - referred to Cities   FISCAL IMPLICATIONS: To Be Determined   EFFECTIVE DATE: Immediately
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A09574 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9574
 
                   IN ASSEMBLY
 
                                     March 20, 2024
                                       ___________
 
        Introduced  by  M.  of  A.  BRAUNSTEIN  -- read once and referred 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:
 
     1    Section  1. Subdivision 1 of section 11-538 of the administrative code
     2  of the city of New York, as amended by chapter 808 of the laws of  1992,
     3  is amended to read as follows:
     4    1.  Except  in  accordance  with proper judicial order or as otherwise
     5  provided by law, it shall be unlawful for the commissioner  of  finance,
     6  the  department  of  finance of the city, any officer or employee of the
     7  department of finance of the city, any person  engaged  or  retained  by
     8  such  department  on  an  independent  contract basis, any depository to
     9  which any return may be delivered as provided  in  subdivision  four  of
    10  this  section,  any  officer  or  employee  of  such depository, the tax
    11  appeals tribunal, any commissioner or employee of such tribunal, or  any
    12  person who, pursuant to this section, is permitted to inspect any report
    13  or  return  or to whom a copy, an abstract or a portion of any report or
    14  return is furnished, or to whom any information contained in any  report
    15  or  return  is  furnished,  to  divulge  or make known in any manner the
    16  amount of income or any particulars set forth or disclosed in any report
    17  or return required under this chapter. The  officers  charged  with  the
    18  custody of such reports and returns shall not be required to produce any
    19  of  them  or  evidence  of  anything  contained in them in any action or
    20  proceeding in any court, except on behalf of the city in  an  action  or
    21  proceeding  under  the provisions of this chapter or in any other action
    22  or proceeding involving the collection of a tax due under  this  chapter
    23  to which the city is a party or a claimant, or on behalf of any party to
    24  any  action  or proceeding under the provisions of this chapter when the
    25  reports, returns or facts shown thereby are directly  involved  in  such
    26  action  or  proceeding, in any of which events the court may require the
    27  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.
                                                                   LBD01072-01-3

        A. 9574                             2
 
     1  returns or of the facts shown thereby, as are pertinent to the action or
     2  proceeding  and  no  more. Nothing herein shall be construed to prohibit
     3  the delivery to a taxpayer or to the taxpayer's duly  authorized  repre-
     4  sentative  of  a  certified  copy  of  any  return  or  report  filed in
     5  connection with his or her tax or to prohibit the publication of statis-
     6  tics so classified  as  to  prevent  the  identification  of  particular
     7  reports  or  returns  and  the  items  thereof, or the inspection by the
     8  corporation counsel or other legal representatives of the  city  of  the
     9  report  or return of any taxpayer who shall bring action to set aside or
    10  review the tax based thereon, or against whom an  action  or  proceeding
    11  under  this  chapter has been recommended by the commissioner of finance
    12  or the corporation counsel or has been instituted, or the inspection  of
    13  the  reports  or  returns required under this chapter by the duly desig-
    14  nated officers or employees of the city for purposes of an  audit  under
    15  this  chapter or an audit authorized by the enacting of this chapter, or
    16  the inspection of the reports or returns of any taxpayer  by  the  inde-
    17  pendent  budget office of the city of New York, or the entity designated
    18  to be the evaluator pursuant to  section  11-2901  of  this  title,  for
    19  purposes  of  a  tax  expenditure evaluation authorized by such section.
    20  Reports and returns shall be preserved for three  years  and  thereafter
    21  until the commissioner of finance orders them to be destroyed.
    22    § 2. Subdivision 1 of section 11-688 of the administrative code of the
    23  city  of  New  York,  as  amended by chapter 808 of the laws of 1992, is
    24  amended to read as follows:
    25    1. Except in accordance with proper judicial  order  or  as  otherwise
    26  provided  by  law, it shall be unlawful for the commissioner of finance,
    27  the department of finance of the city, any officer or  employee  of  the
    28  department of finance of the city, the tax appeals tribunal, any commis-
    29  sioner  or  employee  of such tribunal, any person who, pursuant to this
    30  section, is permitted to inspect any report or return, or  to  whom  any
    31  information  contained  in any report or return is furnished, any person
    32  engaged or retained by such department on an independent contract basis,
    33  or any person who in any manner may acquire knowledge of the contents of
    34  a report filed pursuant to this chapter, to divulge or make known in any
    35  manner the amount of income or any particulars set forth or disclosed in
    36  any report or return, under this chapter. The officers charged with  the
    37  custody of such reports and returns shall not be required to produce any
    38  of  them  or  evidence  of  anything  contained in them in any action or
    39  proceeding in any court, except on behalf of the city in  an  action  or
    40  proceeding  involving  the collection of a tax due under this chapter to
    41  which the city is a party or a claimant, or on behalf of  any  party  to
    42  any  action  or proceeding under the provisions of this chapter when the
    43  reports, returns or facts shown thereby are directly  involved  in  such
    44  action  or  proceeding, in any of which events the court may require the
    45  production of, and may admit in evidence, so much  of  said  reports  or
    46  returns  or  of  facts  shown  thereby as are pertinent to the action or
    47  proceeding, and no more. Nothing herein shall be construed  to  prohibit
    48  the  delivery  to  a taxpayer or its duly authorized representative of a
    49  copy of any report filed by it,  nor  to  prohibit  the  publication  of
    50  statistics  so classified as to prevent the identification of particular
    51  reports or returns and the items  thereof,  or  the  inspection  by  the
    52  corporation  counsel  or  other legal representatives of the city of the
    53  report or return of any taxpayer which shall bring action to  set  aside
    54  or  review the tax based thereon, or against which an action or proceed-
    55  ing under this chapter or under any local law of  the  city  imposed  as
    56  authorized  by the act authorizing the adoption of this chapter has been

        A. 9574                             3
 
     1  recommended by the commissioner of finance or the corporation counsel or
     2  has been instituted, or the inspection of the reports or returns of  any
     3  taxpayer  by  the  duly designated officers or employees of the city for
     4  purposes  of  an  audit under this chapter or an audit authorized by the
     5  act authorizing the adoption of this chapter, or the inspection  of  the
     6  reports  or  returns of any taxpayer by the independent budget office of
     7  the city of New York, or the  entity  designated  to  be  the  evaluator
     8  pursuant to section 11-2901 of this title, for purposes of a tax expend-
     9  iture  evaluation  authorized  by  such  section;  and  nothing  in this
    10  subchapter or chapter eleven of this title shall be construed to prohib-
    11  it the publication of the issuer's allocation percentage, as defined  in
    12  subparagraph one of paragraph (b) of subdivision three of section 11-604
    13  of  this  chapter,  of any corporation which may be required to be allo-
    14  cated within the city for purposes of the tax  imposed  by  any  of  the
    15  named subchapters or chapter eleven of this title.
    16    §  3.  Subdivision  a of section 11-1116 of the administrative code of
    17  the city of New York, as amended by chapter 808 of the laws of 1992,  is
    18  amended to read as follows:
    19    a.  Except  in  accordance  with proper judicial order or as otherwise
    20  provided by law, it shall be unlawful for the commissioner  of  finance,
    21  the  tax  appeals tribunal, or any officer or employee of the department
    22  of finance or the tax appeals tribunal to divulge or make known  in  any
    23  manner,  the  receipts or any other information relating to the business
    24  of a taxpayer contained in any return required under this  chapter.  The
    25  officers  charged with the custody of such returns shall not be required
    26  to produce any of them or evidence of anything contained in them in  any
    27  action  or  proceeding in any court, except on behalf of the city or the
    28  commissioner of finance, or on behalf of any  party  to  any  action  or
    29  proceeding  under  the  provisions  of  this chapter when the returns or
    30  facts shown thereby are directly involved in such action or  proceeding,
    31  in  either of which events, the court may require the production of, and
    32  may admit in evidence, so much of said returns or  of  the  facts  shown
    33  thereby, as are pertinent to the action or proceeding and no more. Noth-
    34  ing  herein shall be construed to prohibit the delivery to a taxpayer or
    35  his or her duly authorized representative of a  certified  copy  of  any
    36  return  filed  in  connection  with  his or her tax, nor to prohibit the
    37  publication of statistics so classified as to prevent the identification
    38  of particular returns and the items thereof, or the  inspection  by  the
    39  corporation  counsel  of the city or other legal representatives of such
    40  city of the return of any taxpayer who shall bring action or  proceeding
    41  to  set aside or review the tax based thereon, or against whom an action
    42  or proceeding has been instituted or is contemplated for the  collection
    43  of  a  tax,  penalty  or  interest,  or the inspection of the reports or
    44  returns of any taxpayer by the independent budget office of the city  of
    45  New  York,  or  the  entity  designated  to be the evaluator pursuant to
    46  section 11-2901 of this title, for purposes of a tax expenditure  evalu-
    47  ation  authorized by such section.  Returns shall be preserved for three
    48  years and thereafter until the commissioner of finance permits  them  to
    49  be destroyed.
    50    § 4. This act shall take effect immediately.
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