STATE OF NEW YORK ________________________________________________________________________ 2013 2023-2024 Regular Sessions IN SENATE January 18, 2023 ___________ Introduced by Sens. KRUEGER, GOUNARDES -- read twice and ordered print- ed, and when printed to be committed to the Committee on Cities 1 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01072-01-3
S. 2013 2 1 reports, returns or facts shown thereby are directly involved in such 2 action or proceeding, in any of which events the court may require the 3 production of, and may admit in evidence, so much of said reports, 4 returns or of the facts shown thereby, as are pertinent to the action or 5 proceeding and no more. Nothing herein shall be construed to prohibit 6 the delivery to a taxpayer or to the taxpayer's duly authorized repre- 7 sentative of a certified copy of any return or report filed in 8 connection with his or her tax or to prohibit the publication of statis- 9 tics so classified as to prevent the identification of particular 10 reports or returns and the items thereof, or the inspection by the 11 corporation counsel or other legal representatives of the city of the 12 report or return of any taxpayer who shall bring action to set aside or 13 review the tax based thereon, or against whom an action or proceeding 14 under this chapter has been recommended by the commissioner of finance 15 or the corporation counsel or has been instituted, or the inspection of 16 the reports or returns required under this chapter by the duly desig- 17 nated officers or employees of the city for purposes of an audit under 18 this chapter or an audit authorized by the enacting of this chapter, or 19 the inspection of the reports or returns of any taxpayer by the inde- 20 pendent budget office of the city of New York, or the entity designated 21 to be the evaluator pursuant to section 11-2901 of this title, for 22 purposes of a tax expenditure evaluation authorized by such section. 23 Reports and returns shall be preserved for three years and thereafter 24 until the commissioner of finance orders them to be destroyed. 25 § 2. Subdivision 1 of section 11-688 of the administrative code of the 26 city of New York, as amended by chapter 808 of the laws of 1992, is 27 amended to read as follows: 28 1. Except in accordance with proper judicial order or as otherwise 29 provided by law, it shall be unlawful for the commissioner of finance, 30 the department of finance of the city, any officer or employee of the 31 department of finance of the city, the tax appeals tribunal, any commis- 32 sioner or employee of such tribunal, any person who, pursuant to this 33 section, is permitted to inspect any report or return, or to whom any 34 information contained in any report or return is furnished, any person 35 engaged or retained by such department on an independent contract basis, 36 or any person who in any manner may acquire knowledge of the contents of 37 a report filed pursuant to this chapter, to divulge or make known in any 38 manner the amount of income or any particulars set forth or disclosed in 39 any report or return, under this chapter. The officers charged with the 40 custody of such reports and returns shall not be required to produce any 41 of them or evidence of anything contained in them in any action or 42 proceeding in any court, except on behalf of the city in an action or 43 proceeding involving the collection of a tax due under this chapter to 44 which the city is a party or a claimant, or on behalf of any party to 45 any action or proceeding under the provisions of this chapter when the 46 reports, returns or facts shown thereby are directly involved in such 47 action or proceeding, in any of which events the court may require the 48 production of, and may admit in evidence, so much of said reports or 49 returns or of facts shown thereby as are pertinent to the action or 50 proceeding, and no more. Nothing herein shall be construed to prohibit 51 the delivery to a taxpayer or its duly authorized representative of a 52 copy of any report filed by it, nor to prohibit the publication of 53 statistics so classified as to prevent the identification of particular 54 reports or returns and the items thereof, or the inspection by the 55 corporation counsel or other legal representatives of the city of the 56 report or return of any taxpayer which shall bring action to set aside
S. 2013 3 1 or review the tax based thereon, or against which an action or proceed- 2 ing under this chapter or under any local law of the city imposed as 3 authorized by the act authorizing the adoption of this chapter has been 4 recommended by the commissioner of finance or the corporation counsel or 5 has been instituted, or the inspection of the reports or returns of any 6 taxpayer by the duly designated officers or employees of the city for 7 purposes of an audit under this chapter or an audit authorized by the 8 act authorizing the adoption of this chapter, or the inspection of the 9 reports or returns of any taxpayer by the independent budget office of 10 the city of New York, or the entity designated to be the evaluator 11 pursuant to section 11-2901 of this title, for purposes of a tax expend- 12 iture evaluation authorized by such section; and nothing in this 13 subchapter or chapter eleven of this title shall be construed to prohib- 14 it the publication of the issuer's allocation percentage, as defined in 15 subparagraph one of paragraph (b) of subdivision three of section 11-604 16 of this chapter, of any corporation which may be required to be allo- 17 cated within the city for purposes of the tax imposed by any of the 18 named subchapters or chapter eleven of this title. 19 § 3. Subdivision a of section 11-1116 of the administrative code of 20 the city of New York, as amended by chapter 808 of the laws of 1992, is 21 amended to read as follows: 22 a. Except in accordance with proper judicial order or as otherwise 23 provided by law, it shall be unlawful for the commissioner of finance, 24 the tax appeals tribunal, or any officer or employee of the department 25 of finance or the tax appeals tribunal to divulge or make known in any 26 manner, the receipts or any other information relating to the business 27 of a taxpayer contained in any return required under this chapter. The 28 officers charged with the custody of such returns shall not be required 29 to produce any of them or evidence of anything contained in them in any 30 action or proceeding in any court, except on behalf of the city or the 31 commissioner of finance, or on behalf of any party to any action or 32 proceeding under the provisions of this chapter when the returns or 33 facts shown thereby are directly involved in such action or proceeding, 34 in either of which events, the court may require the production of, and 35 may admit in evidence, so much of said returns or of the facts shown 36 thereby, as are pertinent to the action or proceeding and no more. Noth- 37 ing herein shall be construed to prohibit the delivery to a taxpayer or 38 his or her duly authorized representative of a certified copy of any 39 return filed in connection with his or her tax, nor to prohibit the 40 publication of statistics so classified as to prevent the identification 41 of particular returns and the items thereof, or the inspection by the 42 corporation counsel of the city or other legal representatives of such 43 city of the return of any taxpayer who shall bring action or proceeding 44 to set aside or review the tax based thereon, or against whom an action 45 or proceeding has been instituted or is contemplated for the collection 46 of a tax, penalty or interest, or the inspection of the reports or 47 returns of any taxpayer by the independent budget office of the city of 48 New York, or the entity designated to be the evaluator pursuant to 49 section 11-2901 of this title, for purposes of a tax expenditure evalu- 50 ation authorized by such section. Returns shall be preserved for three 51 years and thereafter until the commissioner of finance permits them to 52 be destroyed. 53 § 4. This act shall take effect immediately.