STATE OF NEW YORK ________________________________________________________________________ 2024--A 2025-2026 Regular Sessions IN SENATE January 15, 2025 ___________ Introduced by Sens. KRUEGER, GOUNARDES -- read twice and ordered print- ed, and when printed to be committed to the Committee on Cities 1 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04761-02-5
S. 2024--A 2 1 to which the city is a party or a claimant, or on behalf of any party to 2 any action or proceeding under the provisions of this chapter when the 3 reports, returns or facts shown thereby are directly involved in such 4 action or proceeding, in any of which events the court may require the 5 production of, and may admit in evidence, so much of said reports, 6 returns or of the facts shown thereby, as are pertinent to the action or 7 proceeding and no more. Nothing herein shall be construed to prohibit 8 the delivery to a taxpayer or to the taxpayer's duly authorized repre- 9 sentative of a certified copy of any return or report filed in 10 connection with [his or her] the tax due or to prohibit the publication 11 of statistics so classified as to prevent the identification of partic- 12 ular reports or returns and the items thereof, or the inspection by the 13 corporation counsel or other legal representatives of the city of the 14 report or return of any taxpayer who shall bring action to set aside or 15 review the tax based thereon, or against whom an action or proceeding 16 under this chapter has been recommended by the commissioner of finance 17 or the corporation counsel or has been instituted, or the inspection of 18 the reports or returns required under this chapter by the duly desig- 19 nated officers or employees of the city for purposes of an audit under 20 this chapter or an audit authorized by the enacting of this chapter, or 21 the inspection of the reports or returns of any taxpayer by the inde- 22 pendent budget office of the city of New York, or the entity designated 23 to be the evaluator pursuant to section 11-2901 of this title, for 24 purposes of a tax expenditure evaluation authorized by such section. 25 Reports and returns shall be preserved for three years and thereafter 26 until the commissioner of finance orders them to be destroyed. 27 § 2. Subdivision 1 of section 11-688 of the administrative code of the 28 city of New York, as amended by chapter 808 of the laws of 1992, is 29 amended to read as follows: 30 1. Except in accordance with proper judicial order or as otherwise 31 provided by law, it shall be unlawful for the commissioner of finance, 32 the department of finance of the city, any officer or employee of the 33 department of finance of the city, the tax appeals tribunal, any commis- 34 sioner or employee of such tribunal, any person who, pursuant to this 35 section, is permitted to inspect any report or return, or to whom any 36 information contained in any report or return is furnished, any person 37 engaged or retained by such department on an independent contract basis, 38 or any person who in any manner may acquire knowledge of the contents of 39 a report filed pursuant to this chapter, to divulge or make known in any 40 manner the amount of income or any particulars set forth or disclosed in 41 any report or return, under this chapter. The officers charged with the 42 custody of such reports and returns shall not be required to produce any 43 of them or evidence of anything contained in them in any action or 44 proceeding in any court, except on behalf of the city in an action or 45 proceeding involving the collection of a tax due under this chapter to 46 which the city is a party or a claimant, or on behalf of any party to 47 any action or proceeding under the provisions of this chapter when the 48 reports, returns or facts shown thereby are directly involved in such 49 action or proceeding, in any of which events the court may require the 50 production of, and may admit in evidence, so much of said reports or 51 returns or of facts shown thereby as are pertinent to the action or 52 proceeding, and no more. Nothing herein shall be construed to prohibit 53 the delivery to a taxpayer or its duly authorized representative of a 54 copy of any report filed by it, nor to prohibit the publication of 55 statistics so classified as to prevent the identification of particular 56 reports or returns and the items thereof, or the inspection by the
S. 2024--A 3 1 corporation counsel or other legal representatives of the city of the 2 report or return of any taxpayer which shall bring action to set aside 3 or review the tax based thereon, or against which an action or proceed- 4 ing under this chapter or under any local law of the city imposed as 5 authorized by the act authorizing the adoption of this chapter has been 6 recommended by the commissioner of finance or the corporation counsel or 7 has been instituted, or the inspection of the reports or returns of any 8 taxpayer by the duly designated officers or employees of the city for 9 purposes of an audit under this chapter or an audit authorized by the 10 act authorizing the adoption of this chapter, or the inspection of the 11 reports or returns of any taxpayer by the independent budget office of 12 the city of New York, or the entity designated to be the evaluator 13 pursuant to section 11-2901 of this title, for purposes of a tax expend- 14 iture evaluation authorized by such section; and nothing in this 15 subchapter or chapter eleven of this title shall be construed to prohib- 16 it the publication of the issuer's allocation percentage, as defined in 17 subparagraph one of paragraph (b) of subdivision three of section 11-604 18 of this chapter, of any corporation which may be required to be allo- 19 cated within the city for purposes of the tax imposed by any of the 20 named subchapters or chapter eleven of this title. 21 § 3. Subdivision a of section 11-1116 of the administrative code of 22 the city of New York, as amended by chapter 808 of the laws of 1992, is 23 amended to read as follows: 24 a. Except in accordance with proper judicial order or as otherwise 25 provided by law, it shall be unlawful for the commissioner of finance, 26 the tax appeals tribunal, or any officer or employee of the department 27 of finance or the tax appeals tribunal to divulge or make known in any 28 manner, the receipts or any other information relating to the business 29 of a taxpayer contained in any return required under this chapter. The 30 officers charged with the custody of such returns shall not be required 31 to produce any of them or evidence of anything contained in them in any 32 action or proceeding in any court, except on behalf of the city or the 33 commissioner of finance, or on behalf of any party to any action or 34 proceeding under the provisions of this chapter when the returns or 35 facts shown thereby are directly involved in such action or proceeding, 36 in either of which events, the court may require the production of, and 37 may admit in evidence, so much of said returns or of the facts shown 38 thereby, as are pertinent to the action or proceeding and no more. Noth- 39 ing herein shall be construed to prohibit the delivery to a taxpayer or 40 [his or her] the taxpayer's duly authorized representative of a certi- 41 fied copy of any return filed in connection with [his or her] the tax 42 due, nor to prohibit the publication of statistics so classified as to 43 prevent the identification of particular returns and the items thereof, 44 or the inspection by the corporation counsel of the city or other legal 45 representatives of such city of the return of any taxpayer who shall 46 bring action or proceeding to set aside or review the tax based thereon, 47 or against whom an action or proceeding has been instituted or is 48 contemplated for the collection of a tax, penalty or interest, or the 49 inspection of the reports or returns of any taxpayer by the independent 50 budget office of the city of New York, or the entity designated to be 51 the evaluator pursuant to section 11-2901 of this title, for purposes of 52 a tax expenditure evaluation authorized by such section. Returns shall 53 be preserved for three years and thereafter until the commissioner of 54 finance permits them to be destroyed. 55 § 4. In addition to the appropriation available pursuant to section 56 259 of the New York city charter, and any appropriation available pursu-
S. 2024--A 4 1 ant to section 2590-u of the education law, the city of New York shall 2 appropriate during each fiscal year an amount to the independent budget 3 office of the city of New York not less than one per centum of the 4 appropriations available to pay for the expenses of the office of 5 management and budget of the city of New York during each fiscal year, 6 to carry out the duties and functions assigned in this act. 7 § 5. This act shall take effect immediately.