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A07194 Summary:

BILL NOA07194A
 
SAME ASSAME AS S05072-A
 
SPONSORBuchwald
 
COSPNSRD'Urso, Jacobson, Galef, Raynor, Fahy, Paulin, Pichardo, Sayegh, Mosley, Steck, Perry, Griffin, Seawright, Jaffee, Simon, Rosenthal L, Simotas, Abinanti, Fall, Lifton, Reyes, Gottfried, Rivera, Ortiz, Epstein, Ramos, Hevesi, Niou, Dinowitz, Weprin, Blake
 
MLTSPNSRDe La Rosa, Lentol
 
Amd Tax L, generally; amd 11-1797, NYC Ad Cd
 
Requires the commissioner of taxation and finance to cooperate with investigations by certain committees of the United States Congress under certain circumstances.
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A07194 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7194A
 
SPONSOR: Buchwald
  TITLE OF BILL: An act to amend the tax law and the administrative code of the city of New York, in relation to requiring the commissioner of taxation and finance to cooperate with investigations by certain committees of the United States Congress under certain circumstances   PURPOSE:: The purpose of this bill is to enable the New York State Commissioner of Taxation and Finance to provide tax reports and returns to Congressional committees requesting such information consistent with existing princi- ples of federal law.   SUMMARY OF SPECIFIC PROVISIONS:: Section 1 of the bill names the bill the "Tax Returns Release Under Specific Terms Act" (aka, the TRUST Act). Section 2 of the bill amends section 697 of the Tax Law (Personal Income Tax) to add a new subsection authorizing the Commissioner of the Depart- ment of Taxation and Finance to share state income tax reports and returns upon the written request of the Chairperson of the U.S. House Ways & Means Committee, the U.S. Senate Finance Committee, and the Joint Committee on Taxation. The new subsection provides that such request must be accompanied by certification that the tax returns have been requested for a specified and legitimate legislative purpose, that the requesting committee has made a written request to the U.S. Secretary of the Treasury for related federal returns or return information and that the returns will be treated by the requesting committee in a manner consistent with federal law authorizing the same committees to request and receive federal income tax returns from the U.S. Treasury. The bill also provides for the redaction of a limited amount of highly personally sensitive infor- mation like social security numbers and bank account numbers that is not required for the Congressional committee to review the tax information contained in the reports or returns. Section 3 of the bill adds similar language to section 202 of the Tax Law (Corporation Tax). Section 4 of the bill adds similar language to section 211 of the Tax Law (Franchise Tax on Business Corporations). Section 5 of the bill adds similar language to section 314 of the Tax Law (Tax on Petroleum Businesses). Section 6 of the bill adds similar language to section 437 of the Tax Law (Taxes on Alcoholic Beverages). Section 7 of the bill adds similar language to section 491 of the Tax Law (Excise Tax on the Sale of Medical Marijuana). Section 8 of the bill adds similar language to section 499 of the Tax Law (Excise Tax on the Sale of Opioids). Section 9 of the bill adds similar language to section 514 of the Tax Law (Highway Use Tax). Section 10 of the bill adds similar language to section 994 of the Tax Law (Estate Tax). Section 11 of the bill adds similar language to section 1146 of the Tax Law (Sales and Compensating Use Taxes). Section 12 of the bill adds similar language to section 1287 of the Tax Law (Tax on Medallion Taxicab Trips in the Metropolitan Commuter Trans- portation District). Section 13 of the bill adds similar language to section 1296 of the Tax Law (State Assessment Fee on Transportation Network Prearranged Trips). Section 14 of the bill adds similar language to section 1299-f of the Tax Law (Congestion Surcharge). Section 15 of the bill adds similar language to section 1418 of the Tax Law (Real Estate Transfer Tax). Section 16 of the bill adds similar language to section 1518 of the Tax Law (Franchise Taxes on Insurance Corporations). Section 17 of the bill adds similar language to section 1555 of the Tax Law (Tax on Independently Procured Insurance). Section 18 of the bill adds similar language to section 11-1797 of the New York City Administrative Code (City Personal Income Tax on Resi- dents). Section 19 of the bill sets the effective date.   JUSTIFICATION:: Since 1924, federal tax law has allowed the U.S. House Ways & Means Committee, the U.S. Senate Finance Committee, and the Joint Committee on Taxation to obtain and inspect the federal income tax information of any taxpayer via a written request to the U.S. Secretary of the Treasury or his or her designee. (See Internal Revenue Code § 6103(f)). While feder- al law provides a clear, unqualified right for the Congressional commit- tees to request and receive such returns, a Congressional inquiry could be aided or supplemented by New York state tax return information. Currently, New York law provides no legal mechanism for the state to assist a Congressional committee exercising its tax oversight function pursuant to I.R.C. § 6103(f). New York's various tax privacy laws (e.g., Section 697(e) of the Tax Law) generally prohibit the New York State Department of Taxation & Finance from sharing tax returns or tax return information, unless there is an exception written into statute. Existing New York law authorizes the Department to share state tax return infor- mation with the U.S. Treasury Department and other states' tax depart- ments for the purposes of tax-related investigations (see, e.g. Section 697(f) of the Tax Law). This legislation would extend similar authori- zation to the Department for sharing state tax reports and returns with the aforementioned Congressional committees. This proposal authorizes the Commissioner of the Department of Taxation and Finance to furnish state tax returns or return information upon written request of the chairperson of the U.S: House Ways & Means Committee, the U.S. Senate Finance Committee, or the Joint Committee on Taxation. The Commissioner shall only share such information if the written request certifies that (1) the returns or return information are being requested for a specified and legitimate legislative purpose, (2) the requesting committee has made a related request to the U.S. Treasury Department pursuant to I.R.C. 6103(f), and (3) the returns and/or return information will be treated consistent with federal law for the purposes of inspection and/or disclosure by the committee. As with the existing exceptions to the general tax privacy law, the discretion to share the information ultimately rests with the Commissioner. The Congressional tax-related committees play an important role in over- sight of tax administration, tax policy, and the federal agencies responsible for implementing laws within the committees' jurisdiction. If those committees determine that New York State could provide informa- tion helpful to the execution of those oversight duties, it makes sense to establish a legal mechanism for the State to do so.   LEGISLATIVE HISTORY:: This is a new bill.   FISCAL IMPLICATIONS:: None   IMPACT ON REGULATION OF BUSINESSES AND INDIVIDUALS: None   EFFECT ON FINES, TERMS OF IMPRISONMENT OR OTHER PENAL SANCTIONS: None   EFFECTIVE DATE:: This act shall take effect immediately; provided, however, that: (a) the amendments to section 491 of the tax law made by section seven of this act shall not affect the repeal of such section and shall be deemed to be repealed therewith; and (b) the amendments to section 499 of the tax law made by section eight of this act shall take effect on the same date and in the same manner as section 1 of part xx of chapter 59 of the laws of 2019 takes effect.   EXPLANATION OF THE AMENDMENT: Sections 1, 7 and 8 have been added to add a name to this bill and to address additional tax laws. Other sections have been renumbered accord- ingly. Additional changes to the bill language went from authorizing the Commissioner of Taxation and Finance to share information to the Congressional committee to requiring the Commissioner of Taxation and Finance to share information to the Congressional committee. Technical changes have been made to conform language with existing statutory terminology.
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