Bill Text: NY S07083 | 2013-2014 | General Assembly | Introduced

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Bill Title: Requires governor to perform a cost benefit analysis of tax expenditures.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2014-04-24 - REFERRED TO FINANCE [S07083 Detail]

Download: New_York-2013-S07083-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7083
                                   I N  S E N A T E
                                    April 24, 2014
                                      ___________
       Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
         printed to be committed to the Committee on Finance
       AN ACT to amend the executive law, in relation to cost benefit  analysis
         of tax expenditures
         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  181  of  the  executive  law  is
    2  amended  by  adding  three  new  paragraphs  (c), (d) and (e) to read as
    3  follows:
    4    (C) "COST BENEFIT ANALYSIS" SHALL MEAN, FOR TAX  EXPENDITURES  CLAIMED
    5  BY  TAXPAYERS  SUBJECT  TO ARTICLES NINE (OTHER THAN SECTION ONE HUNDRED
    6  EIGHTY), NINE-A, THIRTEEN-A, TWENTY-EIGHT, THIRTY-TWO, AND  THIRTY-THREE
    7  OF  THE  TAX LAW, A METHOD OF DETERMINING A TAX EXPENDITURE'S BENEFIT TO
    8  NEW YORK STATE BASED ON THE TAX EXPENDITURE  RECIPIENT'S  PROJECTED  JOB
    9  CREATION  OR  JOB  RETENTION  AND/OR  INVESTMENT IN THE STATE VERSUS THE
   10  TOTAL AMOUNT OF REVENUES FOREGONE UNDER THE  TAX  EXPENDITURE.  FOR  TAX
   11  EXPENDITURES  CLAIMED  BY  TAXPAYERS  SUBJECT TO ARTICLES TWENTY-TWO AND
   12  THIRTY-ONE OF THE TAX LAW, "COST BENEFIT ANALYSIS" SHALL MEAN  A  METHOD
   13  OF  DETERMINING  A  TAX EXPENDITURE'S BENEFIT TO NEW YORK STATE BASED ON
   14  THE AMOUNT OF TAX RELIEF A TAX EXPENDITURE PROVIDES TO PARTICULAR CLASS-
   15  ES OF PERSONS OR ENTITIES.
   16    (D) "COST BENEFIT ANALYSIS RATIO" SHALL MEAN THE RATIO CALCULATED BY A
   17  COST BENEFIT ANALYSIS OF A TAX EXPENDITURE.
   18    (E) "COST BENEFIT ANALYSIS TARGET RATIO" SHALL MEAN THE  COST  BENEFIT
   19  ANALYSIS  RATIO  LEVEL THAT THE GOVERNOR DEEMS TO REFLECT A TAX EXPENDI-
   20  TURE'S ADEQUATE LEVEL OF BENEFIT TO NEW  YORK  STATE  WHEN  TAKING  INTO
   21  CONSIDERATION THE AMOUNT OF REVENUES THE STATE FOREGOES BECAUSE OF A TAX
   22  EXPENDITURE  AND  THE  AMOUNT  OF  TAX  RELIEF  OR  JOB  CREATION OR JOB
   23  RETENTION OR INVESTMENT IN THE STATE PROVIDED  OR  SUPPORT  BY  THE  TAX
   24  EXPENDITURE.
   25    S  2.  Paragraphs  (f)  and (g) of subdivision 2 of section 181 of the
   26  executive law, as added by chapter 23 of the laws of 1990,  are  amended
   27  and  five new paragraphs (h), (i), (j), (k) and (l) are added to read as
   28  follows:
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01248-01-3
       S. 7083                             2
    1    (f) comment, if any, on the effectiveness and efficiency of other  tax
    2  expenditures; [and]
    3    (g)  general  cautionary  and advisory notes concerning limitations of
    4  data, estimation procedures, sampling errors and imputed values,  promi-
    5  nently displayed[.]; AND
    6    (H) A COST BENEFIT ANALYSIS OF EACH TAX EXPENDITURE;
    7    (I)  A COMPARISON BETWEEN EACH TAX EXPENDITURE'S COST BENEFIT ANALYSIS
    8  RATIO AND THE TAX EXPENDITURE'S TARGET RATIO, ALONG WITH AN  EXPLANATION
    9  FOR ANY DIFFERENCE BETWEEN THE TWO RATIOS;
   10    (J)  AN  ANALYSIS  OF  WHETHER  EACH  TAX EXPENDITURE HAS SUCCESSFULLY
   11  ACHIEVED THE PURPOSE FOR WHICH  THE  TAX  EXPENDITURE  WAS  ENACTED  AND
   12  CURRENTLY  SERVES, INCLUDING AN ANALYSIS OF THE PERSONS OR ENTITIES THAT
   13  ARE BENEFITED BY THE TAX EXPENDITURE;
   14    (K) AN EXPLANATION OF THE COST BENEFIT  ANALYSIS  FORMULA  APPLIED  TO
   15  EACH TAX EXPENDITURE; AND
   16    (L) AN EXPLANATION OF EACH TAX EXPENDITURE'S TARGET RATIO, INCLUDING A
   17  DESCRIPTION  OF  WHY THE RATIO REFLECTS ADEQUATE LEVELS OF TAX RELIEF OR
   18  JOB CREATION OR JOB RETENTION OR INVESTMENT IN THE STATE.
   19    S 3. Subdivision 3 of section 181 of the executive law  is  renumbered
   20  subdivision  5  and  two  new  subdivisions 3 and 4 are added to read as
   21  follows:
   22    3. COST BENEFIT ANALYSIS FORMULA. THE GOVERNOR SHALL DEVELOP FOR  EACH
   23  TAX EXPENDITURE A COST BENEFIT ANALYSIS FORMULA FOR DETERMINING THE COST
   24  BENEFIT ANALYSIS RATIO.
   25    4.  COST  BENEFIT  ANALYSIS TARGET RATIO. THE GOVERNOR SHALL DETERMINE
   26  FOR EACH TAX EXPENDITURE A COST BENEFIT ANALYSIS TARGET RATIO.
   27    S 4. This act shall take effect on the first of January next  succeed-
   28  ing the date on which it shall have become a law.