Bill Text: NY S00852 | 2021-2022 | 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) 2022-01-05 - REFERRED TO BUDGET AND REVENUE [S00852 Detail]

Download: New_York-2021-S00852-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           852

                               2021-2022 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 6, 2021
                                       ___________

        Introduced  by Sens. KRUEGER, LIU -- read twice and ordered printed, and
          when printed to be committed to the Committee on Budget and Revenue

        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.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03553-01-1
        S. 852                              2

     1    §  2.  Paragraphs  (f)  and (g) of subdivision 2 of section 181 of the
     2  executive law, as added by chapter 23 of the laws of 1990,  are  amended
     3  and  five new paragraphs (h), (i), (j), (k) and (l) are added to read as
     4  follows:
     5    (f)  comment, if any, on the effectiveness and efficiency of other tax
     6  expenditures; [and]
     7    (g) general cautionary and advisory notes  concerning  limitations  of
     8  data,  estimation procedures, sampling errors and imputed values, promi-
     9  nently displayed[.]; and
    10    (h) a cost benefit analysis of each tax expenditure;
    11    (i) a comparison between each tax expenditure's cost benefit  analysis
    12  ratio  and the tax expenditure's target ratio, along with an explanation
    13  for any difference between the two ratios;
    14    (j) an analysis of  whether  each  tax  expenditure  has  successfully
    15  achieved  the  purpose  for  which  the  tax expenditure was enacted and
    16  currently serves, including an analysis of the persons or entities  that
    17  are benefited by the tax expenditure;
    18    (k)  an  explanation  of  the cost benefit analysis formula applied to
    19  each tax expenditure; and
    20    (l) an explanation of each tax expenditure's target ratio, including a
    21  description of why the ratio reflects adequate levels of tax  relief  or
    22  job creation or job retention or investment in the state.
    23    §  3.  Subdivision 3 of section 181 of the executive law is renumbered
    24  subdivision 5 and two new subdivisions 3 and 4  are  added  to  read  as
    25  follows:
    26    3.  Cost benefit analysis formula. The governor shall develop for each
    27  tax expenditure a cost benefit analysis formula for determining the cost
    28  benefit analysis ratio.
    29    4. Cost benefit analysis target ratio. The  governor  shall  determine
    30  for each tax expenditure a cost benefit analysis target ratio.
    31    §  4. This act shall take effect on the first of January next succeed-
    32  ing the date on which it shall have become a law.