Allows the tax department to disclose certain information to the commissioner of finance of the city of New York for purposes of administering laws relating to taxes and charges collected by department of finance of the city of New York.
TITLE OF BILL: An act to amend the tax law, in relation to information returns relating to payments made in settlement of payment card and third party network transactions
SUMMARY OF PROVISIONS:
Section one of this bill amends paragraph (c) of subdivision 1 of section 1703 of the Tax Law to permit he Department of Taxation and Finance to disclose such information that concerns any person or entity with a New York City address or that is required to pay New York city taxes and/or charges or that is subject to any reporting requirement pursuant to New York city tax laws, only to the Commissioner of Finance of the City of New York, and only to be used for administration of laws relating to taxes or charges collected by the New York City Commissioner of Finance.
Section two of this bill provides that this act shall take effect immediately.
JUSTIFICATION: Chapter 57 of the Laws of 2010 added section 1703 to the Tax Law to require the annual filing of information returns with the New York State Department of Taxation and Finance with regard to credit and debit card payments to New York State payees, from banks and other entities that make payments to participating payees in settlement of payment card and third party network transactions. An information return is required to be filed with the Department of Taxation and Finance by any entity required to file such an information return with the Internal Revenue Service under Internal Revenue Code § 6050W. Tax Law section 1703 presently prohibits the Department of Taxation and Finance from redisclosing any information it receives on such an information return.
This proposal would allow for the sharing of this information between the New York State Department of Taxation and Finance and the New York City Department of Finance ("DOF"), in order to facilitate more accurate and efficient administration of New York City tax laws by DOF. Specifically, it will allow the State to share information concerning persons or entities with a Net,V York City address or that are required to pay New York City taxes and/or charges that are subject to any reporting requirement pursuant to New York City tax laws. This information will provide DOF with a much needed enforcement tool that will allow the City to identify underreporting and nonfiling by businesses who are potentially subject to New York City taxes who are parties to payment card and third party network transactions. For example, such information could assist the Department of Finance in identifying underpayment of City business taxes by merchants who are subject to the New York City general corporation tax.
This amendment would allow for the use of this information by the New York City Commissioner of Finance only for the administration of laws relating to taxes or charges collected by the Commissioner.
Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.
LEGISLATIVE HISTORY: New Bill; was Part DDD of S.2609-C of 2013
FISCAL IMPLICATIONS: None
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 5347 2013-2014 Regular Sessions IN SENATE May 16, 2013 ___________Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to information returns relating to payments made in settlement of payment card and third party network transactions THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (c) of subdivision 1 of section 1703 of the tax law, as added by section 1 of part E of chapter 57 of the laws of 2010, is amended to read as follows: (c) Any information received by the department on an information return filed pursuant to this section, concerning a person who is not subject to tax in New York, or is not subject to any requirement imposed by or pursuant to the authority of this chapter, may not be used by the department. The department shall not redisclose any information received on an information return filed pursuant to this section, EXCEPT THAT IT MAY DISCLOSE TO THE COMMISSIONER OF FINANCE OF THE CITY OF NEW YORK, FOR THE PURPOSE OF THE ADMINISTRATION OF LAWS RELATING TO TAXES OR CHARGES COLLECTED BY THE COMMISSIONER OF FINANCE OF THE CITY OF NEW YORK, INFOR- MATION RECEIVED ON SUCH RETURNS CONCERNING ANY PERSON OR ENTITY WITH A NEW YORK CITY ADDRESS OR THAT IS A NEW YORK CITY TAXPAYER OR THAT IS REQUIRED TO PAY NEW YORK CITY TAXES AND/OR CHARGES OR THAT IS SUBJECT TO ANY REPORTING REQUIREMENT PURSUANT TO NEW YORK CITY TAX LAWS. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10824-01-3