§ 181 — Tax expenditure reporting

§ 181. Tax expenditure reporting. 1. Definitions. For the purposes of\nthis section, the following definitions shall apply:\n (a) "Tax expenditures" shall mean features of the tax law that by\nexemption, exclusion, deduction, allowance, credit, preferential tax\nrate, deferral, or other statutory device, reduce the amount of\ntaxpayers' liabilities to the state by providing either economic\nincentives or tax relief to particular classes of persons or entities,\nto achieve a public purpose.\n (b) "Cost of tax expenditure" shall mean the aggregate, estimated\namount by which a tax expenditure reduces taxpayers' liabilities to the\nstate on a taxable year basis, or on a calendar year basis if a taxable\nyear basis is not appropriate.\n 2. Annual tax expenditure report. In addition to the information\nrequired by article seven of the constitution and section twenty-two of\nthe state finance law, the governor shall submit to the legislature, as\nearly as practicable, but no later than thirty days after submitting the\nbudget, a tax expenditure report containing the following information\nand statements relating to tax expenditures in articles nine (other than\nsection one hundred eighty), nine-A, thirteen-A, twenty-two,\ntwenty-eight, thirty-one, thirty-two and thirty-three of the tax law:\n (a) an enumeration of such tax expenditures;\n (b) the provisions of law authorizing such tax expenditures, their\neffective dates, and, if applicable, the dates on which such tax\nexpenditures expire or are reduced;\n (c) if reliable data are available, estimates prepared by the\ncommissioner of taxation and finance, in conjunction with the director\nof the budget, of the cost of such tax expenditures for the (i) current\ntaxable or calendar year and (ii) the five preceding years;\n (d) any recommendations of the governor regarding continuing,\nmodifying, or repealing such tax expenditures, and such other\ninformation regarding tax expenditures as the executive may feel useful\nand appropriate;\n (e) if the governor's budget includes proposals for the expiration,\nmodification, or repeal of such tax expenditures or for the addition of\ntax expenditures in or to such articles or such law, such report shall\nalso contain, to the extent reliable data are available, an analysis of\nthe number and types of persons and entities benefiting or expected to\nbenefit from such tax expenditures, an estimate of the costs of such tax\nexpenditures for the coming fiscal year, and an explanation of the\nreasons for the proposals;\n (f) comment, if any, on the effectiveness and efficiency of other tax\nexpenditures; and\n (g) general cautionary and advisory notes concerning limitations of\ndata, estimation procedures, sampling errors and imputed values,\nprominently displayed.\n 3. Any information relating to tax expenditures furnished by the\ncommissioner of taxation and finance shall be furnished in accordance\nwith the secrecy provisions of the tax law.\n