New York State Tax Expenditure Report
The annual New York State Tax Expenditure Report is prepared by the Department of Taxation and Finance and the Division of the Budget and is submitted in accordance with the provisions of Section 181 of the Executive Law.
What are tax expenditures?
The Executive Law defines tax expenditures as features of the Tax Law that by exemption, exclusion, deduction, allowance, credit, preferential tax rate, deferral, or other statutory device, reduce the amount of taxpayers’ liabilities to the State by providing either economic incentives or tax relief to particular classes of persons or entities, to achieve a public purpose.
What does the report include?
As required by statute, the annual report includes the following:
- an enumeration of the tax expenditures associated with the:
- Personal Income Tax (Article 22 of the Tax Law)
- Corporate Franchise Tax (Article 9-A of the Tax Law)
- Insurance Tax (Article 33 of the Tax Law)
- Corporation and Utility Taxes (Article 9 of the Tax Law)
- Sales and Compensating Use Tax (Article 28 of the Tax Law)
- Petroleum Business Tax (Article 13-A of the Tax Law)
- Real Estate Transfer Tax (Article 31 of the Tax Law)
- the provisions of law authorizing the tax expenditures, their effective dates, and where applicable, the date that such tax expenditures expire or are reduced
- estimates (if reliable data are available) of the costs of the tax expenditures for the current taxable or calendar year and the five preceding years
- an analysis of tax expenditure proposals included in the Governor’s Executive Budget
- cautionary or advisory notes regarding the use of the Report and data limitations
As provided in prior years, the report also includes a glossary of terms used in this report and information that summarizes:
- tax expenditures that appear in more than one Article of the Tax Law, for example, Cross-Article Tax Expenditures
- state legislation enacted in recent years that resulted in the addition, deletion, or modification of various tax expenditure provisions