Proposed consolidation of New York State and New York City audit functions.

On July 24, 1992, Tax Executives Institute filed the following comments with New York Governor Mario Cuomo on the proposed consolidation of New York State and New York City audit functions. The Institute's comments took the form of a letter from TEI President Reginald W. Kowalchuk to the Governor (with copies provided to other State and New York City officials). The comments, which were prepared under the aegis of its State and Local Tax Committee, whose chair is Harry F. McKeon, Jr. of The Biltrite Corporation, originated in the New York Chapter's State and Local Tax Committee; their preparation was coordinated by Thomas H. Nied of The New York Times Company and were filed with the concurrence of TEI's New Jersey, New York, Niagara-Frontier, Rochester, Syracuse, and Westchester-Fairfield Chapters.

For the reasons set forth below, Tax Executives Institute endorses your proposal for joint administration of certain New York State and City taxes and urges you to vigorously pursue legislation to effect the proposal in the current legislative session.

Background

Tax Executives Institute (TEI), which was founded in New York in 1944, is the principal association of corporate tax executives in the United States and Canada. Of the Institute's nearly 4,800 members (who represent more than 2,000 companies in North America), almost 500 belong to the Institute's chapters in New York State: New York City, Rochester, Syracuse and Niagara Frontier. In addition, many members of our New Jersey and Westchester-Fairfield Chapters work in New York State. Finally, many of our non-New York members work for corporations that, while not headquartered in the State, have substantial operations or sales in New York State and City. The Institute's membership represents a broad cross-section of the business community in New York and, in fact, in all North America.

Because of the diversity of the Institute's membership, TEI dedicates itself to educational endeavors, to promoting the uniform and equitable enforcement of the tax laws, and to minimizing the costs of tax administration and compliance to the common benefit of government and taxpayers. It is from this background and with these goals in mind that the Institute endorses the proposal for joint administration of certain New York State and City taxes.

Discussion

In your September 15, 1991, New York City Budget Speech, you proposed the consolidation of the administration and audit functions of certain New York City...