Taxation and Finance, Department of

Agency Web Site: https://www.tax.ny.gov/

Mission

To efficiently collect tax revenues in support of State services and programs while acting with integrity and fairness in the administration of the tax laws of New York State.

Organization and Staffing

The Department of Taxation and Finance (DTF) collects tax revenue and provides associated services in support of certain New York State government operations. In fulfilling its responsibilities, the Department collects and accounts for $76 billion in State taxes and about $40 billion in local taxes; administers 34 State and 11 local taxes, including New York City and City of Yonkers income taxes, as well as the Metropolitan Commuter Transportation Mobility Tax; and processes about 26 million returns. The Department also manages the State Treasury, which provides investment and cash management services to various State agencies and public benefit corporations, and acts on the Tax Commissioner's behalf as joint custodian of the State's General Checking Account. On June 6, 2010, the Department statutorily merged with the former Office of Real Property Services (ORPS) in order to realize significant savings and efficiencies, and enhance the State's oversight of local property tax administration.

Budget Highlights

The FY 2020 Executive Budget recommends $468.6 million All Funds ($271.9 million General Fund; $196.6 million Other Funds) for the Department of Taxation and Finance. This is an increase of $3.2 million, or 0.7 percent from FY 2019 levels. The Executive Budget recommends a workforce of 4,085 FTEs for the Department. This fill level is 110 FTEs, or 2.8 percent, above the FY 2019 budget. The increase of staff and funds is driven by an increase in resources to the audit and enforcement teams, which will reduce or deny more fraudulent refunds before they are issued and help analyze more returns for fraud after they have been filed and processed. There is also a decrease in funds as a set of equitable sharing funds are eliminated. The FY 2019 budget created new equitable sharing funds, and after a full transition, the old equitable sharing funds are no longer active.

Program Highlights

The Tax Department efficiently collects tax revenues with integrity, fairness, and a customer service focus. The Department is actively modernizing and right-sizing to be more efficient, effective, and accountable to its customers. Forward-looking operational goals include:

• Strategically invest in enabling technologies and business intelligence to optimize outcomes.
• Rapidly and nimbly deploy resources to address fluctuations, trends, and operational changes and challenges.
• Recruit, develop, and retain top talent.

Department operations are organized along major functional lines:

Administration and Operations: Supports the Department’s revenue-generation mission through the delivery of legal, financial, personnel, and other critical services.

Conciliation and Mediation: Provides taxpayers with a statutorily-mandated option of informal and impartial dispute resolution in an attempt to avoid time-consuming formal administrative hearings with the Division of Tax Appeals.

Revenue Analysis, Collection, Enforcement, Processing, and Real Property Tax: Reviews tax policies and proposals; develops tax forms, instructions, and guidance; captures tax return data and maintains taxpayer records; processes payments and refunds; responds to taxpayer inquiries; identifies and resolves errors; identifies and investigates noncompliance with the tax code; collects delinquent taxes; oversees local property tax administration in New York State; performs assessment equalization in order to apportion property taxes and calculate State aid; determines assessments on specific property categories; and delivers assessment support services to local governments.

Treasury Management: Acts on the Tax Commissioner’s behalf as custodian of the State Treasury and joint-custodian of the State’s General Checking Account.

Note: Most recent estimates as of 1/15/2019