NY Legislature OKs Bill to Release Trump's State Tax Returns to US Congress
Cuomo, who will now decide if the legislation becomes law, has previously signaled support for the idea.
May 22, 2019 at 01:15 PM
7 minute read
The New York Legislature on Wednesday passed a measure that would provide an avenue for the US Congress to get access to President Donald Trump's state tax returns, three years after he broke with decades of electoral tradition by refusing to release those filings publicly.
The measure, which consists of two bills, will now head to Gov. Andrew Cuomo for approval, after which Congress could ask for copies of Trump's tax returns immediately.
New York is in a unique position to offer that option because Trump is a resident of the state. The legislation passed Wednesday would allow the chairpersons of three congressional committees to request his tax documents from the state Department of Taxation and Finance.
The bill was approved on a largely party-line vote. In the wake of the November 2018 elections, Democrats hold the majority in both the State Assembly and Senate. Republicans have labeled the tax records bill as a political maneuver by the majority party, rather than one based on real policy goals.
State Sen. Brad Hoylman, a Democrat from Manhattan who sponsors the bill, rebuffed that argument and said the legislation is a way for the state Legislature in New York to give Congress another oversight tool as a coequal branch of federal government.
“This is an important juncture in our history where we have a White House stonewalling Congress and preventing it from undertaking its oversight responsibility,” Hoylman said. “As a fellow legislator I'm proud of my colleagues for standing up for Congress as a coequal branch of government.”
The bill was introduced in New York last month as a way for Democrats to finally gain access to Trump's tax filings after two other bills in the state Legislature failed to gain support. Lawmakers were quicker to coalesce in recent weeks around the third bill, called the Trust Act.
An initial version of the legislation was met with criticism by some, particularly Republicans, who argued that it would enable Congress to request the tax returns of any New York resident. The first bill didn't place limits on whose documents federal lawmakers could ask for.
But a second bill would narrow down whose state tax filings could be requested from New York's tax agency. The bill would allow Congress to ask for the state filings of officials within the executive branch of the federal government, including the president, New York's congressional delegation and various state and local officials who have either been elected or appointed. Assemblyman David Buchwald, D-Westchester, who sponsored the measure in the Assembly, where it was met with opposition from a handful of Democrats on Wednesday as well. He said during the floor vote that the legislation could help deliver information that members of Congress have sought for more than two years.
“Transparency is essential, especially right now with what we're seeing with conflicts, and potential conflicts of interest, in regards to those who crack those policies,” Buchwald said. “That's part of why we're making sure public officials are no longer able to directly say that they do not need to be accountable for Congress.”
Only three members of Congress would be able to request those documents from New York: the leaders of the U.S. Senate Finance Committee, U.S. House Ways and Means Committee, and the Joint Committee on Taxation.
Rep. Richard Neal, D-Massachusetts, is chairman of the latter two committees and indicated last month that he may not take immediate advantage of the new law. A spokesman for Neal told Bloomberg News they were more interested in investigating routine audits conducted by the Internal Revenue Service on the president and vice president than diving into Trump's finances.
Neal subpoenaed the U.S. Treasury Department earlier this month after Treasury Secretary Steven Mnuchin rejected a request from Neal for the president's tax returns. Mnuchin, on Friday, refused to comply with the subpoena, which will likely set the stage for a legal battle between the U.S. House of Representatives and the White House over the request.
U.S. Sen. Chuck Grassley, R-Iowa, is chairman of the Senate Finance Committee.
The New York law would allow designated members of Congress to ask for copies of Trump's state tax returns immediately, rather than hashing out the request in court.
Federal lawmakers would only be allowed to review and discuss the contents of those filings in private, according to the bill. The legislation would not release those documents publicly.
There would be limits on what information could be requested from the state Tax Department, and for what purpose. Federal lawmakers would only be allowed to ask for an official's tax documents, for example, if that request is “related to, and in furtherance of, a legitimate task of the Congress.”
They would also be precluded from asking for an individual's state tax returns until they've first requested that person's federal tax filings from the U.S. Treasury Department. That prerequisite has already been fulfilled in the case of Trump's tax returns with Mnuchin's rejection.
The list of individuals whose tax returns could be requested is specific; it targets both elected officials and those appointed or employed by those individuals.
Congress would be able to request the state tax returns of the president, vice president and any other employee within the executive branch of federal government, including the president's cabinet.
Members of the U.S. House of Representatives and U.S. Senate from New York could also have their tax documents requested, as could members of the State Senate and Assembly. Statewide elected officials, like the governor, would also be eligible for such a request, as would members of the governor's cabinet.
The legislation would also allow the state tax returns of local elected officials, like mayors and county executives, to be requested by Congress. Political party leaders in New York would also be subject to such a request.
Any judge within the state court system, from the trial court level to the state's highest court, could also have their state tax returns requested by Congress, according to the bill.
The state Tax Department would be directed to fulfill the request after it's made, according to Hoylman. The commissioner of the agency would have certain discretion as to what information is exchanged with Congress, he said, but the legislation would mandate the request to be granted.
Republicans, who largely opposed the measure Wednesday, chided Democrats for approving a bill aimed at Trump's tax returns, rather than focusing on legislation to address other issues important to New Yorkers, like infrastructure and the economy.
“How's [the bill] help New York state? Does it address any of the pressing issues that our constituents want us to be focusing on?” said Assemblyman Andrew Goodell, R-Chautauqua. “What benefit, whatsoever, does this bill have for the men and women who went to the polls and elected us to represent them?”
Cuomo has to wait for the Senate to deliver the legislation to Cuomo for a signature, which can happen at any time. Buchwald said he expects it to be approved by Cuomo, who has previously signaled support for the idea.
READ MORE:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllCourt System Names New Administrative Judges for New York City Courts in Leadership Shakeup
3 minute readRetired Judge Susan Cacace Elected Westchester DA in Win for Democrats
In Eric Adams Case and Other Corruption Matters, Prosecutors Seem Bent on Pushing Boundaries of Their Already Awesome Power
5 minute readTrending Stories
- 1Call for Nominations: Elite Trial Lawyers 2025
- 2Senate Judiciary Dems Release Report on Supreme Court Ethics
- 3Senate Confirms Last 2 of Biden's California Judicial Nominees
- 4Morrison & Foerster Doles Out Year-End and Special Bonuses, Raises Base Compensation for Associates
- 5Tom Girardi to Surrender to Federal Authorities on Jan. 7
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.