Rpld §171-k sub 2, amd §171-k, Tax L; amd §2, Chap of 2025 (as proposed in S.52 & A.249)
Directs the commissioner of taxation and finance to develop procedures for the use or acceptance of signatures in digital or other electronic form on any declaration, statement, or other document utilized by the department and authorizes the use of an electronic signature by a person granted a power of attorney by a taxpayer with respect to documents submitted to the New York state department of taxation and finance.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9431
SPONSOR: Magnarelli TITLE OF BILL:
An act to amend the tax law, in relation to procedures for the use of an
electronic signature on documents submitted to the New York state
department of taxation and finance; to amend a chapter of the laws of
2025 amending the tax law relating to authorizing the use of an elec-
tronic signature by a person granted a power of attorney by a taxpayer
with respect to documents submitted to the New York state department of
taxation and finance and the New York city department of finance, as
proposed in legislative bills numbers S. 52 and A. 249, in relation to
the effectiveness thereof; and to repeal certain provisions of the tax
law relating thereto
PURPOSE:
The purpose of this bill is to modernize and clarify the Department of
Taxation and Finance's authority to accept electronic signatures by
establishing uniform electronic signature procedures and expressly
authorizing individuals acting under a valid power of attorney to elec-
tronically sign tax-related documents, while aligning state practices
with federal Internal Revenue Service standards.
SUMMARY OF PROVISIONS:
Section 1 repeals subdivision 2 of section 171-k of the Tax Law, as
added by a chapter of the laws of 2025.
Section 2 amends section 171-k of the Tax Law by adding new subdivisions
2 and 3 to require the Commissioner of Taxation and Finance to establish
procedures for the use and acceptance of electronic signatures on decla-
rations, statements, or other documents utilized by the department,
consistent to the extent practicable with procedures used by the federal
Internal Revenue Service; and authorize individuals acting pursuant to a
valid power of attorney administered by the Department of Taxation and
Finance or the New York City Department of Finance to electronically
sign such documents on behalf of a taxpayer, with such electronic signa-
tures having the same validity and effect as handwritten signatures.
Section 3 amends the effective date of a chapter of the laws of 2025
relating to electronic signatures and powers of attorney to July 1,
2027, and authorizes any necessary rulemaking to be undertaken prior to
that date.
Section 4 provides for the immediate effective date of this act and
coordinates the effective dates of sections one and two with the related
chapter of the laws of 2025.
JUSTIFICATION:
New York State taxpayers, tax professionals, and authorized represen-
tatives increasingly rely on electronic transactions to interact with
government agencies. While electronic signatures are broadly recognized
under state law, the Tax Law currently lacks clear, uniform procedures
governing their use in tax administration, particularly for individuals
acting under a power of attorney.
This chapter amendment provides necessary statutory clarity by directing
the Department of Taxation and Finance to establish electronic signature
procedures and by expressly authorizing electronic signatures on tax
documents submitted by duly authorized representatives. By aligning
these procedures, to the extent practicable, with those used by the
federal Internal Revenue Service, the bill promotes consistency, effi-
ciency, and administrative ease for taxpayers and practitioners who
regularly interact with both federal and state tax systems.
Additionally, extending the effective date of the related 2025 chapter
allows the department sufficient time to complete system modernization,
develop appropriate safeguards, and adopt implementing regulations. This
measured approach ensures a smooth transition while maintaining the
integrity of tax administration and protecting taxpayer interests.
PRIOR LEGISLATIVE HISTORY:
New bill
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that sections
one and two of this act shall take effect on the same date and in the
same manner as a chapter of the laws of 2025 amending the tax law relat-
ing to authorizing the use of an electronic signature by a person grant-
ed a power of attorney, as amended to take effect on July 1, 2027.
STATE OF NEW YORK
________________________________________________________________________
9431
IN ASSEMBLY
January 5, 2026
___________
Introduced by M. of A. MAGNARELLI -- read once and referred to the
Committee on Governmental Operations
AN ACT to amend the tax law, in relation to procedures for the use of an
electronic signature on documents submitted to the New York state
department of taxation and finance; to amend a chapter of the laws of
2025 amending the tax law relating to authorizing the use of an elec-
tronic signature by a person granted a power of attorney by a taxpayer
with respect to documents submitted to the New York state department
of taxation and finance and the New York city department of finance,
as proposed in legislative bills numbers S. 52 and A. 249, in relation
to the effectiveness thereof; and to repeal certain provisions of the
tax law relating thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2 of section 171-k of the tax law, as added by
2 a chapter of the laws of 2025 amending the tax law relating to authoriz-
3 ing the use of an electronic signature by a person granted a power of
4 attorney by a taxpayer with respect to documents submitted to the New
5 York state department of taxation and finance and the New York city
6 department of finance, as proposed in legislative bills numbers S. 52
7 and A. 249, is REPEALED.
8 § 2. Section 171-k of the tax law is amended by adding two new subdi-
9 visions 2 and 3 to read as follows:
10 (2) The commissioner shall develop procedures for the use or accept-
11 ance of signatures in digital or other electronic form on any declara-
12 tion, statement, or other document utilized by the department. Such
13 electronic signature procedures shall conform, to the extent practica-
14 ble, with electronic signature procedures that are used by the federal
15 internal revenue service.
16 (3) Any person authorized pursuant to a valid power of attorney form
17 administered by the department or the New York city department of
18 finance to act on behalf of a taxpayer, may electronically sign any
19 declaration, statement, or other document required to be signed by such
20 department or departments pursuant to and consistent with the electronic
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00476-02-6
A. 9431 2
1 signature procedures set forth in this section. The use of such an elec-
2 tronic signature shall have the same validity and effect as the use of a
3 signature affixed by hand.
4 § 3. Section 2 of a chapter of the laws of 2025 amending the tax law
5 relating to authorizing the use of an electronic signature by a person
6 granted a power of attorney by a taxpayer with respect to documents
7 submitted to the New York state department of taxation and finance and
8 the New York city department of finance, as proposed in legislative
9 bills numbers S. 52 and A. 249, is amended to read as follows:
10 § 2. This act shall take effect [on the one hundred twentieth day
11 after it shall have become a law] July 1, 2027. Effective immediately,
12 the addition, amendment and/or repeal of any rule or regulation neces-
13 sary for the implementation of this act on its effective date are
14 authorized to be made and completed on or before such date.
15 § 4. This act shall take effect immediately; provided, however, that
16 sections one and two of this act shall take effect on the same date and
17 in the same manner as a chapter of the laws of 2025 amending the tax law
18 relating to authorizing the use of an electronic signature by a person
19 granted a power of attorney by a taxpayer with respect to documents
20 submitted to the New York state department of taxation and finance and
21 the New York city department of finance, as proposed in legislative
22 bills numbers S. 52 and A. 249, takes effect.
