New York would release the state tax returns for Donald Trump and other New Yorkers holding high office under state legislation crafted by Democrats.
The measure does not mention Mr Trump by name, but it comes after the New York City Republican refused to release his tax returns during his successful run for the US presidency last year.
If the bill passes, the state would be required to release the past five years of state tax returns for Mr Trump.
It would also apply to other New Yorkers holding specific offices including the state's two US Senate seats and Democratic Governor Andrew Cuomo, who already voluntarily releases his returns.
Democratic Senator Brad Hoylman, of Manhattan, says New York has a unique opportunity to ensure all Americans can learn more about the president's financial interests.
Treasury Secretary Steven Mnuchin later said Mr Trump "has no intention" of releasing his tax returns to the public.
Mr Mnuchin made the comment while briefing reporters on the president's new proposed tax plan.