S T A T E O F N E W Y O R K
________________________________________________________________________
6968
2009-2010 Regular Sessions
I N A S S E M B L Y
March 18, 2009
___________
Introduced by M. of A. KOON -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to expedited disbursement
procedure of erroneously collected taxes
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subsection (a) of section 686 of the tax law, as amended by
section 10 of part R of chapter 60 of the laws of 2004, is amended to
read as follows:
(a) General.-- The commissioner [of taxation and finance], within the
applicable period of limitations, may credit an overpayment of income
tax and interest on such overpayment against any liability in respect of
any tax imposed by this chapter on the person who made the overpayment,
against any liability in respect of any tax imposed pursuant to the
authority of this chapter or any other law on such person if such tax is
administered by the commissioner [of taxation and finance] and, as
provided in sections one hundred seventy-one-c, one hundred
seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f and
one hundred seventy-one-l of this chapter, against past-due support, a
past-due legally enforceable debt, a city of New York tax warrant judg-
ment debt, and against the amount of a default in repayment of a guaran-
teed student, state university or city university loan. The balance
shall be refunded by the comptroller out of the proceeds of the tax
retained by him for such general purpose. [Any] WITH THE EXCEPTION OF
ERRONEOUSLY COLLECTED TAXES, AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-
SIX-A OF THIS PART, ANY refund under this section shall be made only
upon the filing of a return and upon a certificate of the commissioner
[of taxation and finance] approved by the comptroller. The comptroller,
as a condition precedent to the approval of such a certificate, may
examine into the facts as disclosed by the return of the person who made
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02454-01-9
A. 6968 2
the overpayment and other information and data available in the files of
the commissioner [of taxation and finance].
S 2. The tax law is amended by adding a new section 686-a to read as
follows:
S 686-A. EXPEDITED DISBURSEMENT OF ERRONEOUSLY COLLECTED TAXES. 1.
FOR PURPOSES OF THIS PART, "ERRONEOUSLY COLLECTED TAXES" MEANS ANY FORM
OF PERSONAL INCOME TAX PAYMENT, INCLUDING AN AUTOMATIC WITHDRAWAL VIA
ELECTRONIC MEANS, LEVIED UNDER THIS ARTICLE THAT IS SUBSEQUENTLY DEEMED
TO HAVE BEEN PAID OR WITHDRAWN IN ERROR BY THE DEPARTMENT.
2. UPON DETERMINATION BY THE COMPTROLLER OR THE COMMISSIONER, OR HIS
OR HER DESIGNEES, THAT THE DEPARTMENT HAS ERRONEOUSLY COLLECTED TAXES
FROM A TAXPAYER UNDER THIS ARTICLE, THE DEPARTMENT SHALL IMMEDIATELY
IMPLEMENT AN EXPEDITED DISBURSEMENT PROCEDURE TO BE DEVELOPED AND
ADOPTED BY THE COMMISSIONER, IN CONSULTATION WITH THE COMPTROLLER. SUCH
PROCEDURE SHALL ENSURE THAT THE ERRONEOUSLY COLLECTED TAXES ARE
DISBURSED TO THE TAXPAYER WITHIN TEN DAYS OF SUCH DETERMINATION.
S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law and shall apply to tax returns received and
certificates of the commissioner of taxation and finance issued on and
after such effective date. Effective immediately, the commissioner of
taxation and finance shall adopt any rule or regulation necessary for
the implementation of this act on its effective date on or before such
effective date.