Assembly Bill A10439

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10439

                          I N  A S S E M B L Y

                              May 27, 2016
                               ___________

Introduced  by M. of A. FARRELL -- read once and referred to the Commit-
  tee on Ways and Means

AN ACT to amend the New York city charter, in relation to the  power  of
  the  department of finance of the city of New York to compromise taxes
  that are administered by such department except for property taxes

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Paragraphs c and d of subdivision 2 of section 1504 of the
New York city charter, as added by chapter 513 of the laws of 2002,  are
amended to read as follows:
  c. Notwithstanding the provisions of any general, special or local law
to  the contrary, the commissioner shall have the exclusive authority to
compromise any [excise or nonproperty] taxes [or annual  vault  charges]
EXCEPT  FOR  PROPERTY  TAXES  or  any warrant or judgment for [excise or
nonproperty] taxes [or annual vault charges] EXCEPT FOR  PROPERTY  TAXES
administered  by the commissioner, and the civil penalties, interest and
additions to tax [or charge] in connection therewith, if the tax  debtor
has  been discharged in bankruptcy[,] or is shown by proofs submitted to
be insolvent, [but] OR THE TAX DEBTOR SHOWS  BY  PROOFS  SUBMITTED  THAT
COLLECTION  IN  FULL  WOULD  CAUSE  SUCH DEBTOR UNDUE ECONOMIC HARDSHIP,
PROVIDED THAT the amount payable in compromise [shall  in  no  event  be
less than the amount, if any, recoverable through legal proceedings, and
provided  that  where]  REASONABLY  REFLECTS  COLLECTION POTENTIAL OR IS
OTHERWISE JUSTIFIED BY THE PROOFS OFFERED BY THE TAX  DEBTOR.  PROVIDED,
FURTHER, THE COMMISSIONER SHALL NOT ACCEPT ANY AMOUNT PAYABLE IN COMPRO-
MISE  THAT WOULD UNDERMINE COMPLIANCE WITH THE TAXES ADMINISTERED BY THE
COMMISSIONER, NOR SHALL THE COMMISSIONER ENTER INTO ANY OFFER IN COMPRO-
MISE THAT WOULD BE ADVERSE TO THE BEST INTERESTS OF THE CITY.  WHERE the
amount owing for [excise or nonproperty] taxes [or annual vault charges]
EXCEPT FOR PROPERTY TAXES, exclusive of any  civil  penalties,  interest
and  additions to tax [or charge], or the warrant or judgment, exclusive
of any civil penalties, interest and additions to tax  [or  charge],  is
more  than one hundred thousand dollars, such compromise shall be effec-
tive only when approved by a justice of the supreme court.  THE  COMMIS-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD15644-01-6

A. 10439                            2

SIONER  SHALL  PROMULGATE RULES DEFINING WHAT CONSTITUTES UNDUE ECONOMIC
HARDSHIP. THE INABILITY TO MAINTAIN AN AFFLUENT OR  LUXURIOUS  LIFESTYLE
SHALL NOT CONSTITUTE UNDUE ECONOMIC HARDSHIP.
  d. Notwithstanding the provisions of any general, special or local law
to  the contrary, the commissioner shall have the exclusive authority to
compromise civil liability, with such qualifications and limitations  as
may  be  established  pursuant  to  such  rules  as the commissioner may
prescribe, where such liability arises in connection with [an excise  or
nonproperty  tax or annual vault charge] A TAX EXCEPT FOR A PROPERTY TAX
administered by the commissioner, at any time prior to the time the  tax
or  administrative  action  becomes finally and irrevocably fixed and no
longer subject to administrative review. Upon acceptance of an offer  in
compromise  by  the  commissioner, the matter may not be reopened except
upon a showing of fraud, malfeasance or misrepresentation of a  material
fact.  The  corporation  counsel may compromise any such liability after
reference to the law department for prosecution or defense at  any  time
prior to the time the tax or administrative action taken by the [depart-
ment]  COMMISSIONER  is  no longer subject to administrative or judicial
review. Whenever a compromise is made by the  [department]  COMMISSIONER
of  any  such  liability, there shall be placed on file in the office of
the commissioner the opinion of the commissioner or a deputy commission-
er, with reasons therefor, with a statement  of:    (i)  the  amount  of
[excise  or  nonproperty]  tax  [or  annual  vault charge] and any other
issues that may be the subject of such compromise, (ii)  the  amount  of
interest, additions to the tax or penalty imposed by law on the taxpayer
or other persons against whom the administrative action was taken by the
[department] COMMISSIONER, and (iii) the amount actually paid in accord-
ance  with  the  terms  of the compromise. Notwithstanding the preceding
sentence, no such opinion shall be required with respect to the  compro-
mise of any civil liability in which the unpaid amount of the [excise or
nonproperty]  tax  [or  annual vault charge] that was the subject of the
administrative action (including any  interest,  additions  to  tax,  or
penalty) is less than [twenty-five] FIFTY thousand dollars.
  S 2. This act shall take effect immediately.