S T A T E O F N E W Y O R K
________________________________________________________________________
9596--A
I N A S S E M B L Y
January 25, 2018
___________
Introduced by M. of A. WEINSTEIN -- read once and referred to the
Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to the enforcement of delin-
quent tax liabilities by means of the suspension of licenses to oper-
ate a motor vehicle
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivisions 1, 3 and 5 of section 171-v of the tax law, as
added by section 1 of part P of chapter 59 of the laws of 2013, are
amended to read as follows:
(1) The commissioner shall enter into a written agreement with the
commissioner of motor vehicles, which shall set forth the procedures for
the two departments to cooperate in a program to improve tax collection
through the suspension of drivers' licenses of taxpayers with past-due
tax liabilities equal to or in excess of [ten] TWENTY thousand dollars
MULTIPLIED BY THE APPLICABLE INFLATION ADJUSTMENT. For the purposes of
this section, the term "tax liabilities" shall mean any tax, surcharge,
or fee administered by the commissioner, or any penalty or interest due
on these amounts owed by an individual with a New York driver's license,
the term "driver's license" means any license issued by the department
of motor vehicles, except for a commercial driver's license as defined
in section five hundred one-a of the vehicle and traffic law, and the
term "past-due tax liabilities" means any tax liability or liabilities
which have become fixed and final such that the taxpayer no longer has
any right to administrative or judicial review, AND THE "APPLICABLE
INFLATION ADJUSTMENT" FOR A CALENDAR YEAR SHALL BE DETERMINED UNDER THE
PRINCIPLES OF SECTION 7345(F) OF THE INTERNAL REVENUE CODE OF 1986,
USING THE CALENDAR YEAR OF THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS
OF TWO THOUSAND EIGHTEEN WHICH AMENDED THIS SUBDIVISION AS THE BASE
PERIOD. THE TWENTY THOUSAND DOLLAR LIMITATION IN THIS SUBDIVISION SHALL
NOT APPLY TO A TAXPAYER THAT THE COMMISSIONER DETERMINES HAS TAKEN
AFFIRMATIVE STEPS TO EVADE OR AVOID THE COLLECTION OF TAX, SUCH AS BY
HIDING ASSETS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14196-02-8
A. 9596--A 2
(3) The department shall provide notice to the taxpayer of his or her
inclusion in the license suspension program no later than sixty days
prior to the date the department intends to inform the commissioner of
motor vehicles of the taxpayer's inclusion. However, no such notice
shall be issued to a taxpayer: (I) whose wages are being garnished by
the department for the payment of past-due tax liabilities or past-due
child support or combined child and spousal support arrears; (II) WHO
RECEIVES PUBLIC ASSISTANCE OR SUPPLEMENTAL SECURITY INCOME; OR (III)
WHOSE INCOME DOES NOT EXCEED TWO HUNDRED FIFTY PERCENT OF THE POVERTY
LEVEL AS REPORTED BY THE FEDERAL DEPARTMENT OF HEALTH AND HUMAN SERVICES
OR ANY SUCCESSOR AGENCY. Notice shall be provided by first class mail to
the taxpayer's last known address as such address appears in the elec-
tronic systems or records of the department. Such notice shall include:
(a) a clear statement of the past-due tax liabilities along with a
statement that the department shall provide to the department of motor
vehicles the taxpayer's name, social security number and any other iden-
tifying information necessary for the purpose of suspending his or her
driver's license pursuant to this section and subdivision four-f of
section five hundred ten of the vehicle and traffic law sixty days after
the mailing or sending of such notice to the taxpayer;
(b) a statement that the taxpayer may avoid suspension of his or her
license by fully satisfying the past-due tax liabilities [or], by making
payment arrangements satisfactory to the commissioner, [and information
as to how] BY DEMONSTRATING ANY OF THE GROUNDS FOR CHALLENGE SET FORTH
IN SUBDIVISION FIVE OF THIS SECTION, OR BY PRESENTING FACTS TO THE
COMMISSIONER RESULTING IN THE COMMISSIONER WAIVING SUSPENSION OF HIS OR
HER LICENSE BASED ON THE EQUITIES OF THE CASE. SUCH STATEMENT SHALL
INCLUDE INFORMATION REGARDING ALL OF THE AGENCY'S PROGRAMS THROUGH WHICH
the taxpayer can pay the past-due tax liabilities to the department,
enter into a payment arrangement or request additional information NEED-
ED TO CHALLENGE THE SUSPENSION UNDER SUBDIVISION FIVE OF THIS SECTION OR
DEMONSTRATE THE EQUITIES OF THE CASE;
(c) a statement that the taxpayer's right to protest the notice is
limited to raising issues set forth in subdivision five of this section;
(d) a statement that the suspension of the taxpayer's driver's license
shall continue until the past-due tax liabilities are fully paid or the
taxpayer makes payment arrangements satisfactory to the commissioner;
and
(e) any other information that the commissioner deems necessary.
(5) Notwithstanding any other provision of law, and except as specif-
ically provided herein, the taxpayer shall have no right to commence a
court action or proceeding or to any other legal recourse against the
department or the department of motor vehicles regarding a notice issued
by the department pursuant to this section and the referral by the
department of any taxpayer with past-due tax liabilities to the depart-
ment of motor vehicles pursuant to this section for the purpose of
suspending the taxpayer's driver's license. A taxpayer may only chal-
lenge such suspension or referral on the grounds that (i) the individual
to whom the notice was provided is not the taxpayer at issue; (ii) the
past-due tax liabilities were satisfied; (iii) the taxpayer's wages are
being garnished by the department for the payment of the past-due tax
liabilities at issue or for past-due child support or combined child and
spousal support arrears; (iv) the taxpayer's wages are being garnished
for the payment of past-due child support or combined child and spousal
support arrears pursuant to an income execution issued pursuant to
section five thousand two hundred forty-one of the civil practice law
A. 9596--A 3
and rules; (v) the taxpayer's driver's license is a commercial driver's
license as defined in section five hundred one-a of the vehicle and
traffic law; [or] (vi) the department incorrectly found that the taxpay-
er has failed to comply with the terms of a payment arrangement made
with the commissioner more than once within a twelve month period for
the purposes of subdivision three of this section; (VII) THE TAXPAYER
RECEIVES PUBLIC ASSISTANCE OR SUPPLEMENTAL SECURITY INCOME; (VIII) THE
TAXPAYER'S INCOME DOES NOT EXCEED TWO HUNDRED FIFTY PERCENT OF THE
POVERTY LEVEL AS REPORTED BY THE FEDERAL DEPARTMENT OF HEALTH AND HUMAN
SERVICES OR ANY SUCCESSOR AGENCY; OR (IX) PAYMENT OF THE PAST DUE TAX
LIABILITIES WILL CREATE A HARDSHIP FOR THE TAXPAYER IN MEETING NECESSARY
LIVING EXPENSES.
However, nothing in this subdivision is intended to limit a taxpayer
from seeking relief PURSUANT TO AN OFFER IN COMPROMISE PURSUANT TO
SUBDIVISION FIFTEENTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS ARTICLE
OR from joint and several liability pursuant to section six hundred
fifty-four of this chapter, to the extent that he or she is eligible
pursuant to [that subdivision] SUCH SECTION, or establishing to the
department that the enforcement of the underlying tax liabilities has
been stayed by the filing of a petition pursuant to the Bankruptcy Code
of 1978 (Title Eleven of the United States Code).
§ 2. The commissioner of taxation and finance is authorized and
directed to promulgate any rules and regulations necessary to implement
the provisions of this act in accordance with the provisions of the
state administrative procedure act.
§ 3. This act shall take effect on the first of April next succeeding
the date on which it shall have become a law.