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