Senate Bill S1147A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1147--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2023
                                ___________
 
 Introduced  by Sens. KRUEGER, BAILEY, LIU, MAY -- read twice and ordered
   printed, and when printed to be committed to the Committee on Investi-
   gations and Government Operations -- recommitted to the  Committee  on
   Investigations  and  Government  Operations  in accordance with Senate
   Rule  6,  sec.  8  --  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,
 subdivision  1 as added by section 1 of part P of chapter 59 of the laws
 of 2013, and subdivisions 3 and 5 as amended by section 1 of part EEE of
 chapter 59 of the laws of 2019, 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 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03422-02-4
              

 S. 1147--A                          2
 
 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 TWENTY-FOUR WHICH AMENDED THIS SUBDIVISION AS THE BASE
 PERIOD. THE TEN THOUSAND DOLLAR LIMITATION IN THIS SUBDIVISION SHALL NOT
 APPLY  TO A TAXPAYER THAT THE COMMISSIONER DETERMINES HAS TAKEN AFFIRMA-
 TIVE STEPS TO EVADE OR AVOID THE COLLECTION OF TAX, SUCH  AS  BY  HIDING
 ASSETS.
   (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
 electronic 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,  by  making
 payment arrangements satisfactory to the commissioner, or by demonstrat-
 ing  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
 programs through which the taxpayer can pay the past-due tax liabilities
 to the department, enter into a payment  arrangement  or  request  addi-
 tional  information NEEDED 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
 S. 1147--A                          3
 
 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
 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; (vi) the department incorrectly found that the taxpayer 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; [or]  (viii)
 [the  taxpayer  demonstrates  that suspension of the taxpayer's driver's
 license will cause the taxpayer undue economic hardship] 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  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.