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This entry was published on 2014-09-22
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SECTION 171-M
Certain New York city tax overpayments credited against outstanding debts owed to the state of New York
Tax (TAX) CHAPTER 60, ARTICLE 8
§ 171-m. Certain New York city tax overpayments credited against
outstanding debts owed to the state of New York. (1) For purposes of
this section:

(a) "judgment" shall mean a warrant filed with a county clerk whereby
the commissioner is, in the right of the people of the state of New
York, deemed to have obtained judgment against an individual,
corporation, association, company, partnership, estate, trust,
liquidator, fiduciary or other entity, identified in a tax warrant as
the judgment debtor, for a tax or other imposition;

(b) "overpayment" shall mean overpayment of a tax administered by the
commissioner of finance of the city of New York pursuant to title eleven
of the administrative code of the city of New York;

(c) "taxpayer" means a judgment debtor who or which made an
overpayment.

(2) Notwithstanding any law to the contrary, an overpayment may be
paid by the commissioner of finance of the city of New York to the
commissioner for full or partial satisfaction of a judgment against a
taxpayer who or which made the overpayment. The commissioner and the
commissioner of finance of the city of New York are hereby authorized to
enter into a written agreement which shall set forth procedures for
applying an overpayment and interest thereon for satisfaction, in part
or in full, of a judgment. The commissioner of finance and the
commissioner may also obtain and exchange whatever return or report
information is necessary to implement the agreement.

(3) Such agreement shall include:

(a) the procedure under which the commissioner shall certify to, and
notify, the commissioner of finance about an outstanding judgment,
amounts remaining due thereon and the format of certification and
notification;

(b) the fee, if any, for reimbursement of the commissioner of finance
by the commissioner for the cost of implementing procedures authorized
by this section;

(c) the procedure for transferring overpayments to the commissioner;

(d) the procedure for reimbursing the city of New York in the event an
overpayment was improperly paid to the commissioner;

(e) such other matters as the parties to the agreement shall deem
necessary to carry out the provisions of this section.

(4) Before notifying the commissioner of finance of a judgment for
partial or full satisfaction by application of an overpayment, the
commissioner shall make a reasonable attempt to notify a taxpayer at the
taxpayer's last known address (i) that the judgment, clearly identified
as to amount and the tax or imposition, unless paid within thirty days,
will be referred to the city of New York finance department for payment
by application of an overpayment; (ii) that state law permits
application of certain overpayments against judgments; (iii) that the
taxpayer may request a review of the proposed referral of a judgment by
contacting the department at a telephone number or address disclosed in
the notice; and (iv) that the taxpayer may present to the commissioner
any written evidence and arguments in support of a defense to the
proposed referral or may appear at a scheduled conference with the
department to present oral arguments and written and oral evidence in
support of such defense. Provided however, nothing herein shall be
deemed to afford a taxpayer the opportunity to reargue any issue which
was or could have been adjudicated in an administrative or judicial
proceeding prior to filing of a warrant serving as a judgment.

(5) An overpayment shall be paid to the commissioner pursuant to this
section only to the extent the commissioner of finance determines the
overpayment is not subject to offset against a debt owed the city of New
York or owed its instrumentalities, or subject to any other enforceable
city of New York interest or right in the overpayment.

(6) The commissioner of finance shall notify each taxpayer who made an
overpayment, in writing, of the amount of such overpayment and the
interest thereon paid to the commissioner. Such notice shall include
notification to any other person who may have filed a joint return with
the taxpayer of the steps such other person may take in order to secure
their proper share of the refund.

(7) From the time the commissioner of finance is notified by the
commissioner of a taxpayer's liability for a judgment under the
agreement provided for in this section, the city of New York shall be
relieved of all liability to such taxpayer, its assigns, successors,
heirs or representatives for the amount of the overpayment and interest
thereon paid to the commissioner. Such taxpayer, its assigns,
successors, heirs or representatives shall have no right to commence a
court action or proceeding or have any other legal recourse against the
city of New York to recover such overpayment or interest thereon paid to
the commissioner. However, nothing herein shall be construed to preclude
any legal, equitable, or administrative action by such taxpayer its
assigns, successors, heirs or representatives entitled to such
overpayment against the commissioner to recover that part of the
overpayment or interest thereon that is greater than the amount of the
judgment owed by such taxpayer on the date such overpayment is credited
against a judgment.

(8) The commissioner and the commissioner of finance may promulgate
such rules and regulations deemed necessary to carry out the provisions
of this section.