S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5633
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2019
                                ___________
 
 Introduced  by  M.  of A. WEINSTEIN, TAYLOR -- read once and referred to
   the Committee on Ways and Means
 
 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  NINETEEN  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00879-01-9

 A. 5633                             2
 
 AFFIRMATIVE 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  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

 A. 5633                             3
 
 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; [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.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5633--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2019
                                ___________
 
 Introduced  by  M.  of A. WEINSTEIN, TAYLOR -- 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 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  NINETEEN  WHICH  AMENDED THIS SUBDIVISION AS THE BASE
 PERIOD. THE TEN THOUSAND DOLLAR LIMITATION IN THIS SUBDIVISION SHALL NOT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00879-04-9

 A. 5633--A                          2
 
 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  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

 A. 5633--A                          3
 
 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; [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.