N.Y. Tax Law § 171-E — Certain overpayments credited against national defense/national direct, health professions or nursing student loans

§ 171-e. Certain overpayments credited against national\ndefense/national direct, health professions or nursing student loans.\n(1) As used in this section only, the term "state university loan" or\n"city university loan" refers to loans provided to students at\nstate-operated units of the state university of New York or the city\nuniversity of New York respectively under the national defense/national\ndirect, health professions or nursing student loan programs.\n (2) The commissioner of taxation and finance, on behalf of the tax\ncommission, shall enter into a written agreement with the state\nuniversity of New York or the city university of New York respectively\nwhich shall set forth the procedures for crediting any overpayment by an\nindividual, estate or trust of income tax imposed by article twenty-two\nof this chapter, city personal income tax on residents imposed pursuant\nto the authority of article thirty of this chapter, city income tax\nsurcharge on residents imposed pursuant to the authority of article\nthirty-A of this chapter, city earnings tax on nonresidents imposed\npursuant to the authority of article two-E of the general city law and\ncity earnings tax on nonresidents imposed pursuant to the authority of\narticle thirty-B of this chapter and the interest on such overpayments\nagainst the amount of any default in repayment of a state university\nloan or city university loan owed by such individual, estate or trust of\nwhich the commissioner of taxation and finance has been notified by the\nstate university of New York or the city university of New York\nrespectively pursuant to the provisions of such agreement.\n (3) Such agreement shall apply only to the amount of a default in\nrepayment of a state university loan or city university loan as to which\nthe state and/or state university of New York or the city university of\nNew York respectively has obtained a judgment or has made a\ndetermination that satisfies the requirements of subdivision three of\nsection one hundred seventy-one-f of this article.\n (4) Such agreement shall include:\n (a) the procedure under which the state university of New York or the\ncity university of New York respectively shall notify the commissioner\nof taxation and finance of a default in a repayment of a state\nuniversity loan or city university loan, such procedure to specify when\nthe commissioner of taxation and finance shall be notified and the\ncontent of such notification;\n (b) the minimum amount outstanding on a default in repayment of a\nstate university loan or city university loan against which the\ncommissioner of taxation and finance shall, pursuant to this section,\ncredit an overpayment;\n (c) the procedure for reimbursement of the commissioner of taxation\nand finance by the state university of New York or the city university\nof New York respectively for the full cost of carrying out the\nprocedures authorized by this section;\n (d) a provision providing that information furnished to the state\nuniversity of New York or the city university of New York respectively\nby the commissioner of taxation and finance and the comptroller pursuant\nto said agreement shall be considered confidential and shall not be\ndisclosed except to such federal or state department or agency entitled\nto such information;\n (e) such other matters as the parties to such agreement shall deem\nnecessary to carry out the provisions of this section; and\n (f) the procedure for reimbursement of the comptroller by the state\nuniversity of New York or city university of New York for any\noverpayment and interest thereon which has been credited against the\namount of default on repayment of a state university loan or a city\nuniversity loan owed by a taxpayer filing a joint return, but which has\nbeen refunded by the comptroller, pursuant to paragraph six of\nsubsection (b) of section six hundred fifty-one of this chapter, to a\nspouse not liable for the amount of default in repayment of a state\nuniversity loan or city university loan owed by such taxpayer.\n (5) (a) In calculating the amount of an overpayment and interest\nthereon which shall be credited against the amount of a default in\nrepayment of a state university loan or city university loan owed by a\ntaxpayer, the tax commission shall first credit the overpayment and\ninterest thereon against any:\n (A) liability of such taxpayer in respect of any tax imposed by this\nchapter;\n (B) liability of such taxpayer for any tax imposed pursuant to the\nauthority of this chapter or any other law if such tax is administered\nby the tax commission;\n (C) estimated tax for the succeeding taxable year if such taxpayer\nclaims such overpayment or a portion thereof as a credit against\nestimated tax for such succeeding taxable year pursuant to subsection\n(e) of section six hundred eighty-six of this chapter or subdivision (e)\nof section 11-1786 of the administrative code of the city of New York\nfor any tax imposed pursuant to the authority of this chapter or any\nother law if such tax is administered by the tax commission; and\n (D) past-due support owed by the taxpayer pursuant to section one\nhundred seventy-one-c of this chapter;\n (b) Only the balance remaining, after such overpayment and the\ninterest thereon has been credited as described in paragraph (a) of this\nsubdivision, shall be certified as an overpayment plus any interest to\nbe credited against the amount of a default in repayment of a state\nuniversity loan or city university loan, with the remainder to be\nrefunded to the taxpayer if such remainder is not required to satisfy\nthe amount of a past-due legally enforceable debt pursuant to section\none hundred seventy-one-f of this article, and/or a city of New York tax\nwarrant judgment debt pursuant to section one hundred seventy-one-l of\nthis article and/or the amount of a default in repayment of a guaranteed\nstudent loan pursuant to section one hundred seventy-one-d of this\narticle.\n (6) The tax commission shall certify to the comptroller the total\namount of the overpayment and the interest on such overpayment, the\namount of such overpayment and the interest on such amount to be\ncredited against the amount of the default in repayment of a state\nuniversity loan or city university loan and the balance of such\noverpayment and interest to be refunded to the taxpayer.\n (7) The commissioner of taxation and finance shall notify the taxpayer\nmaking the overpayment, in writing, of the amount of such overpayment\nand the interest thereon certified to the comptroller as the amount to\nbe credited against the amount of a default in repayment of a state\nuniversity loan or city university loan. Such notice shall include\nnotification to any other person who may have filed a joint return with\nthe taxpayer of the steps such other person may take in order to secure\nhis or her proper share of the refund.\n (8) From the time the state tax commission is notified by the state\nuniversity of New York or the city university of New York respectively\nof an individual's, estate's or trust's default in repayment of a state\nuniversity loan or city university loan under the agreement provided for\nin this section, the state tax commission and the department of taxation\nand finance shall be relieved from all liability to such individual,\nestate or trust, their assigns, successors, heirs or representatives for\nthe amount of an overpayment and interest on such amount certified to\nthe comptroller to be credited against the amount of a default in\nrepayment of such state university loan or city university loan and such\nindividual, estate or trust shall have no right to commence a court\naction or proceeding or to any other legal recourse against the state\ntax commission or the department of taxation and finance to recover such\noverpayment or such interest certified to the comptroller to be credited\nagainst the amount of default in repayment of a state university loan or\ncity university loan. Provided, however, nothing herein shall be\nconstrued to prohibit such individual, estate or trust from proceeding\nagainst the state university of New York or the city university of New\nYork respectively to recover that part of such overpayment or interest\nthereon so certified to the comptroller to be credited against the\namount of a default in repayment of a state university loan or city\nuniversity loan which is greater than the amount of such default owed by\nsuch individual, estate or trust on the date of such certification.\n (9) The tax commission shall promulgate such rules and regulations as\nit deems necessary to carry out the provisions of this section.\n