N.Y. Tax Law § 171-L — Certain overpayments credited against outstanding tax debt owed to the city of New York

§ 171-1. Certain overpayments credited against outstanding tax debt\nowed to the city of New York. (1) For the purposes of this section:\n (a) "taxpayer" shall mean a corporation, association, company,\npartnership, estate, trust, liquidator, fiduciary or other entity or\nindividual who or which is liable for any tax or other imposition\nimposed by or pursuant to article nine, nine-A, twenty-two, thirty,\nthirty-A, thirty-B or thirty-three of this chapter, which tax or other\nimposition is administered by the commissioner of taxation and finance,\nor who or which is under a duty to perform an act under or pursuant to\nsuch tax or imposition, excluding a state agency, a municipal\ncorporation or a district corporation;\n (b) "overpayment" shall mean an overpayment which has been requested\nor determined to be refunded, a refund or a reimbursement, of a tax or\nother imposition imposed by or pursuant to article nine, nine-A,\ntwenty-two, thirty, thirty-A, thirty-B or thirty-three of this chapter,\nwhich is administered by the commissioner of taxation and finance; and\n (c) "city of New York tax warrant judgment debt," shall mean tax debt\nowed to the city of New York that is the subject of a tax warrant issued\nby the city of New York department of finance and docketed pursuant to\nthe provisions of title eleven of the administrative code of the city of\nNew York and that remains outstanding.\n (2) The commissioner of taxation and finance shall enter into a\nwritten agreement with the commissioner of finance of the city of New\nYork, which shall set forth the procedures for crediting any overpayment\nby a taxpayer and the interest thereon against city of New York tax\nwarrant judgment debt owed by such taxpayer of which the commissioner of\ntaxation and finance has been notified by the city of New York\ncommissioner of finance pursuant to the provisions of such agreement.\n (3) Such agreement shall include:\n (a) the procedure under which the city of New York commissioner of\nfinance shall notify the commissioner of taxation and finance of\nliability for city of New York tax warrant judgment debt, specifying\nwhen the commissioner of taxation and finance will be notified, the\ninformation to be contained in such notification and the form and format\nto be used for such notification;\n (b) the fee, if not waived, for reimbursement of the commissioner of\ntaxation and finance by the city of New York department of finance for\nthe full cost of carrying out the procedures authorized by this section;\n (c) the minimum period of delinquency of the city of New York tax\nwarrant judgment debt, and the minimum amount of the past due city of\nNew York tax warrant judgment debt against which the commissioner of\ntaxation and finance shall, pursuant to this section, credit an\noverpayment;\n (d) the procedure for transferring the overpayments to the city of New\nYork department of finance so the overpayments can be applied to credit\nthe past due city of New York tax warrant judgment debt;\n (e) the procedure for reimbursement of the comptroller by the city of\nNew York department of finance for any overpayment and interest thereon\nwhich has been credited against city of New York tax warrant judgment\ndebt owed by a taxpayer, but which was paid by the taxpayer prior to the\noverpayment being applied;\n (f) the procedure for reimbursement of the comptroller by the city of\nNew York department of finance for any overpayment and interest thereon\nwhich has been credited against city of New York tax warrant judgment\ndebt owed by a taxpayer filing a joint return, but which has been\nrefunded by the comptroller, pursuant to paragraph six of subsection (b)\nof section six hundred fifty-one of this chapter, to a spouse not liable\nfor the city of New York tax warrant judgment debt owed by such\ntaxpayer;\n (g) a provision to the effect that if a taxpayer owes past-due legally\nenforceable debt that has been certified to the commissioner of taxation\nand finance for collection pursuant to section one hundred seventy-one-f\nof this article and city of New York tax warrant judgment debt that has\nbeen certified to the commissioner of taxation and finance for\ncollection pursuant to this section, then the overpayment and interest\nthereon shall be credited against the debts in the order in which the\ndebts accrued. The city of New York tax warrant judgment debt shall be\ndeemed for purposes of this section to have accrued at the time of\ndocketing of the tax warrant; and\n (h) such other matters as the parties to such agreement shall deem\nnecessary to carry out the provisions of this section, including\nprovisions relating to the notice to be given to the taxpayer.\n (4)(a) In calculating the amount of an overpayment and interest\nthereon that shall be credited against city of New York tax warrant\njudgment debt owed by a taxpayer that has been certified to the\ncommissioner of taxation and finance for collection pursuant to this\nsection, the commissioner of taxation and finance shall first credit the\noverpayment and interest thereon against any:\n (i) liability of such taxpayer in respect of any tax or other\nimposition imposed by this chapter and administered by the commissioner\nof taxation and finance;\n (ii) 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 commissioner of taxation and finance;\n (iii) estimated tax for the succeeding taxable year if the 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 or subsection (b) of section one\nthousand eighty-six of this chapter or subdivision (e) of section\n11-1786 of the administrative code of the city of New York or for any\ntax imposed pursuant to the authority of this chapter or any other law\nif such tax is administered by the commissioner of taxation and finance;\n (iv) past-due support owed by the taxpayer pursuant to section one\nhundred seventy-one-c of this article;\n (v) unreimbursed medical assistance paid on behalf of a child payable\npursuant to section three hundred sixty-seven-a of the social services\nlaw; and\n (vi) the amount of a default in repayment of a state university or\ncity university loan pursuant to section one hundred seventy-one-e of\nthis article.\n (b) Only the balance remaining, after the overpayment and the interest\nthereon has been credited as described in paragraph (a) of this\nsubdivision, shall be certified to the comptroller as an overpayment\nplus any interest to be credited, in accordance with paragraph (g) of\nsubdivision three of this section, against city of New York tax warrant\njudgment debt that has been certified to the commissioner of taxation\nand finance for collection pursuant to this section, and/or past-due\nlegally enforceable debt that has been certified to the commissioner of\ntaxation and finance for collection pursuant to section one hundred\nseventy-one-f of this article, with the remainder to be refunded to the\ntaxpayer if such remainder is not required to satisfy the amount of a\ndefault in repayment of a guaranteed student loan pursuant to section\none hundred seventy-one-d of this article. If a taxpayer owes city of\nNew York tax warrant judgment debt that has been certified to the\ncommissioner of taxation and finance for collection pursuant to this\nsection and past-due legally enforceable debt that has been certified to\nthe commissioner of taxation and finance for collection pursuant to\nsection one hundred seventy-one-f of this article, then the overpayment\nand interest thereon shall be credited against the debts in the order in\nwhich the debts accrued.\n (5) The commissioner of taxation and finance shall certify to the\ncomptroller the amount of each overpayment and the interest thereon to\nbe credited against city of New York tax warrant judgment debt, and the\nbalance, if any, of each such overpayment and interest to be refunded to\nthe taxpayer.\n (6) The commissioner of taxation and finance shall notify each\ntaxpayer who makes an overpayment, in writing, of the amount of such\noverpayment and the interest thereon certified to the comptroller as the\namount to be credited against city of New York tax warrant judgment\ndebt. Such notice shall include notification to any other person who may\nhave filed a joint return with the taxpayer of the steps such other\nperson may take in order to secure his or her proper share of the\nrefund.\n (7) From the time the commissioner of taxation and finance is notified\nby the city of New York department of finance of a taxpayer's liability\nfor city of New York tax warrant judgment debt under the agreement\nprovided for in this section, the commissioner of taxation and finance\nshall be relieved from all liability to such taxpayer, its assigns,\nsuccessors, heirs or representatives for the amount of an overpayment\nand interest thereon certified to the comptroller to be credited against\ncity of New York tax warrant judgment debt and the taxpayer shall have\nno right to commence a court action or proceeding or to any other legal\nrecourse against the commissioner of taxation and finance to recover\nsuch overpayment or interest thereon certified to the comptroller to be\ncredited against city of New York tax warrant judgment debt. Provided,\nhowever, nothing herein shall be construed to prohibit such taxpayer\nfrom proceeding against the city of New York department of finance to\nrecover that part of such overpayment or interest thereon so certified\nto the comptroller to be credited against city of New York tax warrant\njudgment debt that is greater than the amount of city of New York tax\nwarrant judgment debt owed by such taxpayer on the date of such\ncertification.\n (8) The commissioner of taxation and finance and the city of New York\ndepartment of finance may promulgate such rules and regulations as they\ndeem necessary to carry out the provisions of this section.\n