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

§ 171-m. Certain New York city tax overpayments credited against\noutstanding debts owed to the state of New York. (1) For purposes of\nthis section:\n (a) "judgment" shall mean a warrant filed with a county clerk whereby\nthe commissioner is, in the right of the people of the state of New\nYork, deemed to have obtained judgment against an individual,\ncorporation, association, company, partnership, estate, trust,\nliquidator, fiduciary or other entity, identified in a tax warrant as\nthe judgment debtor, for a tax or other imposition;\n (b) "overpayment" shall mean overpayment of a tax administered by the\ncommissioner of finance of the city of New York pursuant to title eleven\nof the administrative code of the city of New York;\n (c) "taxpayer" means a judgment debtor who or which made an\noverpayment.\n (2) Notwithstanding any law to the contrary, an overpayment may be\npaid by the commissioner of finance of the city of New York to the\ncommissioner for full or partial satisfaction of a judgment against a\ntaxpayer who or which made the overpayment. The commissioner and the\ncommissioner of finance of the city of New York are hereby authorized to\nenter into a written agreement which shall set forth procedures for\napplying an overpayment and interest thereon for satisfaction, in part\nor in full, of a judgment. The commissioner of finance and the\ncommissioner may also obtain and exchange whatever return or report\ninformation is necessary to implement the agreement.\n (3) Such agreement shall include:\n (a) the procedure under which the commissioner shall certify to, and\nnotify, the commissioner of finance about an outstanding judgment,\namounts remaining due thereon and the format of certification and\nnotification;\n (b) the fee, if any, for reimbursement of the commissioner of finance\nby the commissioner for the cost of implementing procedures authorized\nby this section;\n (c) the procedure for transferring overpayments to the commissioner;\n (d) the procedure for reimbursing the city of New York in the event an\noverpayment was improperly paid to the commissioner;\n (e) such other matters as the parties to the agreement shall deem\nnecessary to carry out the provisions of this section.\n (4) Before notifying the commissioner of finance of a judgment for\npartial or full satisfaction by application of an overpayment, the\ncommissioner shall make a reasonable attempt to notify a taxpayer at the\ntaxpayer's last known address (i) that the judgment, clearly identified\nas to amount and the tax or imposition, unless paid within thirty days,\nwill be referred to the city of New York finance department for payment\nby application of an overpayment; (ii) that state law permits\napplication of certain overpayments against judgments; (iii) that the\ntaxpayer may request a review of the proposed referral of a judgment by\ncontacting the department at a telephone number or address disclosed in\nthe notice; and (iv) that the taxpayer may present to the commissioner\nany written evidence and arguments in support of a defense to the\nproposed referral or may appear at a scheduled conference with the\ndepartment to present oral arguments and written and oral evidence in\nsupport of such defense. Provided however, nothing herein shall be\ndeemed to afford a taxpayer the opportunity to reargue any issue which\nwas or could have been adjudicated in an administrative or judicial\nproceeding prior to filing of a warrant serving as a judgment.\n (5) An overpayment shall be paid to the commissioner pursuant to this\nsection only to the extent the commissioner of finance determines the\noverpayment is not subject to offset against a debt owed the city of New\nYork or owed its instrumentalities, or subject to any other enforceable\ncity of New York interest or right in the overpayment.\n (6) The commissioner of finance shall notify each taxpayer who made an\noverpayment, in writing, of the amount of such overpayment and the\ninterest thereon paid to the commissioner. 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\ntheir proper share of the refund.\n (7) From the time the commissioner of finance is notified by the\ncommissioner of a taxpayer's liability for a judgment under the\nagreement provided for in this section, the city of New York shall be\nrelieved of all liability to such taxpayer, its assigns, successors,\nheirs or representatives for the amount of the overpayment and interest\nthereon paid to the commissioner. Such taxpayer, its assigns,\nsuccessors, heirs or representatives shall have no right to commence a\ncourt action or proceeding or have any other legal recourse against the\ncity of New York to recover such overpayment or interest thereon paid to\nthe commissioner. However, nothing herein shall be construed to preclude\nany legal, equitable, or administrative action by such taxpayer its\nassigns, successors, heirs or representatives entitled to such\noverpayment against the commissioner to recover that part of the\noverpayment or interest thereon that is greater than the amount of the\njudgment owed by such taxpayer on the date such overpayment is credited\nagainst a judgment.\n (8) The commissioner and the commissioner of finance may promulgate\nsuch rules and regulations deemed necessary to carry out the provisions\nof this section.\n