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

owed to the city of New York. (1) For the purposes of this section:

(a) "taxpayer" shall mean a corporation, association, company,

partnership, estate, trust, liquidator, fiduciary or other entity or

individual who or which is liable for any tax or other imposition

imposed by or pursuant to article nine, nine-A, twenty-two, thirty,

thirty-A, thirty-B or thirty-three of this chapter, which tax or other

imposition is administered by the commissioner of taxation and finance,

or who or which is under a duty to perform an act under or pursuant to

such tax or imposition, excluding a state agency, a municipal

corporation or a district corporation;

(b) "overpayment" shall mean an overpayment which has been requested

or determined to be refunded, a refund or a reimbursement, of a tax or

other imposition imposed by or pursuant to article nine, nine-A,

twenty-two, thirty, thirty-A, thirty-B or thirty-three of this chapter,

which is administered by the commissioner of taxation and finance; and

(c) "city of New York tax warrant judgment debt," shall mean tax debt

owed to the city of New York that is the subject of a tax warrant issued

by the city of New York department of finance and docketed pursuant to

the provisions of title eleven of the administrative code of the city of

New York and that remains outstanding.

(2) The commissioner of taxation and finance shall enter into a

written agreement with the commissioner of finance of the city of New

York, which shall set forth the procedures for crediting any overpayment

by a taxpayer and the interest thereon against city of New York tax

warrant judgment debt owed by such taxpayer of which the commissioner of

taxation and finance has been notified by the city of New York

commissioner of finance pursuant to the provisions of such agreement.

(3) Such agreement shall include:

(a) the procedure under which the city of New York commissioner of

finance shall notify the commissioner of taxation and finance of

liability for city of New York tax warrant judgment debt, specifying

when the commissioner of taxation and finance will be notified, the

information to be contained in such notification and the form and format

to be used for such notification;

(b) the fee, if not waived, for reimbursement of the commissioner of

taxation and finance by the city of New York department of finance for

the full cost of carrying out the procedures authorized by this section;

(c) the minimum period of delinquency of the city of New York tax

warrant judgment debt, and the minimum amount of the past due city of

New York tax warrant judgment debt against which the commissioner of

taxation and finance shall, pursuant to this section, credit an

overpayment;

(d) the procedure for transferring the overpayments to the city of New

York department of finance so the overpayments can be applied to credit

the past due city of New York tax warrant judgment debt;

(e) the procedure for reimbursement of the comptroller by the city of

New York department of finance for any overpayment and interest thereon

which has been credited against city of New York tax warrant judgment

debt owed by a taxpayer, but which was paid by the taxpayer prior to the

overpayment being applied;

(f) the procedure for reimbursement of the comptroller by the city of

New York department of finance for any overpayment and interest thereon

which has been credited against city of New York tax warrant judgment

debt owed by a taxpayer filing a joint return, but which has been

refunded by the comptroller, pursuant to paragraph six of subsection (b)

of section six hundred fifty-one of this chapter, to a spouse not liable

for the city of New York tax warrant judgment debt owed by such

taxpayer;

(g) a provision to the effect that if a taxpayer owes past-due legally

enforceable debt that has been certified to the commissioner of taxation

and finance for collection pursuant to section one hundred seventy-one-f

of this article and city of New York tax warrant judgment debt that has

been certified to the commissioner of taxation and finance for

collection pursuant to this section, then the overpayment and interest

thereon shall be credited against the debts in the order in which the

debts accrued. The city of New York tax warrant judgment debt shall be

deemed for purposes of this section to have accrued at the time of

docketing of the tax warrant; and

(h) such other matters as the parties to such agreement shall deem

necessary to carry out the provisions of this section, including

provisions relating to the notice to be given to the taxpayer.

(4)(a) In calculating the amount of an overpayment and interest

thereon that shall be credited against city of New York tax warrant

judgment debt owed by a taxpayer that has been certified to the

commissioner of taxation and finance for collection pursuant to this

section, the commissioner of taxation and finance shall first credit the

overpayment and interest thereon against any:

(i) liability of such taxpayer in respect of any tax or other

imposition imposed by this chapter and administered by the commissioner

of taxation and finance;

(ii) liability of such taxpayer for any tax imposed pursuant to the

authority of this chapter or any other law if such tax is administered

by the commissioner of taxation and finance;

(iii) estimated tax for the succeeding taxable year if the taxpayer

claims such overpayment or a portion thereof as a credit against

estimated tax for such succeeding taxable year pursuant to subsection

(e) of section six hundred eighty-six or subsection (b) of section one

thousand eighty-six of this chapter or subdivision (e) of section

11-1786 of the administrative code of the city of New York or for any

tax imposed pursuant to the authority of this chapter or any other law

if such tax is administered by the commissioner of taxation and finance;

(iv) past-due support owed by the taxpayer pursuant to section one

hundred seventy-one-c of this article;

(v) unreimbursed medical assistance paid on behalf of a child payable

pursuant to section three hundred sixty-seven-a of the social services

law; and

(vi) the amount of a default in repayment of a state university or

city university loan pursuant to section one hundred seventy-one-e of

this article.

(b) Only the balance remaining, after the overpayment and the interest

thereon has been credited as described in paragraph (a) of this

subdivision, shall be certified to the comptroller as an overpayment

plus any interest to be credited, in accordance with paragraph (g) of

subdivision three of this section, against city of New York tax warrant

judgment debt that has been certified to the commissioner of taxation

and finance for collection pursuant to this section, and/or past-due

legally enforceable debt that has been certified to the commissioner of

taxation and finance for collection pursuant to section one hundred

seventy-one-f of this article, with the remainder to be refunded to the

taxpayer if such remainder is not required to satisfy the amount of a

default in repayment of a guaranteed student loan pursuant to section

one hundred seventy-one-d of this article. If a taxpayer owes city of

New York tax warrant judgment debt that has been certified to the

commissioner of taxation and finance for collection pursuant to this

section and past-due legally enforceable debt that has been certified to

the commissioner of taxation and finance for collection pursuant to

section one hundred seventy-one-f of this article, then the overpayment

and interest thereon shall be credited against the debts in the order in

which the debts accrued.

(5) The commissioner of taxation and finance shall certify to the

comptroller the amount of each overpayment and the interest thereon to

be credited against city of New York tax warrant judgment debt, and the

balance, if any, of each such overpayment and interest to be refunded to

the taxpayer.

(6) The commissioner of taxation and finance shall notify each

taxpayer who makes an overpayment, in writing, of the amount of such

overpayment and the interest thereon certified to the comptroller as the

amount to be credited against city of New York tax warrant judgment

debt. 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 his or her proper share of the

refund.

(7) From the time the commissioner of taxation and finance is notified

by the city of New York department of finance of a taxpayer's liability

for city of New York tax warrant judgment debt under the agreement

provided for in this section, the commissioner of taxation and finance

shall be relieved from all liability to such taxpayer, its assigns,

successors, heirs or representatives for the amount of an overpayment

and interest thereon certified to the comptroller to be credited against

city of New York tax warrant judgment debt and the taxpayer shall have

no right to commence a court action or proceeding or to any other legal

recourse against the commissioner of taxation and finance to recover

such overpayment or interest thereon certified to the comptroller to be

credited against city of New York tax warrant judgment debt. Provided,

however, nothing herein shall be construed to prohibit such taxpayer

from proceeding against the city of New York department of finance to

recover that part of such overpayment or interest thereon so certified

to the comptroller to be credited against city of New York tax warrant

judgment debt that is greater than the amount of city of New York tax

warrant judgment debt owed by such taxpayer on the date of such

certification.

(8) The commissioner of taxation and finance and the city of New York

department of finance may promulgate such rules and regulations as they

deem necessary to carry out the provisions of this section.