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

outstanding debts owed to the state of New York. (1) For purposes of

this section:

(a) "judgment" shall mean a warrant filed with a county clerk whereby

the commissioner is, in the right of the people of the state of New

York, deemed to have obtained judgment against an individual,

corporation, association, company, partnership, estate, trust,

liquidator, fiduciary or other entity, identified in a tax warrant as

the judgment debtor, for a tax or other imposition;

(b) "overpayment" shall mean overpayment of a tax administered by the

commissioner of finance of the city of New York pursuant to title eleven

of the administrative code of the city of New York;

(c) "taxpayer" means a judgment debtor who or which made an

overpayment.

(2) Notwithstanding any law to the contrary, an overpayment may be

paid by the commissioner of finance of the city of New York to the

commissioner for full or partial satisfaction of a judgment against a

taxpayer who or which made the overpayment. The commissioner and the

commissioner of finance of the city of New York are hereby authorized to

enter into a written agreement which shall set forth procedures for

applying an overpayment and interest thereon for satisfaction, in part

or in full, of a judgment. The commissioner of finance and the

commissioner may also obtain and exchange whatever return or report

information is necessary to implement the agreement.

(3) Such agreement shall include:

(a) the procedure under which the commissioner shall certify to, and

notify, the commissioner of finance about an outstanding judgment,

amounts remaining due thereon and the format of certification and

notification;

(b) the fee, if any, for reimbursement of the commissioner of finance

by the commissioner for the cost of implementing procedures authorized

by this section;

(c) the procedure for transferring overpayments to the commissioner;

(d) the procedure for reimbursing the city of New York in the event an

overpayment was improperly paid to the commissioner;

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

necessary to carry out the provisions of this section.

(4) Before notifying the commissioner of finance of a judgment for

partial or full satisfaction by application of an overpayment, the

commissioner shall make a reasonable attempt to notify a taxpayer at the

taxpayer's last known address (i) that the judgment, clearly identified

as to amount and the tax or imposition, unless paid within thirty days,

will be referred to the city of New York finance department for payment

by application of an overpayment; (ii) that state law permits

application of certain overpayments against judgments; (iii) that the

taxpayer may request a review of the proposed referral of a judgment by

contacting the department at a telephone number or address disclosed in

the notice; and (iv) that the taxpayer may present to the commissioner

any written evidence and arguments in support of a defense to the

proposed referral or may appear at a scheduled conference with the

department to present oral arguments and written and oral evidence in

support of such defense. Provided however, nothing herein shall be

deemed to afford a taxpayer the opportunity to reargue any issue which

was or could have been adjudicated in an administrative or judicial

proceeding prior to filing of a warrant serving as a judgment.

(5) An overpayment shall be paid to the commissioner pursuant to this

section only to the extent the commissioner of finance determines the

overpayment is not subject to offset against a debt owed the city of New

York or owed its instrumentalities, or subject to any other enforceable

city of New York interest or right in the overpayment.

(6) The commissioner of finance shall notify each taxpayer who made an

overpayment, in writing, of the amount of such overpayment and the

interest thereon paid to the commissioner. 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

their proper share of the refund.

(7) From the time the commissioner of finance is notified by the

commissioner of a taxpayer's liability for a judgment under the

agreement provided for in this section, the city of New York shall be

relieved of all liability to such taxpayer, its assigns, successors,

heirs or representatives for the amount of the overpayment and interest

thereon paid to the commissioner. Such taxpayer, its assigns,

successors, heirs or representatives shall have no right to commence a

court action or proceeding or have any other legal recourse against the

city of New York to recover such overpayment or interest thereon paid to

the commissioner. However, nothing herein shall be construed to preclude

any legal, equitable, or administrative action by such taxpayer its

assigns, successors, heirs or representatives entitled to such

overpayment against the commissioner to recover that part of the

overpayment or interest thereon that is greater than the amount of the

judgment owed by such taxpayer on the date such overpayment is credited

against a judgment.

(8) The commissioner and the commissioner of finance may promulgate

such rules and regulations deemed necessary to carry out the provisions

of this section.