N.Y. Tax Law § 506: Payment of tax

§ 506. Payment of tax. 1. At the time of filing a return, as required

by this article, each carrier shall pay to the tax commission the tax

imposed by this article for the period covered by such return. Such tax

shall be due and payable at the time of filing the return or, if a

return is not filed when due, on the last day on which the return is

required to be filed. The tax commission may grant a reasonable

extension of time for paying the tax whenever good cause exists.

2. The fees, taxes, penalties and interest accruing under this article

shall constitute a lien upon all motor vehicles and vehicular units

which are owned by such carrier or of which he has the lawful use or

control. The lien shall attach at the time of operation of any such

motor vehicle or vehicular unit within this state and shall remain

effective until the fees, taxes, penalties and interest are paid, or the

motor vehicle or vehicular unit is sold for the payment thereof. Such

liens shall be paramount to all prior liens or encumbrances of any

character and to the rights of any holder of the legal title in or to

any such motor vehicle or vehicular unit, provided, however, that:

a. No lien for any additional tax assessed pursuant to this article

shall be enforceable against any motor vehicle or vehicular unit which

prior to such assessment had been transferred in good faith to a bona

fide transferee for value.

b. The lien of such tax shall be subject to the lien of any

indebtedness secured by a chattel mortgage or conditional sales

agreement existing against such motor vehicle or vehicular unit previous

to the time when such tax became a lien, if:

(1) Such indebtedness was incurred in good faith to secure a portion

of the purchase price of such motor vehicle or vehicular unit, and

(2) Such indebtedness is secured by a chattel mortgage or conditional

sales agreement duly filed as required by law, and

(3) Such chattel mortgage or conditional sales agreement was not

given, directly or indirectly, to any officer or stockholder of the

corporation owning or having the lawful use or control of such motor

vehicle or vehicular unit, whether as a purchase money mortgage or

otherwise.

The lien of such tax shall be enforceable, however, as to any equity

after the encumbrance of such chattel mortgage or conditional sales

agreement. In the event a motor vehicle or vehicular unit subject to

such tax lien is repossessed by a chattel mortgagee or a conditional

vendor such motor vehicle or vehicular unit shall not be sold at public

or private sale unless at least five days notice of the time and place

of such sale is served by registered mail upon the tax commission in

Albany.