NY Tax L § 171-M (2021)
2021 New York Laws TAX - Tax Article 8 - Department of Taxation and Finance; Commissioner of Taxation and Finance 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.