NY Tax L § 3036 (2021)
2021 New York Laws TAX - Tax Article 41 - Taxpayers' Bill of Rights Part 3 - Proceedings by Taxpayers 3036 - Civil Actions by Persons Other Than Taxpayers.

§  3036.   Civil actions by persons other than taxpayers.  (a) Actions permitted. (1) Wrongful levy.  If a levy has been made  on  property  or property  has  been  sold pursuant to a levy, any person (other than the person against whom is assessed the tax out of which  such  levy  arose) who  claims  an  interest  in  or  lien  on  such property and that such property was wrongfully levied upon may bring a civil action against the state of New York in the court of claims.   Such action may  be  brought without  regard to whether such property has been surrendered to or sold by the commissioner.  (2)  Surplus proceeds.  If property has been sold pursuant to a  levy, any  person  (other than the person against whom is assessed the tax out of which the levy arose) who claims an  interest  in  or  lien  on  such property  junior  to  that  of  the  state of New York and to be legally entitled to the surplus of the proceeds of such sale may bring  a  civil action against the state of New York in the court of claims.  (b)    Adjudication.   The court shall have jurisdiction to grant only such of the following forms of relief  as  may  be  appropriate  in  the circumstances:  (1)  Injunction.  If a levy or sale would irreparably injure rights in property  which  the  court  determines to be superior to rights of this state in property, the court may grant an  injunction  to  prohibit  the enforcement of such levy or to prohibit such sale.  (2)  Recovery of property.  If the court determines that such property has been wrongfully levied upon, the court may:  (A)    order  the  return  of  specific  property  if this state is in possession of such property;  (B)  grant a judgment for the amount of money levied upon; or  (C)  if such property was sold, grant a judgment for an  amount  equal to the actual direct and consequential damages proven.  (3)    Surplus proceeds.  If the court determines that the interest or lien of any party to an action under this section was transferred to the proceeds of a sale of such property, the court may grant a  judgment  in an amount equal to all or any part of the amount of the surplus proceeds of such sale.  (c)    Validity of assessment.   For purposes of an adjudication under this section, the assessment of tax upon which the interest or  lien  of the department is based shall be conclusively presumed to be valid.  (d)    Limitation  on  rights of action.   No action may be maintained against any sheriff acting on behalf of the commissioner or any  officer or  employee  of the department (or former sheriff, officer or employee) or his personal representative with respect to any  acts  for  which  an action could be maintained under this section.  (e)  Substitution of the state as party.  If an action, which could be brought  against  the  state  under  this section, is improperly brought against any sheriff acting on behalf of the commissioner or any  officer or  employee  of the department (or former sheriff, officer or employee) or his personal representative, the court shall order, upon  such  terms as  are just, that the pleadings be amended to substitute the state as a party for such sheriff, officer or employee as of the time  such  action was commenced upon proper service of process on the state.