2023 New York Laws › TAX - Tax › Article 41 - Taxpayers' Bill of Rights › Part 2 - Liens and Levies › 3022 - Authority to Release Levy and Return Property.

§  3022. Authority to release levy and return property. (a) Release of
levy and notice of release.  (1) The commissioner shall release the levy
upon all, or part of, the property or rights to property levied upon and
shall promptly notify the  person upon whom such levy was made (if  any)
that such levy has been released if:
(A)    the  liability  for  which  such  levy was made is satisfied or
becomes unenforceable by reason of lapse of time,
(B)   release of such levy will  facilitate  the  collection  of  such
liability,
(C)    the  taxpayer has entered into an agreement under section three
thousand ten of this article to  satisfy  such  liability  by  means  of
installment  payments  and  such  agreement  provides for the release of
levy,
(D)  the fair market value of the property exceeds such liability  and
release  of  a  levy  on  a  part of such property could be made without
hindering the timely collection of such liability, or
(E)  the commissioner has determined that such  levy  is  creating  an
economic  hardship  due  to  the  financial  condition  of an individual
taxpayer.
(2) Expedited determination of certain business property.  In the case
of any tangible personal property essential in carrying on the trade  or
business  of  the  taxpayer,  the  commissioner  shall  provide  for  an
expedited determination under paragraph one of this subdivision if  levy
upon  such  tangible  personal  property would prevent the taxpayer from
carrying on such trade or business.
(3) The release of levy on any property under paragraph one or two  of
this subdivision shall not prevent any subsequent levy on such property.
(b)  Return  of property. If the commissioner determines that property
has been wrongfully levied upon, it shall be lawful for the commissioner
to return:
(1) the specified property levied upon,
(2) the amount of money equal to the amount of money levied upon, or
(3) an amount of  money  equal  to  the  fair  market  value  of  such
property.
(c)  Interest.  Interest  shall  be  allowed  and  paid  at  the  rate
established under section six hundred eighty-eight of  this  chapter  on
the amount of money or the fair market value of the property seized.
(d)  Return  of  property  in  certain  cases.    If  the commissioner
determines that with respect to any property which has been levied upon:
(1) the levy on such  property  was  premature  or  otherwise  not  in
accordance with administrative procedures of the commissioner,
(2)  the  taxpayer  has  entered into an agreement under section three
thousand ten of this article to satisfy the tax liability for which  the
levy was imposed by means of installment payments, unless such agreement
provides otherwise,
(3)  the return of such property will facilitate the collection of the
tax liability, or
(4) with the consent of the taxpayer or the commissioner,  the  return
of  such  property  would  be  in the best interests of the taxpayer (as
determined  by  the  commissioner)  and  the  state  of  New  York,  the
provisions  of  subdivision  (b) of this section shall apply in the same
manner as if such property had been wrongly levied upon, except that  no
interest shall be allowed under subdivision (c) of this section.