2023 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.