2023 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.