Bill Text: NY A05885 | 2023-2024 | General Assembly | Amended
Bill Title: Provides for the adjustment of the minimum amount of tax delinquency for which the driver's license of a taxpayer may be suspended, based on inflation; prohibits inclusion in the license suspension program of a taxpayer who receives public assistance or supplemental security income, or whose income does not exceed 250% of the poverty level; authorizes the commissioner to grant exemptions to taxpayers whose payment of past due tax liabilities would create a hardship to the taxpayer in meeting necessary living expenses.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced) 2023-05-24 - substituted by s1147 [A05885 Detail]
Download: New_York-2023-A05885-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5885--A Cal. No. 168 2023-2024 Regular Sessions IN ASSEMBLY March 23, 2023 ___________ Introduced by M. of A. WEINSTEIN, TAYLOR, EPSTEIN -- read once and referred to the Committee on Ways and Means -- ordered to a third reading, amended and ordered reprinted, retaining its place on the order of third reading AN ACT to amend the tax law, in relation to the enforcement of delin- quent tax liabilities by means of the suspension of licenses to oper- ate a motor vehicle The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivisions 1, 3 and 5 of section 171-v of the tax law, 2 subdivision 1 as added by section 1 of part P of chapter 59 of the laws 3 of 2013, and subdivisions 3 and 5 as amended by section 1 of part EEE of 4 chapter 59 of the laws of 2019, are amended to read as follows: 5 (1) The commissioner shall enter into a written agreement with the 6 commissioner of motor vehicles, which shall set forth the procedures for 7 the two departments to cooperate in a program to improve tax collection 8 through the suspension of drivers' licenses of taxpayers with past-due 9 tax liabilities equal to or in excess of ten thousand dollars multiplied 10 by the applicable inflation adjustment. For the purposes of this 11 section, the term "tax liabilities" shall mean any tax, surcharge, or 12 fee administered by the commissioner, or any penalty or interest due on 13 these amounts owed by an individual with a New York driver's license, 14 the term "driver's license" means any license issued by the department 15 of motor vehicles, except for a commercial driver's license as defined 16 in section five hundred one-a of the vehicle and traffic law, and the 17 term "past-due tax liabilities" means any tax liability or liabilities 18 which have become fixed and final such that the taxpayer no longer has 19 any right to administrative or judicial review, and the "applicable 20 inflation adjustment" for a calendar year shall be determined under the 21 principles of section 7345(f) of the Internal Revenue Code of 1986, 22 using the calendar year of the effective date of the chapter of the laws EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03422-03-4A. 5885--A 2 1 of two thousand twenty-four which amended this subdivision as the base 2 period. The ten thousand dollar limitation in this subdivision shall not 3 apply to a taxpayer that the commissioner determines has taken affirma- 4 tive steps to evade or avoid the collection of tax, such as by hiding 5 assets. 6 (3) The department shall provide notice to the taxpayer of his or her 7 inclusion in the license suspension program no later than sixty days 8 prior to the date the department intends to inform the commissioner of 9 motor vehicles of the taxpayer's inclusion. However, no such notice 10 shall be issued to a taxpayer: (i) whose wages are being garnished by 11 the department for the payment of past-due tax liabilities or past-due 12 child support or combined child and spousal support arrears; (ii) who 13 receives public assistance or supplemental security income; or (iii) 14 whose income does not exceed two hundred fifty percent of the poverty 15 level as reported by the federal Department of Health and Human Services 16 or any successor agency. Notice shall be provided by first class mail 17 to the taxpayer's last known address as such address appears in the 18 electronic systems or records of the department. Such notice shall 19 include: 20 (a) a clear statement of the past-due tax liabilities along with a 21 statement that the department shall provide to the department of motor 22 vehicles the taxpayer's name, social security number and any other iden- 23 tifying information necessary for the purpose of suspending his or her 24 driver's license pursuant to this section and subdivision four-f of 25 section five hundred ten of the vehicle and traffic law sixty days after 26 the mailing or sending of such notice to the taxpayer; 27 (b) a statement that the taxpayer may avoid suspension of his or her 28 license by fully satisfying the past-due tax liabilities, by making 29 payment arrangements satisfactory to the commissioner, or by demonstrat- 30 ing any of the grounds for challenge set forth in subdivision five of 31 this section, or by presenting facts to the commissioner resulting in 32 the commissioner waiving suspension of his or her license based on the 33 equities of the case. Such statement shall include information regarding 34 programs through which the taxpayer can pay the past-due tax liabilities 35 to the department, enter into a payment arrangement or request addi- 36 tional information needed to challenge the suspension under subdivision 37 five of this section or demonstrate the equities of the case; 38 (c) a statement that the taxpayer's right to protest the notice is 39 limited to raising issues set forth in subdivision five of this section; 40 (d) a statement that the suspension of the taxpayer's driver's license 41 shall continue until the past-due tax liabilities are fully paid or the 42 taxpayer makes payment arrangements satisfactory to the commissioner; 43 and 44 (e) any other information that the commissioner deems necessary. 45 (5) Notwithstanding any other provision of law, and except as specif- 46 ically provided herein, the taxpayer shall have no right to commence a 47 court action or proceeding or to any other legal recourse against the 48 department or the department of motor vehicles regarding a notice issued 49 by the department pursuant to this section and the referral by the 50 department of any taxpayer with past-due tax liabilities to the depart- 51 ment of motor vehicles pursuant to this section for the purpose of 52 suspending the taxpayer's driver's license. A taxpayer may only chal- 53 lenge such suspension or referral on the grounds that (i) the individual 54 to whom the notice was provided is not the taxpayer at issue; (ii) the 55 past-due tax liabilities were satisfied; (iii) the taxpayer's wages are 56 being garnished by the department for the payment of the past-due taxA. 5885--A 3 1 liabilities at issue or for past-due child support or combined child and 2 spousal support arrears; (iv) the taxpayer's wages are being garnished 3 for the payment of past-due child support or combined child and spousal 4 support arrears pursuant to an income execution issued pursuant to 5 section five thousand two hundred forty-one of the civil practice law 6 and rules; (v) the taxpayer's driver's license is a commercial driver's 7 license as defined in section five hundred one-a of the vehicle and 8 traffic law; (vi) the department incorrectly found that the taxpayer has 9 failed to comply with the terms of a payment arrangement made with the 10 commissioner more than once within a twelve month period for the 11 purposes of subdivision three of this section; (vii) the taxpayer 12 receives public assistance or supplemental security income; [or] (viii) 13 [the taxpayer demonstrates that suspension of the taxpayer's driver's14license will cause the taxpayer undue economic hardship] the taxpayer's 15 income does not exceed two hundred fifty percent of the poverty level as 16 reported by the federal Department of Health and Human Services or any 17 successor agency; or (ix) payment of the past-due tax liabilities will 18 create a hardship for the taxpayer in meeting necessary living expenses. 19 However, nothing in this subdivision is intended to limit a taxpayer 20 from seeking relief pursuant to an offer in compromise pursuant to 21 subdivision fifteenth of section one hundred seventy-one of this article 22 or from joint and several liability pursuant to section six hundred 23 fifty-four of this chapter, to the extent that he or she is eligible 24 pursuant to such section, or establishing to the department that the 25 enforcement of the underlying tax liabilities has been stayed by the 26 filing of a petition pursuant to the Bankruptcy Code of 1978 (Title 27 Eleven of the United States Code). 28 § 2. The commissioner of taxation and finance is authorized and 29 directed to promulgate any rules and regulations necessary to implement 30 the provisions of this act in accordance with the provisions of the 31 state administrative procedure act. 32 § 3. This act shall take effect on the first of April next succeeding 33 the date on which it shall have become a law.
