S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5885--A
                                                         Cal. No. 168
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              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:
 
   Section  1.  Subdivisions  1, 3 and 5 of section 171-v of the tax law,
 subdivision 1 as added by section 1 of part P of chapter 59 of the  laws
 of 2013, and subdivisions 3 and 5 as amended by section 1 of part EEE of
 chapter 59 of the laws of 2019, are amended to read as follows:
   (1)  The  commissioner  shall  enter into a written agreement with the
 commissioner of motor vehicles, which shall set forth the procedures for
 the two departments to cooperate in a program to improve tax  collection
 through  the  suspension of drivers' licenses of taxpayers with past-due
 tax liabilities equal to or in excess of ten thousand dollars MULTIPLIED
 BY THE APPLICABLE INFLATION  ADJUSTMENT.    For  the  purposes  of  this
 section,  the  term  "tax liabilities" shall mean any tax, surcharge, or
 fee administered by the commissioner, or any penalty or interest due  on
 these  amounts  owed  by an individual with a New York driver's license,
 the term "driver's license" means any license issued by  the  department
 of  motor  vehicles, except for a commercial driver's license as defined
 in section five hundred one-a of the vehicle and traffic  law,  and  the
 term  "past-due  tax liabilities" means any tax liability or liabilities
 which have become fixed and final such that the taxpayer no  longer  has
 any  right  to  administrative  or  judicial review, AND THE "APPLICABLE
 INFLATION ADJUSTMENT" FOR A CALENDAR YEAR SHALL BE DETERMINED UNDER  THE
 PRINCIPLES  OF  SECTION  7345(F)  OF  THE INTERNAL REVENUE CODE OF 1986,
 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.
              

                                                            LBD03422-03-4
 A. 5885--A                          2
 
 OF TWO THOUSAND TWENTY-FOUR WHICH AMENDED THIS SUBDIVISION AS  THE  BASE
 PERIOD. THE TEN THOUSAND DOLLAR LIMITATION IN THIS SUBDIVISION SHALL NOT
 APPLY  TO A TAXPAYER THAT THE COMMISSIONER DETERMINES HAS TAKEN AFFIRMA-
 TIVE  STEPS  TO  EVADE OR AVOID THE COLLECTION OF TAX, SUCH AS BY HIDING
 ASSETS.
   (3) The department shall provide notice to the taxpayer of his or  her
 inclusion  in  the  license  suspension program no later than sixty days
 prior to the date the department intends to inform the  commissioner  of
 motor  vehicles  of  the  taxpayer's  inclusion. However, no such notice
 shall be issued to a taxpayer: (I) whose wages are  being  garnished  by
 the  department  for the payment of past-due tax liabilities or past-due
 child support or combined child and spousal support  arrears;  (II)  WHO
 RECEIVES  PUBLIC  ASSISTANCE  OR  SUPPLEMENTAL SECURITY INCOME; OR (III)
 WHOSE INCOME DOES NOT EXCEED TWO HUNDRED FIFTY PERCENT  OF  THE  POVERTY
 LEVEL AS REPORTED BY THE FEDERAL DEPARTMENT OF HEALTH AND HUMAN SERVICES
 OR  ANY  SUCCESSOR AGENCY.  Notice shall be provided by first class mail
 to the taxpayer's last known address as  such  address  appears  in  the
 electronic  systems  or  records  of  the  department. Such notice shall
 include:
   (a) a clear statement of the past-due tax  liabilities  along  with  a
 statement  that  the department shall provide to the department of motor
 vehicles the taxpayer's name, social security number and any other iden-
 tifying information necessary for the purpose of suspending his  or  her
 driver's  license  pursuant  to  this  section and subdivision four-f of
 section five hundred ten of the vehicle and traffic law sixty days after
 the mailing or sending of such notice to the taxpayer;
   (b) a statement that the taxpayer may avoid suspension of his  or  her
 license  by  fully  satisfying  the  past-due tax liabilities, by making
 payment arrangements satisfactory to the commissioner, or by demonstrat-
 ing any of the grounds for challenge set forth in  subdivision  five  of
 this  section,  OR  BY PRESENTING FACTS TO THE COMMISSIONER RESULTING IN
 THE COMMISSIONER WAIVING SUSPENSION OF HIS OR HER LICENSE BASED  ON  THE
 EQUITIES OF THE CASE. Such statement shall include information regarding
 programs through which the taxpayer can pay the past-due tax liabilities
 to  the  department,  enter  into a payment arrangement or request addi-
 tional information NEEDED TO CHALLENGE THE SUSPENSION UNDER  SUBDIVISION
 FIVE OF THIS SECTION OR DEMONSTRATE THE EQUITIES OF THE CASE;
   (c)  a  statement  that  the taxpayer's right to protest the notice is
 limited to raising issues set forth in subdivision five of this section;
   (d) a statement that the suspension of the taxpayer's driver's license
 shall continue until the past-due tax liabilities are fully paid or  the
 taxpayer  makes  payment  arrangements satisfactory to the commissioner;
 and
   (e) any other information that the commissioner deems necessary.
   (5) Notwithstanding any other provision of law, and except as  specif-
 ically  provided  herein, the taxpayer shall have no right to commence a
 court action or proceeding or to any other legal  recourse  against  the
 department or the department of motor vehicles regarding a notice issued
 by  the  department  pursuant  to  this  section and the referral by the
 department of any taxpayer with past-due tax liabilities to the  depart-
 ment  of  motor  vehicles  pursuant  to  this section for the purpose of
 suspending the taxpayer's driver's license. A taxpayer  may  only  chal-
 lenge such suspension or referral on the grounds that (i) the individual
 to  whom  the notice was provided is not the taxpayer at issue; (ii) the
 past-due tax liabilities were satisfied; (iii) the taxpayer's wages  are
 being  garnished  by  the department for the payment of the past-due tax
 A. 5885--A                          3
 
 liabilities at issue or for past-due child support or combined child and
 spousal support arrears; (iv) the taxpayer's wages are  being  garnished
 for  the payment of past-due child support or combined child and spousal
 support  arrears  pursuant  to  an  income  execution issued pursuant to
 section five thousand two hundred forty-one of the  civil  practice  law
 and  rules; (v) the taxpayer's driver's license is a commercial driver's
 license as defined in section five hundred  one-a  of  the  vehicle  and
 traffic law; (vi) the department incorrectly found that the taxpayer has
 failed  to  comply with the terms of a payment arrangement made with the
 commissioner more than  once  within  a  twelve  month  period  for  the
 purposes  of  subdivision  three  of  this  section;  (vii) the taxpayer
 receives public assistance or supplemental security income; [or]  (viii)
 [the  taxpayer  demonstrates  that suspension of the taxpayer's driver's
 license will cause the taxpayer undue economic hardship] THE  TAXPAYER'S
 INCOME DOES NOT EXCEED TWO HUNDRED FIFTY PERCENT OF THE POVERTY LEVEL AS
 REPORTED  BY  THE FEDERAL DEPARTMENT OF HEALTH AND HUMAN SERVICES OR ANY
 SUCCESSOR AGENCY; OR (IX) PAYMENT OF THE PAST-DUE TAX  LIABILITIES  WILL
 CREATE A HARDSHIP FOR THE TAXPAYER IN MEETING NECESSARY LIVING EXPENSES.
   However,  nothing  in this subdivision is intended to limit a taxpayer
 from seeking relief pursuant to  an  offer  in  compromise  pursuant  to
 subdivision fifteenth of section one hundred seventy-one of this article
 or  from  joint  and  several  liability pursuant to section six hundred
 fifty-four of this chapter, to the extent that he  or  she  is  eligible
 pursuant  to  such  section,  or establishing to the department that the
 enforcement of the underlying tax liabilities has  been  stayed  by  the
 filing  of  a  petition  pursuant  to the Bankruptcy Code of 1978 (Title
 Eleven of the United States Code).
   § 2. The commissioner  of  taxation  and  finance  is  authorized  and
 directed  to promulgate any rules and regulations necessary to implement
 the provisions of this act in accordance  with  the  provisions  of  the
 state administrative procedure act.
   §  3. This act shall take effect on the first of April next succeeding
 the date on which it shall have become a law.