S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4664
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2025
                                ___________
 
 Introduced  by M. of A. EPSTEIN, TAYLOR -- read once and referred to the
   Committee on Ways and Means
 
 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
 OF TWO THOUSAND TWENTY-FIVE WHICH AMENDED THIS SUBDIVISION AS  THE  BASE
 PERIOD. THE TEN THOUSAND DOLLAR LIMITATION IN THIS SUBDIVISION SHALL NOT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02491-01-5
              

 A. 4664                             2
 
 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] THE TAXPAYER'S 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]
 THE TAXPAYER'S 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]
 THE TAXPAYER'S license by fully satisfying the past-due tax liabilities,
 by  making  payment arrangements satisfactory to the commissioner, or by
 demonstrating any of the grounds for challenge set forth in  subdivision
 five of this section, OR BY PRESENTING FACTS TO THE COMMISSIONER RESULT-
 ING  IN  THE  COMMISSIONER  WAIVING SUSPENSION OF THE TAXPAYER'S LICENSE
 BASED ON THE EQUITIES OF THE CASE. Such statement shall include informa-
 tion regarding programs through which the taxpayer can pay the  past-due
 tax  liabilities  to the department, enter into a payment arrangement or
 request additional 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
 liabilities at issue or for past-due child support or combined child and
 A. 4664                             3
 
 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] THE TAXPAYER
 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.