§ 3022. Authority to release levy and return property. (a) Release of
levy and notice of release. (1) The commissioner shall release the levy
upon all, or part of, the property or rights to property levied upon and
shall promptly notify the person upon whom such levy was made (if any)
that such levy has been released if:

(A) the liability for which such levy was made is satisfied or
becomes unenforceable by reason of lapse of time,

(B) release of such levy will facilitate the collection of such
liability,

(C) the taxpayer has entered into an agreement under section three
thousand ten of this article to satisfy such liability by means of
installment payments and such agreement provides for the release of
levy,

(D) the fair market value of the property exceeds such liability and
release of a levy on a part of such property could be made without
hindering the timely collection of such liability, or

(E) the commissioner has determined that such levy is creating an
economic hardship due to the financial condition of an individual
taxpayer.

(2) Expedited determination of certain business property. In the case
of any tangible personal property essential in carrying on the trade or
business of the taxpayer, the commissioner shall provide for an
expedited determination under paragraph one of this subdivision if levy
upon such tangible personal property would prevent the taxpayer from
carrying on such trade or business.

(3) The release of levy on any property under paragraph one or two of
this subdivision shall not prevent any subsequent levy on such property.

(b) Return of property. If the commissioner determines that property
has been wrongfully levied upon, it shall be lawful for the commissioner
to return:

(1) the specified property levied upon,

(2) the amount of money equal to the amount of money levied upon, or

(3) an amount of money equal to the fair market value of such
property.

(c) Interest. Interest shall be allowed and paid at the rate
established under section six hundred eighty-eight of this chapter on
the amount of money or the fair market value of the property seized.

(d) Return of property in certain cases. If the commissioner
determines that with respect to any property which has been levied upon:

(1) the levy on such property was premature or otherwise not in
accordance with administrative procedures of the commissioner,

(2) the taxpayer has entered into an agreement under section three
thousand ten of this article to satisfy the tax liability for which the
levy was imposed by means of installment payments, unless such agreement
provides otherwise,

(3) the return of such property will facilitate the collection of the
tax liability, or

(4) with the consent of the taxpayer or the commissioner, the return
of such property would be in the best interests of the taxpayer (as
determined by the commissioner) and the state of New York, the
provisions of subdivision (b) of this section shall apply in the same
manner as if such property had been wrongly levied upon, except that no
interest shall be allowed under subdivision (c) of this section.