Legislation
SECTION 3034
Civil damages for certain unauthorized collection actions
Tax (TAX) CHAPTER 60, ARTICLE 41, PART 3
§ 3034. Civil damages for certain unauthorized collection actions.
(a) General. If, in connection with any collection of any tax with
respect to a taxpayer, any officer or employee of the department
recklessly or intentionally disregards any provision of any tax, or any
regulation promulgated under any of such taxes, such taxpayer may bring
a civil action in the court of claims for damages against the state.
Except as provided in section three thousand thirty-two of this article
relating to civil damages for failure to release a lien, such civil
action shall be the exclusive remedy for recovering damages resulting
from such actions.
(b) Damages. In any action brought under subdivision (a) of this
section, upon a finding of liability on the part of the defendant, the
defendant shall be liable to the plaintiff in an amount equal to the
lesser of one hundred thousand dollars or the sum of (1) the actual,
direct economic damages sustained by the plaintiff as a proximate result
of the reckless or intentional actions of the officer or employee, and
(2) the costs of the action.
(c) Limitations. (1) Exhaustion of administrative remedies. The
amount of damages awarded under subdivision (b) of this section may be
reduced if the court determines that the plaintiff has not exhausted the
administrative remedies available to such plaintiff within the
department which have been established pursuant to the commissioner's
authority to compromise civil liability provided in subdivision
eighteenth-a of section one hundred seventy-one of this chapter. In
establishing administrative review procedures regarding claims for
damages under this section, the commissioner is authorized to enter into
contracts with private dispute resolution entities for the purpose of
providing review of such claims and suggested compromises by independent
third parties.
(2) Mitigation of damages. The amount of damages awarded under
paragraph one of subdivision (b) of this section shall be reduced by the
amount of such damages which could have reasonably been mitigated by the
plaintiff.
(a) General. If, in connection with any collection of any tax with
respect to a taxpayer, any officer or employee of the department
recklessly or intentionally disregards any provision of any tax, or any
regulation promulgated under any of such taxes, such taxpayer may bring
a civil action in the court of claims for damages against the state.
Except as provided in section three thousand thirty-two of this article
relating to civil damages for failure to release a lien, such civil
action shall be the exclusive remedy for recovering damages resulting
from such actions.
(b) Damages. In any action brought under subdivision (a) of this
section, upon a finding of liability on the part of the defendant, the
defendant shall be liable to the plaintiff in an amount equal to the
lesser of one hundred thousand dollars or the sum of (1) the actual,
direct economic damages sustained by the plaintiff as a proximate result
of the reckless or intentional actions of the officer or employee, and
(2) the costs of the action.
(c) Limitations. (1) Exhaustion of administrative remedies. The
amount of damages awarded under subdivision (b) of this section may be
reduced if the court determines that the plaintiff has not exhausted the
administrative remedies available to such plaintiff within the
department which have been established pursuant to the commissioner's
authority to compromise civil liability provided in subdivision
eighteenth-a of section one hundred seventy-one of this chapter. In
establishing administrative review procedures regarding claims for
damages under this section, the commissioner is authorized to enter into
contracts with private dispute resolution entities for the purpose of
providing review of such claims and suggested compromises by independent
third parties.
(2) Mitigation of damages. The amount of damages awarded under
paragraph one of subdivision (b) of this section shall be reduced by the
amount of such damages which could have reasonably been mitigated by the
plaintiff.