Relates to the power of the department of finance of the city of New York to compromise taxes that are administered by such department except for property taxes.
STATE OF NEW YORK
________________________________________________________________________
10439
IN ASSEMBLY
May 27, 2016
___________
Introduced by M. of A. FARRELL -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the New York city charter, in relation to the power of
the department of finance of the city of New York to compromise taxes
that are administered by such department except for property taxes
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraphs c and d of subdivision 2 of section 1504 of the
2 New York city charter, as added by chapter 513 of the laws of 2002, are
3 amended to read as follows:
4 c. Notwithstanding the provisions of any general, special or local law
5 to the contrary, the commissioner shall have the exclusive authority to
6 compromise any [excise or nonproperty] taxes [or annual vault charges]
7 except for property taxes or any warrant or judgment for [excise or
8 nonproperty] taxes [or annual vault charges] except for property taxes
9 administered by the commissioner, and the civil penalties, interest and
10 additions to tax [or charge] in connection therewith, if the tax debtor
11 has been discharged in bankruptcy[,] or is shown by proofs submitted to
12 be insolvent, [but] or the tax debtor shows by proofs submitted that
13 collection in full would cause such debtor undue economic hardship,
14 provided that the amount payable in compromise [shall in no event be
15 less than the amount, if any, recoverable through legal proceedings, and
16 provided that where] reasonably reflects collection potential or is
17 otherwise justified by the proofs offered by the tax debtor. Provided,
18 further, the commissioner shall not accept any amount payable in compro-
19 mise that would undermine compliance with the taxes administered by the
20 commissioner, nor shall the commissioner enter into any offer in compro-
21 mise that would be adverse to the best interests of the city. Where the
22 amount owing for [excise or nonproperty] taxes [or annual vault charges]
23 except for property taxes, exclusive of any civil penalties, interest
24 and additions to tax [or charge], or the warrant or judgment, exclusive
25 of any civil penalties, interest and additions to tax [or charge], is
26 more than one hundred thousand dollars, such compromise shall be effec-
27 tive only when approved by a justice of the supreme court. The commis-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15644-01-6
A. 10439 2
1 sioner shall promulgate rules defining what constitutes undue economic
2 hardship. The inability to maintain an affluent or luxurious lifestyle
3 shall not constitute undue economic hardship.
4 d. Notwithstanding the provisions of any general, special or local law
5 to the contrary, the commissioner shall have the exclusive authority to
6 compromise civil liability, with such qualifications and limitations as
7 may be established pursuant to such rules as the commissioner may
8 prescribe, where such liability arises in connection with [an excise or
9 nonproperty tax or annual vault charge] a tax except for a property tax
10 administered by the commissioner, at any time prior to the time the tax
11 or administrative action becomes finally and irrevocably fixed and no
12 longer subject to administrative review. Upon acceptance of an offer in
13 compromise by the commissioner, the matter may not be reopened except
14 upon a showing of fraud, malfeasance or misrepresentation of a material
15 fact. The corporation counsel may compromise any such liability after
16 reference to the law department for prosecution or defense at any time
17 prior to the time the tax or administrative action taken by the [depart-
18 ment] commissioner is no longer subject to administrative or judicial
19 review. Whenever a compromise is made by the [department] commissioner
20 of any such liability, there shall be placed on file in the office of
21 the commissioner the opinion of the commissioner or a deputy commission-
22 er, with reasons therefor, with a statement of: (i) the amount of
23 [excise or nonproperty] tax [or annual vault charge] and any other
24 issues that may be the subject of such compromise, (ii) the amount of
25 interest, additions to the tax or penalty imposed by law on the taxpayer
26 or other persons against whom the administrative action was taken by the
27 [department] commissioner, and (iii) the amount actually paid in accord-
28 ance with the terms of the compromise. Notwithstanding the preceding
29 sentence, no such opinion shall be required with respect to the compro-
30 mise of any civil liability in which the unpaid amount of the [excise or
31 nonproperty] tax [or annual vault charge] that was the subject of the
32 administrative action (including any interest, additions to tax, or
33 penalty) is less than [twenty-five] fifty thousand dollars.
34 § 2. This act shall take effect immediately.
