2006 New York Code - Proceedings To Recover Tax.

 
    §  11-1410  Proceedings  to recover tax. a. Whenever any transferee or
  transferor shall fail to pay any tax, penalty  or  interest  imposed  by
  this chapter as herein provided, the corporation counsel shall, upon the
  request  of  the commissioner of finance bring or cause to be brought an
  action to enforce the payment of the same on behalf of the city  of  New
  York  in  any court of the state of New York or of any other state or of
  the United States. If, however, the commissioner of finance  in  his  or
  her  discretion  believes that any such transferee or transferor subject
  to the provisions of this chapter is about to cease business, leave  the
  state  or remove or dissipate the assets out of which the tax or penalty
  might be satisfied, and that any such tax or penalty will  not  be  paid
  when  due,  the  commissioner  may  declare  such  tax  or penalty to be
  immediately due and payable and may issue a warrant immediately.
    b. As an additional or alternate remedy, the commissioner  of  finance
  may issue a warrant, directed to the city sheriff commanding the sheriff
  to  levy  upon and sell the real and personal property of the transferee
  or transferor or other person liable for the  tax  which  may  be  found
  within the city, for the payment of the amount thereof, with any penalty
  and  interest, and the cost of executing the warrant, and to return such
  warrant to the commissioner of finance and to pay  to  the  commissioner
  the  money  collected  by  virtue  thereof  within  sixty days after the
  receipt of such warrant. The city sheriff shall within five  days  after
  the  receipt  of  the warrant file with the county clerk a copy thereof,
  and thereupon such clerk shall enter in the judgment docket the name  of
  the  person  mentioned in the warrant and the amount of the tax, penalty
  and interest for which the warrant is issued and the date when such copy
  is filed. Thereupon the amount of such warrant so docketed shall  become
  a  lien upon the title to and the interest in real and personal property
  of the person against whom the warrant is issued. The city sheriff shall
  then proceed upon the warrant in the same manner, and with like  effect,
  as that provided by law in respect to executions issued against property
  upon  judgments  of  a court of record and for services in executing the
  warrant the sheriff shall be entitled to the same fees, which he or  she
  may collect in the same manner. In the discretion of the commissioner of
  finance  a  warrant  of  like  terms, force and effect may be issued and
  directed to an officer or employee of the department of finance, and  in
  the execution thereof such officer or employee shall have all the powers
  conferred  by  law  upon  sheriffs,  but  shall be entitled to no fee or
  compensation in excess of the actual expenses paid in the performance of
  such duty.  If  a  warrant  is  returned  not  satisfied  in  full,  the
  commissioner  of  finance  may  from time to time issue new warrants and
  shall also have the same remedies to enforce the amount  due  thereunder
  as if the city had recovered judgment therefor and execution thereon had
  been returned unsatisfied.
    c.  Whenever  there  is made a sale, transfer or assignment in bulk or
  any part of the whole of a stock  of  merchandise  or  of  fixtures,  or
  merchandise and of fixtures pertaining to the conducting of the business
  of  the  seller,  transferor or assignor, otherwise than in the ordinary
  course of trade and in the regular prosecution  of  said  business,  the
  purchaser,  transferee or assignee shall at least ten days before taking
  possession of such merchandise, fixtures, or merchandise  and  fixtures,
  or  paying  therefor,  notify  the commissioner of finance by registered
  mail of the proposed sale and of the price, terms and conditions thereof
  whether or not the seller, transferor or assignor, has  represented  to,
  or  informed  the purchaser, transferee or assignee that it owes any tax
  pursuant to this chapter and whether or not the purchaser, transferee or
  assignee has knowledge that such taxes are owing, and whether  any  such
  taxes are in fact owing.


    d.  Whenever, the purchaser, transferee or assignee shall fail to give
  notice to the commissioner of  finance  as  required  by  the  preceding
  subdivision,  or  whenever  the commissioner of finance shall inform the
  purchaser, transferee or assignee that a possible claim for such tax  or
  taxes  exists, any sums of money, property or choses in action, or other
  consideration, which the purchaser, transferee or assignee  is  required
  to  transfer  over to the seller or assignor shall be subject to a first
  priority right and lien for any such  taxes  theretofore  or  thereafter
  determined  to  be  due  from  the seller, transferor or assignor to the
  city, and  the  purchaser,  transferee  or  assigneee  is  forbidden  to
  transfer  to  the seller, transferor or assignor any such sums of money,
  property or choses in action to the extent of the amount of  the  city's
  claim.  For  failure  to comply with the provisions of this subdivision,
  the purchaser, transferee or assignee, in addition to being  subject  to
  the liabilities and remedies imposed under the provisions of article six
  of  the  uniform  commercial  code,  shall  be personally liable for the
  payment to  the  city  of  any  such  taxes  theretofore  or  thereafter
  determined  to  be  due  to  the  city  from  the  seller, transferor or
  assignor, and such liability may be assessed and enforced  in  the  same
  manner as the liability for tax under this chapter.
    e.  The commissioner of finance, if he or she finds that the interests
  of the city will not thereby be jeopardized, and upon such conditions as
  the commissioner of finance may require, may release any  property  from
  the  lien  of  any  warrant  or  vacate  such  warrant for unpaid taxes,
  additions to tax, penalties and interest filed pursuant to subdivision b
  of this section, and such release or vacating  of  the  warrant  may  be
  recorded  in  the  office of any recording officer in which such warrant
  has been filed. The clerk shall thereupon cancel and discharge as of the
  original date of docketing the vacated warrant.