2006 New York Code - Collection, Levy And Liens.

 
    §  11-683  Collection,  levy  and liens. 1. Collection procedures. The
  taxes imposed by  the  named  subchapters  shall  be  collected  by  the
  commissioner  of  finance,  and he or she may establish the mode or time
  for the collection of any amount  due  him  or  her  thereunder  if  not
  otherwise  specified.  The  commissioner of finance shall, upon request,
  give a receipt for any sum collected  thereunder.  The  commissioner  of
  finance may authorize banks or trust companies which are depositaries or
  financial  agents  of the city to receive and give a receipt for any tax
  imposed under the named subchapters in such manner, at such  times,  and
  under  such conditions as the commissioner of finance may prescribe; and
  the commissioner of  finance  shall  prescribe  the  manner,  times  and
  conditions  under  which the receipt of such tax by such banks and trust
  companies is to be treated as payment of such tax to the commissioner of
  finance.
    2. Notice and demand for tax. The commissioner  of  finance  shall  as
  soon  as  practicable give notice to each taxpayer liable for any amount
  of tax, addition to tax, penalty or interest, which  has  been  assessed
  but  remains  unpaid,  stating the amount and demanding payment thereof.
  Such notice shall be left at the principal office of the taxpayer in the
  city or shall be sent by mail to such  taxpayer's  last  known  address.
  Except  where  the  commissioner  of  finance determines that collection
  would be jeopardized by delay, if any tax is assessed prior to the  last
  date  (including  any date fixed by extension) prescribed for payment of
  such tax, payment of such tax shall not be  demanded  until  after  such
  date.
    3.  Issuance of warrant after notice and demand. If any corporation or
  other person liable under the named subchapters for the payment  of  any
  tax, addition to tax, penalty or interest neglects or refuses to pay the
  same  within  ten days after notice and demand therefor is given to such
  corporation or other person under subdivision two, the  commissioner  of
  finance  may  within six years after the date of such assessment issue a
  warrant directed to the sheriff of any county of the state,  or  to  any
  officer  or employee of the department of finance, commanding him or her
  to levy upon and sell the real and personal property of such corporation
  or other person for the payment of the amount assessed, with the cost of
  executing the warrant, and to return such warrant to the commissioner of
  finance, and pay to the  commissioner  the  money  collected  by  virtue
  thereof  within  sixty  days  after  the  receipt of the warrant. If the
  commissioner of finance finds that the collection of the  tax  or  other
  amount  is  in jeopardy, notice and demand for immediate payment of such
  tax may be made by the commissioner  of  finance  and  upon  failure  or
  refusal  to pay such tax or other amount the commissioner of finance may
  issue a warrant without regard to the ten-day period  provided  in  this
  subdivision.
    4.  Copy of warrant to be filed and lien to be created. Any sheriff or
  officer or employee who receives a warrant under subdivision three shall
  within  five  days  thereafter  file  a  copy  with  the  clerk  of  the
  appropriate  county.  The  clerk  shall  thereupon enter in the judgment
  docket, in the column for judgment debtors, the  name  of  the  taxpayer
  mentioned  in  the  warrant, and in appropriate columns the tax or other
  amounts for which the warrant is issued and the date when such  copy  is
  filed;  and such amount shall thereupon be a binding lien upon the real,
  personal and other property of the taxpayer.
    5. Judgment. When a warrant has been filed with the county  clerk  the
  commissioner  of finance shall, on behalf of the city, be deemed to have
  obtained judgment against the taxpayer for the tax or other amounts.
    6. Execution. The sheriff  or  officer  or  employee  shall  thereupon
  proceed  upon the judgment in all respects, with like effect, and in the


  same manner prescribed by law in respect to  executions  issued  against
  property  upon  judgments  of  a court of record, and a sheriff shall be
  entitled to the same fees for his  or  her  services  in  executing  the
  warrant,  to  be collected in the same manner. An officer or employee of
  the department of finance may proceed in any county or counties of  this
  state  and  shall have all the powers of execution conferred by law upon
  sheriffs, but shall be entitled to no fee or compensation in  excess  of
  actual expenses paid in connection with the execution of the warrant.
    7.  Foreign  corporations. Where a notice and demand under subdivision
  two shall have been given to a foreign corporation or other  person  who
  is  not  then  a resident, and it appears to the commissioner of finance
  that it is not practicable to find in the state property of such foreign
  corporation or nonresident person sufficient to pay the  entire  balance
  of   tax   or   other  amount  owing  by  such  foreign  corporation  or
  nonresidential person, the commissioner of finance  may,  in  accordance
  with  subdivision  three,  issue  a  warrant  directed  to an officer or
  employee of the department of finance, a copy of which warrant shall  be
  mailed  by  certified  or registered mail to such foreign corporation or
  nonresident person at its last known address, subject to  the  rules  of
  mailing  provided  in  subdivision  one  of section 11-672. Such warrant
  shall command the officer or employee to proceed in New York county, and
  he or she shall, within five days after receipt of the warrant, file the
  warrant and obtain a judgment in accordance with this section. Thereupon
  the commissioner of finance may authorize the institution of any  action
  or proceeding to collect or enforce the judgment in any place and by any
  procedure that a civil judgment of the supreme court of the state of New
  York  could  be  collected  or enforced. The commissioner of finance may
  also, in his or her discretion, designate agents or retain  counsel  for
  the  purpose  of  collecting,  outside  the  state,  any  unpaid  taxes,
  additions to tax, penalties or interest which have been  assessed  under
  this  subchapter  or under any of the named subchapters, against foreign
  corporations or other non-resident persons, may fix the compensation  of
  such  agents  and  counsel  to  be  paid  out  of  money appropriated or
  otherwise lawfully available for payment thereof,  and  may  require  of
  them  bonds  or  other  security  for  the faithful performance of their
  duties, in such form and in such amount as the commissioner  of  finance
  shall deem proper and sufficient.
    8.  Action by city for recovery of taxes. Action may be brought by the
  corporation counsel of the city at the instance of the  commissioner  of
  finance  to  recover  the  amount of any unpaid taxes, additions to tax,
  penalties or interest which have been assessed under this subchapter  or
  under  the  named  subchapters  within  six  years prior to the date the
  action is commenced.
    9. Release of lien or vacating warrant. 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 four or seven 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.
    10.  Lien  from  due date of return. (a) In addition to any other lien
  provided for in this section, each tax imposed by the named  subchapters
  shall  become  a  lien on the date on which the return is required to be
  filed (without regard to any extension of time for filing such  return),
  except  that  such  tax  shall become a lien not later than the date the


  taxpayer ceases to be subject to the tax imposed by  any  of  the  named
  subchapters, or to do business in this state in a corporate or organized
  capacity.  Each  such  tax shall be a lien and binding upon the real and
  personal  property of the taxpayer, or of a transferee liable to pay the
  same, until the same is paid in  full,  except  that  no  lien  for  any
  additional tax assessed pursuant to this subchapter shall be enforceable
  against property which prior to the issuance to the taxpayer of a notice
  of   deficiency  under  section  11-672  of  this  subchapter  had  been
  transferred in good faith to a bona fide transferee for value.  But  the
  lien  of  each  such  tax  shall  be subject to the lien of any mortgage
  indebtedness existing against real property previous to  the  time  when
  the  tax  became  a  lien  and where such mortgage indebtedness has been
  incurred in good faith and was not given, directly or indirectly, to any
  officer or stockholder of the corporation  owning  such  real  property,
  whether  as  a  purchase  money mortgage or otherwise, and shall also be
  subject to the lien of local taxes and assessments,  without  regard  to
  when  the  lien  for such taxes and assessments may have accrued. If the
  return is filed and the tax shown on the report to be due is paid on  or
  before  the  date  on  which the report is required to be filed, without
  regard to any extensions of time for filing such report, the lien  shall
  not be enforceable against the interest of any purchaser or mortgagee in
  property  which is thereafter, but prior to the issuance to the taxpayer
  of a notice of  deficiency  under  section  11-672  of  this  subchapter
  transferred  to  a bona fide purchaser for value, or mortgaged where the
  mortgage indebtedness is incurred in good faith and the mortgage is  not
  given,  directly  or  indirectly,  to  any officer or stockholder of the
  corporation. In any  action  to  foreclose  any  such  mortgage,  or  to
  foreclose the lien of local taxes or assessments, to which the people of
  the  state, or the city shall have been made a party defendant by reason
  of the existence of a lien for any such tax, or if no such tax  was  due
  or  was  a  lien  at the time of the commencement of such action and the
  filing of the notice of pendency thereof but such a tax becomes  due  or
  becomes a lien subsequent to the time of the commencement of such action
  and  the  filing  of  the notice of pendency thereof, such real property
  shall be sold and conveyed in such action free from any such  tax  lien,
  and  any such tax lien may become a lien on any surplus moneys which may
  result from such sale, to be  determined  in  the  proceedings  for  the
  distribution of such surplus moneys. Where title to real property passes
  from  an  individual,  or  from  a  corporation owing no tax, to another
  corporation which is in default for such tax, the lien  herein  provided
  shall  not  be  enforceable  except  as  to  any  equity after the prior
  mortgage or purchase money mortgage encumbrance.
    (b) The commissioner of finance may,  upon  application  made  to  the
  commissioner  and  the  payment of a fee of twenty-five dollars, release
  any real property from the lien under this subdivision, provided payment
  be made to the commissioner of finance of such a sum as the commissioner
  of finance shall  deem  adequate  consideration  for  such  release,  or
  deposit  be  made  of  such  security  or  such  bond  be  filed  as the
  commissioner of finance shall deem proper to secure payment of any  such
  tax.  The  application  for  such  release  shall  contain  an  accurate
  description  of  the  property  to  be  released  together   with   such
  information as the commissioner of finance may require. Such release may
  be  recorded  in  any  office  in  which  conveyances of real estate are
  entitled to be recorded.
    (c) All taxes, additions to tax, penalties  and  interest  which  have
  become  a lien under this subdivision shall cease to be a lien after the
  expiration of twenty years from the date they become  due  and  payable,
  except  that  taxes, additions to tax, penalties and interest which have


  become a lien under this subdivision (1) as to real estate in the  hands
  of  persons who are owners thereof who would be purchasers in good faith
  but for such taxes, additions to tax, penalties or interest and  (2)  as
  to  the  lien  on  real estate of mortgages held by persons who would be
  holders thereof in good faith but for  such  taxes,  additions  to  tax,
  penalties  or  interest,  as  against  such purchasers or holders, shall
  cease to be a lien after the expiration of ten years from the date  they
  become  due  and  payable. The limitations herein provided for shall not
  apply to any transfer from a corporation to a person or corporation with
  intent to avoid payment of any taxes, or  where  with  like  intent  the
  transfer  is  made  to  a grantee corporation, or any subsequent grantee
  corporation, controlled by such grantor or which has  any  community  of
  interest with it, either through stock ownership or otherwise.