2010 New York Code
TAX - Tax
Article 41 - TAXPAYERS' BILL OF RIGHTS
Part 3 - (3030 - 3038) PROCEEDINGS BY TAXPAYERS
3036 - Civil actions by persons other than taxpayers.

§  3036.   Civil actions by persons other than taxpayers.  (a) Actions
  permitted. (1) Wrongful levy.  If a levy has been made  on  property  or
  property  has  been  sold pursuant to a levy, any person (other than the
  person against whom is assessed the tax out of which  such  levy  arose)
  who  claims  an  interest  in  or  lien  on  such property and that such
  property was wrongfully levied upon may bring a civil action against the
  state of New York in the court of claims.   Such action may  be  brought
  without  regard to whether such property has been surrendered to or sold
  by the commissioner.
    (2)  Surplus proceeds.  If property has been sold pursuant to a  levy,
  any  person  (other than the person against whom is assessed the tax out
  of which the levy arose) who claims an  interest  in  or  lien  on  such
  property  junior  to  that  of  the  state of New York and to be legally
  entitled to the surplus of the proceeds of such sale may bring  a  civil
  action against the state of New York in the court of claims.
    (b)    Adjudication.   The court shall have jurisdiction to grant only
  such of the following forms of relief  as  may  be  appropriate  in  the
  circumstances:
    (1)  Injunction.  If a levy or sale would irreparably injure rights in
  property  which  the  court  determines to be superior to rights of this
  state in property, the court may grant an  injunction  to  prohibit  the
  enforcement of such levy or to prohibit such sale.
    (2)  Recovery of property.  If the court determines that such property
  has been wrongfully levied upon, the court may:
    (A)    order  the  return  of  specific  property  if this state is in
  possession of such property;
    (B)  grant a judgment for the amount of money levied upon; or
    (C)  if such property was sold, grant a judgment for an  amount  equal
  to the actual direct and consequential damages proven.
    (3)    Surplus proceeds.  If the court determines that the interest or
  lien of any party to an action under this section was transferred to the
  proceeds of a sale of such property, the court may grant a  judgment  in
  an amount equal to all or any part of the amount of the surplus proceeds
  of such sale.
    (c)    Validity of assessment.   For purposes of an adjudication under
  this section, the assessment of tax upon which the interest or  lien  of
  the department is based shall be conclusively presumed to be valid.
    (d)    Limitation  on  rights of action.   No action may be maintained
  against any sheriff acting on behalf of the commissioner or any  officer
  or  employee  of the department (or former sheriff, officer or employee)
  or his personal representative with respect to any  acts  for  which  an
  action could be maintained under this section.
    (e)  Substitution of the state as party.  If an action, which could be
  brought  against  the  state  under  this section, is improperly brought
  against any sheriff acting on behalf of the commissioner or any  officer
  or  employee  of the department (or former sheriff, officer or employee)
  or his personal representative, the court shall order, upon  such  terms
  as  are just, that the pleadings be amended to substitute the state as a
  party for such sheriff, officer or employee as of the time  such  action
  was commenced upon proper service of process on the state.