Bill > S00700

This bill modifies the existing tax law regarding driver's license suspension for tax delinquency by adjusting the minimum tax debt threshold for suspension based on inflation, using principles from the Internal Revenue Code. The bill increases protections for vulnerable taxpayers by prohibiting license suspension for individuals who receive public assistance, supplemental security income, or have an income at or below 250% of the federal poverty level. The legislation requires the tax department to provide a 60-day notice before suspending a driver's license, allowing taxpayers opportunities to address their tax liabilities through full payment, payment arrangements, or by challenging the suspension on specific grounds. New grounds for challenging suspension now include demonstrating that paying the tax debt would create a hardship in meeting necessary living expenses. The bill also clarifies that the $10,000 threshold for suspension does not apply to taxpayers who have actively attempted to evade tax collection, such as by hiding assets. The changes aim to balance tax collection efforts with protecting taxpayers from overly punitive measures that could significantly impair their ability to work and earn income. The bill will take effect on the first of April following its enactment.

Budget and Finance, Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S700