New York’s Scofflaw Law
- Sales Tax News
- Feb 10, 2015 | Gail Cole
In 2013, New York Governor Andrew M. Cuomo enacted a scofflaw law that suspends the driver’s licenses of anyone owing $10,000 or more to the state in back taxes. To date, approximately 14,000 taxpayers have paid the state more than $125 million for the privilege of having their licenses renewed. Now the governor would like to take the law a step further.
In his FY 2016 Executive Budget, the governor proposes lowering to $5,000 the outstanding tax debt threshold required to suspend delinquent taxpayers’ driver’s licenses. That would bring in an additional $9 million in 2016 and an additional $3 million annually in subsequent years.
Suspended driver’s licenses would not be the only consequence to owing $5,000 or more in back taxes. Proposed changes include the following:
- The renewal of certain business and professional licenses and permits would be withheld.
- State grants from state and local authorities would be withheld.
- The state would not be able to hire anyone owing back taxes.
- State-subsidized excess medical malpractice insurance would not be available to doctors and dentists owing back taxes.
The message is simple, said the governor: Pay the taxes you owe, "or face real consequences.”
Pay the sales and use taxes you owe when you owe them. Learn more.