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New York’s Scofflaw Law

  • Feb 10, 2015 | Gail Cole

 New York: lesser tax scofflaws may have licenses suspended.

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.

photo credit: Brooklyn Bridge via photopin (license)

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.