Report on Budget Proposal to Deny Professional Licenses for Tax Arrears

SUMMARY

The State and Local Taxation Committee issued a report opposing a proposal in the State’s Executive Budget to allow various New York State executive branch agencies the right to deny holders of an occupational, professional or business license who apply online the right to obtain or renew a license if the licensed individual has past-due tax liabilities in excess of $500 (or another amount provided by the licensing department) or has failed to file returns or register during the three prior years. The report focused on the effect of this provision on attorneys, saying that the provision encroaches on the authority of the Office of Court Administration to regulate the legal profession and does so in a way that violates due process. While license holders may have due process protections with respect to ascertaining the tax deficiency, only limited pre-deprivation review provisions are provided with respect to licensing and those may not address all possible avenues for challenge. In addition, the bill appears to allow a government entity to deny the issuance or renewal of a license without providing a reasonable pre-deprivation time to cure or otherwise address the problem.

BILL INFORMATION

A.3009 / S.2009 (Part JJ), 2015-16 NYS Budget Article VII – related to authorizing electronic tax clearances for professional and business licenses.

OUTCOME

Spring 2015 44th Street Notes: “Legislative Update: Passage of a State Budget”