Governor Andrew M. Cuomo today outlined new reforms in the Executive Budget to further crack down on tax scofflaws and recover revenue rightly owed to the State. These reforms include lowering the threshold to suspend a debtor’s driver’s license from $10,000 to $5,000.
“Those who fail to play by the same rules as everyone else place an undue burden on hardworking, law-abiding taxpayers,” Governor Cuomo said. “These reforms send a simple message: either pay the taxes they owe, or face real consequences."
The current law was advanced by the Governor in 2013. Since going into effect in July 2013, more than $125 million has been collected for nearly 14,000 delinquent taxpayers who satisfied their debts in order to have their driving privileges reinstated.
Lowering the threshold would affect an additional 11,000 delinquent taxpayers. As a result, an additional $9 million in revenue will be collected in FY 2015-16 and $3 million annually thereafter.
The budget also includes provisions to require applicants to meet their tax obligations in order to:
- Receive or renew certain professional and business licenses or permits;
- Obtain employment as a new applicant to a State agency or authority;
- Acquire State-subsidized Excess Medical Malpractice Insurance as an eligible physician or dentist; and
- Seek State grants from State or local authorities.