New York threatens to suspend driving license if tax is not paid

New York threatens to suspend driving license if tax is not paid.

New York threatens to suspend driving license if tax is not paid

The New York Governor Andrew Cuomo made headlines this week as he introduced a new measure to encourage individuals who owe tax to pay their bills – by suspending their driving licences when their past-due tax liability exceeds $10,000.

The legislation forms part of the state department’s executive budget that was signed into law earlier this year.

Governor Cuomo said in a statement that the message is simple: ‘tax scofflaws who don’t abide by the same rules as everyone else are not entitled to the same privileges as everyone else’.

He further explained that, “These worst offenders are putting an unfair burden on the overwhelming majority of New Yorkers who are hardworking, law-abiding taxpayers. By enacting these additional consequences, we’re providing additional incentives for the state to receive the money it is owed and we’re keeping scofflaws off the very roads they refuse to pay their fair share to maintain”.

The new tax crackdown is estimated to increase state collections by $26 million this fiscal year and as much as $6 million annually after that.

Interestingly, in New York, 96% of taxes are paid by businesses and individuals who voluntarily meet their tax responsibilities – the remaining 4% is collected through the tax department’s audit, collections and criminal investigations programs.

The New York tax department will send the first round of 16,000 suspension notices, who have 60 days from the mailing date to arrange payment with the department.

If the taxpayer fails to do so, the Department of Motor Vehicles will send a second letter providing an additional 15 days to respond. If the delinquent taxpayer again fails to arrange payment, the license will be suspended until the debt is paid or a payment plan is established.

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