required to pay such taxes, interest or penalties as a condition precedent to the application.

(9) Where any tax imposed hereunder shall have been erroneously, illegally or unconstitutionally collected and application for the refund thereof duly made to the proper fiscal officer or officers, and such officer or officers or, in the case of a city of one million or more which has established a tax appeals tribunal, such tax appeals tribunal, shall have made a determination denying such refund, such determination shall be reviewable by a proceeding under article seventy-eight of the civil practice law and rules, provided, however, that such proceeding is instituted within [thirty days] four months after the giving of the notice of such denial, that a final determination of tax due was not previously made, and that an undertaking is filed with the proper fiscal officer or officers in such amount and with such sureties as a justice of the supreme court shall approve to the effect that if such proceeding be dismissed or the tax confirmed, the [petitioner] taxpayer will pay all costs and charges which may accrue in the prosecution of such proceeding.

8. This section intentionally omitted.

§ 9. Subdivisions 9 and 10 of section 1 of chapter 949 of the laws of 1962, relating to annual vault charges in a city of one million or more, are amended to read as follows:

(9) Any final determination of the amount of any annual vault charge payable hereunder shall be reviewable for error, illegality or unconstitutionality or any other reason whatsoever by a proceeding under article seventy-eight of the civil practice [act] law and rules if application therefor is made to the supreme court within [thirty days] four months after the giving of the notice of such final determination, provided, however, that any such proceeding under article seventy-eight of the civil practice [act] law and rules shall not be instituted by a person subject to to the charge unless (a) the amount of any annual vault charge sought to be reviewed, with such interest and penalties thereon as may be provided for by local law or regulation, shall be first deposited and there is filed an undertaking, issued by a surety company authorized to transact business in this state and approved by the superintendent of insurance of this state as to solvency and responsibility, in such amount as a justice of the supreme court shall approve, to the effect that if such proceeding be dismissed or the determination confirmed the [petitioner] person subject to the charge will pay all costs and charges which may accrue in the prosecution of such proceeding; or (b) at the option of the [petitioner] person subject to the charge such undertaking may be in a sum sufficient to cover the annual vault charge, interest and penalties stated in such determination plus the costs and charges which may accrue against [it] such person in the prosecution of the proceeding, in which event the [petitioner] person subject to the charge shall not be required to pay such vault charge, interest or penalties as a condition precedent to the application.

(10) Where any annual vault charge imposed hereunder shall have been erroneously, illegally or unconstitutionally collected and application for the refund thereof duly made to the proper fiscal officer or officers, and such officer or officers or, in the case of a city of one million or more which has established a tax appeals tribunal, such tax appeals tribunal, shall have made a determination denying such refund, such determination shall be reviewable by a proceeding under article seventy-eight of the civil practice [act] law and rules, provided, however, that such proceeding is instituted within [thirty days] four months after the giving of the notice of such denial, that a final determination of annual vault charge due was not previously made, and that an undertaking is filed with the proper fiscal officer or officers in such amount and with such sureties as a justice of the supreme court shall approve to the effect that if such proceeding be dismissed or the annual vault charge confirmed, the [petitioner] person subject to the charge will pay all costs and charges which may accrue in the prosecution of such proceeding.

§ 10. This section intentionally omitted.

§ 11. Subdivisions 8 and 9 of section 1 of chapter 257 of the laws of 1963, relating to taxes on rent or occupancy in a city of one million or more, are amended to read as follows:

(8) Any final determination of the amount of any tax payable hereunder shall be reviewable for error, illegality or unconstitutionality or any other reason whatsoever by a proceeding under article seventy-eight of the civil practice [act] law and rules if application therefor is made

to the supreme court within [thirty days] four months after the giving of the notice of such final determination, provided, however, that any such proceeding under article seventy-eight of the civil practice [act] law and rules shall not be instituted by a taxpayer unless (a) the amount of any tax sought to be reviewed, with such interest and penalties thereon as may be provided for by local law or regulation, shall be first deposited and there is filed an undertaking, issued by a surety company authorized to transact business in this state and approved by the superintendent of insurance of this state as to solvency and responsibility, in such amount as a justice of the supreme court shall approve to the effect that if such proceeding be dismissed or the tax confirmed the [petitioner] taxpayer will pay all costs and charges which may accrue in the prosecution of such proceeding or (b) at the option of the [petitioner] taxpayer such undertaking may be in a sum sufficient to cover the taxes, interest and penalties stated in such determination plus the costs and charges which may accrue against [it] such taxpayer in the prosecution of the proceeding, in which event the [petitioner] taxpayer shall not be required to pay such taxes, interest or penalties as a condition precedent to the application.

(9) Where any tax imposed hereunder shall have been erroneously, illegally or unconstitutionally collected and application for the refund thereof duly made to the proper fiscal officer or officers, and such officer or officers or, in the case of a city of one million or more which has established a tax appeals tribunal, such tax appeals tribunal, shall have made a determination denying such refund, such determination shall be reviewable by a proceeding under article seventy-eight of the civil practice [act] law and rules, provided, however, that such proceeding is instituted within [thirty days] four months after the giving of the notice of such denial, that a final determination of tax due was nor* previously made, and that an undertaking is filed with the proper fiscal officer or officers in such amount and with such sureties as a justice of the supreme court shall approve to the effect that if such proceeding be dismessed or the tax confirmed, the [petitioner] taxpayer will pay all costs and charges which may accrue in the prosecution of such proceeding.

§ 12. This section intentionally omitted.

§ 13. Subdivisions 6 and 7 of section 1 of chapter 161 of the laws of 1970, relating to taxes on the occupancy of hotel rooms in a city of one million or more, are amended to read as follows:

any

(6) Any final determination of the amount of any tax payable hereunder shall be reviewable for error, illegality or unconstitutionality or other reason whatsoever by a proceeding under article seventy-eight of the civil practice law and rules if application therefor is made to the supreme court within [thirty days] four months after the giving of the notice of such final determination, provided, however, that any such proceeding under article seventy-eight of the civil practice law and rules shall not be instituted by a person liable for the tax unless (a) the amount of any tax sought to be reviewed, with such interest and penalties thereon as may be provided for by local law or regulation, shall be first deposited and there is filed an undertaking, issued by a surety company authorized to [transmit] transact business in this state and approved by the superintendent of insurance of this state as to solvency and responsibility, in such amount as a justice of the supreme court shall approve to the effect that if such proceeding be dismissed or the tax confirmed [the petitioner] such person will pay all costs and charges which may accrue in the prosecution of such proceeding or (b) at the option of [the petitioner] such person such undertaking may be in sum sufficient to cover the taxes, interest and penalties stated in such determination plus the costs and charges which may accrue against [it] such person in the prosecution of the proceeding, in which event [the petitioner] such person shall not be required to pay such taxes, in

terest or penalties as a condition precedent to the application.

a

(7) Where any tax imposed hereunder shall have been erroneously, illegally or unconstitutionally collected and application for the refund thereof duly made to the proper fiscal officer or officers, and such officer or officers or, in the case of a city of one million or more which

So in original. ("nor" should be "not".)

+ So in original. (Word misspelled.)

EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

has established a tax appeals tribunal, such tax appeals tribunal, shall have made a determination denying such refund, such determination shall be reviewable by a proceeding under article seventy-eight of the civil practice law and rules, provided, however, that such proceeding is instituted within [thirty days] four months after the giving of the notice of such denial, that a final determination of tax due was not previously made, and that an undertaking is filed with the proper fiscal officer or officers in such amount and with such sureties as a justice of the supreme court shall approve to the effect that if such proceeding be dismissed or the tax confirmed, the [petitioner] person liable for the tax will pay all costs and charges which may accrue in the prosecution of such proceeding.

§ 14. This section intentionally omitted.

§ 15. The administrative code of the city of New York is amended by adding a new section 11-124 to read as follows:

§ 11-124 Conciliation conferences. a. The commissioner of finance may establish a procedure for providing conciliation conferences for purposes of settling contested determinations of taxes or charges or denials of refunds or credits with respect to taxes or charges imposed under chapter five, six, seven, eight, nine, eleven, twelve, thirteen, fourteen, fifteen, twenty-one, twenty-two, twenty-four, twenty-five or twenty-seven of this title, or for the purpose of settling disputes arising from the notification of the refusal to grant, the suspension or the revocation of a license issued pursuant to chapter thirteen of this title. If such a procedure is established, a conciliation conference shall be provided at the option of any taxpayer or any other person subject to the provisions of any of such chapters. For purposes of this subdivision, if the commissioner of finance fails to act with respect to a refund application before the expiration of the time period after which the taxpayer may file a petition for refund with the tax appeals tribunal established by section one hundred sixty-eight of the charter pursuant to subdivision (c) of section 11-529 or subdivision three of section 11-680 of the code, such failure shall be deemed to be the denial of a refund.

b. A request for a conciliation conference shall be made in the manner set forth in rules promulgated by the commissioner of finance and, notwithstanding any provision of law to the contrary, shall suspend the running of the period of limitations for the filing of a petition with the tax appeals tribunal under chapter five, six, seven, eight, nine, eleven, twelve, thirteen, fourteen, fifteen, twenty-one, twenty-two, twenty-four, twenty-five or twenty-seven of this title until such time as a conciliation decision is rendered by the commissioner of finance, or until the person who requested the conciliation conference makes a written request to discontinue or withdraw from the conciliation proceeding.

c. Nothing contained herein shall prevent any taxpayer or any other person who has received a notice of determination, notice of deficiency or notice of denial of a claim for refund from filing a petition with the tax appeals tribunal if the time for filing such a petition has elapsed.

not

d. The commissioner of finance is authorized and empowered to make, adopt and amend rules appropriate to the carrying out of this section and the purposes thereof.

§ 16. Section 11-501 of the administrative code of the city of New York is amended by adding a new subdivision (f) to read as follows: (f) "Tax appeals tribunal" when used in this chapter shall mean the tax appeals tribunal established by section one hundred sixty-eight of the charter.

§ 17. Subdivisions (b), (c) and (d), paragraph 2 of subdivision (e) and paragraph 2 of subdivision (h) of section 11-521 of the administrative code of the city of New York are amended to read as follows:

(b) Notice of deficiency as assessment. After ninety days from the mailing of a notice of deficiency or, if the commissioner of finance has established a conciliation procedure pursuant to section 11-124 of the code and the taxpayer has requested a conciliation conference in accordance therewith, after ninety days from the mailing of the conciliation decision or the date of the commissioner's confirmation of the discontinuance of the conciliation proceeding, such notice shall be an assessment of the amount of tax specified [in such notice] therein, together with the interest, additions to tax and penalties stated in such notice, except only for any such tax or other amounts as to which the taxpayer has within such ninety day period filed with the [commissioner of

finance] tax appeals tribunal a petition under section 11-529 of this chapter. If the notice of deficiency or conciliation decision is addressed to a person outside of the United States, such period shall be one hundred fifty days instead of ninety days.

(c) Restrictions on assessment and levy. No assessment of a deficiency in tax and no levy or proceeding in court for its collection shall be made, begun or prosecuted, except as otherwise provided in section 11-534 of this chapter, until a notice of deficiency has been mailed to the taxpayer, nor until the expiration of the time for filing a petition with the tax appeals tribunal contesting such notice, nor, if a petition with respect to the taxable year has been both served upon the commissioner of finance and filed with the [commissioner of finance] tax appeals tribunal, until the decision of the [commissioner of finance] tax appeals tribunal has become final. For exception in the case of judicial review of the decision of the [commissioner of finance] tax appeals tribunal, see subdivision (c) of Section 11-530 of this chapter.

(d) Exceptions for mathematical errors. If a mathematical error appears on a return (including an overstatement of the amount paid as estimated tax), the commissioner of finance shall notify the taxpayer that an amount of tax in excess of that shown upon the return is due, and that such excess has been assessed.

Such notice shall not be considered as a notice of deficiency for the purposes of this section, subdivision (f) of section 11-527 of this chapter (limiting credits or refunds after petition to the [commissioner of finance] tax appeals tribunal), or subdivision (b) of section 11-529 of this chapter (authorizing the filing of a petition with the [commissioner of finance] tax appeals tribunal based on a notice of deficiency) nor shall such assessment or collection be prohibited by the provisions of subdivision (c) of this section.

(2) Such notice shall not be considered as a notice of deficiency for the purposes of this section, subdivision (f) of section 11-527 of this chapter (limiting credits or refunds after petition to the [commissioner of finance] tax appeals tribunal), or subdivision (b) of section 11-529 of this chapter (authorizing the filing of a petition with the [commissioner of finance] tax appeals tribunal based on a notice of deficiency), nor shall such assessment or collection thereof be prohibited by the provisions of subdivision (c) of this section.

(2) Such notice shall not be considered as a notice of deficiency for the purposes of this section, subdivision (f) of section 11-527 of this chapter (limiting credits or refunds after petition to the [commissioner of finance] tax appeals tribunal), or subdivision (b) of section 11-529 of this Chapter (authorizing the filing of a petition with the [commissioner of finance] tax appeals tribunal based on a notice of deficiency), nor shall such assessment or the collection thereof be prohibited by the provisions of subdivision (c) of this section.

§ 18. The first unnumbered paragraph of subdivision (a) of section 11-522 of the administrative code of the city of New York, as amended by chapter 839 of the laws of 1986, is amended to read as follows:

The amount of tax which a return shows to be due, or the amount of tax which a return would have shown to be due but for a mathematical error, shall be deemed to be assessed on the date of filing of the return (including any amended return showing an increase of tax). In the case of a return properly filed without computation of tax, the tax computed by the commissioner of finance shall be deemed to be assessed on the date on which payment is due. If a notice of deficiency has been mailed, the amount of the deficiency shall be deemed to be assessed on the date specified in subdivision (b) of section 11-521 of this chapter if no petition [to] is both served on the commissioner of finance [is] and filed with the tax appeals tribunal, or if a petition is filed, then upon the date when a decision of the [commissioner of finance] tax appeals tribunal establishing the amount of the deficiency becomes final. If an amended return or report filed pursuant to section 11-519 of this chapter concedes the accuracy of a federal or New York state adjustment, change or correction, any deficiency in tax under this chapter resulting therefrom shall be deemed to be assessed on the date of filing such report or amended return, and such assessment shall be timely notwithstanding section 11-523 of this chapter.

EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

§ 19. Subdivisions (f) and (g) of section 11-527 of the administrative code of the city of New York are amended to read as follows:

(f) Effect of petition to [commissioner of finance] tax appeals tribunal. If a notice of deficiency for a taxable year has been mailed to the taxpayer under section 11-521 of this chapter and if the taxpayer files a timely petition with the [commissioner of finance] tax appeals tribunal under section 11-529 of this chapter, the [taxpayer] tax appeals tribunal may determine that the taxpayer has made an overpayment for such year (whether or not it also determines a deficiency for such year). No separate claim for credit or refund for such year shall be filed, and no credit or refund for such year shall be allowed or made, except:

(1) as to overpayments determined by a decision of the [commissioner of finance] tax appeals tribunal which has become final;

(2) as to any amount collected in excess of an amount computed in accordance with the decision of the [commissioner of finance] tax appeals tribunal which has become final;

(3) as to any amount collected after the period of limitation upon the making of levy for collection has expired; and

(4) as to any amount claimed as a result of a change or correction described in subdivision (c) of this section.

(g) Limit on amount of credit or refund. The amount of overpayment determined under subdivision (f) of this section shall, when the decision of the [commissioner of finance] tax appeals tribunal has become final, be credited or refunded in accordance with subdivision (a) of section 11-526 of this chapter and shall not exceed the amount of tax which the [commissioner of finance] tax appeals tribunal determines as part of [his or her, its decision was paid:

(1) after the mailing of the notice of deficiency, or

2) within the period which would be applicable under subdivision (a), (b) or (c) of this section, if on the date of the mailing of the notice of deficiency a claim has been filed (whether or not filed) stating the grounds upon which the [commissioner of finance] tax appeals tribunal finds that there is an overpayment.

§ 20. Section 11-529 of the administrative code of the city of New York, paragraph 4 of subdivision (d) as amended by chapter 839 of the laws of 1986, and subdivision (e) as amended by chapter 765 of the laws of 1985, is amended to read as follows:

§ 11-529 Petition to [commissioner of finance] tax appeals tribunal. (a) General. The form of a petition to the [commissioner of finance] tax appeals tribunal, and further proceedings before the [commissioner of finance] tax appeals tribunal in any case initiated by the filing of a petition, shall be governed by such rules as the [commissioner of finance] tax appeals tribunal shall prescribe. No petition shall be denied in whole or in part without opportunity for a hearing on reasonable prior notice. Such hearing and any appeal to the tribunal sitting en banc from the decision rendered in such hearing shall be conducted [by the commissioner of finance, or by a hearing officer designated by the commissioner of finance to take evidence and report to the commissioner of finance. The commissioner of finance shall decide the case as quickly as practicable. Notice of the decision shall be mailed promptly to the taxpayer by certified or registered mail at the taxpayer's last known address, and such notice shall set forth the commissioner's findings of fact and a brief statement of the grounds of decision in each decided in whole or in part adversely to the taxpayer] in the manner and subject to the requirements prescribed by the tax appeals tribunal pursuant to sections one hundred sixty-eight through one hundred seventy-two of the charter. A decision of the tax appeals tribunal shall be rendered, and notice thereof shall be given, in the manner provided by section one hundred seventy-one of the charter.

case

(b) Petition for redetermination of a deficiency. Within ninety days, or one hundred fifty days if the notice is addressed to a person outside of the United States, after the mailing of the notice of deficiency authorized by section 11-521 of this chapter, or if the commissioner of finance has established a conciliation procedure pursuant to section 11-124 of the code and the taxpayer has requested a conciliation conference in accordance therewith, within ninety days from the mailing of the conciliation decision or the date of the commissioner's confirmation of the discontinuance of the conciliation proceeding, the taxpayer may file a petition with the [commissioner of finance] tax appeals tribunal for a redetermination of the deficiency. Such petition may also assert a