Section 11-2701
§ 11-2701 Definitions. When used in this chapter, the following terms
shall mean or include:
1. "Person." An individual, partnership, society, association,
joint-stock company, corporation, estate, receiver, lessee, trustee,
assignee, referee, or any other person acting in a fiduciary or
representative capacity, whether appointed by a court or otherwise, and
any combination of individuals.
2. "Vault." Any subsurface opening, structure or erection, whether or
not wholly or partly covered over, to the extent that it extends from
the building line into any street of the city, for the erection of which
a license fee is required pursuant to the charter or code of the city.
3. "Street." Every public street, avenue, road, alley, lane, highway,
boulevard, concourse, parkway, driveway, culvert, sidewalk, crosswalk
and viaduct, and every other class of public highway, road, square and
place within or belonging to the city.
4. "Using, occupying or maintaining." Any right or authority to
install, store or maintain property of any kind in a vault, or otherwise
to use, occupy or maintain such vault for any purpose whatsoever. Such
right or authority shall be deemed to exist wherever a vault has not
been filled in or closed by the licensee or abutting property owner and
the street restored to its original condition pursuant to the
requirements of the charter or code of the city.
5. "City surveyor." Any person appointed a surveyor of the city of New
York pursuant to the code of the city.
6. "Owner of the premises immediately adjoining the vault." Any person
who is the owner of record of real property located in whole or in part
within the city, from which a vault has been extended.
7. "Depth." The vertical distance from the ceiling, roof or top of a
vault to the floor, bottom or lowest point thereof.
8. "City." The city of New York.
9. "Comptroller." The comptroller of the city.
10. "Commissioner of finance." The commissioner of finance of the
city.
11. "Return." Any return required to be filed as herein provided.
12. "Tax appeals tribunal." The tax appeals tribunal established by
section one hundred sixty-eight of the charter.
Section 11-2702
§ 11-2702 Imposition of charge. (a) In addition to any and all other
license fees, charges and taxes, there is hereby imposed and there shall
be paid an annual vault charge, beginning as of July first, nineteen
hundred sixty-two, for the privilege of occupying, using or maintaining
a vault in the streets of the city, to be paid by the owner of the
premises immediately adjoining the vault.
(A) For periods prior to July first, nineteen hundred seventy-one such
annual vault charges shall be at the following rates:
1. On any vault occupying up to two hundred and fifty square feet in
plane or surface area but no more than twelve feet in depth, thirty-five
cents per square foot but not less than five dollars for the total
occupancy;
2. On any vault occupying more than two hundred fifty square feet in
plane or surface area but not more than twelve feet in depth,
thirty-five cents per square foot for the first two hundred fifty square
feet of an area and sixty cents per square foot for that portion of the
area in excess of two hundred fifty square feet;
3. On any vault more than twelve feet in depth, an additional charge
for each additional ten feet in depth or fraction thereof calculated by
adding the plane or surface area for each such additional depth to the
area calculated pursuant to subparagraphs one and two and by applying to
such total area the same rates as provided in subparagraphs one and two.
The additional area for any additional depth of ten feet or fraction
thereof shall however, be reduced by ten per cent for each foot of depth
less than ten feet.
(B) For periods beginning on or after July first, nineteen hundred
seventy-one and ending on or before May thirty-first, nineteen hundred
eighty, such annual vault charges shall be at the following rates:
1. On any vault occupying no more than twelve feet in depth, one
dollar per square foot of plane or surface area but not less than five
dollars for the total occupancy;
2. On any vault more than twelve feet in depth, an additional charge
for each additional ten feet in depth, or fraction thereof calculated by
adding the plane or surface area for each such additional depth to the
area calculated pursuant to subparagraph one and by applying to such
total area the same rate as provided in subparagraph one. The additional
area for any additional depth of ten feet or fraction thereof shall
however, be reduced by ten percent for each foot of depth less than ten
feet.
(C) For periods beginning on or after June first, nineteen hundred
eighty such annual vault charge shall be at the following rates:
1. On any vault occupying no more than twelve feet in depth, two
dollars per square foot of plane or surface area;
2. On any vault more than twelve feet in depth, an additional charge
for each additional ten feet in depth, or fraction thereof calculated by
adding the plane or surface area for each such additional depth to the
area calculated pursuant to subparagraph one and by applying to such
total area the same rate as provided in subparagraph one. The additional
area for any additional depth of ten feet or fraction thereof shall
however, be reduced by ten percent for each foot of depth less than ten
feet.
(D) Notwithstanding any provision of law to the contrary, no annual
vault charge or additional charge shall be imposed pursuant to this
chapter on or after June first, nineteen hundred ninety-eight.
(b) Where the owner of the premises immediately adjoining the vault is
exempt from or otherwise not liable for the annual vault charge, the
tenant, lessee or any other person using, occupying or maintaining such
vault shall be liable therefor.
(c) The annual vault charge imposed by this section shall be due from,
and shall be paid by, the person who is the owner of the premises
immediately adjoining the vault on the first day of July of the year for
which such charge is imposed except that, on and after June first,
nineteen hundred seventy-two, such charge shall be due from, and shall
be paid by the person who is the owner of the premises immediately
adjoining the vault on the first day of June of the year for which such
charge is imposed. Where the annual vault charge is imposed pursuant to
subdivision (b) of this section, such annual vault charge shall be due
from and paid by, the tenant, lessee or any other person using,
occupying or maintaining the vault on the first day of July of the year
for which such charge is imposed, except that for years beginning on or
after June first, nineteen hundred seventy-two, such charge shall be due
from, and paid by, the tenant, lessee or any other person using,
occupying or maintaining the vault on the first day of June of the year
for which such charge is imposed.
(d) In the event that the annual vault charge as imposed by this
chapter shall be held invalid, then such annual vault charge shall be
deemed a tax on the same basis and at the same rates as provided in this
chapter and all other provisions of this chapter shall be equally
applicable.
(e) Where, prior to the first day of August in any year in which the
annual vault charge imposed hereunder shall be due and payable, if a
vault or part thereof is made unavailable for use or occupancy, the
annual vault charge paid for such year, pursuant to the provisions of
this chapter, shall be refunded in full upon application to and
furnishing of such proof as the commissioner of finance may require.
Where such closing of a vault occurs prior to the last day of December
in any such year, fifty percent of the annual vault charge due and
actually paid for such year shall be refunded to the payor upon
application to and furnishing of such proof as the commissioner of
finance may require. Where such closing is limited to a part of a vault,
such a refund shall be granted only to the extent that the closing
reduces the area of the vault and thereby the amount of the charge for
the vault.
Section 11-2703
§ 11-2703 Exemptions. The charges imposed by this chapter shall not
apply to the following:
1. The state of New York, or any public corporation (including a
public corporation created pursuant to agreement or compact with another
state or the Dominion of Canada), improvement district or other
political subdivision of the state;
2. The United States of America, in so far as it is immune from
taxation;
3. The United Nations or other world-wide international organizations
of which the United States of America is a member;
4. Any corporation, or association, or trust, or community chest, fund
or foundation, organized and operated exclusively for religious,
charitable, or educational purposes, or for the prevention of cruelty to
children or animals, and no part of the net earnings of which inures to
the benefit of any private shareholder or individual and no substantial
part of the activities of which is carrying on propaganda, or otherwise
attempting to influence legislation; provided, however, that nothing in
this paragraph shall include an organization operated for the primary
purpose of carrying on a trade or business for profit, whether or not
all of its profits are payable to one or more organizations described in
this subdivision.
5. Any vault constituting property defined as a special franchise in
section one hundred two of the real property tax law or assessed as such
pursuant to article six of such law.
6. Any vault to the extent that it is used, occupied or maintained
pursuant to a revocable consent granted pursuant to section three
hundred seventy-four of the charter.
7. Any vault immediately adjoining a building or structure designed
for and used exclusively as a single-family or a two-family dwelling
house or any other real property which is classified as class one real
property pursuant to section eighteen hundred two of the real property
tax law.
8. Any street occupancy usable solely and exclusively for the melting
of snow and ice, or for delivery into the immediately adjoining
premises, of coal, oil or other fuel for the heating thereof.
9. Any vault occupying no more than thirty-six square feet in plane or
surface area, irrespective of the depth of such vault.
Section 11-2704
§ 11-2704 Filing of returns. a. Every person subject to the annual
vault charge under this chapter shall, on or before the first day of
August, nineteen hundred sixty-two, and on or before the fifteenth day
of July of every year thereafter, file with the commissioner of finance
a return showing the dimensions of the vault as to length, width and
depth, except that the return required to be filed on or before July
fifteenth, nineteen hundred seventy-two shall be filed on or before June
fifteenth, nineteen hundred seventy-two and those due in later years
shall be required to be filed on or before June fifteenth of such years.
The commissioner of finance, if he or she deems it necessary to insure
adequate information with regard to the proper charge to be imposed, may
require information returns from other persons, including the owners of
real property regardless of whether a vault has been extended therefrom,
the users or lessees of the vault or lessees or tenants of the property
adjoining the vault.
b. The forms of returns shall be prescribed by the commissioner of
finance and shall contain such information as he or she may deem
necessary for the proper administration of this chapter; and the
commissioner of finance or his or her duly authorized agents or
employees shall be empowered to require supplemental returns. If a
return required by this chapter is not filed or if the return when filed
is incorrect or insufficient on its face, the commissioner of finance
shall take the necessary steps to enforce the filing of such a return or
of a corrected return. Upon failure to comply with a notice to furnish a
return or a sufficient return, the commissioner of finance may require
the filing of a certificate signed by a city surveyor specifying the
dimensions of the vault.
c. For each annual vault charge year beginning on or after June first,
nineteen hundred eighty-nine, the commissioner of finance shall, at
least thirty days prior to the commencement of such year, mail to each
person who has filed an annual vault charge return for the immediately
preceding year an annual vault charge return form on which shall be
shown the amount of the charge for such immediately preceding year. Such
return form shall be accompanied by instructions which explain in clear
and simple terms how to determine the dimensions and extent of street
occupancy of a vault, how to calculate the amount of the charge, and
such other matters as the commissioner considers necessary or helpful to
an understanding of the requirements of this chapter. Notwithstanding
the foregoing, neither the failure of the commissioner to mail such
return form and instructions nor the failure of any person to receive
the same shall relieve any person of the obligation to file any return
required under this section or of liability for the charge, interest or
penalties imposed by this chapter.
d. If no form or other notice has previously been sent to a person
subject to the annual vault charge with respect to the amount of vault
charge owed for any year, the commissioner of finance shall notify such
person of the amount owed as soon as practicable after discovering that
such amount is owed.
Section 11-2705
§ 11-2705 Payment of vault charges. a. At the time of filing a return
as required by this chapter the person subject to the annual vault
charge shall pay to the commissioner of finance the charge imposed by
this chapter. Such charge shall be due and payable on the last day on
which such return is required to be filed, without regard to whether a
return is filed or whether the return which is filed correctly shows the
amount due.
b. The charge otherwise required to be paid with the return due on or
before June fifteenth, nineteen hundred eighty shall be paid in two
equal installments as follows: one-half of the charge shall be paid with
the return on or before June fifteenth, nineteen hundred eighty, and
one-half of the charge shall be paid on or before September fifteenth,
nineteen hundred eighty.
Section 11-2706
§ 11-2706 Presumption and burden of proof. For the purpose of the
proper administration of this chapter and to prevent evasion of the
annual vault charge hereby imposed, it shall be presumed, except where
the depth of a vault exceeds twelve feet, that the size of the vault as
indicated upon the license therefor originally issued by the borough
president up to and including December thirty-first, nineteen hundred
sixty-two, and the commissioner of transportation thereafter is a proper
measure of the charge until the contrary is established, and the burden
of proving that the size of the vault is not accurately stated upon the
license shall be upon the person so claiming. In cases where no license
of record has been issued for a vault or where the depth of a vault
exceeds twelve feet, the burden of proving the actual size of the vault
shall be upon the person liable for the vault charge.
Section 11-2707
§ 11-2707 Determination of vault charge. If a return required by this
chapter is not filed or if a return when filed is incorrect or
insufficient, the amount of the vault charge due shall be determined by
the commissioner of finance from such information as may be obtainable
and, if necessary, the charge may be estimated on the basis of external
indices, including but not limited to the records of the department of
transportation, the reports of tax assessors, the reports of inspectors
and investigators in the offices of the commissioner of finance and
commissioner of transportation, and/or other information or factors.
Notice of such determination shall be given to the person liable for the
payment thereof. Such determination shall finally and irrevocably fix
the vault charge unless the person against whom it is assessed shall,
within ninety days after the giving of notice of such determination, or,
if the commissioner of finance has established a conciliation procedure
pursuant to section 11-124 of the code and such person has requested a
conciliation conference in accordance therewith, within ninety days from
the mailing of a conciliation decision or the date of the commissioner's
confirmation of the discontinuance of the conciliation proceeding, both
(1) serves a petition upon the commissioner of finance and (2) files a
petition with the tax appeals tribunal, or unless the commissioner of
finance of his or her own motion shall redetermine the same. Upon such
hearing the tax appeals tribunal may require the filing of a certificate
signed by a city surveyor specifying the dimensions of the vault. After
such hearing the tax appeals tribunal shall give notice of its decision
to the person against whom the vault charge is assessed. A decision of
the tax appeals tribunal sitting en banc shall be reviewable for error,
illegality or unconstitutionality or any 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 by the person
against whom the vault charge was assessed within four months after the
giving of the notice of such tax appeals tribunal decision. A proceeding
under article seventy-eight of the civil practice law and rules shall
not be instituted by a person against whom the vault charge is assessed
unless (a) the amount of any vault charge sought to be reviewed, with
penalties and interest thereon, if any, shall be first deposited with
the commissioner of finance and there shall be filed with the
commissioner of finance an undertaking 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 vault charge confirmed the
person against whom the vault charge is assessed will pay all costs and
charges which may accrue in the prosecution of the proceeding, or (b) at
the option of such person, such undertaking filed with the commissioner
of finance may be in a sum sufficient to cover the vault charge,
penalties and interest thereon stated in such decision plus the costs
and charges which may accrue against him or her in the prosecution of
the proceeding, in which event such person shall not be required to
deposit such vault charge, penalties and interest as a condition
precedent to the application.
Section 11-2708
§ 11-2708 Refunds. a. In the manner provided in this section, the
commissioner of finance shall refund or credit, without interest, any
vault charge, penalty or interest erroneously, illegally or
unconstitutionally collected or paid if application to the commissioner
of finance for such refund shall be made within one year from the
payment thereof. Whenever a refund is made or denied by the commissioner
of finance, he or she shall state his or her reason therefor and give
notice thereof to the applicant in writing. Such application may be made
by the owner of the premises, or other person, who has actually paid the
vault charge. The commissioner of finance may, in lieu of any refund
required to be made, allow credit therefor on payments due from the
applicant.
b. Any determination of the commissioner of finance denying a refund
or credit pursuant to subdivision a of this section shall be final and
irrevocable unless the applicant for such refund or credit, within
ninety days from the mailing of notice of such determination, or, if the
commissioner of finance has established a conciliation procedure
pursuant to section 11-124 of the administrative code and the applicant
has requested a conciliation conference in accordance therewith, within
ninety days from the mailing of a conciliation decision or the date of
the commissioner's confirmation of the discontinuance of the
conciliation proceeding, both (1) serves a petition upon the
commissioner of finance and (2) files a petition with the tax appeals
tribunal for a hearing. Such petition for a refund or credit, made as
herein provided, shall be deemed an application for a revision of any
vault charge, penalty or interest complained of. Such hearing and any
appeal to the tax appeals tribunal sitting en banc from the decision
rendered in such hearing shall be conducted 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. After such hearing, the tax appeals tribunal shall give notice
of its decision to the applicant and to the commissioner of finance. The
applicant shall be entitled to review such decision of the tax appeals
tribunal sitting en banc by a proceeding pursuant to article
seventy-eight of the civil practice law and rules, provided such
proceeding is instituted within four months after the giving of the
notice of such decision, and provided, in the case of an application by
a person against whom the vault charge is assessed, that a final
determination of the vault charge due was not previously made. Such a
proceeding shall not be instituted by a person against whom the vault
charge is assessed unless an undertaking is filed with the commissioner
of finance 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 vault charge confirmed, such person will pay all costs
and charges which may accrue in the prosecution of such proceeding.
c. A person shall not be entitled to a revision, refund or credit
under this section of a vault charge, interest or penalty which had been
determined to be due pursuant to the provisions of section 11-2707 of
this chapter where he or she has had a hearing or an opportunity for a
hearing, as provided in said section, or has failed to avail himself or
herself of the remedies therein provided. No refund or credit shall be
made of annual vault charge, interest or penalty paid after a
determination by the commissioner of finance made pursuant to section
11-2707 of this chapter unless it be found that such determination was
erroneous, illegal or unconstitutional or otherwise improper, by the tax
appeals tribunal after a hearing or on the commissioner's own motion,
or, if such tax appeals tribunal affirms in whole or in part the
determination of the commissioner of finance, in a proceeding under
article seventy-eight of the civil practice law and rules, pursuant to
the provisions of said section, in which event refund or credit without
interest shall be made of the vault charge, interest or penalty found to
have been overpaid.
Section 11-2709
§ 11-2709 Reserves. In cases where the person or persons liable for
the vault charge imposed by this chapter has applied for a refund and
has instituted a proceeding under article seventy-eight of the civil
practice law and rules to review a determination adverse to him or her
on his or her application for refund, the comptroller shall set up
appropriate reserves to meet any decision adverse to the city.
Section 11-2710
§ 11-2710 Remedies exclusive. The remedies provided by sections
11-2707 and 11-2708 of this chapter shall be the exclusive remedies
available to any person for the review of the liability imposed
hereunder, and no determination or proposed determination of an annual
vault charge or determination on any application for refund by the
commissioner of finance, nor any decision by the tax appeals tribunal or
any of its administrative law judges, shall be enjoined or reviewed by
an action for declaratory judgment, an action for money had and received
or by any action or proceeding other than, in the case of a decision by
the tax appeals tribunal sitting en banc, a proceeding in the nature of
a certiorari proceeding under article seventy-eight of the civil
practice law and rules; provided, however, that a person liable for the
annual vault charge may proceed by declaratory judgment if he or she
institutes suit within thirty days after a deficiency assessment is made
and pays the amount of the deficiency assessment to the commissioner of
finance prior to the institution of such suit and posts a bond for costs
as provided in section 11-2707 of this chapter.
Section 11-2711
§ 11-2711 Proceedings to recover annual vault charge. a. Whenever any
person shall fail to pay any vault charge, penalty or interest imposed
by this chapter as herein provided, the corporation counsel shall, upon
the request of the commissioner of finance bring, or cause to be
brought, an action to enforce the payment of the same on behalf of the
city of New York in any court of the state of New York or of any other
state or of the United States.
b. As an additional remedy or as an alternate remedy, the commissioner
of finance may issue a warrant, directed to the city sheriff, commanding
him or her to levy upon and sell the real and personal property of the
person liable for vault charges which may be found within the city for
the payment of the amount thereof, with any penalties and interest, and
the cost of executing the warrant, and to return such warrant to the
commissioner of finance and to pay to him or her the money collected by
virtue thereof within sixty days after the receipt of such warrant. The
city sheriff shall within five days after the receipt of the warrant
file with the county clerk a copy thereof, and thereupon such clerk
shall enter in the judgment docket the name of the person mentioned in
the warrant and the amount of the vault charge, penalty and interest for
which the warrant is issued and the date when such copy is filed.
Thereupon the amount of such warrant so docketed shall become a lien
upon the title to and interest in real and personal property of the
person against whom the warrant is issued. The city sheriff shall then
proceed upon the warrant in the same manner, and with like effect, as
that provided by law in respect to executions issued against property
upon judgments of a court of record and for services in executing the
warrant he or she shall be entitled to the same fees, which he or she
may collect in the same manner. In the discretion of the commissioner of
finance a warrant of like terms, force and effect may be issued and
directed to an officer or employee of the department of finance, and in
the execution thereof such officer or employee shall have all the powers
conferred by law upon sheriffs, but shall be entitled to no fee or
compensation in excess of the actual expenses paid in the performance of
such duty. If a warrant is returned not satisfied in full, the
commissioner of finance may from time to time issue new warrants and
shall also have the same remedies to enforce the amount due thereunder
as if the city had recovered judgment therefor and execution thereon had
been returned unsatisfied.
c. In addition to any other lien provided for in this section, the
annual vault charge imposed by this chapter shall become a lien, binding
upon the premises immediately adjoining such vault, on the date such
charge is required to be paid until the same is paid in full.
d. The commissioner of finance, if he or she finds that the interests
of the city will not thereby be jeopardized, and upon such conditions as
the commissioner of finance may require, may release any property from
the lien of any warrant or vacate such warrant for unpaid vault charges,
additions to vault charges, penalties and interest filed pursuant to
subdivision b of this section, and such release or vacating of the
warrant may be recorded in the office of any recording officer in which
such warrant has been filed. The clerk shall thereupon cancel and
discharge as of the original date of docketing the vacated warrant.
Section 11-2712
§ 11-2712 General powers of the commissioner of finance. In addition
to all other powers granted to the commissioner of finance in this
chapter, he or she is hereby authorized and empowered:
1. To make, adopt and amend rules and regulations appropriate to the
carrying out of this chapter and the purpose thereof;
2. To extend, for cause shown, the time for filing any return for a
period not exceeding sixty days; and to compromise disputed claims in
connection with the vault charges hereby imposed;
3. To delegate his or her functions hereunder to a deputy commissioner
of finance or any employee or employees of the department of finance;
4. To prescribe methods for determining the size, dimensions, depth
and extent of street occupancy of a vault; to set forth the manner of
computing the vault charges hereunder; to prescribe standards or
methods, by regulation or otherwise, for determining whether a vault has
been made unavailable for use or occupancy; and the commissioner of
finance or his or her designated employees or agents shall have power to
inspect premises for the purpose of determining the extent, if any, of
liability imposed by this chapter.
5. To require any owner of premises or licensee or other person using,
occupying or maintaining a vault to obtain from the commissioner of
finance a certificate stating the dimensions and depth of the vault and
that the vault charge thereon has been paid and to exhibit the same to
duly authorized employees at the premises or real property adjoining the
said vault, and to keep such records, and for such length of time, as
may be required for the proper administration of this chapter, and to
furnish such records to the commissioner of finance upon request;
6. To assess, reassess, determine, revise and readjust the vault
charges imposed under this chapter;
7. Where he or she has exercised his or her authorized power to
require the filing of a certificate signed by a city surveyor specifying
the dimensions of a vault and the owner of the premises has failed to
comply, he or she may obtain such certificate and, in such situation,
the necessary expense of obtaining such certificate shall constitute a
lien against such premises until paid.
8. The commissioner of finance or his or her designated employees or
agents shall have power to inspect premises for the purpose of
determining the extent, if any, of liability imposed by this chapter.
Section 11-2713
§ 11-2713 Administration of oaths and compelling testimony. a. The
commissioner of finance, his or her employees duly designated and
authorized by the commissioner, the tax appeals tribunal and any of its
duly designated and authorized employees shall have power to administer
oaths and take affidavits in relation to any matter or proceeding in the
exercise of their powers and duties under this chapter. The commissioner
of finance and the tax appeals tribunal shall have power to subpoena and
require the attendance of witnesses and the production of books, papers
and documents to secure information pertinent to the performance of the
duties of the commissioner or of the tax appeals tribunal hereunder and
of the enforcement of this chapter and to examine them in relation
thereto, and to issue commissions for the examination of witnesses who
are out of the state or unable to attend before such commissioner or the
tax appeals tribunal or excused from attendance.
b. A justice of the supreme court either in court or at chambers shall
have power summarily to enforce by proper proceedings the attendance and
testimony of witnesses and the production and examination of books,
papers and documents called for by the subpoena of the commissioner of
finance or the tax appeals tribunal under this chapter.
c. Cross-reference; criminal penalties. For failure to obey subpoenas
or for testifying falsely, see section 11-4007 of this title; for
supplying false or fradulent information, see section 11-4009 of this
title.
d. The officers who serve the summons or subpoena of the commissioner
of finance or the tax appeals tribunal hereunder and witnesses attending
in response thereto shall be entitled to the same fees as are allowed to
officers and witnesses in civil cases in courts of record, except as
herein otherwise provided. Such officers shall be the city sheriff and
his or her duly appointed deputies or any officers or employees of the
department of finance or the tax appeals tribunal, designated to serve
such process.
Section 11-2714
§ 11-2714 Interest and penalties. (a) Interest on underpayments. If
any annual vault charge is not paid on or before the last date
prescribed for payment (without regard to any extension of time granted
for payment), interest on such amount at the rate set by the
commissioner of finance pursuant to subdivision (g) of this section, or,
if no rate is set, at the rate of seven and one-half percent per annum,
shall be paid for the period from such last date to the date of payment.
In computing the amount of interest to be paid, such interest shall be
compounded daily. Interest under this subdivision shall not be paid if
the amount thereof is less than one dollar.
(b) * (1) Failure to file return. (A) In case of failure to file a
return under this chapter on or before the prescribed date (determined
with regard to any extension of time for filing), unless it is shown
that such failure is due to reasonable cause and not due to willful
neglect, there shall be added to the amount required to be shown as
vault charge on such return five percent of the amount of such charge if
the failure is for not more than one month, with an additional five
percent for each additional month or fraction thereof during which such
failure continues, not exceeding twenty-five percent in the aggregate.
(B) In the case of a failure to file a vault charge return within
sixty days of the date prescribed for filing of such return (determined
with regard to any extension of time for filing), unless it is shown
that such failure is due to reasonable cause and not due to willful
neglect, the addition to the vault charge under subparagraph (A) of this
paragraph shall not be less than the lesser of one hundred dollars or
one hundred percent of the amount required to be shown as vault charge
on such return.
(C) For purposes of this paragraph, the amount of vault charge
required to be shown on the return shall be reduced by the amount of any
part of the charge which is paid on or before the date prescribed for
payment of the charge and by the amount of any credit against the charge
which may be claimed upon the return.
* NB Amended Ch. 765/85 § 81, language juxtaposed per Ch. 907/85 § 14
(2) Failure to pay vault charge shown on return. In case of failure to
pay the amount shown as vault charge on a return required to be filed
under this chapter on or before the prescribed date (determined with
regard to any extension of time for payment), unless it is shown that
such failure is due to reasonable cause and not due to willful neglect,
there shall be added to the amount shown as vault charge on such return
one-half of one percent of the amount of such charge if the failure is
not for more than one month, with an additional one-half of one percent
for each additional month or fraction thereof during which such failure
continues, not exceeding twenty-five percent in the aggregate. For the
purpose of computing the addition for any month the amount of vault
charge shown on the return shall be reduced by the amount of any part of
the charge which is paid on or before the beginning of such month and by
the amount of any credit against the charge which may be claimed upon
the return. If the amount of vault charge required to be shown on a
return is less than the amount shown as such charge on such return, this
paragraph shall be applied by substituting such lower amount.
(3) Failure to pay vault charge required to be shown on return. In
case of failure to pay any amount in respect of any vault charge
required to be shown on a return required to be filed under this chapter
which is not so shown (including a determination made pursuant to
section 11-1106 of this chapter) within ten days of the date of a notice
and demand therefor, unless it is shown that such failure is due to
reasonable cause and not due to willful neglect, there shall be added to
the amount of vault charge stated in such notice and demand one-half of
one percent of such charge if the failure is not for more than one
month, with an additional one-half of one percent for each additional
month or fraction thereof during which such failure continues, not
exceeding twenty-five percent in the aggregate. For the purpose of
computing the addition for any month, the amount of vault charge stated
in the notice and demand shall be reduced by the amount of any part of
the charge which is paid before the beginning of such month.
* (4) Limitations on additions.
(A) With respect to any return, the amount of the addition under
paragraph one of this subdivision shall be reduced by the amount of the
addition under paragraph two of this subdivision for any month to which
an addition applies under both paragraphs one and two. In any case
described in subparagraph (B) of paragraph one of this subdivision, the
amount of the addition under such paragraph one shall not be reduced
below the amount provided in such subparagraph.
(B) With respect to any return, the maximum amount of the addition
permitted under paragraph three of this subdivision shall be reduced by
the amount of the addition under paragraph one of this subdivision
(determined without regard to subparagraph (B) of such paragraph one)
which is attributable to the charge for which the notice and demand is
made and which is not paid within ten days of such notice and demand.
* NB Amended Ch. 765/85 § 81, language juxtaposed per Ch. 907/85 § 14
* (c) Underpayment due to negligence. (1) If any part of an
underpayment of a vault charge is due to negligence or intentional
disregard of this chapter or any rules or regulations hereunder (but
without intent to defraud), there shall be added to the charge a penalty
equal to five percent of the underpayment.
(2) There shall be added to the charge (in addition to the amount
determined under paragraph one of this subdivision) an amount equal to
fifty percent of the interest payable under subdivision (a) of this
section with respect to the portion of the underpayment described in
such paragraph one which is attributable to the negligence or
intentional disregard referred to in such paragraph one, for the period
beginning on the last date prescribed by law for payment of such
underpayment (determined without regard to any extension) and ending on
the date of the assessment of the charge (or, if earlier, the date of
the payment of the charge).
* NB Amended Ch. 765/85 § 81, language juxtaposed per Ch. 907/85 § 14
* (d) Underpayment due to fraud. (1) If any part of an underpayment of
a vault charge is due to fraud, there shall be added to the charge a
penalty equal to fifty percent of the underpayment.
(2) There shall be added to the charge (in addition to the penalty
determined under paragraph one of this subdivision) an amount equal to
fifty percent of the interest payable under subdivision (a) of this
section with respect to the portion of the underpayment described in
such paragraph one which is attributable to fraud, for the period
beginning on the last day prescribed by law for payment of such
underpayment (determined without regard to any extension) and ending on
the date of the assessment of the charge (or, if earlier, the date of
the payment of the charge).
(3) The penalty under this subdivision shall be in lieu of any other
addition to the vault charge imposed by subdivision (b) or (c) of this
section.
* NB Amended Ch. 765/85 § 81, language juxtaposed per Ch. 907/85 § 14
(e) Additional penalty. Any person who, with fraudulent intent, shall
fail to pay any vault charge imposed by this chapter, or to make,
render, sign or certify any return, or to supply any information within
the time required by or under this chapter, shall be liable for a
penalty of not more than one thousand dollars, in addition to any other
amounts required under this chapter to be imposed, assessed and
collected by the commissioner of finance. The commissioner of finance
shall have the power, in his or her discretion, to waive, reduce or
compromise any penalty under this subdivision.
(f) The interest and penalties imposed by this section shall be paid
and disposed of in the same manner as other revenues from this chapter.
Unpaid interest and penalties may be enforced in the same manner as the
vault charge imposed by this chapter.
(g) (1) Authority to set interest rates. The commissioner of finance,
shall set the rate of interest to be paid pursuant to subdivision (a) of
this section, but if no such rate of interest is set, such rate shall be
deemed to be set at seven and one-half percent per annum. Such rate
shall be the rate prescribed in paragraph two of this subdivision but
shall not be less than seven and one-half percent per annum. Any such
rate set by the commissioner of finance shall apply to vault charges, or
any portion thereof, which remain or become due on or after the date on
which such rate becomes effective and shall apply only with respect to
interest computed or computable for periods or portions of periods
occurring in the period in which such rate is in effect.
(2) General rule. The rate of interest set under this subdivision
shall be the sum of (i) the federal short-term rate as provided under
paragraph three of this subdivision, plus (ii) seven percentage points.
(3) Federal short-term rate. For purposes of this subdivision:
(A) The federal short-term rate for any month shall be the federal
short-term rate determined by the United States secretary of the
treasury during such month in accordance with subsection (d) of section
twelve hundred seventy-four of the internal revenue code for use in
connection with section six thousand six hundred twenty-one of the
internal revenue code. Any such rate shall be rounded to the nearest
full percent (or, if a multiple of one-half of one percent, such rate
shall be increased to the next highest full percent).
(B) Period during which rate applies.
(i) In general. Except as provided in clause (ii) of this
subparagraph, the federal short-term rate for the first month in each
calendar quarter shall apply during the first calendar quarter beginning
after such month.
(ii) Special rule for the month of September, nineteen hundred
eighty-nine. The federal short-term rate for the month of April,
nineteen hundred eighty-nine shall apply with respect to setting the
rate of interest for the month of September, nineteen hundred
eighty-nine.
(4) Publication of interest rate. The commissioner of finance shall
cause to be published in the city record, and give other appropriate
general notice of, the interest rate to be set under this subdivision no
later than twenty days preceding the first day of the calendar quarter
during which such interest rate applies. The setting and publication of
such interest rate shall not be included within paragraph (a) of
subdivision five of section one thousand forty-one of the city charter
relating to the definition of a rule.
* (h) Miscellaneous. (1) The certificate of the commissioner of
finance to the effect that a vault charge has not been paid, that a
vault has not been licensed, that a return has not been filed, that
access has not been allowed, or that information has not been supplied
pursuant to the provisions of this chapter, shall be presumptive
evidence thereof.
(2) Cross-reference: For criminal penalties, see chapter forty of this
title.
* NB Amended Ch. 765/85 § 81, language juxtaposed per Ch. 907/85 § 14
Section 11-2715
§ 11-2715 Notices and limitations of time. a. Any notice authorized or
required under the provisions of this chapter may be given to the person
for whom it is intended by mailing it in a postpaid envelope addressed
to such person at the address given in the return filed by him or her
pursuant to the provisions of this chapter or in any application made by
him or her or, if no such return has been filed or application made,
then to the address of the premises immediately adjoining the vault. The
mailing of a notice as in this subdivision provided, shall be
presumptive evidence of the receipt of the same by the person to whom
addressed. Any period of time which is determined according to the
provisions of this chapter by the giving of notice shall commence to run
from the date of mailing of such notice as in this subdivision provided.
b. The provisions of the civil practice law and rules or any other law
relative to limitations of time for the enforcement of a civil remedy
shall not apply to any proceeding or action taken by the city to
appraise, assess, determine, levy or enforce the collection of any vault
charge or penalty provided by this chapter. However, except in the case
of a wilfully false or fraudulent return with intent to evade the vault
charge, no assessment shall be made after the expiration of more than
three years from the date of such return; provided, however, that where
no return has been filed as provided by law, the annual vault charge may
be assessed at any time.
c. Where, before the expiration of the period prescribed herein for
the assessment of an additional vault charge, a person has consented in
writing that such period be extended, the amount of such additional
vault charge due may be determined at any time within such extended
period. The period so extended may be further extended by subsequent
consents in writing made before the expiration of the extended period.
d. If any return, claim, statement, notice, application, or other
document required to be filed, or any payment required to be made,
within a prescribed period or on or before a prescribed date under
authority of any provision of this chapter is, after such period or such
date, delivered by United States mail to the commissioner of finance,
the tax appeals tribunal, bureau, office, officer or person with which
or with whom such document is required to be filed, or to which or to
whom such payment is required to be made, the date of the United States
postmark stamped on the envelope shall be deemed to be the date of
delivery. This subdivision shall apply only if the postmark date falls
within the prescribed period or on or before the prescribed date for the
filing of such document, or for making the payment, including any
extension granted for such filing or payment, and only if such document
or payment was deposited in the mail, postage prepaid, properly
addressed to the commissioner of finance, the tax appeals tribunal,
bureau, office, officer or person with which or with whom the document
is required to be filed or to which or to whom such payment is required
to be made. If any document is sent by United States registered mail,
such registration shall be prima facie evidence that such document was
delivered to the commissioner of finance, the tax appeals tribunal,
bureau, office, officer or person to which or to whom addressed, and the
date of registration shall be deemed the postmark date. The commissioner
of finance and, where relevant, the tax appeals tribunal are authorized
to provide by regulation the extent to which the provisions of the
preceding sentence with respect to prima facie evidence of delivery and
the postmark date shall apply to certified mail. This subdivision shall
apply in the case of postmarks not made by the United States postal
service only if and to the extent provided by regulation of the
commissioner of finance or, where relevant, the tax appeals tribunal.
e. When the last day prescribed under authority of this chapter
(including any extension of time) for performing any act falls on a
Saturday, Sunday or legal holiday in the state, the performance of such
act shall be considered timely if it is performed on the next succeeding
day which is not a Saturday, Sunday or legal holiday.
Section 11-2715.1
§ 11-2715.1 Vault charge amnesty program. a. Notwithstanding any other
provision of law to the contrary, there is hereby established a
nine-month amnesty program, beginning January first, nineteen hundred
eighty-nine and ending September thirtieth, nineteen hundred eighty-nine
(hereinafter referred to as the "amnesty period"), for all persons owing
the annual vault charge imposed by this chapter. Such amnesty program
shall be administered by the commissioner of finance and shall apply to
liabilities for annual vault charge years ending prior to June first,
nineteen hundred eighty-nine.
b. (1) A person seeking amnesty pursuant to this section must, during
the amnesty period, file a written application therefor with the
commissioner of finance, on a form prescribed by the commissioner, and
must provide such information as the commissioner may require. In order
to qualify for amnesty, such person must pay all annual vault charges
for which he or she is liable. Upon payment by such person to the
commissioner of all such charges as provided in this subdivision, the
commissioner shall waive any applicable penalties and interest, and no
civil, administrative or criminal action or proceeding shall be brought
against such person with respect to the charges so paid. In addition,
the commissioner shall release the lien binding upon the premises
immediately adjoining the vault pursuant to subdivision c of section
11-2711 of this chapter for charges which became payable prior to the
time such person acquired title to the premises. Failure to pay all
charges as provided in this subdivision shall invalidate any amnesty
granted pursuant to this section.
(2) In the case of any vault adjoining premises owned by a person who
(A) prior to January first, nineteen hundred eighty-nine, paid all
annual vault charges and interest and penalties for which he or she was
liable, and (B) is otherwise in full compliance with this chapter, the
commissioner of finance shall release the lien binding upon the premises
immediately adjoining the vault pursuant to subdivision c of section
11-2711 of this chapter for charges which became payable prior to the
time such person acquired title to the premises.
c. Amnesty shall not be granted to any person subject to the annual
vault charge who is a party to any civil litigation which is pending on
the date of such person's application in any court of this state or the
United States for nonpayment or other delinquency in relation to the
annual vault charge. A civil litigation shall not be deemed to be
pending if such person withdraws from such litigation prior to the
granting of amnesty.
d. No refund or credit shall be granted of any penalty or interest
paid prior to the time the person subject to the annual vault charge
makes a request for amnesty pursuant to subdivision b of this section.
e. Unless the commissioner of finance on his or her own motion
redetermines the amount of the annual vault charge, no refund or credit
shall be granted of any charges paid under this section.
f. The commissioner of finance shall formulate such regulations as are
necessary, issue forms and instructions, and take any and all other
actions necessary to implement the provisions of this section.
Furthermore, prior to and throughout the duration of the amnesty period,
the commissioner of finance shall implement a plan for prominently
announcing and explaining the amnesty program. Such plan shall be
reasonably calculated to inform all property owners who may be liable
for vault charges and may include written announcements sent in tax
bills and other mailings done by the city of New York to property
owners, public service announcements, advertisements in newspapers of
general circulation and notification of community boards. The plan shall
include, but not be limited to, information which explains the
determination of vault size and charge.
Section 11-2715.3
§ 11-2715.3 Severability. If any clause, sentence, paragraph, section
or part of this chapter or the application thereof to any person or
circumstance shall for any reason be adjudged by a court of competent
jurisdiction to be invalid, such judgment shall not affect, impair or
invalidate the remainder of this chapter or the application thereof to
other persons or circumstances, but shall be confined in its operation
to the clause, sentence, paragraph, section or part thereof directly
involved in the controversy in which such judgment shall have been
rendered and to the person or circumstance involved.
Section 11-2716
§ 11-2716 Construction and enforcement. This chapter shall be
construed and enforced in conformity with chapter nine hundred
forty-nine of the laws of nineteen hundred sixty-two, pursuant to which
it is enacted.
Section 11-2717
§ 11-2717 Effective date. This chapter shall take effect July first,
nineteen hundred sixty-two and shall remain in effect so long as the
power of the city to adopt such laws for revenue purposes shall exist.
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
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