§ 39-02 Revocation of Tax Benefits for Cause or Imposition of a Post-Benefit Penalty.
RCNY § 39-02
(a)HPD may Revoke a Tax Benefit for Cause or impose a Penalty through the procedure set forth in this section.
(b)HPD shall deliver an Initial Notice to the Taxpayer or Respondent, as applicable, by the method provided herein for delivery of notices.
(c)The Taxpayer or Respondent, as applicable, may submit Comments to HPD during the Comment Period. HPD may thereafter meet with such Taxpayer or Respondent if such Comments contain either (i) credible evidence that a Factual Issue exists, or (ii) solely with respect to an alleged Cause for Revocation, a proposed cure for the alleged Cause for Revocation which HPD determines may be reasonably practicable.
(d)Reserved.
(e)If HPD determines that the alleged Cause for Revocation of the Tax Benefit is curable and that the Taxpayer has proposed a practicable cure, HPD may enter into a Cure Agreement with such Taxpayer. HPD may require the Taxpayer to record any such Cure Agreement against the Property receiving such Tax Benefit.
(f)With respect to an alleged Cause for Revocation, if HPD does not enter into a Cure Agreement with the Taxpayer and either (i) receives no Comments during the Comment Period; or (ii) determines after reviewing such Comments that there is no Factual Issue concerning the Cause for Revocation, HPD shall deliver a Determination Notice to the Taxpayer by the method provided herein for delivery of notices stating that the Tax Benefit has been Revoked as of the Revocation Date set forth therein.
(f-1)With respect to imposition of a Penalty, if HPD either (i) receives no Comments during the Comment Period; or (ii) determines after reviewing any Comments that there is no Factual Issue concerning the imposition of a Penalty, HPD shall deliver a Determination Notice to the Respondent by the method provided herein for delivery of notices stating that the Penalty has been imposed and must be paid within ninety days. If Respondent fails to pay such Penalty within ninety days: (A) with respect to the AHCC Act, HPD shall refer the matter for criminal prosecution; or (B) with respect to the ANNY Act, HPD may impose a lien and exercise any other remedies as may be available pursuant to applicable law and regulation.
(g)If HPD determines that a Factual Issue exists, HPD shall deliver a Pre-Hearing Notice to the Taxpayer or Respondent, as applicable, by the method provided herein for delivery of notices.
(h)If the Taxpayer or Respondent, as applicable, requests a Hearing after receiving a Pre-Hearing Notice, HPD shall schedule a Hearing and shall deliver a Hearing Notice to the Taxpayer or Respondent, as applicable, by the method provided herein for delivery of notices. Notwithstanding any provision of these rules to the contrary, a Taxpayer or Respondent, as applicable, may waive its right to a Hearing.
(i)At the Hearing, the Taxpayer or Respondent, as applicable, will have an opportunity to present witnesses and other evidence regarding any Factual Issue specified in the Hearing Notice.
(j)Upon conclusion of any Hearing, the Hearing Officer shall issue a written report containing findings regarding the Factual Issue(s) and a recommendation regarding whether or not the Tax Benefit should be Revoked or the Penalty should be imposed, as applicable.
(k)The Hearing Officer shall forward such report and recommendation, together with the record of the Hearing, to the Assistant Commissioner.
(l)The Assistant Commissioner shall review the report and recommendation of the Hearing Officer, shall determine whether or not the Tax Benefit should be Revoked or the Penalty should be imposed, as applicable, and shall thereafter deliver a Determination Notice to the Taxpayer or Respondent by the method provided herein for delivery of notices. (Amended City Record 3/3/2025, eff. 4/2/2025)
