Sec. 575.16. Refunds

Tax Law, §§ 1412, 1420

(a) A grantor or grantee claiming to have erroneously paid the tax imposed by Article 31 of the Tax Law or some other person designated by such grantor or grantee may file an application for refund within two years from the date of payment. If a taxpayer has consented in writing to the extension of the period for determination of tax due, as provided in section 575.15(c) of this Part, the period for filing an application for a refund will not expire prior to six months after the extended period in which a determination of tax due may be made. The application for refund must be filed on a form prescribed by the department.

(b) The application for refund may be granted or denied in whole or in part. The department shall notify the applicant of its determination by mail. The determination is final and irrevocable unless the applicant, within 90 days after the mailing of the determination, petitions the Division of Tax Appeals for a hearing. After a hearing, the administrative law judge shall mail a notice of the determination to the applicant and to the department. The determination of the administrative law judge may be reviewed by the Tax Appeals Tribunal as provided by section 2006.7 of the Tax Law. (See Part 3000 of this Title.) The applicant may petition for judicial review of the decision of the Tax Appeals Tribunal provided that the applicant files an undertaking with the department for such amount and with such sureties as a justice of the Supreme Court shall approve, to the effect that if such proceeding is dismissed or the tax confirmed, the applicant will pay all costs and charges which may accrue in the prosecution of the proceeding.

(c) A person shall not be entitled to a refund of tax, interest or penalty determined to be due pursuant to section 1411 of the Tax Law where the person has had a hearing or an opportunity for a hearing or has failed to take advantage of the remedies provided. However, a person filing a signed statement with the department consenting to the tax due, before a determination assessing tax is issued to that person, may apply for a refund within the time provided in subdivision (a) of this section. Tax, interest or penalty determined to be due by the department may be refunded only if the determination is found to be erroneous, illegal, unconstitutional or otherwise improper after review by the Tax Appeals Tribunal, on the Commissioner's own motion or in a proceeding under Article 78 of the Civil Practice Law and Rules.

(d) Interest amounting to one dollar or more shall be allowed upon any refund. Interest at the overpayment rate shall be paid from the date when the tax, penalty or interest refunded was paid to a date preceding the date of the refund check by not more than 30 days. For purposes of this subdivision, any tax paid before the last day prescribed for its payment shall be deemed to have been paid on such last day. For the overpayment rate of interest, see Part 2393 of this Title.

(e) All claims for refund must be filed with the Department of Taxation and Finance, Transaction and Transfer Tax Bureau, Real Estate Transfer Tax Section, Building 9, W. A. Harriman Campus, Albany, New York 12227.