New York Consolidated Laws, Tax Law - TAX § 3032. Civil damages for failure to release a lien

(a) In general.  A taxpayer may bring a civil action for damages against the state in the court of claims if any officer or employee of the department knowingly, or by reason of negligence, fails to release a lien on property of such taxpayer within forty days after the day on which (1) the commissioner finds that the liability for the amount assessed or determined, together with all interest in respect thereof, has been fully satisfied or has become legally unenforceable, or (2) there is furnished to the commissioner a surety bond issued by a surety company approved by the superintendent of financial services as to solvency or responsibility and authorized to transact business in this state, or other security acceptable to the commissioner, that is conditioned upon the payment of the amount assessed or determined, together with all interest in respect thereof, within the time prescribed by law (including any extension of such time) and is in accordance with such requirements relating to terms, conditions, and form of the bond or other acceptable security, as may be specified by regulation.

(b) Damages.  In any action brought under subdivision (a) of this section, upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the sum of (1) actual, direct economic damages sustained by the plaintiff which, but for the actions of the defendant, would not have been sustained, plus (2) the costs of the action.

(d) Notice of failure to release lien.  The commissioner shall by regulation prescribe reasonable procedures for a taxpayer to notify the commissioner of the failure to release a lien on the property of the taxpayer.