N.Y. Gen. Mun. Law § 84

§ 84. Refunding illegal assessments. Whenever an assessment for a\nlocal improvement has been annulled by the judgment or order of any\ncourt any sum of money which has been heretofore or shall be hereafter\npaid thereon, may be refunded with interest from the time of such\npayment. If not so refunded within one year, from the time of such\njudgment or order annulling such assessment, an action may be maintained\nto recover such sum with interest thereon.\n