S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         4179
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 2, 2011
                                      ___________
       Introduced  by M. of A. BOYLE -- read once and referred to the Committee
         on Aging
       AN ACT to amend the real property tax  law,  in  relation  to  excluding
         social  security  income  from  computing  tax  exemptions for persons
         sixty-five years of age or over
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Paragraph (a) of subdivision 3 of section 467 of the real
    2  property tax law, as amended by chapter 259 of  the  laws  of  2009,  is
    3  amended to read as follows:
    4    (a) if the income of the owner or the combined income of the owners of
    5  the  property  for the income tax year immediately preceding the date of
    6  making application for exemption  exceeds  the  sum  of  three  thousand
    7  dollars, or such other sum not less than three thousand dollars nor more
    8  than twenty-six thousand dollars beginning July first, two thousand six,
    9  twenty-seven  thousand dollars beginning July first, two thousand seven,
   10  twenty-eight thousand dollars beginning July first, two thousand  eight,
   11  and  twenty-nine  thousand  dollars  beginning  July first, two thousand
   12  nine, as may be provided by  the  local  law,  ordinance  or  resolution
   13  adopted  pursuant to this section. Income tax year shall mean the twelve
   14  month period for which the owner or  owners  filed  a  federal  personal
   15  income  tax  return,  or  if no such return is filed, the calendar year.
   16  Where title is vested in either the husband or the wife, their  combined
   17  income  may  not  exceed  such sum, except where the husband or wife, or
   18  ex-husband or ex-wife is absent from the property as provided in subpar-
   19  agraph (ii) of paragraph (d) of this subdivision, then only  the  income
   20  of  the spouse or ex-spouse residing on the property shall be considered
   21  and may not exceed such sum. Such income shall include [social  security
   22  and]  retirement benefits, interest, dividends, total gain from the sale
   23  or exchange of a capital asset which may be offset by a  loss  from  the
   24  sale  or  exchange  of  a capital asset in the same income tax year, net
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06984-01-1
       A. 4179                             2
    1  rental income, salary or earnings, and net income from  self-employment,
    2  but  shall  not  include  SOCIAL  SECURITY,  a return of capital, gifts,
    3  inheritances, payments made to individuals because of  their  status  as
    4  victims of Nazi persecution, as defined in P.L. 103-286 or monies earned
    5  through  employment  in  the  federal foster grandparent program and any
    6  such income shall  be  offset  by  all  medical  and  prescription  drug
    7  expenses  actually  paid which were not reimbursed or paid for by insur-
    8  ance, if the governing board of a municipality, after a public  hearing,
    9  adopts   a  local  law,  ordinance  or  resolution  providing  therefor.
   10  Furthermore, such income shall not include the  proceeds  of  a  reverse
   11  mortgage,  as  authorized  by  section  six-h  of  the  banking law, and
   12  sections two hundred eighty and two hundred eighty-a of the real proper-
   13  ty law; provided, however, that monies used to repay a reverse  mortgage
   14  may  not  be  deducted  from  income, and provided additionally that any
   15  interest or dividends realized from the investment of  reverse  mortgage
   16  proceeds  shall  be  considered income. The provisions of this paragraph
   17  notwithstanding, such  income  shall  not  include  veterans  disability
   18  compensation,  as defined in Title 38 of the United States Code provided
   19  the governing board of such municipality, after public hearing, adopts a
   20  local law, ordinance or resolution providing therefor.  In computing net
   21  rental income  and  net  income  from  self-employment  no  depreciation
   22  deduction  shall be allowed for the exhaustion, wear and tear of real or
   23  personal property held for the production of income;
   24    S 2. This act shall take effect on the second of January next succeed-
   25  ing the date on which it shall have become a law,  and  shall  apply  to
   26  assessment rolls prepared on the basis of taxable status dates occurring
   27  on and after such effective date.