Bill Text: NY A00687 | 2011-2012 | General Assembly | Introduced
Bill Title: Establishes a personal income tax credit for a cap on real property tax based on a household's gross income; defines terms.
Spectrum: Strong Partisan Bill (Republican 11-1)
Status: (Introduced - Dead) 2012-06-19 - held for consideration in ways and means [A00687 Detail]
Download: New_York-2011-A00687-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 687 2011-2012 Regular Sessions I N A S S E M B L Y (PREFILED) January 5, 2011 ___________ Introduced by M. of A. SAYWARD, REILICH, FINCH, THIELE, KOLB -- Multi- Sponsored by -- M. of A. CONTE, CROUCH, DUPREY, GIGLIO, HAWLEY, P. LOPEZ, RAIA -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing a personal income tax credit for a cap on real property tax based off of a house- hold's gross income THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Short title. This act shall be known and may be cited as 2 "Twenty-first century STAR". 3 S 2. Section 606 of the tax law is amended by adding a new subsection 4 (ss) to read as follows: 5 (SS) CAP ON REAL PROPERTY TAX. (1) A TAXPAYER SHALL BE ALLOWED A CRED- 6 IT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX 7 IMPOSED BY THIS ARTICLE. A CAP ON REAL PROPERTY TAX SHALL BE ESTABLISHED 8 BASED ON A HOUSEHOLD'S GROSS INCOME AND INDEXED TO THE CONSUMER PRICE 9 INDEX. 10 (2) THE NET REAL PROPERTY TAX FOR ANY TAXABLE YEAR ON A PARCEL OF 11 OWNER-OCCUPIED RESIDENTIAL REAL PROPERTY SHALL NOT EXCEED AN AMOUNT 12 EQUAL TO THE FOLLOWING PERCENTAGE OF THE HOUSEHOLD GROSS INCOME: 13 HOUSEHOLD GROSS INCOME CAP ON REAL PROPERTY TAX 14 $50,000 OR LESS 3% OF HOUSEHOLD GROSS INCOME 15 MORE THAN $50,000 BUT LESS THAN OR EQUAL 16 TO $100,000 5% OF HOUSEHOLD GROSS INCOME 17 MORE THAN $100,000 BUT LESS THAN OR EQUAL 18 TO $150,000 6% OF HOUSEHOLD GROSS INCOME 19 MORE THAN $150,000 BUT LESS THAN OR EQUAL 20 TO $200,000 7% OF HOUSEHOLD GROSS INCOME 21 MORE THAN $200,000 NO LIMITATION EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01297-01-1 A. 687 2 1 (3) A TAXPAYER SHALL FILE INCOME TAX RETURNS IN THE MANNER PRESCRIBED 2 BY THIS ARTICLE. ANY AMOUNT PAID OVER THE REAL PROPERTY TAX CAP SHALL BE 3 RETURNED TO THE TAXPAYER IN THE FORM OF A REFUNDABLE PERSONAL INCOME TAX 4 CREDIT. SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW 5 SHALL NOT BE AFFECTED BY ANY PROVISION OF THIS SUBSECTION. 6 (4) THE PERSONAL INCOME TAX CREDIT PURSUANT TO THIS SECTION SHALL ONLY 7 BE AVAILABLE TO NEW YORK STATE RESIDENTS FOR A PRIMARY RESIDENCE. SUCH 8 CREDIT SHALL BE CLAIMED ON THE NEW YORK STATE RESIDENT INCOME TAX 9 RETURN, FORM IT-201. 10 (5) FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE 11 THE FOLLOWING MEANINGS: 12 (A) A "HOMEOWNER" SHALL MEAN ANY PERSON: 13 (I) WHO IS A RESIDENT INDIVIDUAL OF THE STATE WHO OWNS THE RESIDENTIAL 14 REAL PROPERTY IN WHICH HE OR SHE RESIDES, AND HAS RESIDED IN SUCH RESI- 15 DENTIAL REAL PROPERTY FOR NOT LESS THAN FIVE YEARS; 16 (II) WHO PAID REAL PROPERTY TAXES ON SUCH PERSON'S RESIDENCE; 17 (III) WHO COULD NOT BE CLAIMED AS A DEPENDENT ON ANOTHER TAXPAYER'S 18 FEDERAL INCOME TAX RETURN; AND 19 (IV) WHOSE RESIDENCE WAS NOT COMPLETELY EXEMPTED FROM REAL PROPERTY 20 TAXES. 21 (B) "MEMBERS OF A HOUSEHOLD" INCLUDE ALL WHO SHARE A RESIDENCE AND ITS 22 FURNISHINGS, FACILITIES, AND ACCOMMODATIONS WHETHER SUCH PERSONS ARE 23 RELATED OR NOT. 24 HOWEVER, TENANTS, SUBTENANTS, ROOMERS, OR BOARDERS ARE NOT MEMBERS OF 25 A HOUSEHOLD UNLESS SUCH PERSONS ARE RELATED IN ONE OF THE FOLLOWING 26 WAYS: 27 (I) A SON, DAUGHTER, OR A DESCENDENT OF EITHER; (II) A STEPSON OR 28 STEPDAUGHTER; (III) A BROTHER, SISTER, STEPBROTHER, OR STEPSISTER; (IV) 29 A FATHER, MOTHER, OR AN ANCESTOR OF EITHER; (V) A STEPFATHER OR STEP- 30 MOTHER; (VI) A NIECE OR NEPHEW; (VII) AN AUNT OR UNCLE; OR (VIII) A 31 SON-IN-LAW, DAUGHTER-IN-LAW, FATHER-IN-LAW, MOTHER-IN-LAW, 32 BROTHER-IN-LAW, OR SISTER-IN-LAW. 33 PROVIDED, FURTHER, THAT NO ONE CAN BE A MEMBER OF MORE THAN ONE HOUSE- 34 HOLD AT ONE TIME. 35 (C) "HOUSEHOLD GROSS INCOME" MEANS THE ANNUAL TOTAL OF THE FOLLOWING 36 INCOME ITEMS THAT A HOMEOWNER AND ALL MEMBERS OF HIS OR HER HOUSEHOLD 37 RECEIVED DURING THE TAX YEAR; 38 (I) FEDERAL ADJUSTED GROSS INCOME (EVEN IF SUCH PERSON DOES NOT HAVE 39 TO FILE A FEDERAL RETURN); 40 (II) NEW YORK STATE ADDITIONS TO FEDERAL ADJUSTED GROSS INCOME. FOR A 41 LIST OF THESE ADDITIONS, SEE PUBLICATION 22, GENERAL INFORMATION ON NEW 42 YORK STATE'S REAL PROPERTY TAX CREDIT FOR HOMEOWNERS AND RENTERS, OR THE 43 INSTRUCTIONS FOR FORM IT-201. FOR FORM IT-200 FILERS, THE NEW YORK STATE 44 ADDITIONS TO FEDERAL ADJUSTED GROSS INCOME ARE SHOWN ON FORM IT-200, 45 LINE 9, PUBLIC EMPLOYEE 414(H) RETIREMENT CONTRIBUTIONS AND LINE 10, IRC 46 125 AMOUNTS FROM THE NEW YORK CITY FLEXIBLE BENEFITS PROGRAM. FOR FORM 47 IT-201 FILERS, THE NEW YORK STATE ADDITIONS TO FEDERAL ADJUSTED GROSS 48 INCOME ARE SHOWN ON FORM IT-201, LINES 19 THROUGH 22; 49 (III) SUPPORT MONEY, INCLUDING FOSTER CARE SUPPORT PAYMENTS; 50 (IV) INCOME EARNED ABROAD EXEMPTED BY SECTION 911 OF THE INTERNAL 51 REVENUE CODE; 52 (V) SUPPLEMENTAL SECURITY INCOME (SSI) PAYMENTS; 53 (VI) NONTAXABLE INTEREST RECEIVED FROM NEW YORK STATE, ITS AGENCIES, 54 INSTRUMENTALITIES, PUBLIC CORPORATIONS, OR POLITICAL SUBDIVISIONS; 55 (VII) WORKERS' COMPENSATION; A. 687 3 1 (VIII) THE GROSS AMOUNT OF LOSS-OF-TIME INSURANCE. (FOR EXAMPLE, AN 2 ACCIDENT OR HEALTH INSURANCE POLICY AND DISABILITY BENEFITS RECEIVED 3 UNDER A NO-FAULT AUTOMOBILE POLICY, ETC.); 4 (IX) CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE 5 FOR THE NEEDY (FOR EXAMPLE, CASH GRANTS TO CLIENTS, EMERGENCY AID TO 6 ADULTS, VALUE OF FOOD VOUCHERS RECEIVED BY CLIENTS, ETC.), EXCEPT 7 AMOUNTS RECEIVED FROM THE HOME ENERGY ASSISTANCE PROGRAM (HEAP); 8 (X) NONTAXABLE STRIKE BENEFITS; 9 (XI) THE GROSS AMOUNT OF PENSIONS AND ANNUITIES, INCLUDING RAILROAD 10 RETIREMENT BENEFITS; 11 (XII) ALL PAYMENTS RECEIVED UNDER THE SOCIAL SECURITY ACT AND VETERANS 12 DISABILITY PENSIONS REDUCED BY ANY MEDICARE PREMIUMS DEDUCTED FROM YOUR 13 BENEFIT REPORTED ON FEDERAL FORM SSA-1099, SOCIAL SECURITY BENEFIT 14 STATEMENT. 15 HOUSEHOLD GROSS INCOME SHALL NOT INCLUDE FOOD STAMPS, MEDICARE, MEDI- 16 CAID, SCHOLARSHIPS, GRANTS, SURPLUS FOOD, OR OTHER RELIEF IN KIND. IT 17 ALSO SHALL NOT INCLUDE PAYMENTS MADE TO VETERANS UNDER THE FEDERAL 18 VETERANS' DIOXIN AND RADIATION EXPOSURE COMPENSATION STANDARDS ACT 19 BECAUSE OF EXPOSURE TO HERBICIDES CONTAINING DIOXIN (AGENT ORANGE), OR 20 PURSUANT TO CERTAIN AGENT ORANGE PRODUCT LIABILITY LITIGATION. 21 ALSO, HOUSEHOLD GROSS INCOME SHALL NOT INCLUDE PAYMENTS MADE TO INDI- 22 VIDUALS BECAUSE OF THEIR STATUS AS VICTIMS OF NAZI PERSECUTION AS 23 DEFINED IN FEDERAL PUBLIC LAW 103-286. 24 (D) A "RESIDENCE" MEANS A DWELLING THAT A PERSON OWNS THAT IS LOCATED 25 IN NEW YORK STATE. FOR PURPOSES OF THIS SUBPARAGRAPH, A DWELLING SHALL 26 MEAN THE MINIMUM LOT SIZE REQUIRED BY THE COUNTY TO CONSTITUTE A RESI- 27 DENTIAL UNIT. IF SUCH RESIDENCE IS ON MORE THAN ONE ACRE OF LAND, ONLY 28 THE AMOUNT OF REAL PROPERTY TAXES THAT APPLIES TO THE RESIDENCE AND ONLY 29 ONE ACRE AROUND IT MAY BE USED TO FIGURE THE CREDIT. EACH RESIDENCE 30 WITHIN A MULTIPLE DWELLING UNIT MAY QUALIFY. A CONDOMINIUM OR A COOPER- 31 ATIVE WITHIN A SINGLE DWELLING IS ALSO A RESIDENCE. 32 A TRAILER OR MOBILE HOME THAT IS USED ONLY FOR RESIDENTIAL PURPOSES IS 33 ALSO A RESIDENCE IF THE TRAILER OR MOBILE HOME IS ASSESSED FOR REAL 34 PROPERTY TAX PURPOSES. 35 (E) "REAL PROPERTY TAXES PAID" ARE: 36 (I) ALL CURRENT, PRIOR, AND PREPAID REAL PROPERTY TAXES, SPECIAL AD 37 VALOREM LEVIES AND ASSESSMENTS LEVIED AND PAID UPON A RESIDENCE OWNED OR 38 PREVIOUSLY OWNED BY A QUALIFIED TAXPAYER (OR SPOUSE, IF THE SPOUSE OCCU- 39 PIED THE RESIDENCE FOR AT LEAST SIX MONTHS) DURING THE TAX YEAR. SUCH 40 PERSON MAY ELECT TO INCLUDE REAL PROPERTY TAXES THAT ARE EXEMPTED FROM 41 TAX UNDER SECTION FOUR HUNDRED SIXTY-SEVEN (FOR PERSONS SIXTY-FIVE AND 42 OLDER) OF THE REAL PROPERTY TAX LAW (VETERANS' TAX EXEMPTION DOES NOT 43 QUALIFY). 44 (II) REAL PROPERTY TAXES PAID ALSO INCLUDE ANY REAL ESTATE TAXES 45 ALLOWED (OR WHICH WOULD BE ALLOWABLE IF THE TAXPAYER HAD FILED A RETURN 46 ON A CASH BASIS) AS A DEDUCTION FOR TENANT-STOCKHOLDERS IN A COOPERATIVE 47 HOUSING CORPORATION UNDER SECTION 216 OF THE INTERNAL REVENUE CODE. 48 (III) IF ANY PART OF A RESIDENCE WAS OWNED BY SOMEONE WHO WAS NOT A 49 MEMBER OF A HOUSEHOLD, INCLUDE ONLY THE REAL PROPERTY TAXES PAID THAT 50 APPLY TO THE PART SUCH PERSON AND OTHER QUALIFIED MEMBERS OF A HOUSEHOLD 51 OWN. 52 IF A RESIDENCE WAS PART OF A LARGER UNIT, INCLUDE ONLY THE AMOUNT OF 53 REAL PROPERTY TAXES PAID THAT CAN BE REASONABLY APPLIED TO SUCH PERSON'S 54 RESIDENCE. A. 687 4 1 IF A HOMEOWNER OWNED AND OCCUPIED MORE THAN ONE RESIDENCE DURING THE 2 TAX YEAR, ADD TOGETHER THE PRORATED PART OF REAL PROPERTY TAXES PAID FOR 3 THE PERIOD YOU OCCUPIED EACH RESIDENCE. 4 S 3. This act shall take effect immediately and shall apply to the 5 2008 tax year and thereafter.