Bill Text: NY A03956 | 2021-2022 | General Assembly | Amended
Bill Title: Increases the amount of income property owners may earn for the purpose of eligibility for the property tax exemption for persons over sixty-five years of age and persons with disabilities and limited income.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2022-05-24 - substituted by s3085a [A03956 Detail]
Download: New_York-2021-A03956-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 3956--A 2021-2022 Regular Sessions IN ASSEMBLY January 29, 2021 ___________ Introduced by M. of A. ABINANTI, ZEBROWSKI, PAULIN, STERN -- read once and referred to the Committee on Aging -- recommitted to the Committee on Aging in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the real property tax law, in relation to increasing the amount of income property owners may earn for the purpose of eligibil- ity for the property tax exemption for persons sixty-five years of age or over and for persons with disabilities and limited income 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 558 of the laws of 2021, 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 twenty-nine thousand dollars beginning July first, two thousand nine, 12 fifty thousand dollars beginning July first, two thousand twenty-two, 13 and in a city with a population of one million or more fifty thousand 14 dollars beginning July first, two thousand seventeen, as may be provided 15 by the local law, ordinance or resolution adopted pursuant to this 16 section. Where the taxable status date is on or before April fourteenth, 17 income tax year shall mean the twelve-month period for which the owner 18 or owners filed a federal personal income tax return for the year before 19 the income tax year immediately preceding the date of application and 20 where the taxable status date is on or after April fifteenth, income tax EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01417-03-2A. 3956--A 2 1 year shall mean the twelve-month period for which the owner or owners 2 filed a federal personal income tax return for the income tax year imme- 3 diately preceding the date of application. Where title is vested in 4 either the husband or the wife, their combined income may not exceed 5 such sum, except where the husband or wife, or ex-husband or ex-wife is 6 absent from the property as provided in subparagraph (ii) of paragraph 7 (d) of this subdivision, then only the income of the spouse or ex-spouse 8 residing on the property shall be considered and may not exceed such 9 sum. Such income shall include social security and retirement benefits, 10 interest, dividends, total gain from the sale or exchange of a capital 11 asset which may be offset by a loss from the sale or exchange of a capi- 12 tal asset in the same income tax year, net rental income, salary or 13 earnings, and net income from self-employment, but shall not include a 14 return of capital, gifts, inheritances, payments made to individuals 15 because of their status as victims of Nazi persecution, as defined in 16 P.L. 103-286 or monies earned through employment in the federal foster 17 grandparent program and any such income shall be offset by all medical 18 and prescription drug expenses actually paid which were not reimbursed 19 or paid for by insurance, if the governing board of a municipality, 20 after a public hearing, adopts a local law, ordinance or resolution 21 providing therefor. In addition, an exchange of an annuity for an annui- 22 ty contract, which resulted in non-taxable gain, as determined in 23 section one thousand thirty-five of the internal revenue code, shall be 24 excluded from such income. Provided that such exclusion shall be based 25 on satisfactory proof that such an exchange was solely an exchange of an 26 annuity for an annuity contract that resulted in a non-taxable transfer 27 determined by such section of the internal revenue code. Furthermore, 28 such income shall not include the proceeds of a reverse mortgage, as 29 authorized by section six-h of the banking law, and sections two hundred 30 eighty and two hundred eighty-a of the real property law; provided, 31 however, that monies used to repay a reverse mortgage may not be 32 deducted from income, and provided additionally that any interest or 33 dividends realized from the investment of reverse mortgage proceeds 34 shall be considered income. The provisions of this paragraph notwith- 35 standing, such income shall not include veterans disability compen- 36 sation, as defined in Title 38 of the United States Code provided the 37 governing board of such municipality, after public hearing, adopts a 38 local law, ordinance or resolution providing therefor. In computing net 39 rental income and net income from self-employment no depreciation 40 deduction shall be allowed for the exhaustion, wear and tear of real or 41 personal property held for the production of income; 42 § 2. Paragraph (a) of subdivision 5 of section 459-c of the real prop- 43 erty tax law, as amended by chapter 131 of the laws of 2017, is amended 44 to read as follows: 45 (a) if the income of the owner or the combined income of the owners of 46 the property for the income tax year immediately preceding the date of 47 making application for exemption exceeds the sum of three thousand 48 dollars, or such other sum not less than three thousand dollars nor more 49 than twenty-six thousand dollars beginning July first, two thousand six, 50 twenty-seven thousand dollars beginning July first, two thousand seven, 51 twenty-eight thousand dollars beginning July first, two thousand eight, 52 twenty-nine thousand dollars beginning July first, two thousand nine, 53 and fifty thousand dollars beginning July first, two thousand twenty- 54 two, and in a city with a population of one million or more fifty thou- 55 sand dollars beginning July first, two thousand seventeen, as may be 56 provided by the local law or resolution adopted pursuant to thisA. 3956--A 3 1 section. Income tax year shall mean the twelve month period for which 2 the owner or owners filed a federal personal income tax return, or if no 3 such return is filed, the calendar year. Where title is vested in either 4 the husband or the wife, their combined income may not exceed such sum, 5 except where the husband or wife, or ex-husband or ex-wife is absent 6 from the property due to divorce, legal separation or abandonment, then 7 only the income of the spouse or ex-spouse residing on the property 8 shall be considered and may not exceed such sum. Such income shall 9 include social security and retirement benefits, interest, dividends, 10 total gain from the sale or exchange of a capital asset which may be 11 offset by a loss from the sale or exchange of a capital asset in the 12 same income tax year, net rental income, salary or earnings, and net 13 income from self-employment, but shall not include a return of capital, 14 gifts, inheritances or monies earned through employment in the federal 15 foster grandparent program and any such income shall be offset by all 16 medical and prescription drug expenses actually paid which were not 17 reimbursed or paid for by insurance, if the governing board of a munici- 18 pality, after a public hearing, adopts a local law or resolution provid- 19 ing therefor. In computing net rental income and net income from self- 20 employment no depreciation deduction shall be allowed for the 21 exhaustion, wear and tear of real or personal property held for the 22 production of income; 23 § 3. This act shall take effect immediately.
