Bill Text: NY A07665 | 2023-2024 | General Assembly | Introduced
Bill Title: Relates to income requirements for the senior citizen homeowners' exemption, the disabled homeowners' exemption, the tax abatement and exemption for rent regulated and rent controlled property occupied by senior citizens, and the tax abatement and exemption for rent regulated and rent controlled property occupied by persons with disabilities in a city having a population of one million persons or more.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2023-06-07 - substituted by s7384a [A07665 Detail]
Download: New_York-2023-A07665-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7665 2023-2024 Regular Sessions IN ASSEMBLY May 31, 2023 ___________ Introduced by M. of A. TAYLOR -- read once and referred to the Committee on Real Property Taxation AN ACT to amend the real property tax law, in relation to income requirements for certain real property tax exemptions in a city with a population of one million or more 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 5 of section 459-c of the real 2 property tax law is amended by adding a new subparagraph (v) to read as 3 follows: 4 (v) Notwithstanding subparagraph (iv) of this paragraph, in a city 5 having a population of one million persons or more: 6 (1) except as provided in clause two of this subparagraph, the term 7 "income" as used in this section shall mean the "adjusted gross income" 8 for federal income tax purposes as reported on the applicant's federal 9 or state income tax return for the income tax year immediately preceding 10 the date of application, subject to any subsequent amendments or 11 revisions, minus any distributions, to the extent included in federal 12 adjusted gross income, received from an individual retirement account 13 and an individual retirement annuity; provided that if no such return 14 was filed for such income tax year, the applicant's income shall be 15 determined based on the amounts that would have so been reported if such 16 a return had been filed; and 17 (2) if an owner who has received an exemption pursuant to this section 18 for a property on an assessment roll for a tax year ending on or before 19 June thirtieth, two thousand twenty-four, would receive a greater 20 exemption for any tax year ending on or after June thirtieth, two thou- 21 sand twenty-five, the term "income" shall include social security and 22 retirement benefits, interest, dividends, total gain from the sale or 23 exchange of a capital asset which may be offset by a loss from the sale 24 or exchange of a capital asset in the same income tax year, net rental EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11592-05-3A. 7665 2 1 income, salary or earnings, and net income from self-employment, but 2 shall not include a return of capital, gifts, inheritances or monies 3 earned through employment in the federal foster grandparent program and 4 any such income shall be offset by all medical and prescription drug 5 expenses actually paid which were not reimbursed or paid for by insur- 6 ance, if the governing board of a municipality, after a public hearing, 7 adopts a local law or resolution providing therefor. In computing net 8 rental income and net income from self-employment for the purposes of 9 this item, no depreciation deduction shall be allowed for the 10 exhaustion, wear and tear of real or personal property held for the 11 production of income. 12 § 2. Paragraph (a) of subdivision 3 of section 467 of the real proper- 13 ty tax law is amended by adding a new subparagraph (v) to read as 14 follows: 15 (v) Notwithstanding subparagraph (iv) of this paragraph, in a city 16 having a population of one million persons or more: 17 (1) Except as provided in clause two of this subparagraph, the term 18 "income" as used in this section shall mean the "adjusted gross income" 19 for federal income tax purposes as reported on the applicant's federal 20 or state income tax return for the income tax year immediately preceding 21 the date of application, subject to any subsequent amendments or 22 revisions, minus any distributions, to the extent included in federal 23 adjusted gross income, received from an individual retirement account 24 and an individual retirement annuity; provided that if no such return 25 was filed for such income tax year, the applicant's income shall be 26 determined based on the amounts that would have so been reported if such 27 a return had been filed; and 28 (2) If an owner who has received an exemption pursuant to this section 29 for a property on an assessment roll for a tax year ending on or before 30 June thirtieth, two thousand twenty-four would receive a greater 31 exemption for any tax year ending on or after June thirtieth, two thou- 32 sand twenty-five, the term "income" shall include social security and 33 retirement benefits, interest, dividends, total gain from the sale or 34 exchange of a capital asset which may be offset by a loss from the sale 35 or exchange of a capital asset in the same income tax year, net rental 36 income, salary or earnings, and net income from self-employment, but 37 shall not include a return of capital, gifts, inheritances, payments 38 made to individuals because of their status as victims of Nazi perse- 39 cution, as defined in P.L. 103-286 or monies earned through employment 40 in the federal foster grandparent program and any such income shall be 41 offset by all medical and prescription drug expenses actually paid which 42 were not reimbursed or paid for by insurance, if the governing board of 43 a municipality, a public hearing, adopts a local law or resolution 44 providing therefor. In addition, an exchange of an annuity for an annu- 45 ity contract, which resulted in non-taxable gain, as determined in 46 section one thousand thirty-five of the internal revenue code, shall be 47 excluded from such income. Provided that such exclusion shall be based 48 on satisfactory proof that such an exchange was solely an exchange of an 49 annuity for an annuity contract that resulted in a non-taxable transfer 50 determined by such section of the internal revenue code. Furthermore, 51 such income shall not include the proceeds of a reverse mortgage, as 52 authorized by section six-h of the banking law, and sections two hundred 53 eighty and two hundred eighty-a of the real property law; provided, 54 however, that monies used to repay a reverse mortgage may not be 55 deducted from income, and provided additionally that any interest or 56 dividends realized from the investment of reverse mortgage proceedsA. 7665 3 1 shall be considered income. The provisions of this paragraph notwith- 2 standing, such income shall not include veterans disability compen- 3 sation, as defined in Title 38 of the United States Code provided the 4 governing board of such municipality, after public hearing, adopts a 5 local law, ordinance or resolution providing therefor. In computing net 6 rental income and net income from self-employment no depreciation 7 deduction shall be allowed for the exhaustion, wear and tear of real or 8 personal property held for the production of income. 9 § 3. Paragraph c of subdivision 1 of section 467-b of the real proper- 10 ty tax law, as amended by section 10 of part K of chapter 59 of the laws 11 of 2023, is amended to read as follows: 12 c. "Income" means: 13 (i) the "adjusted gross income" for federal income tax purposes as 14 reported on the applicant's federal or state income tax return for the 15 applicable income tax year, subject to any subsequent amendments or 16 revisions, plus any social security benefits not included in such feder- 17 al adjusted gross income; provided that if no such return was filed for 18 the applicable income tax year, the applicant's income shall be deter- 19 mined based on the amounts that would have so been reported if such a 20 return had been filed; and provided further, that when determining 21 income for purposes of this section, the following conditions shall be 22 applicable: 23 [(i)] (A) the governing body of a municipal corporation, after a 24 public hearing, may adopt a local law, ordinance or resolution providing 25 that any social security benefits that were not included in the appli- 26 cant's federal adjusted gross income shall not be considered income; 27 [(ii)] (B) distributions received from an individual retirement 28 account or individual retirement annuity that were included in the 29 applicant's federal adjusted gross income shall not be considered income 30 unless the governing body of a municipal corporation, after a public 31 hearing, adopts a local law, ordinance or resolution providing other- 32 wise; 33 [(iii)] (C) the applicant's income shall be offset by all medical and 34 prescription drug expenses actually paid that were not reimbursed or 35 paid for by insurance, if the governing body of a municipal corporation, 36 after a public hearing, adopts a local law, ordinance or resolution 37 providing therefor; 38 [(iv)] (D) any tax-exempt interest or dividends that were excluded 39 from the applicant's federal adjusted gross income shall be considered 40 income; and 41 [(v)] (E) any losses that were applied to reduce the applicant's 42 federal adjusted gross income shall be subject to the following limita- 43 tions: 44 [(A)] (1) the net amount of loss reported on federal Schedule C, D, E, 45 or F shall not exceed three thousand dollars per schedule, 46 [(B)] (2) the net amount of any other separate category of loss shall 47 not exceed three thousand dollars, and 48 [(C)] (3) the aggregate amount of all losses shall not exceed fifteen 49 thousand dollars; or 50 (ii) notwithstanding subparagraph (i) of this paragraph, in a city 51 with a population of one million or more persons: 52 (A) the sum of the adjusted gross incomes reported on the federal 53 income tax returns of the applicant and all other members of the appli- 54 cant's household for the income tax year immediately preceding the date 55 of application, subject to any subsequent amendments or revisions, less 56 any distributions, to the extent included in each such adjusted grossA. 7665 4 1 income, received from an individual retirement account or retirement 2 annuity; provided that if no such income tax return was filed by any 3 member of the applicant's household for such income tax year, the income 4 of such applicant or member of the applicant's household shall be deter- 5 mined as if such a return had been filed; 6 (B) provided, however, that income may be calculated as the income 7 from all sources after deduction of all income and social security taxes 8 and includes social security and retirement benefits, supplemental secu- 9 rity income and additional state payments, public assistance benefits, 10 interest, dividends, net rental income, salary or earnings, and net 11 income from self-employment, but shall not include gifts or inheritanc- 12 es, payments made to individuals because of their status as victims of 13 Nazi persecution, as defined in federal P.L. 103-286, or increases in 14 benefits accorded pursuant to the social security act or a public or 15 private pension paid to any member of the household which increase, in 16 any given year, does not exceed the consumer price index (all items 17 United States city average) for such year which take effect after the 18 date of eligibility of head of the household receiving benefits here- 19 under whether received by the head of the household or any other member 20 of the household, when the following conditions are met: 21 (1) a rent increase exemption order was granted to the head of house- 22 hold prior to July first, two thousand twenty-four; 23 (2) such rent increase exemption order is either renewed after each 24 benefit period or granted pursuant to paragraph (d) of subdivision two 25 of this section to account for a temporary increase in income; 26 (3) income calculated as described in this subparagraph would yield a 27 lower amount than income calculated as described in subparagraph (i) of 28 this paragraph; and 29 (C) provided, further, that a change in the method of calculating 30 income pursuant to this paragraph shall not affect eligibility to file a 31 short-form renewal application in accordance with subparagraph two of 32 paragraph a of subdivision four of this section; 33 § 4. Paragraph f of subdivision 1 of section 467-c of the real proper- 34 ty tax law, as amended by section 11 of part K of chapter 59 of the laws 35 of 2023, is amended to read as follows: 36 f. "Income" means: 37 (1) the "adjusted gross income" for federal income tax purposes as 38 reported on the applicant's federal or state income tax return for the 39 applicable income tax year, subject to any subsequent amendments or 40 revisions, plus any social security benefits not included in such feder- 41 al adjusted gross income; provided that if no such return was filed for 42 the applicable income tax year, the applicant's income shall be deter- 43 mined based on the amounts that would have so been reported if such a 44 return had been filed; and provided further, that when determining 45 income for purposes of this section, the following conditions shall be 46 applicable: 47 [(1)] (i) the governing body of a municipal corporation, after a 48 public hearing, may adopt a local law, ordinance or resolution providing 49 that any social security benefits that were not included in the appli- 50 cant's adjusted gross income shall not be considered income; 51 [(2)] (ii) distributions received from an individual retirement 52 account or individual retirement annuity that were included in the 53 applicant's federal adjusted gross income shall not be considered income 54 unless the governing body of a municipal corporation, after a public 55 hearing, adopts a local law, ordinance or resolution providing other- 56 wise;A. 7665 5 1 [(3)] (iii) the applicant's income shall be offset by all medical and 2 prescription drug expenses actually paid that were not reimbursed or 3 paid for by insurance, if the governing body of a municipal corporation, 4 after a public hearing, adopts a local law, ordinance or resolution 5 providing therefor; 6 [(4)] (iv) any tax-exempt interest or dividends that were excluded 7 from the applicant's federal adjusted gross income shall be considered 8 income; and 9 [(5)] (v) any losses that were applied to reduce the applicant's 10 federal adjusted gross income shall be subject to the following limita- 11 tions: 12 [(i)] (A) the net amount of loss reported on federal Schedule C, D, E, 13 or F shall not exceed three thousand dollars per schedule, 14 [(ii)] (B) the net amount of any other separate category of loss shall 15 not exceed three thousand dollars, and 16 [(iii)] (C) the aggregate amount of all losses shall not exceed 17 fifteen thousand dollars[.]; and 18 [(6)] (vi) When the eligible head of the household has retired on or 19 after the commencement of the taxable period and prior to the date of 20 making an application for a rent increase exemption order/tax abatement 21 certificate pursuant to this section, such person's income shall be 22 adjusted by excluding salary or earnings and projecting such person's 23 retirement income over the entire taxable period[.]; or 24 (2) notwithstanding subparagraph one of this paragraph, in a city with 25 a population of one million or more persons: 26 (i) the sum of the adjusted gross incomes reported on the federal 27 income tax returns of the applicant and all other members of the appli- 28 cant's household for the income tax year immediately preceding the date 29 of application, subject to any subsequent amendments or revisions, less 30 any distributions, to the extent included in each such adjusted gross 31 income, received from an individual retirement account or retirement 32 annuity; provided that if no such income tax return was filed by any 33 member of the applicant's household for such income tax year, the income 34 of such applicant or member of the applicant's household shall be deter- 35 mined as if such a return had been filed; 36 (ii) provided, however, that income may be calculated as the income 37 received by the eligible head of the household combined with the income 38 of all other members of the household from all sources after deduction 39 of all income and social security taxes and includes without limitation, 40 social security and retirement benefits, supplemental security income 41 and additional state payments, public assistance benefits, interest, 42 dividends, net rental income, salary and earnings, and net income from 43 self employment, but shall not include gifts or inheritances, payments 44 made to individuals because of their status as victims of Nazi perse- 45 cution as defined in federal P.L. 103-286, nor increases in benefits 46 accorded pursuant to the social security act or a public or private 47 pension paid to any member of the household which increase, in any given 48 year, does not exceed the consumer price index (all items United States 49 city average) for such year which take effect after the eligibility date 50 of an eligible head of the household receiving benefits hereunder wheth- 51 er received by the eligible head of the household or any other member of 52 the household, when the following conditions are met: 53 (A) a rent increase exemption order was granted to the head of house- 54 hold prior to July first, two thousand twenty-four; 55 (B) such rent increase exemption order is either renewed after each 56 benefit period or granted pursuant to subparagraph four of paragraph aA. 7665 6 1 of subdivision three of this section to account for a temporary increase 2 in income; 3 (C) income calculated as described in this clause would yield a lower 4 amount than income calculated as described in clause (i) of this subpar- 5 agraph; and 6 (iii) provided, further, that a change in the method of calculating 7 income pursuant to this subparagraph shall not affect eligibility to 8 file a short-form renewal application in accordance with subparagraph 9 two of paragraph a of subdivision four of this section. 10 § 5. This act shall take effect immediately and shall be deemed to 11 have been in full force and effect on and after May 3, 2023.
