Bill Text: NY A08685 | 2019-2020 | General Assembly | Introduced

Bill Title: Creates a reassessment relief tax credit that qualified taxpayers can apply for beginning with the first taxable year after the most recent county-wide property reassessment and implementation of a phase-in program authorized by section four hundred eighty-five-u of the real property tax law pertaining to the class one reassessment exemption.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A08685 Detail]

Download: New_York-2019-A08685-Introduced.html

                STATE OF NEW YORK


                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                    October 23, 2019

        Introduced  by M. of A. RA -- read once and referred to the Committee on
          Ways and Means

        AN ACT to amend the tax law, in  relation  to  creating  a  reassessment
          relief tax credit

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
     2  subsection (kkk) to read as follows:
     3    (kkk) Reassessment relief credit. (1) Definitions. For the purposes of
     4  this subsection:
     5    (A) "Eligible property" means a parcel of land classified as class one
     6  residential  real  property  located in a special assessing unit that is
     7  not a city.
     8    (B) "Owner" means an individual who owns a class one residential  real
     9  property  in fee simple or as a joint tenant, in which the individual is
    10  still liable for paying property taxes related to a property.
    11    (C) "Qualified taxpayer" means an individual whose  primary  residence
    12  is located in the state of New York and who, on or before December thir-
    13  ty-first,  two  thousand eighteen, was the owner of an eligible property
    14  in a special assessing unit that is not a city, provided, however,  such
    15  individual  still  owns  the same property on the taxable status date of
    16  any applicable subsequent tax year.
    17    (D) "Affiliated income" shall  mean  the  adjusted  gross  income  for
    18  federal  income  tax  purposes as reported on the applicant's federal or
    19  state income tax return for the applicable income tax year,  subject  to
    20  any  subsequent  amendments  or  revisions  and reduced by distributions
    21  received from an individual retirement account and an individual retire-
    22  ment annuity to the extent such distributions are included in the feder-
    23  al adjusted gross income, provided that if no such return was filed  for
    24  the  applicable  income  tax  year,  affiliated  income  shall  mean the
    25  adjusted gross income that would have been reported if such  return  had

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 8685                             2

     1  been  filed. Provided further, where an income-eligibility determination
     2  is wholly or partly based upon the income of one or more individuals who
     3  did not file a return for the applicable income tax year, in  order  for
     4  an  application  to  be  considered complete, each such individual shall
     5  file a statement with the department showing the source  or  sources  of
     6  his  or  her  income for that income tax year, and the amount or amounts
     7  that would have been reported on such return  if  one  had  been  filed.
     8  Such  statement shall be filed at such time, and in such form and manner
     9  as may be prescribed by the department, and  shall  be  subject  to  the
    10  secrecy  provisions  of  this chapter to the same extent that a personal
    11  income tax return would be. The department shall  make  such  forms  and
    12  instructions  available  for  the  filing  of such statements. The local
    13  assessor shall, upon the request of a taxpayer, assist such taxpayer  in
    14  the filing of the statement with the department.
    15    (2)  Allowance of credit. (A) Subject to the adherence of the require-
    16  ments and qualifications of this subsection, a qualified taxpayer  shall
    17  be  allowed a credit against the taxes imposed by this article beginning
    18  with the first taxable year following the most recent county-wide  prop-
    19  erty reassessment.
    20    (B) If the amount of the credit allowed under this subsection, if any,
    21  shall  exceed  the  qualified  taxpayer's  tax for the taxable year, the
    22  excess shall be treated as an overpayment  of  tax  to  be  credited  or
    23  refunded in accordance with the provisions of section six hundred eight-
    24  y-six of this article, provided, however, that no interest shall be paid
    25  thereon.
    26    (C)  If a qualified taxpayer is not required to file a return pursuant
    27  to section six hundred fifty-one of this article, such qualified taxpay-
    28  er may nevertheless receive the full amount of the credit to be credited
    29  or repaid as an overpayment, without interest.
    30    (3) Determination of credit. (A) Beginning with the first taxable year
    31  following a county-wide reassessment and implementation  of  a  phase-in
    32  program  authorized  by  section  four hundred eighty-five-u of the real
    33  property tax law,  the  reassessment  relief  credit  provided  by  this
    34  subsection  shall  be  available  to  qualified  taxpayers, provided the
    35  affiliated income of the parcel that serves as  the  taxpayer's  primary
    36  residence is less than or equal to five hundred thousand dollars.
    37    (B)  The  commissioner,  in  conjunction  with the local assessor of a
    38  special assessing unit that is not a city, shall determine the amount of
    39  the reassessment relief credit.
    40    (C) The amount of any credit under this subsection shall be  equal  to
    41  the  amount a qualified taxpayer paid in property taxes during a taxable
    42  year that exceeds the amount such qualified taxpayer would have paid  if
    43  the changes in property assessments resulting from the most recent coun-
    44  ty-wide  reassessment  were not being phased-in pursuant to section four
    45  hundred eighty-five-u of the real property tax law.
    46    (4) Application for  reassessment  relief  credit.  (A)  In  order  to
    47  receive  a reassessment relief credit under this subsection, a qualified
    48  taxpayer shall submit an annual  application  for  such  credit  to  the
    49  commissioner  by  or  on  the  date  and  in the manner specified by the
    50  commissioner.
    51    (B) If an eligible property is owned by multiple qualified  taxpayers,
    52  a joint application shall be required for such eligible property and the
    53  credit  provided  under this subsection shall be divided equally amongst
    54  the qualified taxpayers that own the property.
    55    (5) Special cases. A married couple shall not receive a credit  pursu-
    56  ant to this subsection on more than one eligible property during a given

        A. 8685                             3

     1  taxable  year,  unless  such  couple  is living apart due to legal sepa-
     2  ration.
     3    (6)  Limitations.  (A)  No  qualified  taxpayer  shall  be eligible to
     4  receive more than a single credit annually under  this  subsection,  nor
     5  shall the commissioner be required to make advance payment of any credit
     6  due.
     7    (B)  Notwithstanding  any provision to the contrary, no property owner
     8  or owners that are receiving a benefit under section four hundred eight-
     9  y-five-u of the real property tax law, in which a  property  he  or  she
    10  owns  is  having  its  reassessed  value phased-in, shall be eligible to
    11  receive a credit under this subsection.
    12    (7) Disqualification. A qualified taxpayer shall not  be  eligible  to
    13  apply or receive a credit pursuant to this subsection if he or she ceas-
    14  es  to  own property that is the basis for an application for credit, or
    15  if such qualified taxpayer has any outstanding  or  delinquent  property
    16  taxes due.
    17    (8)  Proof  of claim. The commissioner shall be responsible for deter-
    18  mining  a  taxpayer's  eligibility  for  the  credit  provided  by  this
    19  subsection, and may require such taxpayer or taxpayers to furnish infor-
    20  mation to support his, her or their application and eligibility for such
    21  credit. Such information may include, but is not limited to:
    22    (A) proof of ownership of property;
    23    (B) proof necessary to establish primary residency in the state of New
    24  York;
    25    (C) proof of affiliated income of property owners; and
    26    (D) proof that a qualified taxpayer does not have unpaid real property
    27  taxes.
    28    (9) Disclosure of information. (A) Where the commissioner has denied a
    29  taxpayer's application for the credit authorized by this subsection, the
    30  commissioner  shall, upon request of the taxpayer, have the authority to
    31  provide to such taxpayer the rationale and information upon  which  such
    32  determination was made.
    33    (B)  Notwithstanding  any  provision of law to the contrary, the names
    34  and addresses of individuals who have applied for or are  receiving  the
    35  credit  authorized  by  this  subsection  may be disclosed to assessors,
    36  county directors of  real  property  tax  services,  and  municipal  tax
    37  collecting officers. In addition, where an agreement is in place between
    38  the  commissioner  and  the head of the tax department of another state,
    39  such information may be disclosed to such official or his or her  desig-
    40  nees. Such information shall be considered confidential and shall not be
    41  subject to further disclosure pursuant to the freedom of information law
    42  or otherwise.
    43    (10)  Duration of credit. No reassessment relief credit as provided by
    44  this subsection shall be granted following the completion of  the  reas-
    45  sessment phase-in as authorized by section four hundred eighty-five-u of
    46  the real property tax law.
    47    (11)  Administration.  (A) The department shall be responsible for the
    48  administration and oversight of the reassessment relief credit  provided
    49  by  this subsection, and the commissioner shall promulgate any rules and
    50  regulations necessary to implement the provisions of this subsection.
    51    (B) The governing body of a special assessing unit that is not a  city
    52  shall,  upon  request,  assist the commissioner in providing any and all
    53  information deemed necessary to facilitate  the  credit  established  by
    54  this subsection.
    55    (12)  Calculation.  When  the calculation of any other personal income
    56  tax credit is based in whole or in part upon  the  real  property  taxes

        A. 8685                             4

     1  paid by the taxpayer, the amount of real property taxes so paid shall be
     2  reduced  by  the credit authorized by this subsection, if applicable, in
     3  the course of performing such calculation. When the calculation  of  any
     4  other  personal  income  tax credit is based in whole or in part upon an
     5  individual's  state  tax  liability,  the  credit  authorized  by   this
     6  subsection  shall  not  be taken into account in the calculation of such
     7  state tax liability. When the calculation of a  city  tax  surcharge  is
     8  based  in  whole or in part upon the net state tax of an individual, the
     9  credit authorized by this subsection shall not be taken into account  in
    10  the calculation of such net state tax.
    11    (13) Error. If the commissioner determines after issuing a credit that
    12  it  was  issued  in an excessive amount or to an ineligible or incorrect
    13  party, the commissioner shall be empowered to utilize any of the  proce-
    14  dures  for collection, levy and lien of personal income tax set forth in
    15  this article,  any  other  relevant  procedures  referenced  within  the
    16  provisions  of  this article, and any other law as may be applicable, to
    17  recoup the improperly issued amount.
    18    § 2. This act shall take effect immediately.