Bill Text: NY A09557 | 2023-2024 | General Assembly | Introduced

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Bill Title: Increases the income thresholds for eligibility for the senior citizen and disabled person property tax exemptions; applies to any local law, resolution or ordinance amended or adopted on and after the effective date of this act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-03-20 - referred to aging [A09557 Detail]

Download: New_York-2023-A09557-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          9557

                   IN ASSEMBLY

                                     March 20, 2024
                                       ___________

        Introduced by M. of A. LUNSFORD -- read once and referred to the Commit-
          tee on Aging

        AN  ACT  to  amend  the real property tax law, in relation to the senior
          citizen and disabled property owner exemption

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

     1    Section  1.  Paragraph (b) of subdivision 1 of section 467 of the real
     2  property tax law, as amended by section 1 of part B of  chapter  686  of
     3  the laws of 2022, is amended to read as follows:
     4    (b)  (1)  Any  local  law, ordinance or resolution adopted pursuant to
     5  paragraph (a) of this subdivision may be amended, or a local law,  ordi-
     6  nance  or  resolution  may  be adopted, to provide an exemption so as to
     7  increase the maximum income eligibility level of such  municipal  corpo-
     8  ration  as provided in subdivision three of this section (represented in
     9  the hereinbelow schedule as M), to the extent provided in the  following
    10  schedule:

    11      ANNUAL INCOME                         PERCENTAGE ASSESSED VALUATION
    12                                            EXEMPT FROM TAXATION OR PILOT

    13  More than (M) but
    14     [less than (M+ $1,000)                          45 per centum
    15  (M+ $1,000 or more) but
    16     less than (M+ $2,000)                           40 per centum
    17  (M+ $2,000 or more) but]
    18     less than (M+ [$3,000]                          35 per centum
    19                    $10,000)
    20  [(M+ $3,000 or more) but
    21     less than (M+ $3,900)                           30 per centum
    22  (M+ $3,900 or more) but
    23     less than (M+ $4,800)                           25 per centum
    24  (M+ $4,800 or more) but
    25     less than (M+ $5,700)                          20 per centum]

    26    (2) Any local law, ordinance or resolution adopted pursuant to subpar-
    27  agraph  one  of this paragraph may be amended, or a local law, ordinance
    28  or resolution may be adopted, to provide an exemption so as to  increase

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06648-01-3
        A. 9557                             2

     1  the  maximum  income  eligibility level of such municipal corporation as
     2  provided in subdivision three of this section (represented in the  here-
     3  inbelow schedule as M), and as increased as provided for in such subpar-
     4  agraph one to the extent provided in the following schedule:

     5      ANNUAL INCOME                         PERCENTAGE ASSESSED VALUATION
     6                                            EXEMPT FROM TAXATION OR PILOT

     7  (M+ [$5,700] $10,000 or more) but
     8     less than (M+ [$6,600]                           15 per centum
     9                    $25,000)
    10  [(M+ $6,600 or more) but
    11     less than (M+ $7,500)                           10 per centum]

    12    (3) Any local law, ordinance or resolution adopted pursuant to subpar-
    13  agraphs  one  and  two of this paragraph may be amended, or a local law,
    14  ordinance or resolution may be adopted, to provide an exemption so as to
    15  increase the maximum income eligibility level of such  municipal  corpo-
    16  ration  as provided in subdivision three of this section (represented in
    17  the hereinbelow schedule as M), and as increased as provided for in such
    18  subparagraph one to the extent provided in the following schedule:

    19      ANNUAL INCOME                         PERCENTAGE ASSESSED VALUATION
    20                                            EXEMPT FROM TAXATION OR PILOT

    21  (M+ [$7,500] $25,000 or more)
    22     less than (M+ [$8,400]                            5 per centum
    23                    $35,000)

    24    § 2. Paragraph (a) of subdivision 3 of section 467 of the real proper-
    25  ty tax law, as separately amended by chapter 488 and section 1 of part B
    26  of chapter 686 of the laws of 2022, is amended to read as follows:
    27    (a) if the income of the owner or the combined income of the owners of
    28  the property for the income tax year immediately preceding the  date  of
    29  making  application  for  exemption  exceeds  the  sum of three thousand
    30  dollars, or such other sum not less than three thousand dollars nor more
    31  than twenty-six thousand dollars beginning July first, two thousand six,
    32  twenty-seven thousand dollars beginning July first, two thousand  seven,
    33  twenty-eight  thousand dollars beginning July first, two thousand eight,
    34  twenty-nine thousand dollars beginning July first,  two  thousand  nine,
    35  fifty  thousand  dollars  beginning July first, two thousand twenty-two,
    36  and [in a city with a population of one million or more] fifty  thousand
    37  dollars beginning July first, two thousand seventeen, as may be provided
    38  by  the  local  law,  ordinance  or  resolution adopted pursuant to this
    39  section. Where the taxable status date is on or before April fourteenth,
    40  income tax year shall mean the twelve-month period for which  the  owner
    41  or owners filed a federal personal income tax return for the year before
    42  the  income  tax  year immediately preceding the date of application and
    43  where the taxable status date is on or after April fifteenth, income tax
    44  year shall mean the twelve-month period for which the  owner  or  owners
    45  filed a federal personal income tax return for the income tax year imme-
    46  diately  preceding  the  date  of  application. Where title is vested in
    47  either the husband or the wife, their combined  income  may  not  exceed
    48  such  sum, except where the husband or wife, or ex-husband or ex-wife is
    49  absent from the property as provided in subparagraph (ii)  of  paragraph
    50  (d) of this subdivision, then only the income of the spouse or ex-spouse
        A. 9557                             3

     1  residing  on  the  property  shall be considered and may not exceed such
     2  sum. Such income shall include social security and retirement  benefits,
     3  interest,  dividends,  total gain from the sale or exchange of a capital
     4  asset which may be offset by a loss from the sale or exchange of a capi-
     5  tal  asset  in  the  same  income tax year, net rental income, salary or
     6  earnings, and net income from self-employment, but shall not  include  a
     7  return  of  capital,  gifts,  inheritances, payments made to individuals
     8  because of their status as victims of Nazi persecution,  as  defined  in
     9  P.L.  103-286  or monies earned through employment in the federal foster
    10  grandparent program and any such income shall be offset by  all  medical
    11  and  prescription  drug expenses actually paid which were not reimbursed
    12  or paid for by insurance, if the  governing  board  of  a  municipality,
    13  after  a  public  hearing,  adopts  a local law, ordinance or resolution
    14  providing therefor. In addition, an exchange of an annuity for an annui-
    15  ty contract, which  resulted  in  non-taxable  gain,  as  determined  in
    16  section  one thousand thirty-five of the internal revenue code, shall be
    17  excluded from such income. Provided that such exclusion shall  be  based
    18  on satisfactory proof that such an exchange was solely an exchange of an
    19  annuity  for an annuity contract that resulted in a non-taxable transfer
    20  determined by such section of the internal  revenue  code.  Furthermore,
    21  such  income  shall  not  include the proceeds of a reverse mortgage, as
    22  authorized by section six-h of the banking law, and sections two hundred
    23  eighty and two hundred eighty-a of  the  real  property  law;  provided,
    24  however,  that  monies  used  to  repay  a  reverse  mortgage may not be
    25  deducted from income, and provided additionally  that  any  interest  or
    26  dividends  realized  from  the  investment  of reverse mortgage proceeds
    27  shall be considered income. The provisions of  this  paragraph  notwith-
    28  standing,  such  income  shall  not  include veterans disability compen-
    29  sation, as defined in Title 38 of the United States  Code  provided  the
    30  governing  board  of  such  municipality, after public hearing, adopts a
    31  local law, ordinance or resolution providing therefor. In computing  net
    32  rental  income  and  net  income  from  self-employment  no depreciation
    33  deduction shall be allowed for the exhaustion, wear and tear of real  or
    34  personal property held for the production of income;
    35    § 3. Paragraph (b) of subdivision 1 of section 459-c of the real prop-
    36  erty  tax  law,  as amended by section 2 of part B of chapter 686 of the
    37  laws of 2022, is amended to read as follows:
    38    (b) Any local law or resolution adopted pursuant to paragraph  (a)  of
    39  this  subdivision  may  be  amended, or a local law or resolution may be
    40  adopted, to provide an exemption so as to increase  the  maximum  income
    41  eligibility  level of such municipal corporation as provided in subdivi-
    42  sion five of this section (represented in the  hereinbelow  schedule  as
    43  M), to the extent provided in the following schedule:
    44    ANNUAL INCOME                         PERCENTAGE ASSESSED VALUATION
    45                                          EXEMPT FROM TAXATION OR PILOT
    46  More than (M) but
    47       [less than (M+ $1,000)                  45 per centum
    48  (M+ $1,000 or more) but
    49       less than (M+ $2,000)                   40 per centum
    50  (M+ $2,000 or more) but]
    51       less than (M+ [$3,000] $10,000)         35 per centum
    52  [(M+ $3,000 or more) but
    53       less than (M+ $3,900)                   30 per centum
    54  (M+ $3,900 or more) but
    55       less than (M+ $4,800)                   25 per centum
    56  (M+ $4,800 or more) but
        A. 9557                             4

     1       less than (M+ $5,700)                   20 per centum]
     2  (M+ [$5,700] $10,000 or more) but
     3       less than (M+ [$6,600] $25,000)         15 per centum
     4  [(M+ $6,600 or more) but
     5       less than (M+ $7,500)                   10 per centum]
     6  (M + [$7,500] $25,000 or more) but
     7       less than (M+ [$8,400] $35,000)         5 per centum
     8    § 4. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
     9  erty tax law, as separately amended by chapter 488 and section 2 of part
    10  B of chapter 686 of the laws of 2022, is amended to read as follows:
    11    (a) if the income of the owner or the combined income of the owners of
    12  the  property  for the income tax year immediately preceding the date of
    13  making application for exemption  exceeds  the  sum  of  three  thousand
    14  dollars, or such other sum not less than three thousand dollars nor more
    15  than twenty-six thousand dollars beginning July first, two thousand six,
    16  twenty-seven  thousand dollars beginning July first, two thousand seven,
    17  twenty-eight thousand dollars beginning July first, two thousand  eight,
    18  twenty-nine  thousand  dollars  beginning July first, two thousand nine,
    19  and fifty thousand dollars beginning July first,  two  thousand  twenty-
    20  two,  and  [in  a  city  with a population of one million or more] fifty
    21  thousand dollars beginning July first, two thousand seventeen, as may be
    22  provided by the  local  law  or  resolution  adopted  pursuant  to  this
    23  section.  Income  tax  year shall mean the twelve month period for which
    24  the owner or owners filed a federal personal income tax return, or if no
    25  such return is filed, the calendar year. Where title is vested in either
    26  the husband or the wife, their combined income may not exceed such  sum,
    27  except  where  the  husband  or wife, or ex-husband or ex-wife is absent
    28  from the property due to divorce, legal separation or abandonment,  then
    29  only  the  income  of  the  spouse or ex-spouse residing on the property
    30  shall be considered and may not  exceed  such  sum.  Such  income  shall
    31  include  social  security  and retirement benefits, interest, dividends,
    32  total gain from the sale or exchange of a capital  asset  which  may  be
    33  offset  by  a  loss  from the sale or exchange of a capital asset in the
    34  same income tax year, net rental income, salary  or  earnings,  and  net
    35  income  from self-employment, but shall not include a return of capital,
    36  gifts, inheritances or monies earned through employment in  the  federal
    37  foster  grandparent  program  and any such income shall be offset by all
    38  medical and prescription drug expenses  actually  paid  which  were  not
    39  reimbursed or paid for by insurance, if the governing board of a munici-
    40  pality, after a public hearing, adopts a local law or resolution provid-
    41  ing  therefor.  In computing net rental income and net income from self-
    42  employment  no  depreciation  deduction  shall  be   allowed   for   the
    43  exhaustion,  wear  and  tear  of  real or personal property held for the
    44  production of income;
    45    § 5. The state shall, within an appropriation made available therefor,
    46  reimburse municipal corporations for the difference between  the  amount
    47  of  real property tax revenue abated for the fiscal year of such munici-
    48  pality that occurs after April 1, 2023 pursuant to the income thresholds
    49  established pursuant to the provisions  of this act, and the  amount  of
    50  real  property  tax  revenue that would have been abated for such period
    51  pursuant to the income thresholds that were in effect immediately  prior
    52  to the effective date of this act.
    53    §  6.  This  act  shall take effect immediately and shall apply to any
    54  local law, resolution or ordinance amended or adopted on and  after  the
    55  effective date of this act.