Bill Text: NY A10635 | 2015-2016 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Increases the amount of income certain property owners may earn for the purpose of eligibility for the property tax exemption for persons sixty-five years of age or over and for persons with disabilities and limited income.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2016-06-15 - REFERRED TO RULES [A10635 Detail]

Download: New_York-2015-A10635-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          10635
                   IN ASSEMBLY
                                      June 9, 2016
                                       ___________
        Introduced by COMMITTEE ON RULES -- (at request of M. of A. Abinanti) --
          read once and referred to the Committee on Ways and Means
        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 259 of the laws of 2009, 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  and twenty-nine thousand dollars  beginning  July  first,  two  thousand
    12  nine,  as  may  be  provided  by  the local law, ordinance or resolution
    13  adopted pursuant to this section, provided that in a town with  a  popu-
    14  lation  of  not less than eighty-five thousand and not more than ninety-
    15  five thousand located within a county of  not  less  than  nine  hundred
    16  thirty  thousand  and  not  more  than one million two hundred thousand,
    17  determined in accordance with the latest federal decennial  census,  and
    18  in any village or school district all or part of which is located within
    19  such  town,  such income shall not exceed fifty thousand dollars, as may
    20  be provided by local law, ordinance or  resolution.    Income  tax  year
    21  shall mean the twelve month period for which the owner or owners filed a
    22  federal  personal  income tax return, or if no such return is filed, the
    23  calendar year.  Where title is vested in either the husband or the wife,
    24  their combined income may not exceed such sum, except where the  husband
    25  or  wife,  or  ex-husband  or  ex-wife  is  absent  from the property as
    26  provided in subparagraph (ii) of paragraph (d) of this subdivision, then
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15820-01-6
        A. 10635                            2
     1  only the income of the spouse or  ex-spouse  residing  on  the  property
     2  shall  be  considered  and  may  not  exceed such sum. Such income shall
     3  include social security and retirement  benefits,  interest,  dividends,
     4  total  gain  from  the  sale or exchange of a capital asset which may be
     5  offset by a loss from the sale or exchange of a  capital  asset  in  the
     6  same  income  tax  year,  net rental income, salary or earnings, and net
     7  income from self-employment, but shall not include a return of  capital,
     8  gifts,  inheritances,  payments  made  to  individuals  because of their
     9  status as victims of Nazi persecution, as defined  in  P.L.  103-286  or
    10  monies  earned  through  employment  in  the  federal foster grandparent
    11  program and  any  such  income  shall  be  offset  by  all  medical  and
    12  prescription  drug  expenses  actually paid which were not reimbursed or
    13  paid for by insurance, if the governing board of a municipality, after a
    14  public hearing, adopts a local law, ordinance  or  resolution  providing
    15  therefor.   Furthermore, such income shall not include the proceeds of a
    16  reverse mortgage, as authorized by section six-h of the banking law, and
    17  sections two hundred eighty and two hundred eighty-a of the real proper-
    18  ty law; provided, however, that monies used to repay a reverse  mortgage
    19  may  not  be  deducted  from  income, and provided additionally that any
    20  interest or dividends realized from the investment of  reverse  mortgage
    21  proceeds  shall  be  considered income. The provisions of this paragraph
    22  notwithstanding, such  income  shall  not  include  veterans  disability
    23  compensation,  as defined in Title 38 of the United States Code provided
    24  the governing board of such municipality, after public hearing, adopts a
    25  local law, ordinance or resolution providing therefor.  In computing net
    26  rental income  and  net  income  from  self-employment  no  depreciation
    27  deduction  shall be allowed for the exhaustion, wear and tear of real or
    28  personal property held for the production of income;
    29    § 2. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
    30  erty tax law, as separately amended by chapters 187 and 252 of the  laws
    31  of 2006, is amended to read as follows:
    32    (a) if the income of the owner or the combined income of the owners of
    33  the  property  for the income tax year immediately preceding the date of
    34  making application for exemption  exceeds  the  sum  of  three  thousand
    35  dollars, or such other sum not less than three thousand dollars nor more
    36  than twenty-six thousand dollars beginning July first, two thousand six,
    37  twenty-seven  thousand dollars beginning July first, two thousand seven,
    38  twenty-eight thousand dollars beginning July first, two thousand  eight,
    39  and  twenty-nine  thousand  dollars  beginning  July first, two thousand
    40  nine, as may be provided by the local law or resolution adopted pursuant
    41  to this section, provided that in a town with a population of  not  less
    42  than eighty-five thousand and not more than ninety-five thousand located
    43  within  a  county  of not less than nine hundred thirty thousand and not
    44  more than one million two hundred  thousand,  determined  in  accordance
    45  with  the  latest federal decennial census, and in any village or school
    46  district all or part of which is located within such town,  such  income
    47  shall  not  exceed  fifty  thousand dollars, as may be provided by local
    48  law, ordinance or resolution.   Income tax year shall  mean  the  twelve
    49  month  period  for  which  the  owner or owners filed a federal personal
    50  income tax return, or if no such return is  filed,  the  calendar  year.
    51  Where  title is vested in either the husband or the wife, their combined
    52  income may not exceed such sum, except where the  husband  or  wife,  or
    53  ex-husband  or ex-wife is absent from the property due to divorce, legal
    54  separation or abandonment,  then  only  the  income  of  the  spouse  or
    55  ex-spouse  residing  on  the  property  shall  be considered and may not
    56  exceed such sum. Such income shall include social security  and  retire-
        A. 10635                            3
     1  ment benefits, interest, dividends, total gain from the sale or exchange
     2  of  a  capital  asset  which  may  be  offset by a loss from the sale or
     3  exchange of a capital asset in the same  income  tax  year,  net  rental
     4  income,  salary  or  earnings,  and net income from self-employment, but
     5  shall not include a return of capital,  gifts,  inheritances  or  monies
     6  earned  through employment in the federal foster grandparent program and
     7  any such income shall be offset by all  medical  and  prescription  drug
     8  expenses  actually  paid which were not reimbursed or paid for by insur-
     9  ance, if the governing board of a municipality, after a public  hearing,
    10  adopts  a  local  law or resolution providing therefor. In computing net
    11  rental income  and  net  income  from  self-employment  no  depreciation
    12  deduction  shall be allowed for the exhaustion, wear and tear of real or
    13  personal property held for the production of income;
    14    § 3. This act shall take effect immediately.