Bill Text: NY S00253 | 2009-2010 | General Assembly | Introduced


Bill Title: Establishes a personal income tax credit for a portion of a taxpayer's residential real property taxes which exceeds a certain percentage of the taxpayer's household gross income; provides that the taxpayer shall have resided in such residential real property for not less than 5 years; provides that such credit shall not apply to taxpayers who have claimed the real property tax circuit breaker credit during the taxable year.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-01-06 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S00253 Detail]

Download: New_York-2009-S00253-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          253
                              2009-2010 Regular Sessions
                                   I N  S E N A T E
                                      (PREFILED)
                                    January 7, 2009
                                      ___________
       Introduced  by  Sen.  LITTLE -- read twice and ordered printed, and when
         printed to be committed to the Committee on Investigations and Govern-
         ment Operations
       AN ACT to amend the tax law, in relation to the school district property
         tax credit and establishing the  maximum  residential  real  property,
         personal income tax credit
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1.   Subparagraph (E) of paragraph  1  of  subsection  (e)  of
    2  section  606  of  the  tax law, as amended by chapter 105 of the laws of
    3  2006, is amended to read as follows:
    4    (E) "Qualifying real property taxes" means all  real  property  taxes,
    5  special  ad  valorem levies and special assessments, exclusive of penal-
    6  ties and interest, levied on the residence of a qualified  taxpayer  and
    7  paid  during  the taxable year [less the credit claimed under subsection
    8  (n-1) of this section]. In addition, for taxable years  beginning  after
    9  December thirty-first, nineteen hundred eighty-four, a qualified taxpay-
   10  er  may  elect  to  include  any  additional amount that would have been
   11  levied in the absence of an exemption from real property taxation pursu-
   12  ant to section four hundred sixty-seven of the real property tax law. If
   13  tenant-stockholders in a cooperative housing corporation  have  met  the
   14  requirements of section two hundred sixteen of the internal revenue code
   15  by  which they are allowed a deduction for real estate taxes, the amount
   16  of taxes so allowable, or which would be allowable if the  taxpayer  had
   17  filed  returns on a cash basis, shall be qualifying real property taxes.
   18  If a residence is owned by two or more individuals as joint  tenants  or
   19  tenants  in  common, and one or more than one individual is not a member
   20  of the household, qualifying real property taxes is that  part  of  such
   21  taxes  on  the  residence which reflects the ownership percentage of the
   22  qualified taxpayer and members of his household. If a  residence  is  an
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00111-01-9
       S. 253                              2
    1  integral  part of a larger unit, qualifying real property taxes shall be
    2  limited to that amount of such taxes paid as may  be  reasonably  appor-
    3  tioned  to  such residence. If a household owns and occupies two or more
    4  residences during different periods in the same taxable year, qualifying
    5  real  property  taxes  shall  be the sum of the prorated qualifying real
    6  property taxes attributable to the household  during  the  periods  such
    7  household  occupies  each  of such residences. If the household owns and
    8  occupies a residence for part of the taxable year and rents a  residence
    9  for  part of the same taxable year, it may include both the proration of
   10  qualifying real property taxes on the residence owned and the real prop-
   11  erty tax equivalent with respect to the months the residence is  rented.
   12  Provided,  however,  for  purposes  of  the  credit  allowed  under this
   13  subsection, qualifying real property taxes may be included by  a  quali-
   14  fied  taxpayer  only  to  the extent that such taxpayer or the spouse of
   15  such taxpayer occupying such residence for six months  or  more  of  the
   16  taxable year owns or has owned the residence and paid such taxes.
   17    S  2. Section 606 of the tax law is amended by adding a new subsection
   18  (qq) to read as follows:
   19    (QQ) MAXIMUM RESIDENTIAL REAL PROPERTY TAX  CREDIT.  (1)  DEFINITIONS.
   20  FOR THE PURPOSES OF THIS SUBSECTION:
   21    (A)  "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO
   22  OWNS THE RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE RESIDES,  AND  HAS
   23  RESIDED IN SUCH RESIDENTIAL REAL PROPERTY FOR NOT LESS THAN FIVE YEARS.
   24    (B) "HOUSEHOLD" MEANS THE TAXPAYER OR TAXPAYERS AND ALL OTHER PERSONS,
   25  NOT NECESSARILY RELATED, WHO ALL RESIDE IN THE RESIDENTIAL REAL PROPERTY
   26  OWNED  BY  THE TAXPAYER OR TAXPAYERS, AND SHARE ITS FURNISHINGS, FACILI-
   27  TIES AND ACCOMMODATIONS; PROVIDED THAT NO PERSON MAY BE A MEMBER OF MORE
   28  THAN ONE HOUSEHOLD AT ONE TIME.
   29    (C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
   30  OF ALL MEMBERS OF THE HOUSEHOLD FOR THE TAXABLE  YEAR  AS  REPORTED  FOR
   31  FEDERAL  INCOME  TAX  PURPOSES,  OR  WHICH WOULD BE REPORTED AS ADJUSTED
   32  GROSS INCOME IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO  BE  FILED,
   33  WITH  THE  MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX HUNDRED TWELVE
   34  OF THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF  SUCH
   35  SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
   36  ERTY  OTHERWISE  EXCLUDED  FROM  SUCH AMOUNT; EARNED INCOME FROM SOURCES
   37  WITHOUT THE UNITED  STATES  EXCLUDABLE  FROM  FEDERAL  GROSS  INCOME  BY
   38  SECTION  NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT MONEY
   39  NOT INCLUDED IN  ADJUSTED  GROSS  INCOME;  NONTAXABLE  STRIKE  BENEFITS;
   40  SUPPLEMENTAL  SECURITY  INCOME PAYMENTS; THE GROSS AMOUNT OF ANY PENSION
   41  OR ANNUITY BENEFITS TO THE EXTENT NOT INCLUDED IN  SUCH  ADJUSTED  GROSS
   42  INCOME  (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS AND
   43  ALL PAYMENTS RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT  AND  VETER-
   44  ANS'  DISABILITY  PENSIONS); NONTAXABLE INTEREST RECEIVED FROM THE STATE
   45  OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES,  PUBLIC  CORPORATIONS,  OR
   46  POLITICAL  SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT
   47  TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS'  COMPEN-
   48  SATION;  THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT OF
   49  CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
   50  NEEDY, PAID TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER  OR  MEMBERS
   51  OF  HIS  OR  HER  HOUSEHOLD.  HOUSEHOLD  GROSS  INCOME SHALL NOT INCLUDE
   52  SURPLUS FOODS OR OTHER RELIEF IN KIND OR PAYMENTS  MADE  TO  INDIVIDUALS
   53  BECAUSE  OF  THEIR  STATUS  AS VICTIMS OF NAZI PERSECUTION AS DEFINED IN
   54  PUBLIC LAW 103-286. PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME SHALL ONLY
   55  INCLUDE ALL SUCH INCOME RECEIVED BY ALL MEMBERS OF THE  HOUSEHOLD  WHILE
   56  MEMBERS OF SUCH HOUSEHOLD.
       S. 253                              3
    1    (D)  "NET REAL PROPERTY TAX" MEANS THE REAL PROPERTY TAXES ASSESSED ON
    2  THE RESIDENTIAL REAL PROPERTY OWNED AND  OCCUPIED  BY  THE  TAXPAYER  OR
    3  TAXPAYERS AFTER ANY EXEMPTION OR ABATEMENT RECEIVED PURSUANT TO THE REAL
    4  PROPERTY TAX LAW.
    5    (2) CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE
    6  TAXES  IMPOSED  BY  THIS ARTICLE, EQUAL TO SEVENTY PERCENT OF THE AMOUNT
    7  WHICH THE TAXPAYER'S NET REAL PROPERTY TAX EXCEEDS THE TAXPAYER'S  MAXI-
    8  MUM  REAL  PROPERTY  TAX,  AS  DETERMINED  BY  PARAGRAPH  THREE  OF THIS
    9  SUBSECTION, PROVIDED, HOWEVER, SUCH CREDIT SHALL NOT EXCEED  FIVE  THOU-
   10  SAND  DOLLARS.  IF SUCH CREDIT EXCEEDS THE TAX FOR SUCH TAXABLE YEAR, AS
   11  REDUCED BY THE OTHER CREDITS PERMITTED BY THIS  ARTICLE,  THE  QUALIFIED
   12  TAXPAYER  MAY  RECEIVE, AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE OF
   13  THE DEPARTMENT, SHALL PAY  AS  AN  OVERPAYMENT,  WITHOUT  INTEREST,  ANY
   14  EXCESS BETWEEN SUCH TAX AS SO REDUCED AND THE AMOUNT OF THE CREDIT. IF A
   15  QUALIFIED  TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION
   16  SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A QUALIFIED TAXPAYER  MAY  NEVER-
   17  THELESS  RECEIVE  AND  THE  COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE
   18  DEPARTMENT, SHALL PAY AS AN OVERPAYMENT THE FULL AMOUNT OF  THE  CREDIT,
   19  WITHOUT INTEREST.
   20    (3) MAXIMUM REAL PROPERTY TAX. (A) A QUALIFIED TAXPAYER'S MAXIMUM REAL
   21  PROPERTY TAX SHALL BE DETERMINED AS FOLLOWS:
   22    (I)  IN  THE  CITY  OF  NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK,
   23  ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:
   24         HOUSEHOLD GROSS INCOME                   MAXIMUM REAL PROPERTY TAX
   25         ONE HUNDRED TWENTY THOUSAND              SIX PERCENT OF THE
   26         DOLLARS OR LESS                          HOUSEHOLD GROSS INCOME
   27         MORE THAN ONE HUNDRED                    SEVEN PERCENT OF
   28         TWENTY THOUSAND                          THE HOUSEHOLD
   29         DOLLARS, BUT                             GROSS INCOME
   30         LESS THAN OR EQUAL TO
   31         ONE HUNDRED SEVENTY-FIVE
   32         THOUSAND DOLLARS
   33         MORE THAN ONE HUNDRED                    EIGHT PERCENT OF
   34         SEVENTY-FIVE THOUSAND                    THE HOUSEHOLD
   35         DOLLARS, BUT LESS THAN                   GROSS INCOME
   36         OR EQUAL TO TWO HUNDRED
   37         FIFTY THOUSAND DOLLARS
   38         MORE THAN TWO HUNDRED                    NO LIMITATION.
   39         FIFTY THOUSAND
   40         DOLLARS
   41    (II) IN ALL OTHER COUNTIES IN THE STATE:
   42         HOUSEHOLD GROSS                          MAXIMUM REAL
   43         INCOME                                   PROPERTY TAX
   44         NINETY THOUSAND                          SIX PERCENT OF THE
   45         DOLLARS OR LESS                          HOUSEHOLD GROSS INCOME
   46         MORE THAN NINETY                         SEVEN PERCENT OF
   47         THOUSAND DOLLARS, BUT                    THE HOUSEHOLD
   48         LESS THAN OR EQUAL TO                    GROSS INCOME
       S. 253                              4
    1         ONE HUNDRED FIFTY
    2         THOUSAND DOLLARS
    3         MORE THAN ONE HUNDRED                    EIGHT PERCENT OF
    4         FIFTY THOUSAND DOLLARS,                  THE HOUSEHOLD
    5         BUT LESS THAN OR EQUAL                   GROSS INCOME
    6         TO TWO HUNDRED FIFTY THOUSAND
    7         DOLLARS
    8         MORE THAN TWO HUNDRED FIFTY              NO LIMITATION.
    9         THOUSAND DOLLARS
   10    (B)  THE  THRESHOLDS OF HOUSEHOLD GROSS INCOME FOR ELIGIBILITY FOR THE
   11  MAXIMUM REAL PROPERTY TAX CREDIT, ESTABLISHED  BY  SUBPARAGRAPH  (A)  OF
   12  THIS PARAGRAPH, SHALL BE INDEXED FOR INFLATION.
   13    (4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS
   14  SUBSECTION  IF  THE  QUALIFIED  TAXPAYER  CLAIMS  THE  REAL PROPERTY TAX
   15  CIRCUIT BREAKER CREDIT, PURSUANT TO  SUBSECTION  (E)  OF  THIS  SECTION,
   16  DURING THE TAXABLE YEAR.
   17    (5)  EXCLUSION FROM DUAL ELIGIBILITY. THE AMOUNT OF THE CREDIT GRANTED
   18  UNDER THIS SUBSECTION SHALL BE REDUCED BY THE AMOUNT OF THE REBATE CHECK
   19  RECEIVED PURSUANT TO SECTION ONE HUNDRED SEVENTY-EIGHT OF THIS CHAPTER.
   20    S 3. This act shall take effect on the first of January next  succeed-
   21  ing  the  date  on  which it shall have become a law, and shall apply to
   22  taxable years commencing on or after such date.
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