Bill Text: NY S00772 | 2017-2018 | General Assembly | Amended
Bill Title: Increases the amount of income 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 3-0)
Status: (Engrossed - Dead) 2018-04-16 - PRINT NUMBER 772A [S00772 Detail]
Download: New_York-2017-S00772-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 772--A 2017-2018 Regular Sessions IN SENATE January 4, 2017 ___________ Introduced by Sens. STEWART-COUSINS, CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Aging -- recommitted to the Committee on Aging in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 separately amended by chapters 131 and 279 of the 3 laws of 2017, is 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 twenty-nine thousand dollars beginning July first, two thousand nine, 12 fifty thousand dollars beginning July first, two thousand seventeen, and 13 in a city with a population of one million or more fifty thousand 14 dollars beginning July first, two thousand seventeen, as may be provided 15 by the local law, ordinance or resolution adopted pursuant to this 16 section. Income tax year shall mean the twelve month period for which 17 the owner or owners filed a federal personal income tax return, or if no 18 such return is filed, the calendar year. Where title is vested in either 19 the husband or the wife, their combined income may not exceed such sum, 20 except where the husband or wife, or ex-husband or ex-wife is absent EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02764-02-7S. 772--A 2 1 from the property as provided in subparagraph (ii) of paragraph (d) of 2 this subdivision, then only the income of the spouse or ex-spouse resid- 3 ing on the property shall be considered and may not exceed such sum. 4 Such income shall include social security and retirement benefits, 5 interest, dividends, total gain from the sale or exchange of a capital 6 asset which may be offset by a loss from the sale or exchange of a capi- 7 tal asset in the same income tax year, net rental income, salary or 8 earnings, and net income from self-employment, but shall not include a 9 return of capital, gifts, inheritances, payments made to individuals 10 because of their status as victims of Nazi persecution, as defined in 11 P.L. 103-286 or monies earned through employment in the federal foster 12 grandparent program and any such income shall be offset by all medical 13 and prescription drug expenses actually paid which were not reimbursed 14 or paid for by insurance, if the governing board of a municipality, 15 after a public hearing, adopts a local law, ordinance or resolution 16 providing therefor. In addition, an exchange of an annuity for an annui- 17 ty contract, which resulted in non-taxable gain, as determined in 18 section one thousand thirty-five of the internal revenue code, shall be 19 excluded from such income. Provided that such exclusion shall be based 20 on satisfactory proof that such an exchange was solely an exchange of an 21 annuity for an annuity contract that resulted in a non-taxable transfer 22 determined by such section of the internal revenue code. Furthermore, 23 such income shall not include the proceeds of a reverse mortgage, as 24 authorized by section six-h of the banking law, and sections two hundred 25 eighty and two hundred eighty-a of the real property law; provided, 26 however, that monies used to repay a reverse mortgage may not be 27 deducted from income, and provided additionally that any interest or 28 dividends realized from the investment of reverse mortgage proceeds 29 shall be considered income. The provisions of this paragraph notwith- 30 standing, such income shall not include veterans disability compen- 31 sation, as defined in Title 38 of the United States Code provided the 32 governing board of such municipality, after public hearing, adopts a 33 local law, ordinance or resolution providing therefor. In computing net 34 rental income and net income from self-employment no depreciation 35 deduction shall be allowed for the exhaustion, wear and tear of real or 36 personal property held for the production of income; 37 § 2. Paragraph (a) of subdivision 5 of section 459-c of the real prop- 38 erty tax law, as amended by chapter 131 of the laws of 2017, is amended 39 to read as follows: 40 (a) if the income of the owner or the combined income of the owners of 41 the property for the income tax year immediately preceding the date of 42 making application for exemption exceeds the sum of three thousand 43 dollars, or such other sum not less than three thousand dollars nor more 44 than twenty-six thousand dollars beginning July first, two thousand six, 45 twenty-seven thousand dollars beginning July first, two thousand seven, 46 twenty-eight thousand dollars beginning July first, two thousand eight, 47 twenty-nine thousand dollars beginning July first, two thousand nine, 48 and fifty thousand dollars beginning July first, two thousand seventeen, 49 and in a city with a population of one million or more fifty thousand 50 dollars beginning July first, two thousand seventeen, as may be provided 51 by the local law or resolution adopted pursuant to this section. Income 52 tax year shall mean the twelve month period for which the owner or 53 owners filed a federal personal income tax return, or if no such return 54 is filed, the calendar year. Where title is vested in either the husband 55 or the wife, their combined income may not exceed such sum, except where 56 the husband or wife, or ex-husband or ex-wife is absent from the proper-S. 772--A 3 1 ty due to divorce, legal separation or abandonment, then only the income 2 of the spouse or ex-spouse residing on the property shall be considered 3 and may not exceed such sum. Such income shall include social security 4 and retirement benefits, interest, dividends, total gain from the sale 5 or exchange of a capital asset which may be offset by a loss from the 6 sale or exchange of a capital asset in the same income tax year, net 7 rental income, salary or earnings, and net income from self-employment, 8 but shall not include a return of capital, gifts, inheritances or monies 9 earned through employment in the federal foster grandparent program and 10 any such income shall be offset by all medical and prescription drug 11 expenses actually paid which were not reimbursed or paid for by insur- 12 ance, if the governing board of a municipality, after a public hearing, 13 adopts a local law or resolution providing therefor. In computing net 14 rental income and net income from self-employment no depreciation 15 deduction shall be allowed for the exhaustion, wear and tear of real or 16 personal property held for the production of income; 17 § 3. This act shall take effect immediately.