Bill Text: NY S00912 | 2011-2012 | General Assembly | Amended
Bill Title: Creates the middle class circuit breaker tax credit and a tax reform study commission.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2012-01-13 - PRINT NUMBER 912B [S00912 Detail]
Download: New_York-2011-S00912-Amended.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 912--B 2011-2012 Regular Sessions I N S E N A T E (PREFILED) January 5, 2011 ___________ Introduced by Sen. KRUEGER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee AN ACT to amend the tax law, in relation to creating the middle class circuit breaker tax credit and creating a tax reform study commission 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 (uu) to read as follows: 3 (UU) MIDDLE CLASS CIRCUIT BREAKER CREDIT. (1) DEFINITIONS. FOR THE 4 PURPOSES OF THIS SUBSECTION: 5 (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO 6 OWNS OR RENTS THE RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE RESIDES, 7 AND HAS RESIDED IN SUCH RESIDENTIAL REAL PROPERTY FOR NOT LESS THAN FIVE 8 YEARS. 9 (B) "HOUSEHOLD" OR "MEMBERS OF THE HOUSEHOLD" MEANS A QUALIFIED 10 TAXPAYER OR QUALIFIED TAXPAYERS AND ALL OTHER PERSONS, NOT NECESSARILY 11 RELATED, WHO ALL RESIDE IN THE RESIDENTIAL REAL PROPERTY OWNED BY THE 12 TAXPAYER OR TAXPAYERS, AND SHARE ITS FURNISHINGS, FACILITIES AND ACCOM- 13 MODATIONS; PROVIDED THAT NO PERSON MAY BE A MEMBER OF MORE THAN ONE 14 HOUSEHOLD AT ONE TIME. 15 (C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME 16 OF ALL MEMBERS OF THE HOUSEHOLD FOR THE TAXABLE YEAR AS REPORTED FOR 17 FEDERAL INCOME TAX PURPOSES, OR WHICH WOULD BE REPORTED AS ADJUSTED 18 GROSS INCOME IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED, EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03920-04-2 S. 912--B 2 1 WITH THE MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX HUNDRED TWELVE 2 OF THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF SUCH 3 SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP- 4 ERTY OTHERWISE EXCLUDED FROM SUCH AMOUNT; EARNED INCOME FROM SOURCES 5 WITHOUT THE UNITED STATES EXCLUDABLE FROM FEDERAL GROSS INCOME BY 6 SECTION NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT MONEY 7 NOT INCLUDED IN ADJUSTED GROSS INCOME; NONTAXABLE STRIKE BENEFITS; 8 SUPPLEMENTAL SECURITY INCOME PAYMENTS; THE GROSS AMOUNT OF ANY PENSION 9 OR ANNUITY BENEFITS TO THE EXTENT NOT INCLUDED IN SUCH ADJUSTED GROSS 10 INCOME (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS AND 11 ALL PAYMENTS RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT AND VETER- 12 ANS' DISABILITY PENSIONS); NONTAXABLE INTEREST RECEIVED FROM THE STATE 13 OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES, PUBLIC CORPORATIONS, OR 14 POLITICAL SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT 15 TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS' COMPEN- 16 SATION; THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT OF 17 CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE 18 NEEDY, PAID TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER OR MEMBERS 19 OF HIS OR HER HOUSEHOLD. HOUSEHOLD GROSS INCOME SHALL NOT INCLUDE 20 SURPLUS FOODS OR OTHER RELIEF IN KIND OR PAYMENTS MADE TO INDIVIDUALS 21 BECAUSE OF THEIR STATUS AS VICTIMS OF NAZI PERSECUTION AS DEFINED IN 22 PUBLIC LAW 103-286 OR ANY DISABILITY COMPENSATION RECEIVED BY VETERANS 23 ON ACCOUNT OF INJURY OR ILLNESS INCURRED OR AGGRAVATED DURING MILITARY 24 SERVICE IN THE WARS IN AFGHANISTAN AND IRAQ SINCE SEPTEMBER ELEVENTH, 25 TWO THOUSAND ONE. PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME SHALL ONLY 26 INCLUDE ALL SUCH INCOME RECEIVED BY ALL MEMBERS OF THE HOUSEHOLD WHILE 27 MEMBERS OF SUCH HOUSEHOLD. 28 (D) "ADJUSTED RENT" MEANS RENT PAID FOR THE RIGHT OF OCCUPANCY OF A 29 RESIDENCE. 30 (E) "REAL PROPERTY TAX EQUIVALENT" MEANS (1) FOR TAXABLE YEARS BEGIN- 31 NING IN TWO THOUSAND FOURTEEN, FIFTEEN PERCENT OF THE ADJUSTED RENT 32 ACTUALLY PAID IN THE TAXABLE YEAR BY A HOUSEHOLD SOLELY FOR THE RIGHT OF 33 OCCUPANCY OF ITS NEW YORK RESIDENCE FOR THE TAXABLE YEAR. IF (I) A RESI- 34 DENCE IS RENTED TO TWO OR MORE INDIVIDUALS AS COTENANTS, OR SUCH INDI- 35 VIDUALS SHARE IN THE PAYMENT OF A SINGLE RENT FOR THE RIGHT OF OCCUPANCY 36 OF SUCH RESIDENCE, AND (II) EACH OF SUCH INDIVIDUALS IS A MEMBER OF A 37 DIFFERENT HOUSEHOLD, ONE OR MORE OF WHICH INDIVIDUALS SHARES SUCH RESI- 38 DENCE, REAL PROPERTY TAX EQUIVALENT IS THAT PORTION OF FIFTEEN PERCENT 39 OF THE ADJUSTED RENT PAID IN THE TAXABLE YEAR WHICH REFLECTS THAT 40 PORTION OF THE RENT ATTRIBUTABLE TO THE QUALIFIED TAXPAYER AND THE 41 MEMBERS OF HIS OR HER HOUSEHOLD; AND (2) FOR TAXABLE YEARS BEGINNING IN 42 TWO THOUSAND FIFTEEN AND THEREAFTER, TWENTY PERCENT OF THE ADJUSTED RENT 43 ACTUALLY PAID IN THE TAXABLE YEAR BY A HOUSEHOLD SOLELY FOR THE RIGHT 44 OF OCCUPANCY OF ITS NEW YORK RESIDENCE FOR THE TAXABLE YEAR. IF (I) A 45 RESIDENCE IS RENTED TO TWO OR MORE INDIVIDUALS AS COTENANTS, OR SUCH 46 INDIVIDUALS SHARE IN THE PAYMENT OF A SINGLE RENT FOR THE RIGHT OF OCCU- 47 PANCY OF SUCH RESIDENCE, AND (II) EACH OF SUCH INDIVIDUALS IS A MEMBER 48 OF A DIFFERENT HOUSEHOLD, ONE OR MORE OF WHICH INDIVIDUALS SHARES SUCH 49 RESIDENCE, REAL PROPERTY TAX EQUIVALENT IS THAT PORTION OF TWENTY 50 PERCENT OF THE ADJUSTED RENT PAID IN THE TAXABLE YEAR WHICH REFLECTS 51 THAT PORTION OF THE RENT ATTRIBUTABLE TO THE QUALIFIED TAXPAYER AND THE 52 MEMBERS OF HIS OR HER HOUSEHOLD. 53 (F) "NET REAL PROPERTY TAX" MEANS THE REAL PROPERTY TAXES ASSESSED ON 54 THE RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED BY THE TAXPAYER OR 55 TAXPAYERS AFTER ANY EXEMPTION OR ABATEMENT RECEIVED PURSUANT TO THE REAL 56 PROPERTY TAX LAW. S. 912--B 3 1 (2) CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE 2 TAXES IMPOSED BY THIS ARTICLE, EQUAL TO SEVENTY PERCENT OF THE AMOUNT BY 3 WHICH THE TAXPAYER'S NET REAL PROPERTY TAX OR THE TAXPAYER'S REAL PROP- 4 ERTY TAX EQUIVALENT EXCEEDS THE TAXPAYER'S MAXIMUM REAL PROPERTY TAX, AS 5 DETERMINED BY PARAGRAPH THREE OF THIS SUBSECTION. IF SUCH CREDIT EXCEEDS 6 THE TAX FOR SUCH TAXABLE YEAR, AS REDUCED BY THE OTHER CREDITS PERMITTED 7 BY THIS ARTICLE, THE QUALIFIED TAXPAYER MAY RECEIVE, AND THE COMP- 8 TROLLER, SUBJECT TO A CERTIFICATE OF THE DEPARTMENT, SHALL PAY AS AN 9 OVERPAYMENT, WITHOUT INTEREST, ANY EXCESS BETWEEN SUCH TAX AS SO REDUCED 10 AND THE AMOUNT OF THE CREDIT. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO 11 FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, 12 A QUALIFIED TAXPAYER MAY NEVERTHELESS RECEIVE AND THE COMPTROLLER, 13 SUBJECT TO A CERTIFICATE OF THE DEPARTMENT, SHALL PAY AS AN OVERPAYMENT 14 THE FULL AMOUNT OF THE CREDIT, WITHOUT INTEREST. 15 (3) MAXIMUM REAL PROPERTY TAX. (A) A QUALIFIED TAXPAYER'S MAXIMUM REAL 16 PROPERTY TAX SHALL BE DETERMINED AS FOLLOWS: 17 (I) FOR TAX YEARS BEGINNING IN TWO THOUSAND THIRTEEN: 18 HOUSEHOLD GROSS INCOME MAXIMUM REAL PROPERTY TAX 19 ONE HUNDRED THOUSAND NINE PERCENT OF THE 20 DOLLARS OR LESS HOUSEHOLD GROSS INCOME 21 MORE THAN ONE HUNDRED NO LIMITATION. 22 THOUSAND DOLLARS 23 (II) FOR TAX YEARS BEGINNING IN TWO THOUSAND FOURTEEN: 24 HOUSEHOLD GROSS INCOME MAXIMUM REAL PROPERTY TAX 25 ONE HUNDRED THOUSAND EIGHT AND ONE-HALF PERCENT OF THE 26 DOLLARS OR LESS HOUSEHOLD GROSS INCOME 27 MORE THAN ONE HUNDRED NO LIMITATION. 28 THOUSAND DOLLARS 29 (III) FOR TAX YEARS BEGINNING IN TWO THOUSAND FIFTEEN: 30 HOUSEHOLD GROSS INCOME MAXIMUM REAL PROPERTY TAX 31 ONE HUNDRED THOUSAND DOLLARS SEVEN AND ONE-HALF PERCENT OF 32 OR LESS HOUSEHOLD GROSS INCOME 33 MORE THAN ONE HUNDRED THOUSAND SEVEN AND ONE-HALF PERCENT OF 34 DOLLARS, BUT LESS THAN OR EQUAL TO ONE HUNDRED THOUSAND DOLLARS 35 ONE HUNDRED FIFTY THOUSAND DOLLARS PLUS EIGHT AND ONE-HALF PERCENT OF 36 HOUSEHOLD GROSS INCOME ABOVE 37 ONE HUNDRED THOUSAND DOLLARS 38 MORE THAN ONE HUNDRED FIFTY NO LIMITATION. 39 THOUSAND DOLLARS 40 (IV) FOR TAX YEARS BEGINNING IN TWO THOUSAND SIXTEEN AND THEREAFTER: 41 HOUSEHOLD GROSS INCOME MAXIMUM REAL PROPERTY TAX 42 ONE HUNDRED THOUSAND SIX PERCENT OF HOUSEHOLD GROSS 43 DOLLARS OR LESS INCOME 44 MORE THAN ONE HUNDRED THOUSAND SIX PERCENT OF ONE HUNDRED 45 DOLLARS, BUT LESS THAN OR EQUAL TO THOUSAND DOLLARS PLUS SEVEN 46 ONE HUNDRED FIFTY THOUSAND DOLLARS PERCENT OF HOUSEHOLD GROSS INCOME 47 ABOVE ONE HUNDRED THOUSAND DOLLARS 48 MORE THAN ONE HUNDRED FIFTY SIX PERCENT OF ONE HUNDRED THOUSAND 49 THOUSAND DOLLARS, BUT LESS THAN DOLLARS PLUS SEVEN 50 OR EQUAL TO TWO HUNDRED FIFTY PERCENT OF FIFTY THOUSAND DOLLARS 51 THOUSAND DOLLARS PLUS EIGHT AND ONE-HALF PERCENT OF 52 HOUSEHOLD GROSS INCOME ABOVE ONE S. 912--B 4 1 HUNDRED FIFTY THOUSAND DOLLARS 2 MORE THAN TWO HUNDRED FIFTY NO LIMITATION. 3 THOUSAND DOLLARS 4 (B) THE THRESHOLDS OF HOUSEHOLD GROSS INCOME ESTABLISHED BY CLAUSE 5 (IV) OF SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE INDEXED FOR 6 INFLATION FOR TAX YEARS BEGINNING IN TWO THOUSAND SEVENTEEN AND THERE- 7 AFTER. 8 (4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS 9 SUBSECTION IF THE QUALIFIED TAXPAYER CLAIMS THE REAL PROPERTY TAX 10 CIRCUIT BREAKER CREDIT, PURSUANT TO SUBSECTION (E) OF THIS SECTION, 11 DURING THE TAXABLE YEAR. 12 S 2. There is hereby established a tax reform study commission to 13 provide the governor and the legislature with a long run plan for 14 reforming the state and local tax systems. The tax reform study commis- 15 sion shall consist of five members appointed by the governor, four 16 members each appointed by the speaker of the assembly and the temporary 17 president of the senate, and one member each appointed by the minority 18 leader of the senate and the minority leader of the assembly. In addi- 19 tion, on or before January 1, 2015, the tax reform study commission 20 shall provide the governor and the legislature with recommendations on 21 any changes that should be made in the definitions of income used in the 22 various property tax relief programs authorized by the laws of the state 23 of New York. Such recommendations shall be based on an examination of 24 such laws and of such laws in other states. In preparing such recommen- 25 dations, the tax reform study commission shall review the distributional 26 impact of the items of income included in the definition of household 27 income for purposes of the circuit breaker and other property tax relief 28 programs established by state law and make recommendations to the gover- 29 nor and the legislature for any changes in any of these definitions that 30 the tax reform study commission deems appropriate. The commissioner of 31 taxation and finance and the director of the office of real property 32 services shall provide the tax reform study commission with such data 33 and analysis as it may require. 34 S 3. This act shall take effect immediately.