Bill Text: NY S01147 | 2025-2026 | General Assembly | Introduced
Bill Title: Creates an enhanced real property tax circuit breaker credit.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-01-08 - REFERRED TO BUDGET AND REVENUE [S01147 Detail]
Download: New_York-2025-S01147-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1147 2025-2026 Regular Sessions IN SENATE January 8, 2025 ___________ Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue AN ACT to amend the tax law, in relation to creating an enhanced real property tax circuit breaker credit 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 (e-3) to read as follows: 3 (e-3) Enhanced real property tax circuit breaker credit. (1) For 4 purposes of this subsection: 5 (A) "Qualified taxpayer" means a resident individual of the state, who 6 (i) is a resident of a city with a population over one million, (ii) has 7 occupied the same residence for six months or more of the taxable year, 8 and (iii) is required or chooses to file a return under this article. 9 (B) "Household" or "members of the household" means a qualified 10 taxpayer and all other persons, not necessarily related, who have the 11 same residence and share its furnishings, facilities and accommodations. 12 Such terms shall not include a tenant, subtenant, roomer or boarder who 13 is not related to the qualified taxpayer in any degree specified in 14 subparagraphs (A) through (G) of paragraph two of subsection (d) of 15 section one hundred fifty-two of the internal revenue code. Provided, 16 however, no person may be a member of more than one household at one 17 time. 18 (C) "Household gross income" means the aggregate adjusted gross income 19 of all members of the household for the taxable year as reported for 20 federal income tax purposes, or which would be reported as adjusted 21 gross income if a federal income tax return were required to be filed, 22 with the modifications in subsection (b) of section six hundred twelve 23 of this article but without the modifications in subsection (c) of such 24 section, plus any portion of the gain from the sale or exchange of prop- 25 erty otherwise excluded from such amount; earned income from sources EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02242-01-5S. 1147 2 1 without the United States excludable from federal gross income by 2 section nine hundred eleven of the internal revenue code; support money 3 not included in adjusted gross income; nontaxable strike benefits; 4 supplemental security income payments; the gross amount of any pension 5 or annuity benefits to the extent not included in such adjusted gross 6 income (including, but not limited to, railroad retirement benefits and 7 all payments received under the federal social security act and veter- 8 ans' disability pensions); nontaxable interest received from the state 9 of New York, its agencies, instrumentalities, public corporations, or 10 political subdivisions (including a public corporation created pursuant 11 to agreement or compact with another state or Canada); workers' compen- 12 sation; the gross amount of "loss-of-time" insurance; and the amount of 13 cash public assistance and relief, other than medical assistance for the 14 needy, paid to or for the benefit of the qualified taxpayer or members 15 of such taxpayer's household. Household gross income shall not include 16 surplus foods or other relief in kind or payments made to individuals 17 because of their status as victims of Nazi persecution as defined in 18 P.L. 103-286. Provided, further, household gross income shall only 19 include all such income received by all members of the household while 20 members of such household. In computing household gross income, the net 21 amount of loss reported on Federal Schedule C, D, E, or F shall not 22 exceed three thousand dollars per schedule. In addition, the net amount 23 of any other separate category of loss shall not exceed three thousand 24 dollars. The aggregate amount of all losses included in computing house- 25 hold gross income shall not exceed fifteen thousand dollars. 26 (D) "Residence" means a dwelling in this state, in a city with a popu- 27 lation of over one million, owned or rented by the taxpayer, and so much 28 of the land abutting it, not exceeding one acre, as is reasonably neces- 29 sary for use of the dwelling as a home, and may consist of a part of a 30 multi-dwelling or multi-purpose building including a cooperative or 31 condominium, and rental units within a single dwelling. Residence 32 includes a trailer or mobile home, used exclusively for residential 33 purposes and defined as real property pursuant to paragraph (g) of 34 subdivision twelve of section one hundred two of the real property tax 35 law. 36 (E) "Qualifying real property taxes" means all real property taxes, 37 special ad valorem levies and special assessments, exclusive of penal- 38 ties and interest, levied on the residence of a qualified taxpayer and 39 paid during the taxable year. A qualified taxpayer may elect to include 40 any additional amount that would have been levied in the absence of an 41 exemption from real property taxation pursuant to section four hundred 42 sixty-seven of the real property tax law. If tenant-stockholders in a 43 cooperative housing corporation have met the requirements of section two 44 hundred sixteen of the internal revenue code by which they are allowed a 45 deduction for real estate taxes, the amount of taxes so allowable, or 46 which would be allowable if the taxpayer had filed returns on a cash 47 basis, shall be qualifying real property taxes. If a residence is owned 48 by two or more individuals as joint tenants or tenants in common, and 49 one or more than one individual is not a member of the household, quali- 50 fying real property taxes is that part of such taxes on the residence 51 which reflects the ownership percentage of the qualified taxpayer and 52 members of such taxpayer's household. If a residence is an integral part 53 of a larger unit, qualifying real property taxes shall be limited to 54 that amount of such taxes paid as may be reasonably apportioned to such 55 residence. If a household owns and occupies two or more residences 56 during different periods in the same taxable year, qualifying real prop-S. 1147 3 1 erty taxes shall be the sum of the prorated qualifying real property 2 taxes attributable to the household during the periods such household 3 occupies each of such residences. If the household owns and occupies a 4 residence for part of the taxable year and rents a residence for part of 5 the same taxable year, it may include the proration of qualifying real 6 property taxes on the residence owned. Provided, however, for purposes 7 of the credit allowed under this subsection, qualifying real property 8 taxes may be included by a qualified taxpayer only to the extent that 9 such taxpayer or the spouse of such taxpayer, occupying such residence 10 for one hundred eighty-three days or more of the taxable year, owns or 11 has owned the residence and paid such taxes. 12 (F) "Real property tax equivalent" means fifteen and three-quarters 13 percent of the adjusted rent actually paid in the taxable year by a 14 household solely for the right of occupancy of its New York residence 15 for the taxable year. If (i) a residence is rented to two or more indi- 16 viduals as cotenants, or such individuals share in the payment of a 17 single rent for the right of occupancy of such residence, and (ii) each 18 of such individuals is a member of a different household, one or more of 19 which individuals shares such residence, real property tax equivalent is 20 that portion of fifteen and three-quarters percent of the adjusted rent 21 paid in the taxable year which reflects that portion of the rent attrib- 22 utable to the qualified taxpayer and the members of such taxpayer's 23 household. 24 (G) "Adjusted rent" means rental paid for the right of occupancy of a 25 residence, excluding charges for heat, gas, electricity, furnishings and 26 board. Where charges for heat, gas, electricity, furnishings or board 27 are included in rental but where such charges and the amount thereof are 28 not separately set forth in a written rental agreement, for purposes of 29 determining adjusted rent the qualified taxpayer shall reduce rental 30 paid as follows: 31 (i) For heat, or heat and gas, deduct six percent of rental paid. 32 (ii) For heat, gas and electricity, deduct eight percent of rental 33 paid. 34 (iii) For heat, gas, electricity and furnishings, deduct ten percent 35 of rental paid. 36 (iv) For heat, gas, electricity, furnishings and board, deduct twenty 37 percent of rental paid. 38 If the commissioner determines that the adjusted rent shown on the 39 return is excessive, the commissioner may reduce such rent, for purposes 40 of the computation of the credit, to an amount substantially equivalent 41 to rent for a comparable accommodation. 42 (2) A qualified taxpayer shall be allowed a credit as provided in 43 paragraph three of this subsection against the taxes imposed by this 44 article reduced by the credits permitted by this article. If the credit 45 exceeds the tax as so reduced for such year under this article, the 46 excess shall be treated as an overpayment, to be credited or refunded, 47 without interest. If a qualified taxpayer is not required to file a 48 return pursuant to section six hundred fifty-one of this article, a 49 qualified taxpayer may nevertheless receive the full amount of the cred- 50 it to be credited or repaid as an overpayment, without interest. 51 (3) Determination of credit. The amount of the credit allowable under 52 this subsection shall be determined as follows: 53 If household gross income Excess real property The credit amount is 54 for the taxable year is: taxes are the excess the following 55 of real property tax percentage of excess 56 equivalent or the property taxes:S. 1147 4 1 excess of qualifying 2 real property taxes 3 over the following 4 percentage of 5 household gross 6 income: 7 Less than $100,000 2 15 8 $100,000 to less than 2.5 10 9 $150,000 10 $150,000 to less than 3 5 11 $200,000 12 (4) If a qualified taxpayer occupies a residence for a period of less 13 than twelve months during the taxable year or occupies two or more resi- 14 dences during different periods in such taxable year, the credit allowed 15 pursuant to this subsection shall be computed in such manner as the 16 commissioner may, by regulation, prescribe in order to properly reflect 17 the credit or portion thereof attributable to such residence or resi- 18 dences and such period or periods. 19 (5) The commissioner may prescribe that the credit under this 20 subsection shall be determined in whole or in part by the use of tables 21 prescribed by such commissioner. Such tables shall set forth the credit 22 to the nearest dollar. 23 (6) Only one credit per household and per qualified taxpayer shall be 24 allowed per taxable year under this subsection. When two or more members 25 of a household are able to meet the qualifications for a qualified 26 taxpayer, the credit shall be equally divided between or among such 27 individuals unless such individuals file with the commissioner a written 28 agreement among such individuals setting forth a different division. 29 (A) Provided, however, where a joint income tax return has been filed 30 pursuant to the provisions of section six hundred fifty-one of this 31 article by a qualified taxpayer and their spouse (or where both spouses 32 are qualified taxpayers and have filed such joint return), the credit, 33 or the portion of the credit if divided, to which the spouses are enti- 34 tled shall be applied against the tax of both spouses and any overpay- 35 ment shall be made to both spouses. 36 (B) Where any return required to be filed pursuant to the provisions 37 of section six hundred fifty-one of this article is combined with any 38 return of tax imposed pursuant to the authority of this chapter or any 39 other law if such tax is administered by the commissioner, the credit or 40 the portion of the credit if divided, allowed to the qualified taxpayer 41 may be applied by the commissioner toward any liability for the afore- 42 mentioned taxes. 43 (7) No credit shall be granted under this subsection: 44 (A) If household gross income for the taxable year equals or exceeds 45 two hundred thousand dollars. 46 (B) To a property owner unless: (i) the property is used for residen- 47 tial purposes, (ii) not more than twenty percent of the rental income, 48 if any, from the property is from rental for nonresidential purposes and 49 (iii) the property is occupied as a residence in whole or in part by one 50 or more of the owners of the property. 51 (C) To an individual with respect to whom a deduction under subsection 52 (c) of section one hundred fifty-one of the internal revenue code is 53 allowable to another taxpayer for the taxable year. 54 (D) With respect to a residence that is wholly exempted from real 55 property taxation.S. 1147 5 1 (E) To an individual who is not a resident individual of a city, with- 2 in the state, with a population over one million, for the entire taxable 3 year. 4 (8) The right to claim a credit or the portion of a credit, where such 5 credit has been divided under this subsection, shall be personal to the 6 qualified taxpayer and shall not survive their death, but such right may 7 be exercised on behalf of a claimant by their legal guardian or attorney 8 in fact during their lifetime. 9 (9) Returns. If a qualified taxpayer is not required to file a return 10 pursuant to section six hundred fifty-one of this article, a claim for a 11 credit may be taken on a return filed with the commissioner within three 12 years from the time it would have been required that a return be filed 13 pursuant to such section had the qualified taxpayer had a taxable year 14 ending on December thirty-first. Returns under this paragraph shall be 15 in such form as shall be prescribed by the commissioner, which shall 16 make available such forms and instructions for filing such returns. 17 (10) Proof of claim. The commissioner may require a qualified taxpayer 18 to furnish the following information in support of their claim for cred- 19 it under this subsection: household gross income, real property taxes 20 levied or that would have been levied in the absence of an exemption 21 from real property tax pursuant to section four hundred sixty-seven of 22 the real property tax law, the names of members of the household and 23 other qualifying taxpayers occupying the same residence and their iden- 24 tifying numbers including social security numbers, household gross 25 income, size and nature of property claimed as residence and all other 26 information which may be required by the commissioner to determine the 27 credit. 28 (11) Administration. The provisions of this article, including the 29 provisions of sections six hundred fifty-three, six hundred fifty-eight, 30 and six hundred fifty-nine of this article and the provisions of part 31 six of this article relating to procedure and administration, including 32 the judicial review of the decisions of the commissioner, except so much 33 of section six hundred eighty-seven of this article which permits a 34 claim for credit or refund to be filed after the period provided for in 35 paragraph nine of this subsection and except sections six hundred 36 fifty-seven, six hundred eighty-eight and six hundred ninety-six of this 37 article, shall apply to the provisions of this subsection in the same 38 manner and with the same force and effect as if the language of those 39 provisions had been incorporated in full into this subsection and had 40 expressly referred to the credit allowed or returns filed under this 41 subsection, except to the extent that any such provision is either 42 inconsistent with a provision of this subsection or is not relevant to 43 this subsection. As used in such sections and such part, the term 44 "taxpayer" shall include a qualified taxpayer under this subsection and, 45 notwithstanding the provisions of subsection (e) of section six hundred 46 ninety-seven of this article, where a qualified taxpayer has protested 47 the denial of a claim for credit under this subsection and the time to 48 file a petition for redetermination of a deficiency or for refund has 49 not expired, he or she shall, subject to such conditions as may be set 50 forth by the commissioner, receive such information (A) which is 51 contained in any return filed under this article by a member of such 52 taxpayer's household for the taxable year for which the credit is 53 claimed, and (B) which the commissioner finds is relevant and material 54 to the issue of whether such claim was properly denied. 55 (12) Notwithstanding any other provision of this article, the credit 56 allowed under this subsection shall be determined after the determi-S. 1147 6 1 nation and application of any other credits permitted under the 2 provisions of this article. 3 (13) The commissioner shall prepare a written report after December 4 thirty-first of each calendar year, which shall contain statistical 5 information regarding the credits granted on or before such dates under 6 this subsection during such calendar year. Copies of the report shall be 7 submitted by the commissioner to the governor, the temporary president 8 of the senate, the speaker of the assembly, the chair of the senate 9 finance committee and the chair of the assembly ways and means committee 10 within forty-five days of December thirty-first. Such report shall 11 contain, but need not be limited to, the number of credits and the aver- 12 age amount of such credits allowed; and of those, the number of credits 13 and the average amount of such credits allowed to qualified taxpayers in 14 each county; and of those, the number of credits and the average amount 15 of such credits allowed to qualified taxpayers whose household gross 16 income falls within each of the household gross income ranges set forth 17 in paragraph three of this subsection. 18 § 2. This act shall take effect immediately and shall apply to taxable 19 years beginning on or after the first of January next succeeding the 20 date on which it shall have become a law.
