Bill Text: NY S01451 | 2019-2020 | General Assembly | Introduced

Bill Title: Allows for increases in the amount of income property owners may earn for purposes of qualification for certain tax exemptions.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2019-01-15 - REFERRED TO AGING [S01451 Detail]

Download: New_York-2019-S01451-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 15, 2019
        Introduced by Sens. HOYLMAN, CARLUCCI -- read twice and ordered printed,
          and when printed to be committed to the Committee on Aging
        AN  ACT  to amend the real property tax law, in relation to allowing for
          increases in the  amount  of  income  property  owners  may  earn  for
          purposes of qualification for certain tax exemptions
          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
     8  more than twenty-six thousand dollars beginning July first, two thousand
     9  six,  twenty-seven  thousand  dollars beginning July first, two thousand
    10  seven, twenty-eight thousand dollars beginning July first, two  thousand
    11  eight,  twenty-nine],  fifty  thousand dollars beginning July first, two
    12  thousand [nine] nineteen, and in a city with a population of one million
    13  or more fifty thousand dollars beginning July first, two thousand seven-
    14  teen, as may be provided by  the  local  law,  ordinance  or  resolution
    15  adopted  pursuant  to  this  section;  provided, however, beginning July
    16  first, two thousand twenty-one and every two years thereafter, the maxi-
    17  mum allowable income shall increase by the product of the average annual
    18  percentage changes in the consumer price index for all  urban  consumers
    19  (CPI-U)  as published by the United States department of labor bureau of
    20  labor statistics for the two year period  rounded  to  the  nearest  one
    21  thousand  dollars.    Income tax year shall mean the twelve month period
    22  for which the owner or  owners  filed  a  federal  personal  income  tax
    23  return, or if no such return is filed, the calendar year. Where title is
    24  vested  in either the husband or the wife, their combined income may not
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 1451                             2
     1  exceed such sum, except where the husband  or  wife,  or  ex-husband  or
     2  ex-wife  is absent from the property as provided in subparagraph (ii) of
     3  paragraph (d) of this subdivision, then only the income of the spouse or
     4  ex-spouse  residing  on  the  property  shall  be considered and may not
     5  exceed such sum. Such income shall include social security  and  retire-
     6  ment benefits, interest, dividends, total gain from the sale or exchange
     7  of  a  capital  asset  which  may  be  offset by a loss from the sale or
     8  exchange of a capital asset in the same  income  tax  year,  net  rental
     9  income,  salary  or  earnings,  and net income from self-employment, but
    10  shall not include a return of  capital,  gifts,  inheritances,  payments
    11  made  to  individuals  because of their status as victims of Nazi perse-
    12  cution, as defined in P.L. 103-286 or monies earned  through  employment
    13  in  the  federal foster grandparent program and any such income shall be
    14  offset by all medical and prescription drug expenses actually paid which
    15  were not reimbursed or paid for by insurance, if the governing board  of
    16  a municipality, after a public hearing, adopts a local law, ordinance or
    17  resolution  providing  therefor.  In addition, an exchange of an annuity
    18  for an annuity contract, which resulted in non-taxable gain,  as  deter-
    19  mined  in section one thousand thirty-five of the internal revenue code,
    20  shall be excluded from such income. Provided that such  exclusion  shall
    21  be  based  on  satisfactory  proof  that  such an exchange was solely an
    22  exchange of an annuity for an annuity contract that resulted in  a  non-
    23  taxable  transfer  determined  by  such  section of the internal revenue
    24  code. Furthermore, such income shall  not  include  the  proceeds  of  a
    25  reverse mortgage, as authorized by section six-h of the banking law, and
    26  sections two hundred eighty and two hundred eighty-a of the real proper-
    27  ty  law; provided, however, that monies used to repay a reverse mortgage
    28  may not be deducted from income,  and  provided  additionally  that  any
    29  interest  or  dividends realized from the investment of reverse mortgage
    30  proceeds shall be considered income. The provisions  of  this  paragraph
    31  notwithstanding,  such  income  shall  not  include  veterans disability
    32  compensation, as defined in Title 38 of the United States Code  provided
    33  the governing board of such municipality, after public hearing, adopts a
    34  local  law, ordinance or resolution providing therefor. In computing net
    35  rental income  and  net  income  from  self-employment  no  depreciation
    36  deduction  shall be allowed for the exhaustion, wear and tear of real or
    37  personal property held for the production of income;
    38    § 2. This act shall take effect immediately.