Bill Text: NY S03609 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to income requirements for the real property school tax exemption granted to certain persons sixty-five years of age or over in high-appreciation municipalities; defines "high-appreciation municipality".

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2019-02-11 - REFERRED TO AGING [S03609 Detail]

Download: New_York-2019-S03609-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
            S. 3609                                                  A. 5335
                               2019-2020 Regular Sessions
                SENATE - ASSEMBLY
                                    February 11, 2019
                                       ___________
        IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
          ed, and when printed to be committed to the Committee on Aging
        IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
          to the Committee on Aging
        AN ACT to amend the  real  property  tax  law,  in  relation  to  income
          requirements  for  the  real  property school tax exemption granted to
          persons sixty-five years of age or over in  high-appreciation  munici-
          palities
          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  [and]  in a city with a population of one million or more fifty thousand
    13  dollars beginning July first, two thousand seventeen, and fifty thousand
    14  dollars beginning July first, two thousand nineteen in a  county,  city,
    15  town,  village  or school district which is a "high-appreciation munici-
    16  pality", as may be provided by the local law,  ordinance  or  resolution
    17  adopted  pursuant  to  this section.   For purposes of this paragraph, a
    18  "high-appreciation municipality" means: (i)  a  special  assessing  unit
    19  that is a city, (ii) a county for which the commissioner has established
    20  a  sales  price  differential  factor for purposes of the STAR exemption
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03208-01-9

        S. 3609                             2                            A. 5335
     1  authorized by section four hundred twenty-five of this  title  in  three
     2  consecutive  years,  and  (iii) a city, town, village or school district
     3  which is wholly or partly located within such a county. Income tax  year
     4  shall mean the twelve month period for which the owner or owners filed a
     5  federal  personal  income tax return, or if no such return is filed, the
     6  calendar year. Where title is vested in either the husband or the  wife,
     7  their  combined income may not exceed such sum, except where the husband
     8  or wife, or ex-husband  or  ex-wife  is  absent  from  the  property  as
     9  provided in subparagraph (ii) of paragraph (d) of this subdivision, then
    10  only  the  income  of  the  spouse or ex-spouse residing on the property
    11  shall be considered and may not  exceed  such  sum.  Such  income  shall
    12  include  social  security  and retirement benefits, interest, dividends,
    13  total gain from the sale or exchange of a capital  asset  which  may  be
    14  offset  by  a  loss  from the sale or exchange of a capital asset in the
    15  same income tax year, net rental income, salary  or  earnings,  and  net
    16  income  from self-employment, but shall not include a return of capital,
    17  gifts, inheritances, payments  made  to  individuals  because  of  their
    18  status  as  victims  of  Nazi persecution, as defined in P.L. 103-286 or
    19  monies earned through  employment  in  the  federal  foster  grandparent
    20  program  and  any  such  income  shall  be  offset  by  all  medical and
    21  prescription drug expenses actually paid which were  not  reimbursed  or
    22  paid for by insurance, if the governing board of a municipality, after a
    23  public  hearing,  adopts  a local law, ordinance or resolution providing
    24  therefor. In  addition,  an  exchange  of  an  annuity  for  an  annuity
    25  contract,  which  resulted in non-taxable gain, as determined in section
    26  one thousand thirty-five of the internal revenue code, shall be excluded
    27  from such income. Provided that such exclusion shall be based on  satis-
    28  factory proof that such an exchange was solely an exchange of an annuity
    29  for  an  annuity contract that resulted in a non-taxable transfer deter-
    30  mined by such section of the internal revenue  code.  Furthermore,  such
    31  income  shall not include the proceeds of a reverse mortgage, as author-
    32  ized by section six-h of the  banking  law,  and  sections  two  hundred
    33  eighty  and  two  hundred  eighty-a  of the real property law; provided,
    34  however, that monies used  to  repay  a  reverse  mortgage  may  not  be
    35  deducted  from  income,  and  provided additionally that any interest or
    36  dividends realized from the  investment  of  reverse  mortgage  proceeds
    37  shall  be  considered  income. The provisions of this paragraph notwith-
    38  standing, such income shall  not  include  veterans  disability  compen-
    39  sation,  as  defined  in Title 38 of the United States Code provided the
    40  governing board of such municipality, after  public  hearing,  adopts  a
    41  local  law, ordinance or resolution providing therefor. In computing net
    42  rental income  and  net  income  from  self-employment  no  depreciation
    43  deduction  shall be allowed for the exhaustion, wear and tear of real or
    44  personal property held for the production of income;
    45    § 2. This act shall take effect immediately.
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