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 - Dead) 2020-01-08 - 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. LBD03208-01-9S. 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.