Bill Text: NY S07420 | 2011-2012 | General Assembly | Introduced

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Bill Title: Exempts single lump-sum payments from litigation from the definition of "income" for the purpose of the enhanced STAR exemption, when such payment does not exceed twice the income standard for the assessment roll.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2012-05-11 - REFERRED TO LOCAL GOVERNMENT [S07420 Detail]

Download: New_York-2011-S07420-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7420
                                   I N  S E N A T E
                                     May 11, 2012
                                      ___________
       Introduced  by  Sen. JOHNSON -- read twice and ordered printed, and when
         printed to be committed to the Committee on Local Government
       AN ACT to amend the real property tax  law,  in  relation  to  exempting
         certain  lump-sum  payments from inclusion as "income" for purposes of
         the enhanced school tax relief exemption
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Clause (C) of subparagraph (i) of paragraph (b) of subdivi-
    2  sion  4  of  section  425  of  the  real property tax law, as amended by
    3  section 3 of part E of chapter 83 of the laws of  2002,  is  amended  to
    4  read as follows:
    5    (C)  For  final assessment rolls to be completed in each ensuing year,
    6  the applicable income tax year, cost-of-living-adjustment percentage and
    7  applicable increase percentage shall all be advanced by  one  year,  and
    8  the  income  standard shall be the previously-applicable income standard
    9  increased by the new cost-of-living-adjustment  percentage.    UNDER  NO
   10  CIRCUMSTANCE  SHALL THE DEPARTMENT OR ANY ASSESSOR PROVIDE FOR OR ESTAB-
   11  LISH AN APPLICABLE INCOME TAX  YEAR  WHICH  DOES  NOT  COMPLY  WITH  THE
   12  PROVISIONS  OF THIS CLAUSE. If there should be a year for which there is
   13  no applicable increase percentage due to a general benefit  increase  as
   14  defined  by  subdivision three of subsection (i) of section four hundred
   15  fifteen of title forty-two of the United  States  code,  the  applicable
   16  increase  percentage for purposes of this computation shall be deemed to
   17  be  the  percentage  which  would  have  yielded  that  general  benefit
   18  increase.
   19    S  2.  Subparagraph  (ii) of paragraph (b) of subdivision 4 of section
   20  425 of the real property tax law, as amended by section 3 of part  E  of
   21  chapter 83 of the laws of 2002, is amended to read as follows:
   22    (ii)  The  term "income" as used herein shall mean the "adjusted gross
   23  income" for federal income tax purposes as reported on  the  applicant's
   24  federal  or  state income tax return for the applicable income tax year,
   25  subject to any subsequent amendments or revisions, reduced  by  distrib-
   26  utions,  to  the  extent  included  in  federal  adjusted  gross income,
   27  received from an individual retirement account and an individual retire-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD15760-02-2
       S. 7420                             2
    1  ment annuity; PROVIDED, HOWEVER, THAT SUCH TERM SHALL  NOT  INCLUDE  ANY
    2  INCOME  FROM  A  SINGLE LUMP-SUM PAYMENT ACCRUING TO THE TAXPAYER AS THE
    3  RESULT OF COMPENSATION PAID PURSUANT TO A CAUSE OF  ACTION,  WHICH  DOES
    4  NOT EXCEED, LESS ANY ATTORNEY'S FEES, TWICE THE AMOUNT OF THE APPLICABLE
    5  INCOME  STANDARD  FOR THE ASSESSMENT ROLL; provided, FURTHER, that if no
    6  such return was filed for the applicable income tax year, "income" shall
    7  mean the adjusted gross income that would have been so reported if  such
    8  a return had been filed.
    9    S  3.  Subparagraph  (vi) of paragraph (b) of subdivision 4 of section
   10  425 of the real property tax law is amended by adding a new clause (C-1)
   11  to read as follows:
   12    (C-1) APPLICATIONS SUBMITTED BY A PERSON OR PERSONS WHO HAVE  RECEIVED
   13  A  LUMP-SUM  PAYMENT  AS  THE  RESULT OF COMPENSATION PAID PURSUANT TO A
   14  CAUSE OF ACTION;
   15    S 4.  Notwithstanding any provision of law to the contrary, any person
   16  who was denied eligibility for the enhanced school tax relief exemption,
   17  pursuant to section 425 of the real property tax law, after  January  1,
   18  2011 and before the date upon which this act shall have become a law and
   19  who  would  have  been  eligible  for  such  exemption  pursuant  to the
   20  provisions of this act,  may  retroactively  apply  to  the  appropriate
   21  assessor,  within 180 days of the date this act shall have become a law,
   22  for the exemption. If the assessor shall find that any such applicant is
   23  eligible for the enhanced exemption, the education department shall  pay
   24  the  applicant  the  difference  between  the tax savings, as determined
   25  pursuant to section 1306-a of the real property tax law,  the  applicant
   26  would have received with the enhanced exemption and the tax savings from
   27  the school tax relief exemption that the applicant received.
   28    S  5.  This  act  shall take effect immediately, and the provisions of
   29  section one of this act shall be deemed to have been in full  force  and
   30  effect on and after January 1, 2011.