Bill Text: NY S07803 | 2017-2018 | General Assembly | Introduced

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Bill Title: Increases the income thresholds for eligibility for the senior citizen and disabled person property tax exemptions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-02-27 - REFERRED TO LOCAL GOVERNMENT [S07803 Detail]

Download: New_York-2017-S07803-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          7803
                    IN SENATE
                                    February 27, 2018
                                       ___________
        Introduced  by Sen. CARLUCCI -- 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  the  senior
          citizen and disabled property owner exemption
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Paragraph (b) of subdivision 1 of section 467 of  the  real
     2  property tax law, as amended by chapter 261 of the laws of 1994, subpar-
     3  agraph 3 as added by chapter 402 of the laws of 1995, is amended to read
     4  as follows:
     5    (b)  (1)  Any  local  law, ordinance or resolution adopted pursuant to
     6  paragraph (a) of this subdivision may be amended, or a local law,  ordi-
     7  nance  or  resolution  may  be adopted, to provide an exemption so as to
     8  increase the maximum income eligibility level of such  municipal  corpo-
     9  ration  as provided in subdivision three of this section (represented in
    10  the hereinbelow schedule as M), to the extent provided in the  following
    11  schedule:
    12    ANNUAL INCOME                         PERCENTAGE ASSESSED VALUATION
    13                                          EXEMPT FROM TAXATION
    14  More than (M) but
    15       [less than (M+ $1,000)                  45 per centum
    16  (M+ $1,000 or more) but
    17       less than (M+ $2,000)                   40 per centum
    18  (M+ $2,000 or more) but]
    19       less than (M+ [$3,000] $10,000)         35 per centum
    20  [(M+ $3,000 or more) but
    21       less than (M+ $3,900)                   30 per centum
    22  (M+ $3,900 or more) but
    23       less than (M+ $4,800)                   25 per centum
    24  (M+ $4,800 or more) but
    25       less than (M+ $5,700)                   20 per centum]
    26    (2) Any local law, ordinance or resolution adopted pursuant to subpar-
    27  agraph  one  of this paragraph may be amended, or a local law, ordinance
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14420-02-8
        S. 7803                             2
     1  or resolution may be adopted, to provide an exemption so as to  increase
     2  the  maximum  income  eligibility level of such municipal corporation as
     3  provided in subdivision three of this section (represented in the  here-
     4  inbelow schedule as M), and as increased as provided for in such subpar-
     5  agraph one to the extent provided in the following schedule:
     6   ANNUAL INCOME                          PERCENTAGE ASSESSED VALUATION
     7                                          EXEMPT FROM TAXATION
     8  (M+ [$5,700] $10,000 or more) but
     9       less than (M+ [$6,600] $25,000)         15 per centum
    10  [(M+ $6,600 or more) but
    11       less than (M+ $7,500                    10 per centum]
    12    (3) Any local law, ordinance or resolution adopted pursuant to subpar-
    13  agraphs  one  and  two of this paragraph may be amended, or a local law,
    14  ordinance or resolution may be adopted, to provide an exemption so as to
    15  increase the maximum income eligibility level of such  municipal  corpo-
    16  ration  as provided in subdivision three of this section (represented in
    17  the hereinbelow schedule as M), and as increased as provided for in such
    18  subparagraph one to the extent provided in the following schedule:
    19   ANNUAL INCOME                          PERCENTAGE ASSESSED VALUATION
    20                                          EXEMPT FROM TAXATION
    21  (M+ [$7,500] $25,000 or more) but
    22       less than (M+ [$8,400] $35,000)         5 per centum
    23    § 2. Paragraph (a) of subdivision 3 of section 467 of the real proper-
    24  ty tax law, as separately amended by chapters 131 and 279 of the laws of
    25  2017, is amended to read as follows:
    26    (a) if the income of the owner or the combined income of the owners of
    27  the property for the income tax year immediately preceding the  date  of
    28  making  application  for  exemption  exceeds  the  sum of three thousand
    29  dollars, or such other sum not less than three thousand dollars nor more
    30  than twenty-six thousand dollars beginning July first, two thousand six,
    31  twenty-seven thousand dollars beginning July first, two thousand  seven,
    32  twenty-eight  thousand dollars beginning July first, two thousand eight,
    33  twenty-nine thousand dollars beginning July first,  two  thousand  nine,
    34  and  [in a city with a population of one million or more] fifty thousand
    35  dollars beginning July first, two thousand seventeen, as may be provided
    36  by the local law, ordinance  or  resolution  adopted  pursuant  to  this
    37  section.  Income  tax  year shall mean the twelve month period for which
    38  the owner or owners filed a federal personal income tax return, or if no
    39  such return is filed, the calendar year. Where title is vested in either
    40  the husband or the wife, their combined income may not exceed such  sum,
    41  except  where  the  husband  or wife, or ex-husband or ex-wife is absent
    42  from the property as provided in subparagraph (ii) of paragraph  (d)  of
    43  this subdivision, then only the income of the spouse or ex-spouse resid-
    44  ing  on  the  property  shall be considered and may not exceed such sum.
    45  Such income shall  include  social  security  and  retirement  benefits,
    46  interest,  dividends,  total gain from the sale or exchange of a capital
    47  asset which may be offset by a loss from the sale or exchange of a capi-
    48  tal asset in the same income tax year,  net  rental  income,  salary  or
    49  earnings,  and  net income from self-employment, but shall not include a
    50  return of capital, gifts, inheritances,  payments  made  to  individuals
    51  because  of  their  status as victims of Nazi persecution, as defined in
    52  P.L. 103-286 or monies earned through employment in the  federal  foster
    53  grandparent  program  and any such income shall be offset by all medical
    54  and prescription drug expenses actually paid which were  not  reimbursed
        S. 7803                             3
     1  or  paid  for  by  insurance,  if the governing board of a municipality,
     2  after a public hearing, adopts a  local  law,  ordinance  or  resolution
     3  providing therefor. In addition, an exchange of an annuity for an annui-
     4  ty  contract,  which  resulted  in  non-taxable  gain,  as determined in
     5  section one thousand thirty-five of the internal revenue code, shall  be
     6  excluded  from  such income. Provided that such exclusion shall be based
     7  on satisfactory proof that such an exchange was solely an exchange of an
     8  annuity for an annuity contract that resulted in a non-taxable  transfer
     9  determined  by  such  section of the internal revenue code. Furthermore,
    10  such income shall not include the proceeds of  a  reverse  mortgage,  as
    11  authorized by section six-h of the banking law, and sections two hundred
    12  eighty  and  two  hundred  eighty-a  of the real property law; provided,
    13  however, that monies used  to  repay  a  reverse  mortgage  may  not  be
    14  deducted  from  income,  and  provided additionally that any interest or
    15  dividends realized from the  investment  of  reverse  mortgage  proceeds
    16  shall  be  considered  income. The provisions of this paragraph notwith-
    17  standing, such income shall  not  include  veterans  disability  compen-
    18  sation,  as  defined  in Title 38 of the United States Code provided the
    19  governing board of such municipality, after  public  hearing,  adopts  a
    20  local  law, ordinance or resolution providing therefor. In computing net
    21  rental income  and  net  income  from  self-employment  no  depreciation
    22  deduction  shall be allowed for the exhaustion, wear and tear of real or
    23  personal property held for the production of income;
    24    § 3. Paragraph (b) of subdivision 1 of section 459-c of the real prop-
    25  erty tax law, as added by chapter 315 of the laws of 1997, is amended to
    26  read as follows:
    27    (b) Any local law or resolution adopted pursuant to paragraph  (a)  of
    28  this  subdivision  may  be  amended, or a local law or resolution may be
    29  adopted, to provide an exemption so as to increase  the  maximum  income
    30  eligibility  level of such municipal corporation as provided in subdivi-
    31  sion five of this section (represented in the  hereinbelow  schedule  as
    32  M), to the extent provided in the following schedule:
    33    ANNUAL INCOME                         PERCENTAGE ASSESSED VALUATION
    34                                          EXEMPT FROM TAXATION
    35  More than (M) but
    36       [less than (M+ $1,000)                  45 per centum
    37  (M+ $1,000 or more) but
    38       less than (M+ $2,000)                   40 per centum
    39  (M+ $2,000 or more) but]
    40       less than (M+ [$3,000] $10,000)         35 per centum
    41  [(M+ $3,000 or more) but
    42       less than (M+ $3,900)                   30 per centum
    43  (M+ $3,900 or more) but
    44       less than (M+ $4,800)                   25 per centum
    45  (M+ $4,800 or more) but
    46       less than (M+ $5,700)                   20 per centum]
    47  (M+ [$5,700] $10,000 or more) but
    48       less than (M+ [$6,600] $25,000)         15 per centum
    49  [(M+ $6,600 or more) but
    50       less than (M+ $7,500)                   10 per centum]
    51  (M + [$7,500] $25,000 or more) but
    52       less than (M+ [$8,400] $35,000)         5 per centum
    53    § 4. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
    54  erty  tax law, as amended by chapter 131 of the laws of 2017, is amended
    55  to read as follows:
        S. 7803                             4
     1    (a) if the income of the owner or the combined income of the owners of
     2  the property for the income tax year immediately preceding the  date  of
     3  making  application  for  exemption  exceeds  the  sum of three thousand
     4  dollars, or such other sum not less than three thousand dollars nor more
     5  than twenty-six thousand dollars beginning July first, two thousand six,
     6  twenty-seven  thousand dollars beginning July first, two thousand seven,
     7  twenty-eight thousand dollars beginning July first, two thousand  eight,
     8  twenty-nine  thousand  dollars  beginning July first, two thousand nine,
     9  and [in a city with a population of one million or more] fifty  thousand
    10  dollars beginning July first, two thousand seventeen, as may be provided
    11  by  the local law or resolution adopted pursuant to this section. Income
    12  tax year shall mean the twelve month  period  for  which  the  owner  or
    13  owners  filed a federal personal income tax return, or if no such return
    14  is filed, the calendar year. Where title is vested in either the husband
    15  or the wife, their combined income may not exceed such sum, except where
    16  the husband or wife, or ex-husband or ex-wife is absent from the proper-
    17  ty due to divorce, legal separation or abandonment, then only the income
    18  of the spouse or ex-spouse residing on the property shall be  considered
    19  and  may  not exceed such sum. Such income shall include social security
    20  and retirement benefits, interest, dividends, total gain from  the  sale
    21  or  exchange  of  a capital asset which may be offset by a loss from the
    22  sale or exchange of a capital asset in the same  income  tax  year,  net
    23  rental  income, salary or earnings, and net income from self-employment,
    24  but shall not include a return of capital, gifts, inheritances or monies
    25  earned through employment in the federal foster grandparent program  and
    26  any  such  income  shall  be offset by all medical and prescription drug
    27  expenses actually paid which were not reimbursed or paid for  by  insur-
    28  ance,  if the governing board of a municipality, after a public hearing,
    29  adopts a local law or resolution providing therefor.  In  computing  net
    30  rental  income  and  net  income  from  self-employment  no depreciation
    31  deduction shall be allowed for the exhaustion, wear and tear of real  or
    32  personal property held for the production of income;
    33    § 5. The state shall, within an appropriation made available therefor,
    34  reimburse  municipal  corporations for the difference between the amount
    35  of real property tax revenue abated for the fiscal year of such  munici-
    36  pality that occurs after April 1, 2018 pursuant to the income thresholds
    37  established  pursuant  to the provisions  of this act, and the amount of
    38  real property tax revenue that would have been abated  for  such  period
    39  pursuant  to the income thresholds that were in effect immediately prior
    40  to the effective date of this act.
    41    § 6. This act shall take effect immediately.