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A03956 Summary:

BILL NOA03956
 
SAME ASSAME AS S03085
 
SPONSORAbinanti
 
COSPNSRZebrowski, Paulin
 
MLTSPNSR
 
Amd §§467 & 459-c, RPT L
 
Increases the amount of income property owners may earn for the purpose of eligibility for the property tax exemption for persons sixty-five years of age or over and for persons with disabilities and limited income.
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A03956 Actions:

BILL NOA03956
 
01/29/2021referred to aging
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A03956 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3956
 
SPONSOR: Abinanti
  TITLE OF BILL: An act to amend the real property tax law, in relation to increasing the amount of income property owners may earn for the purpose of eligibility for the property tax exemption for persons sixty-five years of age or over and for persons with disabilities and limited income   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to provide certain income-eligible senior citizens and income limited persons with disabilities relief from the burden of increasing real property taxes.   SUMMARY OF PROVISIONS: Section 1 amends real property tax law section 467 (3)(a) to raise the maximum income eligibility for seniors to obtain a real property tax exemption from $29,000 to $50,000 beginning July 1, 2021. Section 2 amends real property tax law section 459-c (5)(a), to raise ' the maximum income eligibility for the disabled to obtain a real proper- ty tax exemption from $29,000 to $50,000 beginning July 1, 2021. Section 3 is the effective date.   JUSTIFICATION: New York State has a growing number of low-income seniors on fixed incomes and persons with disabilities who have limited income who are faced with ever increasing property taxes making it difficult for them to continue to live in and maintain their own homes. To lessen the burden of ever-increasing property taxes this bill provides them with much needed relief by allowing local governments the option to raise the maximum income eligibility limit for the Senior Citizen Real Property Tax Exemption program and the Persons with Disabilities Real Property Tax Exemption from the current $37,399.99 to $50,000. The maximum income eligibility for these exemptions has not been raised since 2009. This bill would help some of New York's most vulnerable citizens stay in their homes and remain in their communities.   PRIOR LEGISLATIVE HISTORY: 2019-20: A3149 referred to aging; same as S5557 (Stewart-Cousins) passed the senate; 2017-18: A10297 referred to aging; same as S772A (Stewart-Cousins) referred to aging; 2016: A10335 referred to aging; same as S7859 (Stewart-Cousins) passed the senate;   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None to the State; however, this bill might result in the loss of reven- ue for local governments.   EFFECTIVE DATE: This act shall take effect immediately.
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A03956 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3956
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 29, 2021
                                       ___________
 
        Introduced  by M. of A. ABINANTI, ZEBROWSKI -- read once and referred to
          the Committee on Aging
 
        AN ACT to amend the real property tax law, in relation to increasing the
          amount of income property owners may earn for the purpose of eligibil-
          ity for the property tax exemption for persons sixty-five years of age
          or over and for persons with disabilities and limited income
 
          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  fifty thousand dollars beginning July first,  two  thousand  twenty-one,
    13  and  in  a  city with a population of one million or more fifty thousand
    14  dollars beginning July first, two thousand seventeen, as may be provided
    15  by the local law, ordinance  or  resolution  adopted  pursuant  to  this
    16  section.  Income  tax  year shall mean the twelve month period for which
    17  the owner or owners filed a federal personal income tax return, or if no
    18  such return is filed, the calendar year. Where title is vested in either
    19  the husband or the wife, their combined income may not exceed such  sum,
    20  except  where  the  husband  or wife, or ex-husband or ex-wife is absent
    21  from the property as provided in subparagraph (ii) of paragraph  (d)  of
    22  this subdivision, then only the income of the spouse or ex-spouse resid-
    23  ing  on  the  property  shall be considered and may not exceed such sum.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01417-01-1

        A. 3956                             2
 
     1  Such income shall  include  social  security  and  retirement  benefits,
     2  interest,  dividends,  total gain from the sale or exchange of a capital
     3  asset which may be offset by a loss from the sale or exchange of a capi-
     4  tal  asset  in  the  same  income tax year, net rental income, salary or
     5  earnings, and net income from self-employment, but shall not  include  a
     6  return  of  capital,  gifts,  inheritances, payments made to individuals
     7  because of their status as victims of Nazi persecution,  as  defined  in
     8  P.L.  103-286  or monies earned through employment in the federal foster
     9  grandparent program and any such income shall be offset by  all  medical
    10  and  prescription  drug expenses actually paid which were not reimbursed
    11  or paid for by insurance, if the  governing  board  of  a  municipality,
    12  after  a  public  hearing,  adopts  a local law, ordinance or resolution
    13  providing therefor. In addition, an exchange of an annuity for an annui-
    14  ty contract, which  resulted  in  non-taxable  gain,  as  determined  in
    15  section  one thousand thirty-five of the internal revenue code, shall be
    16  excluded from such income. Provided that such exclusion shall  be  based
    17  on satisfactory proof that such an exchange was solely an exchange of an
    18  annuity  for an annuity contract that resulted in a non-taxable transfer
    19  determined by such section of the internal  revenue  code.  Furthermore,
    20  such  income  shall  not  include the proceeds of a reverse mortgage, as
    21  authorized by section six-h of the banking law, and sections two hundred
    22  eighty and two hundred eighty-a of  the  real  property  law;  provided,
    23  however,  that  monies  used  to  repay  a  reverse  mortgage may not be
    24  deducted from income, and provided additionally  that  any  interest  or
    25  dividends  realized  from  the  investment  of reverse mortgage proceeds
    26  shall be considered income. The provisions of  this  paragraph  notwith-
    27  standing,  such  income  shall  not  include veterans disability compen-
    28  sation, as defined in Title 38 of the United States  Code  provided  the
    29  governing  board  of  such  municipality, after public hearing, adopts a
    30  local law, ordinance or resolution providing therefor. In computing  net
    31  rental  income  and  net  income  from  self-employment  no depreciation
    32  deduction shall be allowed for the exhaustion, wear and tear of real  or
    33  personal property held for the production of income;
    34    § 2. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
    35  erty  tax law, as amended by chapter 131 of the laws of 2017, is amended
    36  to read as follows:
    37    (a) if the income of the owner or the combined income of the owners of
    38  the property for the income tax year immediately preceding the  date  of
    39  making  application  for  exemption  exceeds  the  sum of three thousand
    40  dollars, or such other sum not less than three thousand dollars nor more
    41  than twenty-six thousand dollars beginning July first, two thousand six,
    42  twenty-seven thousand dollars beginning July first, two thousand  seven,
    43  twenty-eight  thousand dollars beginning July first, two thousand eight,
    44  twenty-nine thousand dollars beginning July first,  two  thousand  nine,
    45  and  fifty  thousand  dollars beginning July first, two thousand twenty-
    46  one, and in a city with a population of one million or more fifty  thou-
    47  sand  dollars  beginning  July  first, two thousand seventeen, as may be
    48  provided by the  local  law  or  resolution  adopted  pursuant  to  this
    49  section.  Income  tax  year shall mean the twelve month period for which
    50  the owner or owners filed a federal personal income tax return, or if no
    51  such return is filed, the calendar year. Where title is vested in either
    52  the husband or the wife, their combined income may not exceed such  sum,
    53  except  where  the  husband  or wife, or ex-husband or ex-wife is absent
    54  from the property due to divorce, legal separation or abandonment,  then
    55  only  the  income  of  the  spouse or ex-spouse residing on the property
    56  shall be considered and may not  exceed  such  sum.  Such  income  shall

        A. 3956                             3
 
     1  include  social  security  and retirement benefits, interest, dividends,
     2  total gain from the sale or exchange of a capital  asset  which  may  be
     3  offset  by  a  loss  from the sale or exchange of a capital asset in the
     4  same  income  tax  year,  net rental income, salary or earnings, and net
     5  income from self-employment, but shall not include a return of  capital,
     6  gifts,  inheritances  or monies earned through employment in the federal
     7  foster grandparent program and any such income shall be  offset  by  all
     8  medical  and  prescription  drug  expenses  actually paid which were not
     9  reimbursed or paid for by insurance, if the governing board of a munici-
    10  pality, after a public hearing, adopts a local law or resolution provid-
    11  ing therefor. In computing net rental income and net income  from  self-
    12  employment   no   depreciation   deduction  shall  be  allowed  for  the
    13  exhaustion, wear and tear of real or  personal  property  held  for  the
    14  production of income;
    15    § 3. This act shall take effect immediately.
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