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A02053 Summary:

BILL NOA02053
 
SAME ASNo Same As
 
SPONSOREnglebright
 
COSPNSR
 
MLTSPNSR
 
Amd 425, RPT L
 
Requires extending the eligibility for the basic STAR exemption and enhanced STAR exemption to real property owned by a non-spouse relative of a senior citizen who shares such primary residence with such senior citizen.
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A02053 Actions:

BILL NOA02053
 
01/17/2017referred to real property taxation
01/03/2018referred to real property taxation
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A02053 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2053
 
SPONSOR: Englebright
  TITLE OF BILL: An act to amend the real property tax law, in relation to a STAR exemption for certain senior citizens who reside with a related property owner   PURPOSE OR GENERAL IDEA OF BILL: To provide a partial STAR exemption for homes where a senior citizen resides with a non-spouse relative who owns the home   SUMMARY OF PROVISIONS: Section one amends section 425 of the real property tax law by adding a new subdivision 4-b to provide a pro-rated STAR exemption when a senior citizen resides with a non-spouse relative that is in addition to the basic STAR exemption or enhanced STAR exemption that the property already receives, provided that the sum of the current exemption and the prorated STAR exemption cannot exceed the property's assessed value. Paragraph (a) of this new subdivision provides that property that serves as the primary residence for a senior citizen and his or her non-spouse relative who is within the third degree of consanguinity or affinity to the senior citizen may be eligible for a pro-rated STAR exemption. To be eligible for the pro-rated exemption, the property must currently receive a basic or enhanced STAR exemption and the requirements of para- graph (b) of this new subdivision must be satisfied. New paragraph (b) provides the eligibility requirements for the pro-rat- ed STAR exemption. With the exception of the income criteria, the requirements for the pro-rated STAR exemption based upon either the basic STAR exemption or the enhanced STAR exemption are the same. These requirements are: -The senior citizen is at least 65 years of age as of December 31 of the year preceding the year for which the exemption is sought; -The property serves as the primary residence for both the senior citi- zen and the property owner; -The senior citizen and the property owner are related within the third degree of consanguinity or affinity; -The senior citizen and the property owner are not spouses; -The property served as the senior citizen's primary residence for at least 6 months prior to January 1 of the year for which the exemption is sought; - The property serves as the owner's primary residence; and - The property currently receives either a basic STAR exemption or an enhanced STAR exemption. - For a pro-rated exemption based upon the basic STAR exemption, the income criteria prescribed by paragraph (b-1) of subdivision 3 of this section shall be applied only to the senior citizen and his or her spouse if the property serves as such spouse's primary residence. - For a pro-rated exemption based upon the enhanced STAR exemption, the income criteria prescribed by subdivision 4 of this section shall be applied only to the senior citizen and his or her spouse if such spouse is at least 62 years of age as of December 31 of the year preceding the year for which the exemption is sought and the property serves as such spouse's primary residence. New paragraph (c) provides the method for computing the pro-rated STAR exemption. Each person who satisfies the eligibility requirements of new paragraph (b) is eligible for a pro-rated exemption. For each senior citizen, the pro-rated exemption is computed by multiplying 25% of the pro-rated STAR exemption, basic or enhanced, for which the senior citi- zen qualified pursuant to paragraph (b) by a fraction, the numerator of which is one, or two if the qualifying senior citizen resides with his or her spouse, and the denominator of which is the sum of the numerator plus the total number of owners and their spouses for which the property serves as their primary residence. New paragraph (d) limits the number of pro-rated exemptions computed pursuant to new paragraph (c) that a piece of property may receive to two. When more than two senior citizens satisfied the eligibility crite- ria provided by paragraph (b), the sum of the exemption amounts is divided by the sum of the numerators used to compute the exemption amounts. That result is multiplied by 2, which is the amount of the pro-rated STAR exemption. New paragraph (e) provides that if a person who met the eligibility criteria prescribed by paragraph (b) of this subdivision dies and such person resided with his or her spouse at the time of his or her death, such spouse shall be deemed to have attained the age of 65 for purposes of determining eligibility pursuant to paragraph (b) of this subdivision if such spouse has attained the age of 62 as of December 31 of the year preceding the year for which the exemption is sought. New paragraph (f) provides that notwithstanding any law to the contrary, an annual appli- cation for the pro-rated STAR exemption shall be filed by all of the property owners and all of the senior citizens who met the eligibility criteria of paragraph (b) of this subdivision. New paragraph (g) provides that except as provided in new subdivision (4-a) or as inconsistent with this new subdivision, all other provisions of section 425 shall apply to the pro-rated STAR exemption. Section two of this bill provides that this act shall take effect on the first of January next succeeding the date on which it shall have become a law.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):   JUSTIFICATION: The children who have assumed the role of caregiver for their aging parents while simultaneously caring for their own children are members of the "sandwich generation." Each year, the number of people in the sandwich generation grows. According to the MetLife Study of Caregiving Costs to Working Caregivers: Double Jeopardy for Baby Boomers Caring for Their Parents, which was published in 2011, almost 10 million adult children who are over the age of 50 years were caregivers for their aging parents. This role is stressful, both personally and financially. Many caregivers are forced to either give up their careers or reduce their work hours to part time. The financial impact is significant; MetLife found that for women, the total impact of lost wages, pensions, and Social Security benefits due to caregiving was $324,044. For male caregivers, the financial impact was $283,716. This bill will help with the financial burden associated with being a caregiver by providing some tax relief.   PRIOR LEGISLATIVE HISTORY: 2015-16 A5470 referred to real property taxation   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date on which it shall have become law.
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A02053 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2053
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 17, 2017
                                       ___________
 
        Introduced  by  M.  of  A.  ENGLEBRIGHT -- read once and referred to the
          Committee on Real Property Taxation
 
        AN ACT to amend the real  property  tax  law,  in  relation  to  a  STAR
          exemption  for certain senior citizens who reside with a related prop-
          erty owner
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section  425  of  the real property tax law is amended by
     2  adding a new subdivision 4-b to read as follows:
     3    4-b. Senior citizens that  reside  with  a  non-spouse  relative.  (a)
     4  Notwithstanding  the  property  ownership requirements provided by para-
     5  graph (a) of subdivision two, subdivision three, and  paragraph  (a)  of
     6  subdivision  four  of  this section, when property that receives a basic
     7  STAR exemption or an enhanced STAR exemption pursuant to subdivision two
     8  or three of this section serves as the  primary  residence  for  both  a
     9  person  who is at least sixty-five years of age on the date specified in
    10  paragraph (a) of subdivision four of this section and a relative who  is
    11  (i) within the third degree of consanguinity or affinity to such person,
    12  (ii)  not the spouse of such person, and (iii) the owner of such proper-
    13  ty, such property shall be eligible for a pro-rated STAR  exemption,  as
    14  computed  pursuant  to  paragraph (c) of this subdivision and subject to
    15  the limitation prescribed by paragraph (d) of this subdivision, that  is
    16  in  addition  to  the  basic  STAR  exemption or enhanced STAR exemption
    17  available for such property pursuant to this section, provided, however,
    18  that the sum of the exemptions approved for such  property  pursuant  to
    19  this section shall not exceed such property's assessed value.
    20    (b) Eligibility requirements. (i) For the pro-rated exemption based on
    21  the  basic  STAR  exemption,  the property must (A) serve as the primary
    22  residence for a person who is at least sixty-five years of  age  on  the
    23  date specified in paragraph (a) of subdivision four of this section, (B)
    24  have  served  as  the primary residence for such person for at least six
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03698-01-7

        A. 2053                             2
 
     1  months prior to the first day of January  of  the  year  for  which  the
     2  exemption  is  sought,  (C)  be  owned  by a non-spouse relative of such
     3  person who is within the third degree of consanguinity  or  affinity  to
     4  such  person,  (D)  serve as the primary residence of the related owner,
     5  (E) currently receive  a  basic  STAR  exemption  or  an  enhanced  STAR
     6  exemption,  and  (F)  satisfy  the criteria of subdivision three of this
     7  section, provided that the determination regarding  whether  the  income
     8  criteria  prescribed  by  paragraph  (b-1)  of subdivision three of this
     9  section are satisfied shall solely be based  upon  the  income  of  such
    10  person  who is at least sixty-five years of age and his or her spouse if
    11  the property serves as such spouse's primary residence.
    12    (ii) For the pro-rated STAR  exemption  based  on  the  enhanced  STAR
    13  exemption,  the  property  must (A) serve as the primary residence for a
    14  person who is at least sixty-five years of age on the date specified  in
    15  paragraph  (a)  of  subdivision four of this section, (B) have served as
    16  the primary residence for such person for at least six months  prior  to
    17  the  first day of January of the year for which the exemption is sought,
    18  (C) be owned by a non-spouse relative of such person who is  within  the
    19  third  degree  of consanguinity or affinity to such person, (D) serve as
    20  the primary residence of the related  owner,  (E)  currently  receive  a
    21  basic  STAR  exemption  or  an  enhanced STAR exemption, (F) satisfy the
    22  criteria of subdivision three of this section as  modified  by  subpara-
    23  graph (i) of this paragraph, and (G) satisfy the criteria of subdivision
    24  four  of this section, provided that the determination regarding whether
    25  the income criteria prescribed by paragraph (b) of subdivision four  are
    26  satisfied shall solely be based upon the income of such person who is at
    27  least sixty-five years of age and his or her spouse if such spouse is at
    28  least  sixty-two  years  of  age as of the date specified in subdivision
    29  four of this section and the property serves as  such  spouse's  primary
    30  residence.
    31    (c)  Computation  of  exemption  amount.  Subject  to  the  limitation
    32  prescribed in paragraph  (d)  of  this  subdivision,  a  pro-rated  STAR
    33  exemption  shall  be computed for each person who is at least sixty-five
    34  years of age on the date specified in paragraph (a) of subdivision  four
    35  of  this section and who meets the requirements of paragraph (b) of this
    36  subdivision as follows: multiply the basic STAR  exemption  or  enhanced
    37  STAR exemption that would be granted to the property if paragraph (b) of
    38  this  subdivision  provided the eligibility criteria for such exemption,
    39  by twenty-five percent and multiply that  product  by  a  fraction,  the
    40  numerator  of  which  is  one,  in  the case of a person who is at least
    41  sixty-five years of age who does not reside with his or her  spouse,  if
    42  any, or two, in the case of a person who is at least sixty-five years of
    43  age who does reside with his or her spouse, and the denominator of which
    44  is  the  sum  of the numerator plus the total number of owners and their
    45  spouses for whom the property serves as their primary residence.
    46    (d) Limitation. When  more  than  one  person  meets  the  eligibility
    47  requirements  prescribed  by paragraph (b) of this subdivision, the pro-
    48  rated STAR exemption computed pursuant to paragraph (c) of this subdivi-
    49  sion shall be limited as follows:
    50    (i) when the aggregate of the numerators of the fraction or  fractions
    51  used in the computation pursuant to paragraph (c) of this subdivision is
    52  two or less, the amount of the pro-rated STAR exemption shall be the sum
    53  of  the  exemption  amounts  computed  pursuant to paragraph (c) of this
    54  subdivision.
    55    (ii) when the aggregate of the numerators of each fraction used in the
    56  computation pursuant to paragraph (c) of this subdivision is  more  than

        A. 2053                             3
 
     1  two,  the  amount of the pro-rated STAR exemption shall equal the amount
     2  computed as follows:  (A)  divide  the  sum  of  the  exemption  amounts
     3  computed  pursuant to paragraph (c) of this subdivision by the aggregate
     4  of  such  numerators,  and  (B) multiply the amount computed pursuant to
     5  clause (A) of this subparagraph by the number two.
     6    (e) Death of a person who is at least sixty-five years of age. In  the
     7  case  of  an exemption granted pursuant to this subdivision for a person
     8  who resides with his or her spouse and such spouse has not attained  the
     9  age  of  sixty-five  years  by  the  date prescribed in paragraph (a) of
    10  subdivision four of this section, upon  the  death  of  the  person  who
    11  satisfied  the eligibility criteria of this subdivision, if such surviv-
    12  ing spouse is at least sixty-two years of age by the date prescribed  in
    13  paragraph  (a) of subdivision four of this section, such spouse shall be
    14  deemed to be at least sixty-five years of age by the date prescribed  in
    15  paragraph (a) of subdivision four of this section for purposes of satis-
    16  fying  the  eligibility  criteria  prescribed  by  paragraph (b) of this
    17  subdivision.
    18    (f) Notwithstanding any provision of law to the contrary,  application
    19  for an exemption pursuant to this subdivision shall be made on an annual
    20  basis  in  accordance with the application procedures prescribed in this
    21  section; provided, however, that the application shall be jointly  filed
    22  by  all  of the property owners who primarily reside on the property and
    23  the senior citizens who meet  the  eligibility  criteria  prescribed  by
    24  paragraph (b) of this subdivision.
    25    (g)  Except  as  provided in this subdivision, or as inconsistent with
    26  the purposes of this subdivision, all other provisions of  this  section
    27  shall  be  applicable  to  the pro-rated STAR exemption provided by this
    28  subdivision.
    29    § 2. This act shall take effect on the first of January next  succeed-
    30  ing the date on which it shall have become a law.
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