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A07452 Summary:

BILL NOA07452
 
SAME ASSAME AS S02313
 
SPONSORBarnwell
 
COSPNSR
 
MLTSPNSR
 
Amd 425, RPT L; amd 606, Tax L
 
Includes distribution from a thrift savings plan in the definition of income in relation to the enhanced STAR exemption.
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A07452 Actions:

BILL NOA07452
 
05/03/2019referred to real property taxation
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A07452 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7452
 
SPONSOR: Barnwell
  TITLE OF BILL: An act to amend the real property tax law and the tax law, in relation to the definition of income in relation to the enhanced STAR exemption   PURPOSE OR GENERAL IDEA OF BILL: This bill seeks to correct a lapse in the STAR program by treating Thrift Savings Plans (TSPs) established prior to January 1, 1984, the same as IRAs and annuities as it pertains to income eligibility under the state's STAR program. Like IRAs and annuities, TSPs established prior to January 1, 1984, did not trigger an employer (federal govern- ment) match.   SUMMARY OF PROVISIONS: Adds thrift savings plans established prior to January 1, 1984, to eligible deductions when determining federal adjusted gross income for the STAR program.   JUSTIFICATION: Most 401Ks and most modern-day Thrift Savings Accounts (TSPs) are not eligible to reduce income under the STAR program because those accounts are often matched by employers. Federal agencies only started matching employee TSP contributions for those employees hired after January 1, 1984, however. Thus, employees hired prior to that date with TSPs have contributed 100% of their TSPs and should be treated just like IRAs and annuities under the STAR program.   PRIOR LEGISLATIVE HISTORY: Assembly: 05/01/17 - Referred to Real Property Taxation 05/16/17 - Amend and recommit to Real Property Taxation 05/16/17 - Print number 7537A 06/14/17 - Amend (t) and recommit to Real Property Taxation 06/14/17 - Print number 7537B 06/20/17 - Referred to Real Property Taxation June, 2017 - Died in Assembly 01/03/18 - Referred to Real Property Taxation 05/31/18 - Held for consideration in Real Property Taxation Senate: 05/10/17 - Referred to Aging 06/14/17 - Amend (t) and recommit to Aging 06/14/17 - Print number 6058A 06/20/17 - Committee discharged and committed to Rules 06/20/17 - Ordered to third reading cal. 2056 06/20/17 - Passed Senate 06/20/17 - Delivered to Assembly 01/03/18 - Returned to Senate 01/03/18 - Referred to Aging 01/30/18 - Reported and Committed to Finance 06/05/18 - Reported and Committed to Rules   FISCAL IMPLICATIONS: Minimal   EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
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A07452 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7452
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                       May 3, 2019
                                       ___________
 
        Introduced by M. of A. BARNWELL -- read once and referred to the Commit-
          tee on Real Property Taxation
 
        AN  ACT  to amend the real property tax law and the tax law, in relation
          to the definition of income in relation to the enhanced STAR exemption
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subparagraph  (ii)  of  paragraph (b) of subdivision 4 of
     2  section 425 of the real property tax law, as amended  by  section  1  of
     3  part B of chapter 59 of the laws of 2018, is amended to read as follows:
     4    (ii)  The  term "income" as used herein shall mean the "adjusted gross
     5  income" for federal income tax purposes as reported on  the  applicant's
     6  federal  or  state income tax return for the applicable income tax year,
     7  subject to any subsequent amendments or revisions, reduced  by  distrib-
     8  utions,  to  the  extent  included  in  federal  adjusted  gross income,
     9  received from an individual retirement account and an individual retire-
    10  ment annuity, and distribution from a thrift  savings  plan  established
    11  prior  to  January first, nineteen hundred eighty-four; provided that if
    12  no such return was filed for the applicable income  tax  year,  "income"
    13  shall mean the adjusted gross income that would have been so reported if
    14  such  a  return  had been filed.   Provided further, that effective with
    15  exemption applications for final assessment rolls to be completed in two
    16  thousand nineteen, where an income-eligibility determination  is  wholly
    17  or  partly  based upon the income of one or more individuals who did not
    18  file a return for the applicable income tax year, then in order for  the
    19  application  to be considered complete, each such individual must file a
    20  statement with the department showing the source or sources  of  his  or
    21  her  income for that income tax year, and the amount or amounts thereof,
    22  that would have been reported on such a return if one  had  been  filed.
    23  Such statement shall be filed at such time, and in such form and manner,
    24  as  may  be  prescribed  by  the department, and shall be subject to the
    25  secrecy provisions of the tax law to the same  extent  that  a  personal
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05513-01-9

        A. 7452                             2
 
     1  income  tax  return would be.   The department shall make such forms and
     2  instructions available for the filing  of  such  statements.  The  local
     3  assessor  shall  upon  the request of a taxpayer assist such taxpayer in
     4  the filing of the statement with the department.
     5    §  2.  Subparagraph  (B) of paragraph 1 of subsection (eee) of section
     6  606 of the tax law, as amended by section 10 of part B of chapter 59  of
     7  the laws of 2018, is amended to read as follows:
     8    (B)  "Affiliated  income"  shall  mean  for purposes of the basic STAR
     9  credit, the combined income of all of  the  owners  of  the  parcel  who
    10  resided  primarily  thereon  as  of December thirty-first of the taxable
    11  year, and of any owners' spouses residing primarily thereon as  of  such
    12  date,  and for purposes of the enhanced STAR credit, the combined income
    13  of all of the owners of the parcel as of December  thirty-first  of  the
    14  taxable  year,  and of any owners' spouses residing primarily thereon as
    15  of such date; provided that for  both  purposes  the  income  to  be  so
    16  combined  shall  be  the "adjusted gross income" for the taxable year as
    17  reported for federal income tax purposes, or that would be  reported  as
    18  adjusted gross income if a federal income tax return were required to be
    19  filed,  reduced  by  distributions,  to  the  extent included in federal
    20  adjusted gross income, received from an  individual  retirement  account
    21  and  an  individual  retirement  annuity, and distribution from a thrift
    22  savings plan established prior to January first, nineteen hundred eight-
    23  y-four. For taxable years beginning on  and  after  January  first,  two
    24  thousand  nineteen,  where an income-eligibility determination is wholly
    25  or partly based upon the income of one or more individuals who  did  not
    26  file  a return pursuant to section six hundred fifty-one of this article
    27  for the applicable income tax year, then in order to be eligible for the
    28  credit authorized by this subsection, each such individual must  file  a
    29  statement  with  the  department showing the source or sources of his or
    30  her income for that income tax year, and the amount or amounts  thereof,
    31  that  would  have  been reported on such a return if one had been filed.
    32  Such statement shall be filed at such time, and in such form and manner,
    33  as may be prescribed by the department, and  shall  be  subject  to  the
    34  provisions  of  section  six hundred ninety-seven of this article to the
    35  same extent that a return would be. The department shall make such forms
    36  and instructions available for the filing of such statements. The  local
    37  assessor  shall  upon  the request of a taxpayer assist such taxpayer in
    38  the filing of the statement with the department. Provided further,  that
    39  if  the qualified taxpayer was an owner of the property during the taxa-
    40  ble year but did not own it on  December  thirty-first  of  the  taxable
    41  year,  then  the determination as to whether the income of an individual
    42  should be included in "affiliated income" shall be based upon the owner-
    43  ship and/or residency status of that individual as of the first  day  of
    44  the  month  during which the qualified taxpayer ceased to be an owner of
    45  the property, rather than as of December  thirty-first  of  the  taxable
    46  year.
    47    §  3. This act shall take effect on the first of January next succeed-
    48  ing the date on which it shall have become a law.
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