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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3149A
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 persons with disabilities and limited income with 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, 2020.
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, 2020.
Section 3 is the effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION:
This amendment makes current the date the increase in the maximum income
eligibility will begin.
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: 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.
STATE OF NEW YORK
________________________________________________________________________
3149--A
2019-2020 Regular Sessions
IN ASSEMBLY
January 28, 2019
___________
Introduced by M. of A. ABINANTI -- read once and referred to the Commit-
tee on Aging -- recommitted to the Committee on Aging in accordance
with Assembly Rule 3, sec. 2 -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
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, and in
13 a city with a population of one million or more fifty thousand dollars
14 beginning July first, two thousand seventeen, as may be provided by the
15 local law, ordinance or resolution adopted pursuant to this section.
16 Income tax year shall mean the twelve month period for which the owner
17 or owners filed a federal personal income tax return, or if no such
18 return is filed, the calendar year. Where title is vested in either the
19 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05065-03-0
A. 3149--A 2
1 this subdivision, then only the income of the spouse or ex-spouse resid-
2 ing on the property shall be considered and may not exceed such sum.
3 Such income shall include social security and retirement benefits,
4 interest, dividends, total gain from the sale or exchange of a capital
5 asset which may be offset by a loss from the sale or exchange of a capi-
6 tal asset in the same income tax year, net rental income, salary or
7 earnings, and net income from self-employment, but shall not include a
8 return of capital, gifts, inheritances, payments made to individuals
9 because of their status as victims of Nazi persecution, as defined in
10 P.L. 103-286 or monies earned through employment in the federal foster
11 grandparent program and any such income shall be offset by all medical
12 and prescription drug expenses actually paid which were not reimbursed
13 or paid for by insurance, if the governing board of a municipality,
14 after a public hearing, adopts a local law, ordinance or resolution
15 providing therefor. In addition, an exchange of an annuity for an annui-
16 ty contract, which resulted in non-taxable gain, as determined in
17 section one thousand thirty-five of the internal revenue code, shall be
18 excluded from such income. Provided that such exclusion shall be based
19 on satisfactory proof that such an exchange was solely an exchange of an
20 annuity for an annuity contract that resulted in a non-taxable transfer
21 determined by such section of the internal revenue code. Furthermore,
22 such income shall not include the proceeds of a reverse mortgage, as
23 authorized by section six-h of the banking law, and sections two hundred
24 eighty and two hundred eighty-a of the real property law; provided,
25 however, that monies used to repay a reverse mortgage may not be
26 deducted from income, and provided additionally that any interest or
27 dividends realized from the investment of reverse mortgage proceeds
28 shall be considered income. The provisions of this paragraph notwith-
29 standing, such income shall not include veterans disability compen-
30 sation, as defined in Title 38 of the United States Code provided the
31 governing board of such municipality, after public hearing, adopts a
32 local law, ordinance or resolution providing therefor. In computing net
33 rental income and net income from self-employment no depreciation
34 deduction shall be allowed for the exhaustion, wear and tear of real or
35 personal property held for the production of income;
36 § 2. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
37 erty tax law, as amended by chapter 131 of the laws of 2017, is amended
38 to read as follows:
39 (a) if the income of the owner or the combined income of the owners of
40 the property for the income tax year immediately preceding the date of
41 making application for exemption exceeds the sum of three thousand
42 dollars, or such other sum not less than three thousand dollars nor more
43 than twenty-six thousand dollars beginning July first, two thousand six,
44 twenty-seven thousand dollars beginning July first, two thousand seven,
45 twenty-eight thousand dollars beginning July first, two thousand eight,
46 twenty-nine thousand dollars beginning July first, two thousand nine,
47 and fifty thousand dollars beginning July first, two thousand twenty,
48 and in a city with a population of one million or more fifty thousand
49 dollars beginning July first, two thousand seventeen, as may be provided
50 by the local law or resolution adopted pursuant to this section. Income
51 tax year shall mean the twelve month period for which the owner or
52 owners filed a federal personal income tax return, or if no such return
53 is filed, the calendar year. Where title is vested in either the husband
54 or the wife, their combined income may not exceed such sum, except where
55 the husband or wife, or ex-husband or ex-wife is absent from the proper-
56 ty due to divorce, legal separation or abandonment, then only the income
A. 3149--A 3
1 of the spouse or ex-spouse residing on the property shall be considered
2 and may not exceed such sum. Such income shall include social security
3 and retirement benefits, interest, dividends, total gain from the sale
4 or exchange of a capital asset which may be offset by a loss from the
5 sale or exchange of a capital asset in the same income tax year, net
6 rental income, salary or earnings, and net income from self-employment,
7 but shall not include a return of capital, gifts, inheritances or monies
8 earned through employment in the federal foster grandparent program and
9 any such income shall be offset by all medical and prescription drug
10 expenses actually paid which were not reimbursed or paid for by insur-
11 ance, if the governing board of a municipality, after a public hearing,
12 adopts a local law or resolution providing therefor. In computing net
13 rental income and net income from self-employment no depreciation
14 deduction shall be allowed for the exhaustion, wear and tear of real or
15 personal property held for the production of income;
16 § 3. This act shall take effect immediately.
