A03149 Summary:

BILL NOA03149A
 
SAME ASSAME AS S05557-A
 
SPONSORAbinanti
 
COSPNSRZebrowski
 
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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A03149 Actions:

BILL NOA03149A
 
01/28/2019referred to aging
01/08/2020referred to aging
01/09/2020amend and recommit to aging
01/09/2020print number 3149a
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A03149 Memo:

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.
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A03149 Text:



 
                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.
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