Bill Text: NY A08333 | 2019-2020 | General Assembly | Introduced


Bill Title: Increases the real property tax circuit breaker credit income limits to $100,000 and removes real property tax rebates from real property taxes that qualify under such credit.

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A08333 Detail]

Download: New_York-2019-A08333-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          8333

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                      June 14, 2019
                                       ___________

        Introduced  by  M.  of  A.  SCHIMMINGER -- read once and referred to the
          Committee on Ways and Means

        AN ACT to amend the tax law,  in  relation  to  the  real  property  tax
          circuit breaker credit

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subparagraph (E) of paragraph 1 and paragraphs 3 and  7  of
     2  subsection  (e)  of section 606 of the tax law, as amended by chapter 28
     3  of the laws of 1987 and subparagraph (E) of paragraph 1  as  amended  by
     4  chapter 105 of the laws of 2006, are amended to read as follows:
     5    (E)  "Qualifying  real  property taxes" means all real property taxes,
     6  special ad valorem levies and special assessments, exclusive  of  penal-
     7  ties  and  interest, levied on the residence of a qualified taxpayer and
     8  paid during the taxable year less the credit claimed  under  the  former
     9  subsection (n-1) of this section. [In addition, for taxable years begin-
    10  ning after December thirty-first, nineteen hundred eighty-four, a quali-
    11  fied taxpayer may elect to include any additional amount that would have
    12  been  levied  in the absence of an exemption from real property taxation
    13  pursuant to section four hundred sixty-seven of the  real  property  tax
    14  law.]  If  tenant-stockholders in a cooperative housing corporation have
    15  met the requirements of section two  hundred  sixteen  of  the  internal
    16  revenue  code  by  which  they  are  allowed a deduction for real estate
    17  taxes, the amount of taxes so allowable, or which would be allowable  if
    18  the taxpayer had filed returns on a cash basis, shall be qualifying real
    19  property  taxes.  If  a residence is owned by two or more individuals as
    20  joint tenants or tenants in common, and one or more than one  individual
    21  is not a member of the household, qualifying real property taxes is that
    22  part  of  such  taxes  on  the  residence  which  reflects the ownership
    23  percentage of the qualified taxpayer and members of his household. If  a
    24  residence is an integral part of a larger unit, qualifying real property
    25  taxes  shall  be  limited  to  that  amount of such taxes paid as may be

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13275-01-9

        A. 8333                             2

     1  reasonably apportioned to such residence. If a household owns and  occu-
     2  pies two or more residences during different periods in the same taxable
     3  year,  qualifying  real  property taxes shall be the sum of the prorated
     4  qualifying  real property taxes attributable to the household during the
     5  periods such household occupies each of such residences. If  the  house-
     6  hold  owns  and  occupies  a  residence for part of the taxable year and
     7  rents a residence for part of the same taxable year, it may include both
     8  the proration of qualifying real property taxes on the  residence  owned
     9  and  the  real  property  tax  equivalent with respect to the months the
    10  residence is rented. Provided,  however,  for  purposes  of  the  credit
    11  allowed  under  this  subsection,  qualifying real property taxes may be
    12  included by a qualified taxpayer only to the extent that  such  taxpayer
    13  or  the  spouse of such taxpayer occupying such residence for six months
    14  or more of the taxable year owns or has owned  the  residence  and  paid
    15  such  taxes.  Provided  further, however, qualifying real property taxes
    16  shall not include any portion of a  real  property  tax  paid  that  was
    17  subsequently  returned to the taxpayer by a tax credit or any other real
    18  property tax rebate including, but not limited to, the school tax relief
    19  credit under subsection (eee) of this section.
    20    (3) Determination of credit. (A)  For  qualified  taxpayers  who  have
    21  attained  the  age of sixty-five years before the beginning of or during
    22  the  taxable  year  the  amount  of  the  credit  allowable  under  this
    23  subsection shall be fifty percent, or in the case of a qualified taxpay-
    24  er  who has elected to include an additional amount pursuant to subpara-
    25  graph (E) of paragraph one of this subsection, twenty-five  percent,  of
    26  the  excess  of  real  property taxes or the excess of real property tax
    27  equivalent determined as follows:

    28                                       Excess real property taxes are the
    29                                       excess of real property tax equiv-
    30                                       alent or the excess of qualifying
    31                                       real property taxes over  the  fo-
    32  If household gross income for the    llowing percentage of household
    33  taxable year is:                     gross income:
    34  -----------------------------------  -----------------------------------
    35  [$3,000] $20,000 or less                            3 1/2
    36  Over [$3,000] $20,000 but not over                  4
    37  [$5,000] $30,000
    38  Over [$5,000] $30,000 but not over                  4 1/2
    39  [$7,000] $45,000
    40  Over [$7,000] $45,000 but not over                  5
    41  [$9,000] $65,000
    42  Over [$9,000] $65,000 but not over                  5 1/2
    43  [$11,000] $75,000
    44  Over [$11,000] $75,000 but not over                 6
    45  [$14,000] $85,000
    46  Over [$14,000] $85,000 but not over                 6 1/2
    47  [$18,000] $100,000

    48    Notwithstanding the foregoing provisions, the  maximum  credit  deter-
    49  mined  under  this  subparagraph may not exceed the amount determined in
    50  accordance with the following table:

    51  If household gross income for the
    52  taxable year is:                     The maximum credit is:
    53  -----------------------------------  -----------------------------------

        A. 8333                             3

     1  [$1,000] $5,000 or less                             $375
     2  Over [$1,000] $5,000 but not over                   $358
     3  [$2,000] $10,000
     4  Over [$2,000] $10,000 but not over                  $341
     5  [$3,000] $15,000
     6  Over [$3,000] $15,000 but not over                  $324
     7  [$4,000] $20,000
     8  Over [$4,000] $20,000 but not over                  $307
     9  [$5,000] $25,000
    10  Over [$5,000] $25,000 but not over                  $290
    11  [$6,000] $30,000
    12  Over [$6,000] $30,000 but not over                  $273
    13  [$7,000] $35,000
    14  Over [$7,000] $35,000 but not over                  $256
    15  [$8,000] $40,000
    16  Over [$8,000] $40,000 but not over                  $239
    17  [$9,000] $45,000
    18  Over [$9,000] $45,000 but not over                  $222
    19  [$10,000] $50,000
    20  Over [$10,000] $50,000 but not over                 $205
    21  [$11,000] $55,000
    22  Over [$11,000] $55,000 but not over                 $188
    23  [$12,000] $60,000
    24  Over [$12,000] $60,000 but not over                 $171
    25  [$13,000] $65,000
    26  Over [$13,000] $65,000 but not over                 $154
    27  [$14,000] $70,000
    28  Over [$14,000] $70,000 but not over                 $137
    29  [$15,000] $75,000
    30  Over [$15,000] $75,000 but not over                 $120
    31  [$16,000] $80,000
    32  Over [$16,000] $80,000 but not over                 $103
    33  [$17,000] $86,000
    34  Over [$17,000] $86,000 but not over                 $ 86
    35  [$18,000] $100,000

    36    (B)  For all other qualified taxpayers the amount of the credit allow-
    37  able under this subsection shall be fifty percent of excess real proper-
    38  ty taxes or the excess of the real property tax equivalent determined as
    39  follows:

    40                                       Excess real property taxes are the
    41                                       excess of real property tax equiv-
    42                                       alent or the excess of qualifying
    43                                       real property taxes over the
    44  If household gross income for the    following percentage of household
    45  taxable year is:                     gross income:
    46  -----------------------------------  -----------------------------------
    47  [$3,000] $20,000 or less                            3 1/2
    48  Over [$3,000] $20,000 but not over                  4
    49  [$5,000] $30,000
    50  Over [$5,000] $30,000 but not over                  4 1/2
    51  [$7,000] $45,000
    52  Over [$7,000] $45,000 but not over                  5
    53  [$9,000] $65,000

        A. 8333                             4

     1  Over [$9,000] $65,000 but not over                  5 1/2
     2  [$11,000] $75,000
     3  Over [$11,000] $75,000 but not over                 6
     4  [$14,000] $85,000
     5  Over [$14,000] $85,000 but not over                 6 1/2
     6  [$18,000] $100,000

     7    Notwithstanding  the  foregoing  provisions, the maximum credit deter-
     8  mined under this subparagraph may not exceed the  amount  determined  in
     9  accordance with the following table:

    10  If household gross income for the
    11  taxable year is:                     The maximum credit is:
    12  -----------------------------------  -----------------------------------
    13  [$1,000] $5,000 or less                             $75
    14  Over [$1,000] $5,000 but not over                   $73
    15  [$2,000] $10,000
    16  Over [$2,000] $10,000 but not over                  $71
    17  [$3,000] $15,000
    18  Over [$3,000] $15,000 but not over                  $69
    19  [$4,000] $20,000
    20  Over [$4,000] $20,000 but not over                  $67
    21  [$5,000] $25,000
    22  Over [$5,000] $25,000 but not over                  $65
    23  [$6,000] $30,000
    24  Over [$6,000] $30,000 but not over                  $63
    25  [$7,000] $35,000
    26  Over [$7,000] $35,000 but not over                  $61
    27  [$8,000] $40,000
    28  Over [$8,000] $40,000 but not over                  $59
    29  [$9,000] $45,000
    30  Over [$9,000] $45,000 but not over                  $57
    31  [$10,000] $50,000
    32  Over [$10,000] $50,000 but not over                 $55
    33  [$11,000] $55,000
    34  Over [$11,000] $55,000 but not over                 $53
    35  [$12,000] $60,000
    36  Over [$12,000] $60,000 but not over                 $51
    37  [$13,000] $65,000
    38  Over [$13,000] $65,000 but not over                 $49
    39  [$14,000] $70,000
    40  Over [$14,000] $70,000 but not over                 $47
    41  [$15,000] $75,000
    42  Over [$15,000] $75,000 but not over                 $45
    43  [$16,000] $80,000
    44  Over [$16,000] $80,000 but not over
    45  [$17,000] $86,000                                   $43
    46  Over [$17,000] $86,000 but not over                 $41
    47  [$18,000] $100,000

    48    (7) No credit shall be granted under this subsection:
    49    (A)  If household gross income for the taxable year exceeds [eighteen]
    50  one hundred thousand dollars.
    51    (B) To a property owner unless: (i) the property is used for  residen-
    52  tial  purposes,  (ii) not more than twenty percent of the rental income,
    53  if any, from the property is from rental for nonresidential purposes and

        A. 8333                             5

     1  (iii) the property is occupied as a residence in whole or in part by one
     2  or more of the owners of the property.
     3    (C)  To  a  property  owner  who owns real property, the full value of
     4  which exceeds [eighty-five] one hundred fifty thousand dollars.
     5    (D) To a tenant if the adjusted rent for the residence  exceeds  [four
     6  hundred fifty] one thousand dollars per month on average.
     7    (E) To an individual with respect to whom a deduction under subsection
     8  (c)  of  section  one  hundred fifty-one of the internal revenue code is
     9  allowable to another taxpayer for the taxable year.
    10    (F) With respect to a residence that  is  wholly  exempted  from  real
    11  property taxation.
    12    (G) To an individual who is not a resident individual of the state for
    13  the entire taxable year.
    14    § 2. This act shall take effect immediately.
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