Bill Text: NY S02363 | 2019-2020 | General Assembly | Introduced
Bill Title: Provides for annual adjustment of the maximum income threshold for eligibility for the senior citizens' rent increase exemption (SCRIE), disability rent increase exemption (DRIE), senior citizen homeowners' exemption (SCHE), and disabled homeowners' exemption (DHE) by any increase in the consumer price index (CPI).
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO AGING [S02363 Detail]
Download: New_York-2019-S02363-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2363 2019-2020 Regular Sessions IN SENATE January 24, 2019 ___________ Introduced by Sens. KAVANAGH, SERRANO -- read twice and ordered printed, and when printed to be committed to the Committee on Aging AN ACT to amend the real property tax law, in relation to increasing the combined household income limit for eligibility for a senior citizen rent increase exemption (SCRIE), disability rent increase exemption (DRIE), senior citizen homeowners' exemption (SCHE), and disabled homeowners' exemption (DHE) on the basis of the consumer price index The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraphs a and b of subdivision 3 of section 467-b of the 2 real property tax law, paragraph a as amended by section 1 of part U of 3 chapter 55 of the laws of 2014 and paragraph b as amended by chapter 129 4 of the laws of 2014, are amended to read as follows: 5 a. for a dwelling unit where the head of the household is a person 6 sixty-two years of age or older, no tax abatement shall be granted if 7 the combined income of all members of the household for the income tax 8 year immediately preceding the date of making application exceeds four 9 thousand dollars, or such other sum not more than twenty-five thousand 10 dollars beginning July first, two thousand five, twenty-six thousand 11 dollars beginning July first, two thousand six, twenty-seven thousand 12 dollars beginning July first, two thousand seven, twenty-eight thousand 13 dollars beginning July first, two thousand eight, twenty-nine thousand 14 dollars beginning July first, two thousand nine, and fifty thousand 15 dollars beginning July first, two thousand fourteen, as may be provided 16 by the local law, ordinance or resolution adopted pursuant to this 17 section, provided that when the head of the household retires before the 18 commencement of such income tax year and the date of filing the applica- 19 tion, the income for such year may be adjusted by excluding salary or 20 earnings and projecting his or her retirement income over the entire 21 period of such year. The maximum income threshold provided for herein 22 shall be increased by order of the commissioner of the state division of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02211-01-9S. 2363 2 1 housing and community renewal on January first of each year to reflect 2 any increase in the regional consumer price index for the N.Y., 3 N.Y.-Northeastern, N.J. area, based upon the index for all urban consum- 4 ers (CPI-U) during the preceding twelve month period. 5 b. for a dwelling unit where the head of the household qualifies as a 6 person with a disability pursuant to subdivision five of this section, 7 no tax abatement shall be granted if the combined income for all members 8 of the household for the current income tax year exceeds fifty thousand 9 dollars beginning July first, two thousand fourteen, as may be provided 10 by the local law, ordinance or resolution adopted pursuant to this 11 section. The maximum income threshold provided for herein shall be 12 increased by order of the commissioner of the state division of housing 13 and community renewal on January first of each year to reflect any 14 increase in the regional consumer price index for the N.Y., 15 N.Y.-Northeastern, N.J. area, based upon the index for all urban consum- 16 ers (CPI-U) during the preceding twelve month period. 17 § 2. Paragraphs d and m of subdivision 1 of section 467-c of the real 18 property tax law, paragraph d as separately amended by chapters 188 and 19 205 of the laws of 2005, subparagraph 1 of paragraph d as amended by 20 section 2 of part U of chapter 55 of the laws of 2014 and paragraph m as 21 amended by chapter 129 of the laws of 2014, are amended to read as 22 follows: 23 d. "Eligible head of the household" means (1) a person or his or her 24 spouse who is sixty-two years of age or older and is entitled to the 25 possession or to the use and occupancy of a dwelling unit, provided, 26 however, with respect to a dwelling which was subject to a mortgage 27 insured or initially insured by the federal government pursuant to 28 section two hundred thirteen of the National Housing Act, as amended 29 "eligible head of the household" shall be limited to that person or his 30 or her spouse who was entitled to possession or the use and occupancy of 31 such dwelling unit at the time of termination of such mortgage, and 32 whose income when combined with the income of all other members of the 33 household, does not exceed six thousand five hundred dollars for the 34 taxable period, or such other sum not less than sixty-five hundred 35 dollars nor more than twenty-five thousand dollars beginning July first, 36 two thousand five, twenty-six thousand dollars beginning July first, two 37 thousand six, twenty-seven thousand dollars beginning July first, two 38 thousand seven, twenty-eight thousand dollars beginning July first, two 39 thousand eight, twenty-nine thousand dollars beginning July first, two 40 thousand nine, and fifty thousand dollars beginning July first, two 41 thousand fourteen, as may be provided by local law; or (2) a person with 42 a disability as defined in this subdivision. The maximum income thresh- 43 old provided for herein shall be increased by order of the commissioner 44 of the state division of housing and community renewal on January first 45 of each year to reflect any increase in the regional consumer price 46 index for the N.Y., N.Y.-Northeastern, N.J. area, based upon the index 47 for all urban consumers (CPI-U) during the preceding twelve month peri- 48 od. 49 m. "Person with a disability" means an individual who is currently 50 receiving social security disability insurance (SSDI) or supplemental 51 security income (SSI) benefits under the federal social security act or 52 disability pension or disability compensation benefits provided by the 53 United States department of veterans affairs or those previously eligi- 54 ble by virtue of receiving disability benefits under the supplemental 55 security income program or the social security disability program and 56 currently receiving medical assistance benefits based on determinationS. 2363 3 1 of disability as provided in section three hundred sixty-six of the 2 social services law and whose income for the current income tax year, 3 together with the income of all members of such individual's household, 4 does not exceed fifty thousand dollars beginning July first, two thou- 5 sand fourteen, as may be provided by local law. The maximum income 6 threshold provided for herein shall be increased by order of the commis- 7 sioner of the state division of housing and community renewal on January 8 first of each year to reflect any increase in the regional consumer 9 price index for the N.Y., N.Y.-Northeastern, N.J. area, based upon the 10 index for all urban consumers (CPI-U) during the preceding twelve month 11 period. 12 § 3. Paragraph (a) of subdivision 3 of section 467 of the real proper- 13 ty tax law, as separately amended by chapters 131 and 279 of the laws of 14 2017, is amended to read as follows: 15 (a) if the income of the owner or the combined income of the owners of 16 the property for the income tax year immediately preceding the date of 17 making application for exemption exceeds the sum of three thousand 18 dollars, or such other sum not less than three thousand dollars nor more 19 than twenty-six thousand dollars beginning July first, two thousand six, 20 twenty-seven thousand dollars beginning July first, two thousand seven, 21 twenty-eight thousand dollars beginning July first, two thousand eight, 22 twenty-nine thousand dollars beginning July first, two thousand nine, 23 and in a city with a population of one million or more fifty thousand 24 dollars beginning July first, two thousand seventeen, as may be provided 25 by the local law, ordinance or resolution adopted pursuant to this 26 section. The maximum income threshold provided for herein shall be 27 increased by order of the commissioner on January first of each year to 28 reflect any increase in the regional consumer price index for the N.Y., 29 N.Y.-Northeastern, N.J. area, based upon the index for all urban consum- 30 ers (CPI-U) during the preceding twelve month period. Income tax year 31 shall mean the twelve month period for which the owner or owners filed a 32 federal personal income tax return, or if no such return is filed, the 33 calendar year. Where title is vested in either the husband or the wife, 34 their combined income may not exceed such sum, except where the husband 35 or wife, or ex-husband or ex-wife is absent from the property as 36 provided in subparagraph (ii) of paragraph (d) of this subdivision, then 37 only the income of the spouse or ex-spouse residing on the property 38 shall be considered and may not exceed such sum. Such income shall 39 include social security and retirement benefits, interest, dividends, 40 total gain from the sale or exchange of a capital asset which may be 41 offset by a loss from the sale or exchange of a capital asset in the 42 same income tax year, net rental income, salary or earnings, and net 43 income from self-employment, but shall not include a return of capital, 44 gifts, inheritances, payments made to individuals because of their 45 status as victims of Nazi persecution, as defined in P.L. 103-286 or 46 monies earned through employment in the federal foster grandparent 47 program and any such income shall be offset by all medical and 48 prescription drug expenses actually paid which were not reimbursed or 49 paid for by insurance, if the governing board of a municipality, after a 50 public hearing, adopts a local law, ordinance or resolution providing 51 therefor. In addition, an exchange of an annuity for an annuity 52 contract, which resulted in non-taxable gain, as determined in section 53 one thousand thirty-five of the internal revenue code, shall be excluded 54 from such income. Provided that such exclusion shall be based on satis- 55 factory proof that such an exchange was solely an exchange of an annuity 56 for an annuity contract that resulted in a non-taxable transfer deter-S. 2363 4 1 mined by such section of the internal revenue code. Furthermore, such 2 income shall not include the proceeds of a reverse mortgage, as author- 3 ized by section six-h of the banking law, and sections two hundred 4 eighty and two hundred eighty-a of the real property law; provided, 5 however, that monies used to repay a reverse mortgage may not be 6 deducted from income, and provided additionally that any interest or 7 dividends realized from the investment of reverse mortgage proceeds 8 shall be considered income. The provisions of this paragraph notwith- 9 standing, such income shall not include veterans disability compen- 10 sation, as defined in Title 38 of the United States Code provided the 11 governing board of such municipality, after public hearing, adopts a 12 local law, ordinance 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 § 4. Paragraph (a) of subdivision 5 of section 459-c of the real prop- 17 erty tax law, as amended by chapter 131 of the laws of 2017, is amended 18 to read as follows: 19 (a) if the income of the owner or the combined income of the owners of 20 the property for the income tax year immediately preceding the date of 21 making application for exemption exceeds the sum of three thousand 22 dollars, or such other sum not less than three thousand dollars nor more 23 than twenty-six thousand dollars beginning July first, two thousand six, 24 twenty-seven thousand dollars beginning July first, two thousand seven, 25 twenty-eight thousand dollars beginning July first, two thousand eight, 26 twenty-nine thousand dollars beginning July first, two thousand nine, 27 and in a city with a population of one million or more fifty thousand 28 dollars beginning July first, two thousand seventeen, as may be provided 29 by the local law or resolution adopted pursuant to this section. The 30 maximum income threshold provided for herein shall be increased by order 31 of the commissioner on January first of each year to reflect any 32 increase in the regional consumer price index for the N.Y., 33 N.Y.-Northeastern, N.J. area, based upon the index for all urban consum- 34 ers (CPI-U) during the preceding twelve month period. Income tax year 35 shall mean the twelve month period for which the owner or owners filed a 36 federal personal income tax return, or if no such return is filed, the 37 calendar year. Where title is vested in either the husband or the wife, 38 their combined income may not exceed such sum, except where the husband 39 or wife, or ex-husband or ex-wife is absent from the property due to 40 divorce, legal separation or abandonment, then only the income of the 41 spouse or ex-spouse residing on the property shall be considered and may 42 not exceed such sum. Such income shall include social security and 43 retirement benefits, interest, dividends, total gain from the sale or 44 exchange of a capital asset which may be offset by a loss from the sale 45 or exchange of a capital asset in the same income tax year, net rental 46 income, salary or earnings, and net income from self-employment, but 47 shall not include a return of capital, gifts, inheritances or monies 48 earned through employment in the federal foster grandparent program and 49 any such income shall be offset by all medical and prescription drug 50 expenses actually paid which were not reimbursed or paid for by insur- 51 ance, if the governing board of a municipality, after a public hearing, 52 adopts a local law or resolution providing therefor. In computing net 53 rental income and net income from self-employment no depreciation 54 deduction shall be allowed for the exhaustion, wear and tear of real or 55 personal property held for the production of income; 56 § 5. This act shall take effect immediately; provided that:S. 2363 5 1 (a) the amendments to paragraph a of subdivision 3 of section 467-b of 2 the real property tax law made by section one of this act shall not 3 affect the expiration of such paragraph pursuant to section 4 of part U 4 of chapter 55 of the laws of 2014, as amended, or the expiration of such 5 section pursuant to section 17 of chapter 576 of the laws of 1974, as 6 amended, and shall be deemed to expire therewith; 7 (b) the amendments to paragraph b of subdivision 3 of section 467-b of 8 the real property tax law made by section one of this act shall not 9 affect the expiration of such section pursuant to section 17 of chapter 10 576 of the laws of 1974 and section 4 of chapter 129 of the laws of 11 2014, as amended, and shall be deemed to expire therewith; 12 (c) the amendments to subparagraph 1 of paragraph d of subdivision 1 13 of section 467-c of the real property tax law, made by section two of 14 this act shall not affect the expiration of such subparagraph pursuant 15 to section 4 of part U of chapter 55 of the laws of 2014, as amended, 16 and shall be deemed expired therewith; and 17 (d) the amendments to paragraph m of subdivision 1 of section 467-c of 18 the real property tax law, made by section two of this act shall not 19 affect the expiration of such paragraph pursuant to section 4 of chapter 20 129 of the laws of 2014, as amended, and shall be deemed expired there- 21 with.