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.
                                                                   LBD02211-01-9

        S. 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  determination

        S. 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.
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