Bill Text: NY S04732 | 2017-2018 | General Assembly | Introduced

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Bill Title: Relates to excluding annuity roll-over transfers from taxable income for seniors.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-06-20 - SUBSTITUTED BY A1603 [S04732 Detail]

Download: New_York-2017-S04732-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4732
                               2017-2018 Regular Sessions
                    IN SENATE
                                    February 24, 2017
                                       ___________
        Introduced  by  Sen.  LARKIN -- 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  excluding
          annuity roll-over transfers from taxable income for seniors
          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  amended  by chapter 259 of the laws of 2009, is
     3  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  and twenty-nine thousand dollars  beginning  July  first,  two  thousand
    12  nine,  as  may  be  provided  by  the local law, ordinance or resolution
    13  adopted pursuant to this section. Income tax year shall mean the  twelve
    14  month  period  for  which  the  owner or owners filed a federal personal
    15  income tax return, or if no such return is  filed,  the  calendar  year.
    16  Where  title is vested in either the husband or the wife, their combined
    17  income may not exceed such sum, except where the  husband  or  wife,  or
    18  ex-husband or ex-wife is absent from the property as provided in subpar-
    19  agraph  (ii)  of paragraph (d) of this subdivision, then only the income
    20  of the spouse or ex-spouse residing on the property shall be  considered
    21  and  may  not exceed such sum. Such income shall include social security
    22  and retirement benefits, interest, dividends, total gain from  the  sale
    23  or  exchange  of  a capital asset which may be offset by a loss from the
    24  sale or exchange of a capital asset in the same  income  tax  year,  net
    25  rental  income, salary or earnings, and net income from self-employment,
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04005-01-7
        S. 4732                             2
     1  but shall not include a return of capital, gifts, inheritances, payments
     2  made to individuals because of their status as victims  of  Nazi  perse-
     3  cution,  as  defined in P.L. 103-286 or monies earned through employment
     4  in  the  federal foster grandparent program and any such income shall be
     5  offset by all medical and prescription drug expenses actually paid which
     6  were not reimbursed or paid for by insurance, if the governing board  of
     7  a municipality, after a public hearing, adopts a local law, ordinance or
     8  resolution  providing  therefor.  In addition, an exchange of an annuity
     9  for an annuity contract, which resulted in non-taxable gain,  as  deter-
    10  mined  in section one thousand thirty-five of the internal revenue code,
    11  shall be excluded from such income. Provided that such  exclusion  shall
    12  be  based  on  satisfactory  proof  that  such an exchange was solely an
    13  exchange of an annuity for an annuity contract that resulted in  a  non-
    14  taxable  transfer  determined  by  such  section of the internal revenue
    15  code. Furthermore, such income shall  not  include  the  proceeds  of  a
    16  reverse mortgage, as authorized by section six-h of the banking law, and
    17  sections two hundred eighty and two hundred eighty-a of the real proper-
    18  ty  law; provided, however, that monies used to repay a reverse mortgage
    19  may not be deducted from income,  and  provided  additionally  that  any
    20  interest  or  dividends realized from the investment of reverse mortgage
    21  proceeds shall be considered income. The provisions  of  this  paragraph
    22  notwithstanding,  such  income  shall  not  include  veterans disability
    23  compensation, as defined in Title 38 of the United States Code  provided
    24  the governing board of such municipality, after public hearing, adopts a
    25  local law, ordinance or resolution providing therefor.  In computing net
    26  rental  income  and  net  income  from  self-employment  no depreciation
    27  deduction shall be allowed for the exhaustion, wear and tear of real  or
    28  personal property held for the production of income;
    29    § 2. This act shall take effect immediately.