Bill Text: NY S05557 | 2019-2020 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Engrossed - Dead) 2020-01-29 - referred to aging [S05557 Detail]

Download: New_York-2019-S05557-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5557
                               2019-2020 Regular Sessions
                    IN SENATE
                                       May 7, 2019
                                       ___________
        Introduced  by  Sen.  STEWART-COUSINS -- 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
          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 nineteen,  and
    13  in  a  city  with  a  population  of  one million or more fifty thousand
    14  dollars beginning July first, two thousand seventeen, as may be provided
    15  by the local law, ordinance  or  resolution  adopted  pursuant  to  this
    16  section.  Income  tax  year shall mean the twelve month period for which
    17  the owner or owners filed a federal personal income tax return, or if no
    18  such return is filed, the calendar year. Where title is vested in either
    19  the 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
    22  this subdivision, then only the income of the spouse or ex-spouse resid-
    23  ing  on  the  property  shall be considered and may not exceed such sum.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05065-01-9
        S. 5557                             2
     1  Such income shall  include  social  security  and  retirement  benefits,
     2  interest,  dividends,  total gain from the sale or exchange of a capital
     3  asset which may be offset by a loss from the sale or exchange of a capi-
     4  tal  asset  in  the  same  income tax year, net rental income, salary or
     5  earnings, and net income from self-employment, but shall not  include  a
     6  return  of  capital,  gifts,  inheritances, payments made to individuals
     7  because of their status as victims of Nazi persecution,  as  defined  in
     8  P.L.  103-286  or monies earned through employment in the federal foster
     9  grandparent program and any such income shall be offset by  all  medical
    10  and  prescription  drug expenses actually paid which were not reimbursed
    11  or paid for by insurance, if the  governing  board  of  a  municipality,
    12  after  a  public  hearing,  adopts  a local law, ordinance or resolution
    13  providing therefor. In addition, an exchange of an annuity for an annui-
    14  ty contract, which  resulted  in  non-taxable  gain,  as  determined  in
    15  section  one thousand thirty-five of the internal revenue code, shall be
    16  excluded from such income. Provided that such exclusion shall  be  based
    17  on satisfactory proof that such an exchange was solely an exchange of an
    18  annuity  for an annuity contract that resulted in a non-taxable transfer
    19  determined by such section of the internal  revenue  code.  Furthermore,
    20  such  income  shall  not  include the proceeds of a reverse mortgage, as
    21  authorized by section six-h of the banking law, and sections two hundred
    22  eighty and two hundred eighty-a of  the  real  property  law;  provided,
    23  however,  that  monies  used  to  repay  a  reverse  mortgage may not be
    24  deducted from income, and provided additionally  that  any  interest  or
    25  dividends  realized  from  the  investment  of reverse mortgage proceeds
    26  shall be considered income. The provisions of  this  paragraph  notwith-
    27  standing,  such  income  shall  not  include veterans disability compen-
    28  sation, as defined in Title 38 of the United States  Code  provided  the
    29  governing  board  of  such  municipality, after public hearing, adopts a
    30  local law, ordinance or resolution providing therefor. In computing  net
    31  rental  income  and  net  income  from  self-employment  no depreciation
    32  deduction shall be allowed for the exhaustion, wear and tear of real  or
    33  personal property held for the production of income;
    34    § 2. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
    35  erty  tax law, as amended by chapter 131 of the laws of 2017, is amended
    36  to read as follows:
    37    (a) if the income of the owner or the combined income of the owners of
    38  the property for the income tax year immediately preceding the  date  of
    39  making  application  for  exemption  exceeds  the  sum of three thousand
    40  dollars, or such other sum not less than three thousand dollars nor more
    41  than twenty-six thousand dollars beginning July first, two thousand six,
    42  twenty-seven thousand dollars beginning July first, two thousand  seven,
    43  twenty-eight  thousand dollars beginning July first, two thousand eight,
    44  twenty-nine thousand dollars beginning July first,  two  thousand  nine,
    45  and  fifty thousand dollars beginning July first, two thousand nineteen,
    46  and in a city with a population of one million or  more  fifty  thousand
    47  dollars beginning July first, two thousand seventeen, as may be provided
    48  by  the local law or resolution adopted pursuant to this section. Income
    49  tax year shall mean the twelve month  period  for  which  the  owner  or
    50  owners  filed a federal personal income tax return, or if no such return
    51  is filed, the calendar year. Where title is vested in either the husband
    52  or the wife, their combined income may not exceed such sum, except where
    53  the husband or wife, or ex-husband or ex-wife is absent from the proper-
    54  ty due to divorce, legal separation or abandonment, then only the income
    55  of the spouse or ex-spouse residing on the property shall be  considered
    56  and  may  not exceed such sum. Such income shall include social security
        S. 5557                             3
     1  and retirement benefits, interest, dividends, total gain from  the  sale
     2  or  exchange  of  a capital asset which may be offset by a loss from the
     3  sale or exchange of a capital asset in the same  income  tax  year,  net
     4  rental  income, salary or earnings, and net income from self-employment,
     5  but shall not include a return of capital, gifts, inheritances or monies
     6  earned through employment in the federal foster grandparent program  and
     7  any  such  income  shall  be offset by all medical and prescription drug
     8  expenses actually paid which were not reimbursed or paid for  by  insur-
     9  ance,  if the governing board of a municipality, after a public hearing,
    10  adopts a local law or resolution providing therefor.  In  computing  net
    11  rental  income  and  net  income  from  self-employment  no depreciation
    12  deduction shall be allowed for the exhaustion, wear and tear of real  or
    13  personal property held for the production of income;
    14    § 3. This act shall take effect immediately.