A05796 Summary:

BILL NO    A05796 

SAME AS    No same as

SPONSOR    Hayes (MS)

COSPNSR    Finch, Hawley, Kolb, Molinaro

MLTSPNSR   Bacalles, Barclay, Burling, Errigo, Jordan, McDonough, Rabbitt,
           Townsend

Amd S467, RPT L

Provides for a simplified definition of income for senior citizens for real
property taxation purposes; defines income as federal adjusted gross less
distributions from an IRA.

A05796 Actions:

BILL NO    A05796 

02/20/2009 referred to aging
01/06/2010 referred to aging

A05796 Votes:

A05796 Memo:

 BILL NUMBER:  A5796

 TITLE OF BILL :  An act to amend the real property tax law, in
relation to defining the term "income" for senior citizens

 PURPOSE OR GENERAL IDEA OF BILL :

This legislation provides for a simplified definition of income in
relation to senior citizens for real property taxation purposes.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1, paragraph (a) of subdivision 3 of section 467 of the real
property tax law, is amended by deleting the existing definition of
"income." This amendment shall define income as "adjusted gross
income" for federal income tax purposes as reported on the applicant's
latest available federal or state income tax returns.

 JUSTIFICATION :

The definition of "income" as written in Paragraph 467 (Senior
Citizens Exemption) of the Real Property Tax Law is very archaic and
difficult to understand. When drafting the original STAR legislation
(Section 425 of the Real Property Tax Law), the language used to
define income for senior citizens was the same language as used in
Paragraph 467. This wording was found to be too complicated and was
subsequently amended and an understandable definition was adopted.

This legislation is important because without simplifying the
definition of income for senior citizens in Paragraph 467 of the Real
Property Tax Law, the possibility exists that many people will not
file for this much needed senior citizen exemption.

 PRIOR LEGISLATIVE HISTORY :

A.525 0f 2007-2008 held for consideration in aging A.6777 0f 2005-2006
A.4371 0f 2003-2004

A.5123 0f 2001-2002

A.6870 of 1999-2000

 FISCAL IMPLICATIONS :

Excluding social security benefits from the definitions of income
would have the effect of increasing the maximum income eligibility
level for the base exemption by $11,400, the average annual social
security benefit received by retired persons in New York State.

Our analysis is confined to the proposal's possible effect on the base
senior citizen's exemption, a reduction of up to 50 percent in
assessed value for homeowners with incomes of $24,000 or less.
Because of the unavailability of data, we cannot estimate the effect
on the sliding-scale component of the exemption, where lesser
reductions in assessed value are allowed for homeowners with incomes
above $24,000.

If we assume that only one owner of the property eligible for the base
senior citizen's exemption is receiving social security benefits, the
enclosed analysis shows that the estimated annual taxes shifted to
other taxpayers are $159.2 million or about 51 percent more than the
actual tax shift that occurred on the 2002 assessment rolls.  However,
if we assume that two owners are receiving social security benefits,
the estimate of taxes shifted increases to $273.2 million or an
increase of 88 percent from the 2002 assessment rolls.

 EFFECTIVE DATE : This act shall take effect immediately.