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A02122 Summary:

BILL NOA02122
 
SAME ASSAME AS S01819
 
SPONSORRozic
 
COSPNSRHevesi
 
MLTSPNSR
 
Amd §§467-b, 467 & 459-c, RPT L
 
Relates to tax abatement for rent-controlled and rent regulated property occupied by and real property owned by senior citizens or persons with disabilities.
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A02122 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2122
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 23, 2023
                                       ___________
 
        Introduced  by  M.  of A. ROZIC, HEVESI -- read once and referred to the
          Committee on Aging
 
        AN ACT to amend the real property tax law, in relation to tax  abatement
          for  rent-controlled  and rent regulated property occupied by and real
          property owned by senior citizens or persons with disabilities

          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,  and  fifty-five
    16  thousand dollars beginning July first, two thousand twenty-three, as may
    17  be  provided  by the local law, ordinance or resolution adopted pursuant
    18  to this section, provided that when the head of  the  household  retires
    19  before  the  commencement of such income tax year and the date of filing
    20  the application, the income for such year may be adjusted  by  excluding
    21  salary  or earnings and projecting his or her retirement income over the
    22  entire period of such year.
    23    b. for a dwelling unit where the head of the household qualifies as  a
    24  person  with  a disability pursuant to subdivision five of this section,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04986-01-3

        A. 2122                             2
 
     1  no tax abatement shall be granted if the combined income for all members
     2  of the household for the current income tax year exceeds fifty  thousand
     3  dollars  beginning  July  first,  two  thousand fourteen, and fifty-five
     4  thousand dollars beginning July first, two thousand twenty-three, as may
     5  be  provided  by the local law, ordinance or resolution adopted pursuant
     6  to this section.
     7    § 2. Paragraph (a) of subdivision 3 of section 467 of the real proper-
     8  ty tax law, as separately amended by chapter 488 and section 1 of part B
     9  of chapter 686 of the laws of 2022, is amended to read as follows:
    10    (a) if the income of the owner or the combined income of the owners of
    11  the property for the income tax year immediately preceding the  date  of
    12  making  application  for  exemption  exceeds  the  sum of three thousand
    13  dollars, or such other sum not less than three thousand dollars nor more
    14  than twenty-six thousand dollars beginning July first, two thousand six,
    15  twenty-seven thousand dollars beginning July first, two thousand  seven,
    16  twenty-eight  thousand dollars beginning July first, two thousand eight,
    17  twenty-nine thousand dollars beginning July first,  two  thousand  nine,
    18  fifty  thousand  dollars  beginning July first, two thousand twenty-two,
    19  fifty-five thousand dollars beginning July first, two  thousand  twenty-
    20  three,  and  in  a  city  with a population of one million or more fifty
    21  thousand dollars beginning July first, two thousand seventeen, as may be
    22  provided by the local law, ordinance or resolution adopted  pursuant  to
    23  this  section. Where the taxable status date is on or before April four-
    24  teenth, income tax year shall mean the twelve-month period for which the
    25  owner or owners filed a federal personal income tax return for the  year
    26  before the income tax year immediately preceding the date of application
    27  and where the taxable status date is on or after April fifteenth, income
    28  tax  year  shall  mean  the  twelve-month  period for which the owner or
    29  owners filed a federal personal income tax return  for  the  income  tax
    30  year immediately preceding the date of application. Where title is vest-
    31  ed  in  either  the  husband  or the wife, their combined income may not
    32  exceed such sum, except where the husband  or  wife,  or  ex-husband  or
    33  ex-wife  is absent from the property as provided in subparagraph (ii) of
    34  paragraph (d) of this subdivision, then only the income of the spouse or
    35  ex-spouse residing on the property  shall  be  considered  and  may  not
    36  exceed  such  sum. Such income shall include social security and retire-
    37  ment benefits, interest, dividends, total gain from the sale or exchange
    38  of a capital asset which may be offset  by  a  loss  from  the  sale  or
    39  exchange  of  a  capital  asset  in the same income tax year, net rental
    40  income, salary or earnings, and net  income  from  self-employment,  but
    41  shall  not  include  a  return of capital, gifts, inheritances, payments
    42  made to individuals because of their status as victims  of  Nazi  perse-
    43  cution,  as  defined in P.L. 103-286 or monies earned through employment
    44  in the federal foster grandparent program and any such income  shall  be
    45  offset by all medical and prescription drug expenses actually paid which
    46  were  not reimbursed or paid for by insurance, if the governing board of
    47  a municipality, after a public hearing, adopts a local law, ordinance or
    48  resolution providing therefor. In addition, an exchange  of  an  annuity
    49  for  an  annuity contract, which resulted in non-taxable gain, as deter-
    50  mined in section one thousand thirty-five of the internal revenue  code,
    51  shall  be  excluded from such income. Provided that such exclusion shall
    52  be based on satisfactory proof that  such  an  exchange  was  solely  an
    53  exchange  of  an annuity for an annuity contract that resulted in a non-
    54  taxable transfer determined by such  section  of  the  internal  revenue
    55  code.  Furthermore,  such  income  shall  not  include the proceeds of a
    56  reverse mortgage, as authorized by section six-h of the banking law, and

        A. 2122                             3
 
     1  sections two hundred eighty and two hundred eighty-a of the real proper-
     2  ty law; provided, however, that monies used to repay a reverse  mortgage
     3  may  not  be  deducted  from  income, and provided additionally that any
     4  interest  or  dividends realized from the investment of reverse mortgage
     5  proceeds shall be considered income. The provisions  of  this  paragraph
     6  notwithstanding,  such  income  shall  not  include  veterans disability
     7  compensation, as defined in Title 38 of the United States Code  provided
     8  the governing board of such municipality, after public hearing, adopts a
     9  local  law, ordinance or resolution providing therefor. In computing net
    10  rental income  and  net  income  from  self-employment  no  depreciation
    11  deduction  shall be allowed for the exhaustion, wear and tear of real or
    12  personal property held for the production of income;
    13    § 3. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
    14  erty tax law, as separately amended by chapter 488 and section 2 of part
    15  B of chapter 686 of the laws of 2022, is amended to read as follows:
    16    (a) if the income of the owner or the combined income of the owners of
    17  the property for the income tax year immediately preceding the  date  of
    18  making  application  for  exemption  exceeds  the  sum of three thousand
    19  dollars, or such other sum not less than three thousand dollars nor more
    20  than twenty-six thousand dollars beginning July first, two thousand six,
    21  twenty-seven thousand dollars beginning July first, two thousand  seven,
    22  twenty-eight  thousand dollars beginning July first, two thousand eight,
    23  twenty-nine thousand dollars beginning July first,  two  thousand  nine,
    24  [and]  fifty thousand dollars beginning July first, two thousand twenty-
    25  two, and fifty-five thousand dollars beginning July first, two  thousand
    26  twenty-three,  and  in  a  city with a population of one million or more
    27  fifty thousand dollars beginning July first, two thousand seventeen,  as
    28  may  be provided by the local law or resolution adopted pursuant to this
    29  section. Income tax year shall mean the twelve month  period  for  which
    30  the owner or owners filed a federal personal income tax return, or if no
    31  such return is filed, the calendar year. Where title is vested in either
    32  the  husband or the wife, their combined income may not exceed such sum,
    33  except where the husband or wife, or ex-husband  or  ex-wife  is  absent
    34  from  the property due to divorce, legal separation or abandonment, then
    35  only the income of the spouse or  ex-spouse  residing  on  the  property
    36  shall  be  considered  and  may  not  exceed such sum. Such income shall
    37  include social security and retirement  benefits,  interest,  dividends,
    38  total  gain  from  the  sale or exchange of a capital asset which may be
    39  offset by a loss from the sale or exchange of a  capital  asset  in  the
    40  same  income  tax  year,  net rental income, salary or earnings, and net
    41  income from self-employment, but shall not include a return of  capital,
    42  gifts,  inheritances  or monies earned through employment in the federal
    43  foster grandparent program and any such income shall be  offset  by  all
    44  medical  and  prescription  drug  expenses  actually paid which were not
    45  reimbursed or paid for by insurance, if the governing board of a munici-
    46  pality, after a public hearing, adopts a local law or resolution provid-
    47  ing therefor. In computing net rental income and net income  from  self-
    48  employment   no   depreciation   deduction  shall  be  allowed  for  the
    49  exhaustion, wear and tear of real or  personal  property  held  for  the
    50  production of income;
    51    §  4. This act shall take effect immediately, provided that the amend-
    52  ments to paragraphs a and b of subdivision 3 of  section  467-b  of  the
    53  real  property  tax law made by section one of this act shall not affect
    54  the expiration of such paragraphs and shall be deemed to  expire  there-
    55  with.
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