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A10335 Summary:

BILL NOA10335
 
SAME ASSAME AS S07859
 
SPONSORAbinanti
 
COSPNSR
 
MLTSPNSR
 
Amd 467 & 459-c, RPT L
 
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.
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A10335 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10335
 
SPONSOR: Abinanti
  TITLE OF BILL: 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 eligibility for the property tax exemption for persons sixty-five years of age or over and for persons with disabilities and limited income   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to provide certain income-eligible senior citizens and persons with disabilities and limited income with relief from the burden of increasing real property taxes.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 of the bill amends real property tax law section 467(3)(a)to increase the maximum income eligibility for the senior exemption from $29,000 to $50,000 beginning July 1, 2016. Section 2 amends real property tax law section 459-c(5)(a), to increase the maximum income eligibility for real property tax exemption for the disabled from $29,000 to $50,000 beginning July 1, 2016. Section 3 is the effective date.   JUSTIFICATION: New York State has a growing number of low-income seniors on fixed incomes and persons with disabilities who have limited income that are faced with ever increasing property taxes making it difficult for them to continue to live in and maintain their own homes. To lessen the burden on them of ever increasing property taxes this bill provides them with much needed relief by allowing local governments the option to raise the maximum income eligibility limit for the Senior Citizen Real Property Tax Exemption program from the current $37,399.99 to $50,000. The maximum income eligibility for the Senior Citizen. Real Property Tax Exemption has not been raised since 2009 and raising the Senior Real Property Tax Exemption income eligibility would make it consistent with SCRIE and DRIE. This bill would protect some of New York's most vulnerable citizens from having to give up their homes and move out of their communities.   PRIOR LEGISLATIVE HISTORY: New Bill   FISCAL IMPLICATIONS: None   EFFECTIVE DATE: This act shall take effect immediately.
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A10335 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10335
 
                   IN ASSEMBLY
 
                                      May 23, 2016
                                       ___________
 
        Introduced by M. of A. ABINANTI -- read once and referred to the Commit-
          tee 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  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,  and  fifty  thousand  dollars  beginning July first, two thousand
    13  sixteen, as may be provided by the local law,  ordinance  or  resolution
    14  adopted  pursuant to this section. Income tax year shall mean the twelve
    15  month period for which the owner or  owners  filed  a  federal  personal
    16  income  tax  return,  or  if no such return is filed, the calendar year.
    17  Where title is vested in either the husband or the wife, their  combined
    18  income  may  not  exceed  such sum, except where the husband or wife, or
    19  ex-husband or ex-wife is absent from the property as provided in subpar-
    20  agraph (ii) of paragraph (d) of this subdivision, then only  the  income
    21  of  the spouse or ex-spouse residing on the property shall be considered
    22  and may not exceed such sum. Such income shall include  social  security
    23  and  retirement  benefits, interest, dividends, total gain from the sale
    24  or exchange of a capital asset which may be offset by a  loss  from  the
    25  sale  or  exchange  of  a capital asset in the same income tax year, net
    26  rental income, salary or earnings, and net income from  self-employment,
    27  but shall not include a return of capital, gifts, inheritances, payments
    28  made  to  individuals  because of their status as victims of Nazi perse-
    29  cution, as defined in P.L. 103-286 or monies earned  through  employment
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15202-02-6

        A. 10335                            2

     1  in  the  federal foster grandparent program and any such income shall be
     2  offset by all medical and prescription drug expenses actually paid which
     3  were not reimbursed or paid for by insurance, if the governing board  of
     4  a municipality, after a public hearing, adopts a local law, ordinance or
     5  resolution  providing  therefor.    Furthermore,  such  income shall not
     6  include the proceeds of a reverse mortgage,  as  authorized  by  section
     7  six-h  of  the  banking  law,  and  sections  two hundred eighty and two
     8  hundred eighty-a of the  real  property  law;  provided,  however,  that
     9  monies used to repay a reverse mortgage may not be deducted from income,
    10  and  provided  additionally that any interest or dividends realized from
    11  the investment of reverse mortgage proceeds shall be considered  income.
    12  The  provisions of this paragraph notwithstanding, such income shall not
    13  include veterans disability compensation, as defined in Title 38 of  the
    14  United  States  Code  provided the governing board of such municipality,
    15  after public hearing,  adopts  a  local  law,  ordinance  or  resolution
    16  providing  therefor.  In computing net rental income and net income from
    17  self-employment no depreciation  deduction  shall  be  allowed  for  the
    18  exhaustion,  wear  and  tear  of  real or personal property held for the
    19  production of income;
    20    § 2. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
    21  erty tax law, as separately amended by chapters 187 and 252 of the  laws
    22  of 2006, is amended to read as follows:
    23    (a) if the income of the owner or the combined income of the owners of
    24  the  property  for the income tax year immediately preceding the date of
    25  making application for exemption  exceeds  the  sum  of  three  thousand
    26  dollars, or such other sum not less than three thousand dollars nor more
    27  than twenty-six thousand dollars beginning July first, two thousand six,
    28  twenty-seven  thousand dollars beginning July first, two thousand seven,
    29  twenty-eight thousand dollars beginning July first, two thousand  eight,
    30  [and]  twenty-nine  thousand  dollars beginning July first, two thousand
    31  nine and fifty thousand  dollars  beginning  July  first,  two  thousand
    32  sixteen,  as  may  be  provided  by  the local law or resolution adopted
    33  pursuant to this section. Income tax year shall mean  the  twelve  month
    34  period for which the owner or owners filed a federal personal income tax
    35  return, or if no such return is filed, the calendar year. Where title is
    36  vested  in either the husband or the wife, their combined income may not
    37  exceed such sum, except where the husband  or  wife,  or  ex-husband  or
    38  ex-wife  is absent from the property due to divorce, legal separation or
    39  abandonment, then only the income of the spouse or ex-spouse residing on
    40  the property shall be considered and  may  not  exceed  such  sum.  Such
    41  income  shall include social security and retirement benefits, interest,
    42  dividends, total gain from the sale or exchange of a capital asset which
    43  may be offset by a loss from the sale or exchange of a capital asset  in
    44  the same income tax year, net rental income, salary or earnings, and net
    45  income  from self-employment, but shall not include a return of capital,
    46  gifts, inheritances or monies earned through employment in  the  federal
    47  foster  grandparent  program  and any such income shall be offset by all
    48  medical and prescription drug expenses  actually  paid  which  were  not
    49  reimbursed or paid for by insurance, if the governing board of a munici-
    50  pality, after a public hearing, adopts a local law or resolution provid-
    51  ing  therefor.  In computing net rental income and net income from self-
    52  employment  no  depreciation  deduction  shall  be   allowed   for   the
    53  exhaustion,  wear  and  tear  of  real or personal property held for the
    54  production of income;
    55    § 3. This act shall take effect immediately.
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