Establishes a personal income tax credit for a portion of a taxpayer's residential real property taxes which exceeds a certain percentage of the taxpayer's household gross income; provides that the taxpayer shall have resided in such residential real property for not less than 5 years; provides that such credit shall not apply to taxpayers who have claimed the real property tax circuit breaker credit during the taxable year.
STATE OF NEW YORK
________________________________________________________________________
619
2015-2016 Regular Sessions
IN SENATE(Prefiled)
January 7, 2015
___________
Introduced by Sen. LITTLE -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to the school district property
tax credit and establishing the maximum residential real property,
personal income tax credit
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (E) of paragraph 1 of subsection (e) of
2 section 606 of the tax law, as amended by chapter 105 of the laws of
3 2006, is amended to read as follows:
4 (E) "Qualifying real property taxes" means all real property taxes,
5 special ad valorem levies and special assessments, exclusive of penal-
6 ties and interest, levied on the residence of a qualified taxpayer and
7 paid during the taxable year [less the credit claimed under subsection
8 (n-1) of this section]. In addition, for taxable years beginning after
9 December thirty-first, nineteen hundred eighty-four, a qualified taxpay-
10 er may elect to include any additional amount that would have been
11 levied in the absence of an exemption from real property taxation pursu-
12 ant to section four hundred sixty-seven of the real property tax law. If
13 tenant-stockholders in a cooperative housing corporation have met the
14 requirements of section two hundred sixteen of the internal revenue code
15 by which they are allowed a deduction for real estate taxes, the amount
16 of taxes so allowable, or which would be allowable if the taxpayer had
17 filed returns on a cash basis, shall be qualifying real property taxes.
18 If a residence is owned by two or more individuals as joint tenants or
19 tenants in common, and one or more than one individual is not a member
20 of the household, qualifying real property taxes is that part of such
21 taxes on the residence which reflects the ownership percentage of the
22 qualified taxpayer and members of his household. If a residence is an
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00083-01-5
S. 619 2
1 integral part of a larger unit, qualifying real property taxes shall be
2 limited to that amount of such taxes paid as may be reasonably appor-
3 tioned to such residence. If a household owns and occupies two or more
4 residences during different periods in the same taxable year, qualifying
5 real property taxes shall be the sum of the prorated qualifying real
6 property taxes attributable to the household during the periods such
7 household occupies each of such residences. If the household owns and
8 occupies a residence for part of the taxable year and rents a residence
9 for part of the same taxable year, it may include both the proration of
10 qualifying real property taxes on the residence owned and the real prop-
11 erty tax equivalent with respect to the months the residence is rented.
12 Provided, however, for purposes of the credit allowed under this
13 subsection, qualifying real property taxes may be included by a quali-
14 fied taxpayer only to the extent that such taxpayer or the spouse of
15 such taxpayer occupying such residence for six months or more of the
16 taxable year owns or has owned the residence and paid such taxes.
17 § 2. Section 606 of the tax law is amended by adding a new subsection
18 (ccc) to read as follows:
19 (ccc) Maximum residential real property tax credit. (1) Definitions.
20 For the purposes of this subsection:
21 (A) "Qualified taxpayer" means a resident individual of the state who
22 owns the residential real property in which he or she resides, and has
23 resided in such residential real property for not less than five years.
24 (B) "Household" means the taxpayer or taxpayers and all other persons,
25 not necessarily related, who all reside in the residential real property
26 owned by the taxpayer or taxpayers, and share its furnishings, facili-
27 ties and accommodations; provided that no person may be a member of more
28 than one household at one time.
29 (C) "Household gross income" means the aggregate adjusted gross income
30 of all members of the household for the taxable year as reported for
31 federal income tax purposes, or which would be reported as adjusted
32 gross income if a federal income tax return were required to be filed,
33 with the modifications in subsection (b) of section six hundred twelve
34 of this article but without the modifications in subsection (c) of such
35 section, plus any portion of the gain from the sale or exchange of prop-
36 erty otherwise excluded from such amount; earned income from sources
37 without the United States excludable from federal gross income by
38 section nine hundred eleven of the internal revenue code; support money
39 not included in adjusted gross income; nontaxable strike benefits;
40 supplemental security income payments; the gross amount of any pension
41 or annuity benefits to the extent not included in such adjusted gross
42 income (including, but not limited to, railroad retirement benefits and
43 all payments received under the federal social security act and veter-
44 ans' disability pensions); nontaxable interest received from the state
45 of New York, its agencies, instrumentalities, public corporations, or
46 political subdivisions (including a public corporation created pursuant
47 to agreement or compact with another state or Canada); workers' compen-
48 sation; the gross amount of "loss-of-time" insurance; and the amount of
49 cash public assistance and relief, other than medical assistance for the
50 needy, paid to or for the benefit of the qualified taxpayer or members
51 of his or her household. Household gross income shall not include
52 surplus foods or other relief in kind or payments made to individuals
53 because of their status as victims of Nazi persecution as defined in
54 Public Law 103-286. Provided, further, household gross income shall only
55 include all such income received by all members of the household while
56 members of such household.
S. 619 3
1 (D) "Net real property tax" means the real property taxes assessed on
2 the residential real property owned and occupied by the taxpayer or
3 taxpayers after any exemption or abatement received pursuant to the real
4 property tax law.
5 (2) Credit. A qualified taxpayer shall be allowed a credit against the
6 taxes imposed by this article, equal to seventy percent of the amount
7 which the taxpayer's net real property tax exceeds the taxpayer's maxi-
8 mum real property tax, as determined by paragraph three of this
9 subsection, provided, however, such credit shall not exceed five thou-
10 sand dollars. If such credit exceeds the tax for such taxable year, as
11 reduced by the other credits permitted by this article, the qualified
12 taxpayer may receive, and the comptroller, subject to a certificate of
13 the department, shall pay as an overpayment, without interest, any
14 excess between such tax as so reduced and the amount of the credit. If a
15 qualified taxpayer is not required to file a return pursuant to section
16 six hundred fifty-one of this article, a qualified taxpayer may never-
17 theless receive and the comptroller, subject to a certificate of the
18 department, shall pay as an overpayment the full amount of the credit,
19 without interest.
20 (3) Maximum real property tax. (A) A qualified taxpayer's maximum real
21 property tax shall be determined as follows:
22 (i) In the city of New York, and the counties of Nassau, Suffolk,
23 Rockland, Westchester, Putnam, Orange and Dutchess:
24 Household gross incomeMaximum real property tax
25 One hundred twenty thousandsix percent of the
26 dollars or lesshousehold gross income
27 More than one hundredseven percent of
28 twenty thousandthe household
29 dollars, butgross income
30 less than or equal to
31 one hundred seventy-five
32 thousand dollars
33 More than one hundredeight percent of
34 seventy-five thousandthe household
35 dollars, but less thangross income
36 or equal to two hundred
37 fifty thousand dollars
38 More than two hundredno limitation.
39 fifty thousand
40 dollars
41 (ii) In all other counties in the state:
42 Household grossMaximum real
43 incomeproperty tax
44 Ninety thousandsix percent of the
45 dollars or lesshousehold gross income
46 More than ninetyseven percent of
47 thousand dollars, butthe household
48 less than or equal togross income
S. 619 4
1 one hundred fifty
2 thousand dollars
3 More than one hundredeight percent of
4 fifty thousand dollars,the household
5 but less than or equalgross income
6 to two hundred fifty thousand
7 dollars
8 More than two hundred fiftyno limitation.
9 thousand dollars
10 (B) The thresholds of household gross income for eligibility for the
11 maximum real property tax credit, established by subparagraph (A) of
12 this paragraph, shall be indexed for inflation.
13 (4) Exclusions from eligibility. No credit shall be granted under this
14 subsection if the qualified taxpayer claims the real property tax
15 circuit breaker credit, pursuant to subsection (e) of this section,
16 during the taxable year.
17 § 3. This act shall take effect on the first of January next succeed-
18 ing the date on which it shall have become a law, and shall apply to
19 taxable years commencing on or after such date.
