NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7463A
SPONSOR: Kavanagh (MS) TITLE OF BILL: An act to amend the real property tax law, in relation
to increasing the allowable maximum income of certain persons otherwise
eligible for tax abatement in certain cases
PURPOSE:
This bill is intended to permit New York City to increase the number of
households participating in the Senior Citizen Homeowners' Exemption
(SCHE) and the Disabled Homeowners' Exemption (DHE) programs by raising
the maximum income levels at which households are eligible to amounts
comparable to those that apply to similar programs for renters.
SUMMARY OF PROVISIONS:
Section 1 of the bill amends section 467 (3)(a) of the real property tax
law to permit localities with a population of one million or more to
grant partial property-tax exemptions to senior property owners whose
income, or the combined income of all owners of the property, does not
exceed $58,400.
Section 2 of the bill amends section 459-c (5)(a) of the real property
tax law to permit localities with a population of one million or more to
grant partial property-tax exemptions to disabled property owners whose
income, or the combined income of all owners of the property, does not
exceed $58,400.
Section 3 of the bill sets forth the effective date.
AMENDMENTS:
Sections 1 and 2 of the bill were amended to limit the ability of local-
ities to increase the income eligibility threshold for the SCHE and DHE
programs to cities with a population of one million or more.
Section 3 of the bill was amended to change the effective date to allow
for eligible individuals to apply for SCHE or DHE for their 2017 proper-
ty taxes.
JUSTIFICATION:
The SCHE and DHE programs provide a property tax exemption of up to 50
percent of the assessed property value for senior residents who own
one-, two-, or three-family homes, condominiums, or cooperative apart-
ments and who will be at least 65 years of age in the year that they
apply. The DHE program provides parallel relief where at least one owner
has a documented physical or mental disability not due to the use of
alcohol or illegal drugs. To qualify, all owners must occupy the proper-
ty as their primary residence, with limited statutory exceptions, such
as health-related inpatient status.
To be eligible for a 50 percent exemption, the combined income of all
owners and their spouses cannot exceed $29,000. A "sliding scale" option
permits localities to extend smaller assessed value reductions to owners
with a combined income above $29,000 but less than $37,400. For exam-
ple, an eligible senior or disabled homeowner with a combined income of
$36,500 may receive a 5 percent reduction in the assessed value of their
home for property tax purposes.
For New York City, this legislation raises the maximum combined house-
hold income eligibility limit for a 50 percent reduction in property tax
assessment from $29,000 to $50,000, effective July 1, 2017. Under the
"sliding scale" (tiered relief) option, the City would be able to extend
relief to households with a combined income up to $58,400 (rather than
the current $37,400). As a result, the limit for receiving the full SCHE
and DHE benefit will be aligned with adjustments already enacted by the
legislature and the Governor for the SCRIE and DRIE programs. This bill
would restore parity among these crucial programs.
Increases in the cost of living and the continued stagnation of wages
make it difficult for many seniors and persons with disabilities to make
ends meet, regardless of whether they rent or own their homes. Both
low- and middle-income residents are subject to the burden of escalating
costs. Senior citizens and those with disabilities often rely upon a
fixed income, and homeowners typically have their primary wealth
invested in their property. Moreover, elderly and disabled residents are
often responsible for higher-than-average healthcare costs.
The cost of living in New York City, which is higher than in many parts
of the state, makes it particularly difficult for people with low or
moderate incomes to make ends meet. By making more seniors and disabled
New Yorkers eligible for property tax exemptions, this bill will help
keep many from being forced to give up their homes.
FISCAL IMPACT ON THE STATE:
None.
FISCAL IMPACT ON LOCALITIES:
This bill does not mandate any fiscal impact. Any local fiscal impact
will be determined by New York City, if it chooses to adopt the new
eligibility limits.
IMPACT ON REGULATION OF BUSINESSES AND INDIVIDUALS:
None.
IMPACT ON FINES, IMPRISONMENT, FORFEITURE OF RIGHTS, OR OTHER PENAL
SANCTIONS:
None.
LEGISLATIVE HISTORY:
2016: A5565B (Kavanagh) Aging
2015: A5565A (Kavanagh) Aging
2014: A2043B (Kavanagh) - Aging
Prior versions of this bill (2001-2013) addressed tax exemptions for
renters but not homeowners.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to applications
made for an exemption pursuant to this act for the city fiscal year
commencing in 2017 and all city fiscal years thereafter. Applications
received for the city fiscal year commencing in 2017 shall be considered
timely if they are filed on or before the one hundred twentieth day
following the effective date of the local law implementing the
provisions of this act.
