S06850 Summary:

Add §467-j, RPT L
Grants a total exemption from real property taxation for school tax purposes for certain persons seventy years of age or over.
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S06850 Actions:

03/09/2016PRINT NUMBER 6850A
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S06850 Memo:

Memo not available
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S06850 Text:

                STATE OF NEW YORK
            S. 6850--A                                            A. 9370--A
                SENATE - ASSEMBLY
                                    February 29, 2016
        IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
          ed,  and  when  printed  to  be committed to the Committee on Aging --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted to said committee
        IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
          to the Committee on  Aging  --  committee  discharged,  bill  amended,
          ordered reprinted as amended and recommitted to said committee
        AN  ACT  to  amend  the real property tax law, in relation to granting a
          total exemption from real property taxation for  school  tax  purposes
          for certain persons seventy years of age or over
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The real property tax  law  is  amended  by  adding  a  new
     2  section 467-j to read as follows:
     3    §  467-j. Persons seventy years of age or over. 1. Notwithstanding any
     4  inconsistent provision of section four hundred sixty-seven of this title
     5  or any other provision of law,  real  property  owned  by  one  or  more
     6  persons  each  of whom is seventy years of age or over, or real property
     7  owned by husband and wife or siblings, one of whom is seventy  years  of
     8  age  or over and the youngest owner is at least sixty-five years of age;
     9  such persons have resided in the school district for at least ten years,
    10  and do not have any children in the household enrolled  in  such  school
    11  district, shall be exempt from taxation by any municipal corporation for
    12  school  purposes,  in  which  the real property is located, to the total
    13  extent of the assessed valuation thereof, provided the  governing  board
    14  of  such  municipality,  after public hearing, adopts a local law, ordi-
    15  nance or resolution providing therefor.
    16    2. All of the provisions of section four hundred sixty-seven  of  this
    17  title  applicable  to  the  granting  of exemptions for general, county,
    18  city, town, village, or school purposes, insofar as such provisions  are
    19  not  inconsistent with the provisions of this section, shall be applica-
    20  ble to the effectuating of the exemption provided in this section.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 6850--A                          2                         A. 9370--A
     1    3. (a) To qualify for exemption pursuant to this section, the property
     2  must be a one, two or three family residence, a farm dwelling  or  resi-
     3  dential  property  held in condominium or cooperative form of ownership.
     4  If the property is not an eligible type of property, but  a  portion  of
     5  the property is partially used by the owner as a primary residence, that
     6  portion  which is so used shall be entitled to the exemption provided by
     7  this section; provided that in no event shall the exemption  exceed  the
     8  assessed value attributable to that portion.
     9    (b)  Primary  residence.  The property must serve as the primary resi-
    10  dence of one or more of the owners thereof.
    11    (c) Trusts. If legal title to the property is  held  by  one  or  more
    12  trustees,  the  beneficial  owner  or  owners shall be deemed to own the
    13  property for purposes of this subdivision.
    14    (d) Farm dwellings not owned by the resident. (i) If  legal  title  to
    15  the farm dwelling is held by an S-corporation or by a C-corporation, the
    16  exemption  shall  be granted if the property serves as the primary resi-
    17  dence of a shareholder of such corporation.
    18    (ii) If the legal title to the farm dwelling is held by a partnership,
    19  the exemption shall be granted if the property  serves  as  the  primary
    20  residence of one or more of the partners.
    21    (iii)  Any  information  deemed  necessary to establish shareholder or
    22  partner status for eligibility purposes shall be considered confidential
    23  and exempt from the freedom of information law.
    24    4. (a) The combined income of all of the owners, and  of  any  owners'
    25  spouses  residing  on the premises, may not exceed the applicable income
    26  standard specified herein.
    27    (i) For final assessment rolls to be completed in two thousand  seven-
    28  teen, eligibility for the exemption shall be fifty thousand dollars,
    29    (ii)  For final assessment rolls to be completed in each ensuing year,
    30  the income standard shall be fifty thousand  dollars  increased  by  the
    31  cost-of-living-adjustment  percentage. For purposes of this computation,
    32  the cost-of-living-adjustment percentage shall be equal to the "applica-
    33  ble increase percentage" used  by  the  United  States  commissioner  of
    34  social security to determine monthly social security benefits payable in
    35  two  thousand  thirteen to individuals, as provided by subsection (i) of
    36  section four hundred fifteen of title forty-two  of  the  United  States
    37  code.    If  there  should  be  a  year for which there is no applicable
    38  increase percentage due to a general  benefit  increase  as  defined  by
    39  subdivision  three  of subsection (i) of section four hundred fifteen of
    40  title forty-two of the  United  States  code,  the  applicable  increase
    41  percentage  for  purposes  of this computation shall be deemed to be the
    42  percentage which would have yielded that general benefit increase.
    43    (iii) In no case shall  an  income  standard  be  decreased  from  one
    44  assessment roll to the next.
    45    (iv)  If the income standard initially computed for an assessment roll
    46  is not exactly equal to a multiple of fifty dollars, it shall be rounded
    47  up to the next higher multiple of fifty dollars.
    48    (v) It shall be the responsibility of  the  commissioner  to  annually
    49  determine  all  income  standards pursuant to this subdivision beginning
    50  with final assessment rolls to be completed in two  thousand  seventeen,
    51  to  cause  notice  thereof  to  be  published  in the state register, to
    52  disseminate notice thereof to assessors, county directors of real  prop-
    53  erty  tax  services,  and such other parties as it may deem appropriate,
    54  and to post notice thereof on its website.
    55    (b) The term "income" as used herein shall mean  the  "adjusted  gross
    56  income"  for  federal income tax purposes as reported on the applicant's

        S. 6850--A                          3                         A. 9370--A
     1  federal or state income tax return for the applicable income  tax  year,
     2  subject  to  any subsequent amendments or revisions, reduced by distrib-
     3  utions, to  the  extent  included  in  federal  adjusted  gross  income,
     4  received from an individual retirement account and an individual retire-
     5  ment annuity; provided that if no such return was filed for the applica-
     6  ble  income tax year, "income" shall mean the adjusted gross income that
     7  would have been so reported if such a return had been filed.
     8    (c) Any information or documentation submitted  by  the  applicant  in
     9  connection  with applications for or renewal of the exemption authorized
    10  under this section to verify income, shall be deemed  confidential,  and
    11  the assessor, any municipal officer or municipal employees are prohibit-
    12  ed  from  disclosing  any  such  information,  except for any disclosure
    13  necessary in the performance of their official  duties,  and  except  as
    14  authorized  by  paragraph  (e)  of  this  subdivision.  Any unauthorized
    15  disclosure of such information shall be deemed a  violation  of  section
    16  eight hundred five-a of the general municipal law.
    17    (d)  Effective  with  applications for the enhanced exemption on final
    18  assessment rolls to be completed in two thousand seventeen, the applica-
    19  tion form shall indicate that the owners of the property and any owners'
    20  spouses residing on the premises may  authorize  the  assessor  to  have
    21  their  income  eligibility  verified  annually  thereafter  by the state
    22  department of taxation and finance, in lieu of furnishing copies of  the
    23  applicable  income  tax  return  or returns with the application. If the
    24  owners of the property and any owners' spouses residing on the  premises
    25  elect  to  participate in this program, which shall be known as the STAR
    26  income verification program, they must furnish their taxpayer  identifi-
    27  cation  numbers  in  order  to  facilitate  matching with records of the
    28  department of taxation and finance. Thereafter, their income eligibility
    29  shall be verified annually by  the  state  department  of  taxation  and
    30  finance  and  the  assessor  shall not request income documentation from
    31  them, unless such department advises the assessor  through  the  commis-
    32  sioner  that  they  do  not  satisfy  the  applicable income eligibility
    33  requirements, or that it is unable to  determine  whether  they  satisfy
    34  those requirements.
    35    (e)  The  assessor  shall forward to the commissioner, in the time and
    36  manner required by the commissioner, information identifying the persons
    37  who have elected to participate in the STAR income verification program.
    38  The commissioner shall forward such information  to  the  department  of
    39  taxation  and  finance  in the manner provided by the agreement executed
    40  pursuant to section one hundred seventy-one-k of the tax law, and  shall
    41  notify the assessor of the response or responses he or she receives from
    42  such  department  pursuant  to  such  agreement.  After  receiving  such
    43  response or responses, the assessing authority shall cause notices to be
    44  mailed to participants. Information obtained by the commissioner identi-
    45  fying such persons, and responses obtained from such department shall be
    46  confidential and shall not be subject to disclosure under article six of
    47  the public officers law.
    48    (f) Notwithstanding the provisions of paragraphs (d) and (e)  of  this
    49  subdivision,  which establish a STAR income verification program, income
    50  documentation must be submitted to the assessor in connection with  each
    51  of the following:
    52    (i) Initial applications for the enhanced STAR exemption;
    53    (ii)  Renewal  applications  submitted by a person or persons who have
    54  not elected to participate in the STAR income verification program;
    55    (iii) Applications that would allow an enhanced  exemption  to  resume
    56  after having been discontinued;

        S. 6850--A                          4                         A. 9370--A
     1    (iv)  Applications submitted by a person or persons who had previously
     2  qualified for the enhanced exemption but not in the  assessing  unit  in
     3  question; and
     4    (v)  Applications with respect to which the department of taxation and
     5  finance has advised the assessor through the  commissioner  that  it  is
     6  unable  to  determine  whether a participant or participants in the STAR
     7  income verification program satisfy the income eligibility requirements.
     8    § 2. This act shall take effect immediately and shall apply to assess-
     9  ment rolls prepared on the basis of taxable status dates occurring on or
    10  after the first of January, 2017.
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