Provides for a state school tax reduction credit for low income renters against personal income tax for renters in a qualified residence; defines qualified residence as a rental unit subject to certain rent control laws.
STATE OF NEW YORK
________________________________________________________________________
1891
2011-2012 Regular Sessions
IN ASSEMBLY
January 12, 2011
___________
Introduced by M. of A. ROSENTHAL, BOYLAND, BROOK-KRASNY, V. LOPEZ,
ORTIZ, WRIGHT -- Multi-Sponsored by -- M. of A. ABBATE, BENEDETTO,
BING, BRENNAN, COLTON, COOK, GLICK, HIKIND, JACOBS, KELLNER, MAISEL,
MARKEY, MAYERSOHN, MILLMAN, NOLAN, O'DONNELL, PHEFFER, TITONE, TOWNS
-- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to the provision of a credit
against state personal income tax for tax relief for certain school
taxpayer renters
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1310 of the tax law is amended by adding a new
2 subsection (g) to read as follows:
3 (g) State school tax reduction credit for certain low income renters.
4 (1) For purposes of this subsection the following terms shall have the
5 following meanings:
6 (A) "Qualified taxpayer" means a resident individual of the state who
7 has occupied the same qualified residence for six months or more of the
8 taxable year with his or her child or children at least one of whom is
9 under the age of eighteen, who is required or chooses to file a return
10 under this article and whose household gross income does not exceed
11 sixty thousand dollars for the year in which the credit is claimed.
12 (B) "Household" or "members of the household" means a qualified
13 taxpayer and all other persons, not necessarily related, who have the
14 same qualified residence and share its furnishings, facilities and
15 accommodations. Such terms shall not include a tenant, subtenant, roomer
16 or boarder who is not related to the qualified taxpayer in any degree
17 specified in paragraphs one through eight of subsection (a) of section
18 one hundred fifty-two of the internal revenue code. Provided, however,
19 no person may be a member of more than one household at one time.
20 (C) "Household gross income" means the aggregate adjusted gross income
21 of all members of the household for the taxable year as reported for
22 federal income tax purposes, or which would be reported for federal
23 income tax purposes if a federal income tax return were required to be
24 filed, with the modifications in subsection (b) of section six hundred
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02266-01-1
A. 1891 2
1 twelve of this chapter, but without the modifications in subsection (c)
2 of such section, plus any portion from the gain from the sale or
3 exchange of property otherwise excluded from such amount, earned income
4 from sources without the United States excludable from federal gross
5 income by section nine hundred eleven of the internal revenue code;
6 support money not included in adjusted gross income; nontaxable strike
7 benefits; supplemental security income payments; the gross amount of any
8 pension or annuity benefits to the extent not included in such adjusted
9 gross income (including but not limited to railroad retirement benefits
10 and all payments received under the federal social security act and
11 veterans disability pensions); non-taxable interest received from the
12 state of New York, its agencies, instrumentalities, public corporations
13 or political subdivisions (including a public corporation created pursu-
14 ant to agreement or compact with another state or Canada); workers'
15 compensation; the gross amount of "loss of time" insurance; and the
16 amount of cash public assistance and relief, other than medical assist-
17 ance for the needy, paid to or for the benefit of the qualified taxpayer
18 or members of his household. Household gross income shall not include
19 surplus foods or other relief in kind or payments made to individuals
20 because of their status as victims of Nazi persecution, as defined in
21 P.L. 103-286. Provided, further, household gross income shall only
22 include all such income received by all members of the household while
23 members of such household.
24 (D) "Qualified residence" means a residential rental unit.
25 (E) "Adjusted rent" means annual rental paid for the right of occupan-
26 cy of a qualified residence, excluding charges for heat, gas, electric-
27 ity, furnishings and board. Where charges for heat, gas, electricity,
28 furnishings or board are included in rental but where such charges and
29 the amount thereof are not separately set forth in a written rental
30 agreement, for purposes of determining adjusted rent the qualified
31 taxpayer shall reduce rental paid as follows:
32 (i) for heat, or heat and gas, deduct fifteen percent of rental paid;
33 (ii) for heat, gas or electricity, deduct twenty percent of rental
34 paid;
35 (iii) for heat, gas, electricity and furnishings, deduct twenty-five
36 percent of rental paid;
37 (iv) for heat, gas, electricity, furnishings and board, deduct fifty
38 percent of rental paid.
39 If the department of taxation and finance determines that the adjusted
40 rent shown on the return is excessive, the commissioner may reduce such
41 rent, for purposes of the computation of the credit, to an amount
42 substantially equivalent to rent for a comparable accommodation.
43 (2) For taxable years beginning after two thousand eight, a qualified
44 taxpayer shall be allowed an additional state school tax reduction cred-
45 it against the taxes authorized by this article reduced by the credits
46 permitted by this article. If the credit exceeds the tax as so reduced,
47 the taxpayer may receive, and the comptroller, subject to a certificate
48 of the tax commission, shall pay as an overpayment, without interest,
49 the amount of such excess.
50 (3) For qualified taxpayers the amount of the credit allowable under
51 this subsection shall be three percent of the adjusted rent paid for
52 such qualified residence.
53 (4) If a qualified taxpayer occupies a qualified residence for a peri-
54 od of less than twelve months during the taxable year or occupies two or
55 more qualified residences during different periods in such taxable year,
56 the credit allowed pursuant to this subsection shall be computed in such
A. 1891 3
1 manner as the department of taxation and finance may, by regulation
2 prescribe, in order to properly reflect the credit or portion thereof
3 attributable to such qualified residence or residences and such period
4 or periods.
5 (5) Only one credit per household and per qualified taxpayer shall be
6 allowed per taxable year under this subsection. When two or more members
7 of a household are able to meet the qualifications for a qualified
8 taxpayer, the credit shall be equally divided between or among such
9 individuals unless such individuals file with the department of taxation
10 and finance a written agreement among such individuals setting forth a
11 different division.
12 (A) Provided, however, where a joint income tax return has been filed
13 pursuant to the provisions of section thirteen hundred six of this arti-
14 cle by a qualified taxpayer and his or her spouse (or where both spouses
15 are qualified taxpayers and have filed such joint return), the credit,
16 or the portion of the credit if divided, to which the husband and wife
17 are entitled shall be applied against the tax of both spouses and any
18 overpayment shall be made to both spouses.
19 (B) Where any return required to be filed pursuant to the provisions
20 of section thirteen hundred six of this article is combined with any
21 return of tax imposed pursuant to the authority of this chapter or any
22 other law if such tax is administered by the department of taxation and
23 finance, the credit or the portion of the credit if divided, allowed to
24 the qualified taxpayer may be applied by the department toward any
25 liability for the aforementioned taxes.
26 (6) No credit shall be granted under this subsection:
27 (A) If household gross income for the taxable year exceeds sixty thou-
28 sand dollars;
29 (B) To an individual with respect to whom a deduction under subsection
30 (c) of section one hundred fifty-one of the internal revenue code is
31 allowable to another taxpayer for the taxable year; or
32 (C) To an individual who is not a resident individual of the state for
33 the entire taxable year.
34 (7) The right to claim a credit or the portion of a credit, where such
35 credit has been divided under this subsection, shall be personal to the
36 qualified taxpayer and shall not survive his death, but such right may
37 be exercised on behalf of a claimant by his legal guardian or attorney
38 in fact during his lifetime.
39 (8) Returns under this section shall be in such form as shall be
40 prescribed by the department of taxation and finance, which shall make
41 available such forms and instruction for filing such returns.
42 (9) The department may require a qualified taxpayer to furnish the
43 following information in support of his claim for credit under the
44 subsection: household gross income, rent paid, name and address of owner
45 or managing agent of the property rented, the names of members of the
46 household and other qualifying taxpayers occupying the residence and
47 their identifying numbers including social security numbers, household
48 gross income, size and nature of property claimed as residence and all
49 other information which may be required by the department to determine
50 the credit.
51 (10) Notwithstanding any other provision of this article, the credit
52 allowed under this subsection shall be determined after the determi-
53 nation and application of any other credits permitted under the
54 provisions of this section.
55 § 2. This act shall take effect immediately.
