Amd S606, Tax L; amd SS844, 467-a & 1801, rpld SS458 & 458-a, RPT L; amd S51, Gen Muni L; rpld SS11-245.45,
11-245.5, 11-245.6 & 11-245.7, NYC Ad Cd
Replaces current system which grants veterans real property tax exemptions funded by local governments with a system funded by the state; provides that honorably discharged veterans of certain wars shall receive an additional personal income tax credit varying in amount based on factors like extent of disability for qualifying real property taxes; provides same to unremarried surviving spouse; includes multi-unit real property at least one unit of which is veteran's primary residence; repeals provisions relating to current system of veterans' real property tax exemptions.
STATE OF NEW YORK
________________________________________________________________________
3487
2013-2014 Regular Sessions
IN ASSEMBLY
January 28, 2013
___________
Introduced by M. of A. LENTOL -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, the real property tax law and the general
municipal law, in relation to providing personal income tax credit for
real property taxes paid by honorably discharged veterans or the unre-
married surviving spouses of such veterans and to repeal sections 458
and 458-a of the real property tax law and sections 11-245.45,
11-245.5, 11-245.6 and 11-245.7 of the administrative code of the city
of New York relating thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 606 of the tax law is amended by adding a new
2 subsection (vv) to read as follows:
3 (vv) Real property tax credit for veterans. (1) A taxpayer who is an
4 honorably discharged veteran of the Spanish-American war, the Mexican
5 Border period, World War I, World War II, the hostilities which
6 commenced June twenty-seventh, nineteen hundred fifty to the thirty-
7 first of January, nineteen hundred fifty-five, or the hostilities
8 participated in by the military forces of the United States, from the
9 first day of January, nineteen hundred sixty-three, to the seventh of
10 May, nineteen hundred seventy-five; or the unremarried surviving spouse
11 of such veteran shall be allowed a credit of fifteen percent of real
12 property taxes paid during the taxable year to a municipality not to
13 exceed two hundred fifty dollars against the tax imposed by this arti-
14 cle.
15 (2) Any such taxpayer who served in a combat theatre or combat zone of
16 operations, as documented by the award of a United States campaign
17 ribbon or service medal, or the unremarried surviving spouse of such
18 veteran, shall be allowed an additional credit of ten percent of real
19 property taxes paid during the taxable year to a municipality, not to
20 exceed two hundred dollars, against the tax imposed by this article.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04118-01-3
A. 3487 2
1 (3) Any such taxpayer who sustained a one hundred percent service
2 connected disability, or the unremarried surviving spouse of such
3 taxpayer, shall be allowed a credit of sixty percent of real property
4 taxes paid during the taxable year to a municipality, not to exceed one
5 thousand dollars, against the tax imposed by this article.
6 (4) Any such taxpayer who sustained a service connected disability in
7 excess of fifty percent but less than one hundred percent, or the unre-
8 married surviving spouse of such taxpayer, shall be allowed a credit of
9 forty-five percent of real property taxes paid during the taxable year
10 to a municipality, not to exceed seven hundred fifty dollars, against
11 the tax imposed by this article.
12 (5) Any such taxpayer who sustained a service connected disability of
13 less than fifty percent, or the unremarried surviving spouse of such
14 taxpayer, shall be allowed a credit of thirty percent of real property
15 taxes paid during the taxable year to a municipality, not to exceed five
16 hundred dollars, against the tax imposed by this article.
17 (6) A taxpayer, or the unremarried surviving spouse of such taxpayer,
18 described in paragraphs one through five, respectively, of this
19 subsection who rented real property for personal residential purposes
20 shall determine the percentage of total rental payments attributable to
21 payment of real property taxes imposed upon the lessor and treat such
22 percentage of payments, for purposes of credits permitted by this
23 subsection, as if such taxpayer had paid real property taxes directly to
24 the taxing municipality.
25 (7) A taxpayer, or the unremarried surviving spouse of such taxpayer,
26 described in paragraphs one through five, respectively, of this
27 subsection who owns shares of a residential cooperative corporation and
28 occupies an apartment as his or her principal residence pursuant to
29 proprietary lease for said apartment, shall compute his or her propor-
30 tionate share of the real property taxes paid by the cooperative corpo-
31 ration for purposes of credits permitted by this subsection as if such
32 taxpayer had paid real property taxes directly to the taxing munici-
33 pality.
34 (8) Such tax credits will be granted on "qualifying real property".
35 "Qualifying real property" means property containing three or less resi-
36 dential or commercial units (but not less than one residential unit)
37 owned or, in the case of an apartment or other such unit, rented by a
38 taxpayer described in this subsection or in the case of a cooperative
39 apartment, occupied by a tenant-shareholder of a cooperative corporation
40 who is a taxpayer described in this subsection, which is used wholly or
41 partially for residential purposes. Such property, or a unit thereof,
42 must be the primary residence of the veteran or unremarried surviving
43 spouse of the veteran, unless the veteran or unremarried surviving
44 spouse is absent from the property due to medical reasons or institu-
45 tionalization. In the event the veteran dies and there is no unremarried
46 surviving spouse, "qualifying real property" shall mean property
47 containing the primary residence owned by a qualified owner prior to
48 death, provided that the title to the property becomes vested in the
49 dependent father or mother or dependent child or children under twenty-
50 one years of age of a veteran by virtue of devise by or descent from the
51 deceased qualified owner, provided that the property or a unit thereof
52 is the primary residence of one or all of the devisees.
53 (9) Such veterans who received real property tax exemptions pursuant
54 to the provisions of section four hundred fifty-eight of the real prop-
55 erty tax law, for any real property taxable year between nineteen
56 hundred eighty-one and nineteen hundred ninety shall receive either the
A. 3487 3
1 credits provided for in this subsection or a credit in the amount of
2 real property tax savings in this subsection, resulting from such
3 exemptions for any one of such real property taxable years, whichever is
4 greater.
5 (10) Notwithstanding the foregoing provisions of this subsection, such
6 veterans who have received assistance from the federal government
7 towards the acquisition of a suitable housing unit with special fixtures
8 or movable facilities made necessary by the nature of the veteran's
9 disability shall be entitled to a credit equal to one hundred percent of
10 the real property taxes paid on the veteran's residence or the rent
11 attributable to real property taxes, including school taxes and special
12 assessments, during the calendar year.
13 (11) Credits which exceed the amount of tax due shall be refunded to
14 the taxpayer. The commissioner shall prepare forms to be used for such
15 refunds by taxpayers not required to file returns pursuant to this arti-
16 cle.
17 (12) The commissioner shall promulgate rules and regulations to imple-
18 ment the provisions of this subsection.
19 § 2. Subdivision 1 of section 844 of the real property tax law, as
20 amended by chapter 654 of the laws of 2004 and as further amended by
21 section 1 of part W of chapter 56 of the laws of 2010, is amended to
22 read as follows:
23 1. In any county to which this title is applicable, county taxes shall
24 be apportioned among the cities and towns within the county on the basis
25 of the proportion of the total full valuation of taxable real property
26 within the county which is located within each city and town. This total
27 valuation shall be determined by dividing the taxable assessed value of
28 taxable real property by the appropriate city or town equalization rate
29 as certified by the commissioner pursuant to this title. For purposes of
30 this section: (a) "taxable real property" excludes real property which,
31 by statute, is wholly exempt from county taxation, (b) "taxable assessed
32 value" is limited to the assessed value actually subject to county taxa-
33 tion except that it also includes the amount of assessed value partially
34 exempt from county taxation pursuant to (i) sections [four hundred
35 fifty-eight,] four hundred sixty and four hundred sixty-four of this
36 chapter, and (ii) such other sections of law as the county legislature
37 designates by resolution to be included in the total valuation. Where
38 the commissioner furnishes the same state equalization or special equal-
39 ization rate for two or more of the cities and towns in the county for
40 use by that county in the apportionment of taxes, the commissioner shall
41 concurrently therewith notify the county that county taxes may be appor-
42 tioned in the manner provided by subdivision two of this section.
43 § 3. Section 51 of the general municipal law, as amended by chapter
44 614 of the laws of 1981, is amended to read as follows:
45 § 51. Prosecution of officers for illegal acts. All officers,
46 agents, commissioners and other persons acting, or who have acted, for
47 and on behalf of any county, town, village or municipal corporation in
48 this state, and each and every one of them, may be prosecuted, and an
49 action may be maintained against them to prevent any illegal official
50 act on the part of any such officers, agents, commissioners or other
51 persons, or to prevent waste or injury to, or to restore and make good,
52 any property, funds or estate of such county, town, village or municipal
53 corporation by any person or corporation whose assessment, or by any
54 number of persons or corporations, jointly, the sum of whose assessments
55 shall amount to one thousand dollars, and who shall be liable to pay
56 taxes on such assessment in the county, town, village or municipal
A. 3487 4
1 corporation or by any person who owns shares in a cooperative housing
2 corporation where the pro rata share of the assessment attributable to
3 such shares shall amount to one thousand dollars (or by any number of
4 such persons, jointly, the sum of whose pro rata shares shall amount to
5 one thousand dollars) and where the cooperative housing corporation
6 shall be liable to pay taxes on such assessment in the county, town,
7 village or municipal corporation to prevent the waste or injury of whose
8 property the action is brought, or who have been assessed or paid taxes
9 therein upon any assessment of the above-named amount within one year
10 previous to the commencement of any such action, or who has been so
11 assessed but has not paid nor shall be liable to pay any or the full
12 amount of taxes on such assessment because of a veteran's [exemption
13 therefrom] credit thereto pursuant to subsection (vv) of section [four]
14 six hundred [fifty-eight] six of the [real property] tax law, or who has
15 been so assessed but has not paid nor shall be liable to pay any or the
16 full amount of taxes on such assessment because of an exemption there-
17 from granted to persons sixty-five years of age or over or their spouses
18 pursuant to the real property tax law. Such person or corporation upon
19 the commencement of such action, shall furnish a bond to the defendant
20 therein, to be approved by a justice of the supreme court or the county
21 judge of the county in which the action is brought, in such penalty as
22 the justice or judge approving the same shall direct, but not less than
23 two hundred and fifty dollars, and to be executed by any two of the
24 plaintiffs, if there be more than one party plaintiff, providing said
25 two parties plaintiff shall severally justify in the sum of five thou-
26 sand dollars. Said bond shall be approved by said justice or judge and
27 be conditioned to pay all costs that may be awarded the defendant in
28 such action if the court shall finally determine the same in favor of
29 the defendant. The court shall require, when the plaintiffs shall not
30 justify as above mentioned, and in any case may require two more suffi-
31 cient sureties to execute the bond above provided for. Such bond shall
32 be filed in the office of the county clerk of the county in which the
33 action is brought, and a copy shall be served with the summons in such
34 action. If an injunction is obtained as herein provided for, the same
35 bond may also provide for the payment of the damages arising therefrom
36 to the party entitled to the money, the auditing, allowing or paying of
37 which was enjoined, if the court shall finally determine that the plain-
38 tiff is not entitled to such injunction. In case the waste or injury
39 complained of consists in any board, officer or agent in any county,
40 town, village or municipal corporation, by collusion or otherwise,
41 contracting, auditing, allowing or paying, or conniving at the contract-
42 ing, audit, allowance or payment of any fraudulent, illegal, unjust or
43 inequitable claims, demands or expenses, or any item or part thereof
44 against or by such county, town, village or municipal corporation, or by
45 permitting a judgment to be recovered against such county, town, village
46 or municipal corporation, or against himself in his official capacity,
47 either by default or without the interposition and proper presentation
48 of any existing legal or equitable defenses, or by any such officer or
49 agent, retaining or failing to pay over to the proper authorities any
50 funds or property of any county, town, village or municipal corporation,
51 after he shall have ceased to be such officer or agent, the court may,
52 in its discretion, prohibit the payment or collection of any such
53 claims, demands, expenses or judgments, in whole or in part, and shall
54 enforce the restitution and recovery thereof, if heretofore or hereafter
55 paid, collected or retained by the person or party heretofore or here-
56 after receiving or retaining the same, and also may, in its discretion,
A. 3487 5
1 adjudge and declare the colluding or defaulting official personally
2 responsible therefor, and out of his property, and that of his bondsmen,
3 if any, provide for the collection or repayment thereof, so as to indem-
4 nify and save harmless the said county, town, village or municipal
5 corporation from a part or the whole thereof; and in case of a judgment
6 the court may in its discretion, vacate, set aside and open said judg-
7 ment, with leave and direction for the defendant therein to interpose
8 and enforce any existing legal or equitable defense therein, under the
9 direction of such person as the court may, in its judgment or order,
10 designate and appoint. All books of minutes, entry or account, and the
11 books, bills, vouchers, checks, contracts or other papers connected with
12 or used or filed in the office of, or with any officer, board or commis-
13 sion acting for or on behalf of any county, town, village or municipal
14 corporation in this state or any body corporate or other unit of local
15 government in this state which possesses the power to levy taxes or
16 benefit assessments upon real estate or to require the levy of such
17 taxes or assessments or for which taxes or benefit assessments upon real
18 estate may be required pursuant to law to be levied, including the Alba-
19 ny port district commission, are hereby declared to be public records,
20 and shall be open during all regular business hours, subject to reason-
21 able regulations to be adopted by the applicable local legislative body,
22 to the inspection of any taxpayer or registered voter, who may copy,
23 photograph or make photocopies thereof on the premises where such
24 records are regularly kept. This section shall not be so construed as to
25 take away any right of action from any county, town, village or munici-
26 pal corporation, or from any public officer, but any right of action now
27 existing, or which may hereafter exist in favor of any county, town,
28 village or municipal corporation, or in favor of any officer thereof,
29 may be enforced by action or otherwise by the persons hereinbefore
30 authorized to prosecute and maintain actions; and whenever by the
31 provisions of this section an action may be prosecuted or maintained
32 against any officer or other person, his bondsmen, if any, may be joined
33 in such action or proceeding and their liabilities as such enforced by
34 the proper judgment or direction of the court; but any recovery under
35 the provisions of this article shall be for the benefit of and shall be
36 paid to the officer entitled by law to hold and disburse the public
37 moneys of such county, town, village or municipal corporation, and
38 shall, to the amount thereof, be credited the defendant in determining
39 his liability in the action by the county, town, village or municipal
40 corporation or public officer. The provisions of this article shall
41 apply as well to those cases in which the body, board, officer, agent,
42 commissioner or other person above named has not, as to those in which
43 it or he has jurisdiction over the subject-matter of its action.
44 § 4. Section 11-245.45 of the administrative code of the city of New
45 York is REPEALED.
46 § 5. Sections 11-245.5, 11-245.6 and 11-245.7 of the administrative
47 code of the city of New York are REPEALED.
48 § 6. Paragraph (f) of subdivision 2 of section 467-a of the real prop-
49 erty tax law, as separately amended by chapters 461 and 473 of the laws
50 of 2008, is amended to read as follows:
51 (f) For purposes of this subdivision, a property shall be deemed not
52 to be receiving complete or partial real property tax exemption or tax
53 abatement if the property is, or certain dwelling units therein are,
54 receiving benefits pursuant to section four hundred, four hundred two,
55 four hundred four, four hundred six, four hundred eight, four hundred
56 ten, four hundred ten-a, four hundred twelve, four hundred twelve-a,
A. 3487 6
1 four hundred sixteen, four hundred eighteen, four hundred twenty-a, four
2 hundred twenty-b, four hundred thirty-six, [four hundred fifty-eight,
3 four hundred fifty-eight-a,] four hundred sixty-two, four hundred
4 sixty-seven, four hundred sixty-seven-b, or four hundred ninety-nine-
5 bbb, or four hundred ninety-nine-bbbb of this article, or if the proper-
6 ty is receiving a tax abatement but not a tax exemption pursuant to
7 section four hundred eighty-nine of this article.
8 § 7. Subdivision (f) of section 1801 of the real property tax law, as
9 amended by chapter 191 of the laws of 2001, is amended to read as
10 follows:
11 (f) "Base proportion" means either: (1) for a special assessing unit
12 which is not a city, the proportion of the taxable assessed value of
13 real property which each class constituted of the total taxable assessed
14 value of all real property as entered on the final assessment roll
15 completed and filed in calendar year nineteen hundred eighty-one of such
16 special assessing unit or on the part of that assessment roll applicable
17 to a portion of the special assessing unit, except that for town and
18 county special districts not included within the definition of portion,
19 the applicable roll shall be that which was completed and filed in
20 calendar year two thousand one, or (2) for a special assessing unit
21 which is a city, the proportion of the taxable assessed value of real
22 property which each class constituted of the total taxable assessed
23 value of all real property as entered on the final assessment roll
24 completed and filed in calendar year nineteen hundred eighty-four, [and
25 as adjusted to account for properties exempted under section four
26 hundred fifty-eight of this chapter to the extent such properties are
27 taxable for education purposes,] provided, however, that the taxable
28 assessed value of real property subject to a transition assessment
29 pursuant to subdivision three of section eighteen hundred five of this
30 article shall be determined from the lesser of the transition assessment
31 or actual assessment.
32 § 8. Sections 458 and 458-a of the real property tax law are REPEALED.
33 § 9. This act shall take effect immediately and shall apply to
34 personal income taxable years beginning on and after January 1, 2014,
35 provided, however, that section four of this act shall take effect Janu-
36 ary 1, 2014.
