Provides a real property tax cap for qualifying retired senior citizens living on a fixed income which is below 300% of the federal poverty guidelines; provides that as of the qualifying date real property taxes shall not increase.
STATE OF NEW YORK
________________________________________________________________________
5504
2013-2014 Regular Sessions
IN ASSEMBLY
February 28, 2013
___________
Introduced by M. of A. GABRYSZAK, ABBATE, DenDEKKER, MAISEL, BARRON,
COLTON, HOOPER, MALLIOTAKIS -- Multi-Sponsored by -- M. of A. GUNTHER,
SCHIMEL, WEISENBERG -- read once and referred to the Committee on
Aging
AN ACT to amend the real property tax law, in relation to providing a
real property tax cap for certain retired senior citizens
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-g to read as follows:
3 § 467-g. Real property tax cap for certain retired senior citizens. 1.
4 (a) Real property owned by one or more qualifying individuals, each of
5 whom is sixty-five years of age or over, or real property owned by
6 husband and wife or by siblings, one of whom is sixty-five years of age
7 or over shall be subject to real property taxation by a municipal corpo-
8 ration in which such property is located pursuant to the provisions of
9 this section, provided the governing board of such municipality, after
10 public hearing, adopts a local law, ordinance or resolution providing
11 therefor.
12 (b) For the purposes of this section, sibling shall mean a brother or
13 a sister, whether related through half blood, whole blood or adoption.
14 (c) For the purposes of this section a qualifying individual shall be
15 a person who:
16 (i) is at least sixty-five years of age or older;
17 (ii) is retired; and
18 (iii) has a fixed annual combined household income which is determined
19 to be at or below the level set forth in subdivision three of this
20 section.
21 (d) The real property tax benefits provided by this section, once
22 granted, shall not be rescinded by any municipal corporation solely
23 because of the death of the older spouse so long as the surviving spouse
24 is at least sixty-two years of age and otherwise qualifies under this
25 section.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09171-01-3
A. 5504 2
1 (e) A local law, ordinance or resolution adopted pursuant to this
2 section shall provide that real property owned by one or more qualifying
3 individuals shall be subject to taxation at the same annual rate and
4 assessment value which such property was subject to as of the date of
5 retirement of the qualifying owner, provided that such date shall be the
6 latest date of retirement of either owner or the effective date of this
7 section where such date occurred prior to such effective date, and that
8 such assessment and rate shall not increase where the requirements of
9 this section are met.
10 2. The provisions of this section shall not apply in the case of real
11 property where a child resides if such child attends a public school of
12 elementary or secondary education, unless the governing board of the
13 school district in which the property is located, after public hearing,
14 adopts a resolution providing for such exemption; provided that any such
15 resolution shall condition such exemption upon satisfactory proof that
16 the child was not brought into the residence in whole or in substantial
17 part for the purpose of attending a particular school within the
18 district. The procedure for such hearing and resolution must be
19 conducted separately from the procedure for any hearing and local law,
20 ordinance or resolution conducted pursuant to paragraph (a) of subdivi-
21 sion one of this section.
22 3. Real property owned by qualifying individuals shall be eligible
23 under this section where:
24 (a) the income of the owner or the combined income of the owners of
25 the property for the income tax year immediately preceding the date of
26 making application under this section is at or below three hundred
27 percent of the poverty guidelines updated periodically in the Federal
28 Register by the U.S. Department of Health and Human Services under the
29 authority of 42 U.S.C. 9902(2). Income tax year shall mean the twelve
30 month period for which the owner or owners filed a federal personal
31 income tax return, or if no such return is filed, the calendar year.
32 Where title is vested in either the husband or the wife, their combined
33 income may not exceed such sum, except where the husband or wife, or
34 ex-husband or ex-wife is absent from the property as provided in subpar-
35 agraph (ii) of paragraph (d) of this subdivision, then only the income
36 of the spouse or ex-spouse residing on the property shall be considered
37 and may not exceed such sum. Such income shall include social security
38 and retirement benefits, interest, dividends, total gain from the sale
39 or exchange of a capital asset which may be offset by a loss from the
40 sale or exchange of a capital asset in the same income tax year, net
41 rental income, salary or earnings, and net income from self-employment,
42 but shall not include a return of capital, gifts, inheritances, payments
43 made to individuals because of their status as victims of Nazi perse-
44 cution, as defined in P.L. 103-286 or monies earned through employment
45 in the federal foster grandparent program and any such income shall be
46 offset by all medical and prescription drug expenses actually paid which
47 were not reimbursed or paid for by insurance, if the governing board of
48 a municipality, after a public hearing, adopts a local law, ordinance or
49 resolution providing therefor. The provisions of this paragraph notwith-
50 standing, such income shall not include veterans disability compen-
51 sation, as defined in Title 38 of the United States Code provided the
52 governing board of such municipality, after public hearing, adopts a
53 local law, ordinance or resolution providing therefor. In computing net
54 rental income and net income from self-employment no depreciation
55 deduction shall be allowed for the exhaustion, wear and tear of real or
56 personal property held for the production of income;
A. 5504 3
1 (b) the title of the property shall have been vested in the owner or
2 one of the owners of the property for at least sixty consecutive months
3 prior to the date of making application under this section, provided,
4 however, that in the event of the death of either a husband or wife in
5 whose name title of the property shall have been vested at the time of
6 death and then becomes vested solely in the survivor by virtue of devise
7 by or descent from the deceased husband or wife, the time of ownership
8 of the property by the deceased husband or wife shall be deemed also a
9 time of ownership by the survivor and such ownership shall be deemed
10 continuous for the purposes of computing such period of twelve consec-
11 utive months. In the event of a transfer by either a husband or wife to
12 the other spouse of all or part of the title to the property, the time
13 of ownership of the property by the transferor spouse shall be deemed
14 also a time of ownership by the transferee spouse and such ownership
15 shall be deemed continuous for the purposes of computing such period of
16 twelve consecutive months. Where property of the owner or owners has
17 been acquired to replace property formerly owned by such owner or owners
18 and taken by eminent domain or other involuntary proceeding, except a
19 tax sale, the period of ownership of the former property shall be
20 combined with the period of ownership of the property for which applica-
21 tion is made for exemption and such periods of ownership shall be deemed
22 to be consecutive for purposes of this section. Where the owner or
23 owners transfer title to property which as of the date of transfer was
24 exempt from taxation under the provisions of this section, the reacqui-
25 sition of title by such owner or owners within nine months of the date
26 of transfer shall be deemed to satisfy the requirement of this paragraph
27 that the title of the property shall have been vested in the owner or
28 one of the owners for such period of sixty consecutive months;
29 (c) the property is used exclusively for residential purposes;
30 (d) the real property is the legal residence of and is occupied in
31 whole or in part by the owner or by all of the owners of the property:
32 except where, (i) an owner is absent from the residence while receiving
33 health-related care as an inpatient of a residential health care facili-
34 ty, as defined in section twenty-eight hundred one of the public health
35 law, provided that any income accruing to that person shall only be
36 income only to the extent that it exceeds the amount paid by such owner,
37 spouse, or co-owner for care in the facility, and provided further, that
38 during such confinement such property is not occupied by other than the
39 spouse or co-owner of such owner; or, (ii) the real property is owned by
40 a husband and/or wife, or an ex-husband and/or an ex-wife, and either is
41 absent from the residence due to divorce, legal separation or abandon-
42 ment and all other provisions of this section are met provided that
43 where an exemption was previously granted when both resided on the prop-
44 erty, then the person remaining on the real property shall be sixty-two
45 years of age or over.
46 3-a. (a) For the purposes of this section, title to that portion of
47 real property owned by a cooperative apartment corporation in which a
48 tenant-stockholder of such corporation resides and which is represented
49 by his or her share or shares of stock in such corporation as determined
50 by its or their proportional relationship to the total outstanding stock
51 of the corporation, including that owned by the corporation, shall be
52 deemed to be vested in such tenant-stockholder.
53 (b) That proportion of the assessment of such real property owned by a
54 cooperative apartment corporation determined by the relationship of such
55 real property vested in such tenant-stockholder to such entire parcel
56 and the buildings thereon owned by such cooperative apartment corpo-
A. 5504 4
1 ration in which such tenant-stockholder resides shall be subject to
2 taxation pursuant to this section.
3 (c) Real property may be subject to taxation pursuant to this subdivi-
4 sion by a municipality in which such property is located only if the
5 governing board of such municipality, after public hearing, adopts a
6 local law, ordinance or resolution providing therefor.
7 3-b. The office of real property services shall develop, make avail-
8 able and distribute to any municipal corporation which requests it, a
9 form for the purpose of administering the provisions of paragraph (a) of
10 subdivision three of this section.
11 4. Every municipal corporation in which such real property is located
12 shall notify, or cause to be notified, each person owning residential
13 real property in such municipal corporation of the provisions of this
14 section. The provisions of this subdivision may be met by a notice or
15 legend sent on or with each tax bill to such persons reading "You may be
16 eligible for senior citizen real property tax cap benefits. Senior citi-
17 zens have until month.........., day......., year......, to apply for
18 such exemptions. For information please call or write....," followed by
19 the name, telephone number and/or address of a person or department
20 selected by the municipal corporation to explain the provisions of this
21 section.
22 4-a. (a) A senior citizen eligible for the exemption provided for in
23 subdivision one of this section may request that a notice be sent to an
24 adult third party. Such request shall be made on a form prescribed by
25 the state board and shall be submitted to the assessor of the assessing
26 unit in which the eligible taxpayer resides no later than sixty days
27 before the last application date for the first taxable status date to
28 which it is to apply. Such form shall provide a section whereby the
29 designated third party shall consent to such designation. Such request
30 shall be effective upon receipt by the assessor. The assessor shall
31 maintain a list of all eligible property owners who have requested
32 notices pursuant to this paragraph.
33 (b) A notice shall be sent to the designated third party at least
34 thirty days prior to the last application date for each ensuing taxable
35 status date; provided that no such notice need be sent in the first year
36 if the request was not received by the assessor at least sixty days
37 before the last application date for the applicable taxable status date.
38 Such notice shall read substantially as follows: "On behalf of (iden-
39 tify senior citizen or citizens), you are advised that his, her, or
40 their renewal application for the senior citizen property tax cap must
41 be filed with the assessor no later than (enter date). You are encour-
42 aged to remind him, her, or them of that fact, and to offer assistance
43 if needed, although you are under no legal obligation to do so. Your
44 cooperation and assistance are greatly appreciated."
45 (c) A notice shall be sent to the designated third party whenever the
46 assessor sends a notice to the senior citizen regarding the possible
47 removal of benefits under this section. Such notice shall read substan-
48 tially as follows: "On behalf of (identify senior citizen or citizens),
49 you are advised that his, her, or their senior tax cap is at risk of
50 being removed. You are encouraged to make sure that he, she or they are
51 aware of that fact, and to offer assistance if needed, although you are
52 under no legal obligation to do so. Your cooperation and assistance are
53 greatly appreciated."
54 (d) The obligation to mail such notices shall cease if the eligible
55 taxpayer cancels the request or ceases to qualify for the senior proper-
56 ty tax cap.
A. 5504 5
1 (e) Failure to mail any notice required by this subdivision, or the
2 failure of a party to receive same, shall not affect the validity of the
3 levy, collection, or enforcement of taxes on property owned by such
4 person, or in the case of a third party notice, on property owned by the
5 senior citizen.
6 5. Application for benefits under this section must be made by the
7 owner, or all of the owners of the property, on forms prescribed by the
8 state board to be furnished by the appropriate assessing authority and
9 shall furnish the information and be executed in the manner required or
10 prescribed in such forms, and shall be filed in such assessor's office
11 on or before the appropriate taxable status date. Notwithstanding any
12 other provision of law, at the option of the municipal corporation, any
13 person otherwise qualifying under this section shall not be denied
14 inclusion under this section if he or she becomes sixty-five years of
15 age after the appropriate taxable status date and on or before December
16 thirty-first of the same year.
17 5-a. Any local law or ordinance adopted pursuant to paragraph (a) of
18 subdivision one of this section may be amended, or a local law or ordi-
19 nance may be adopted to provide, notwithstanding subdivision five of
20 this section, that an application for such exemption may be filed with
21 the assessor after the appropriate taxable status date but not later
22 than the last date on which a petition with respect to complaints of
23 assessment may be filed, where failure to file a timely application
24 resulted from: (a) a death of the applicant's spouse, child, parent,
25 brother or sister; or
26 (b) an illness of the applicant or of the applicant's spouse, child,
27 parent, brother or sister, which actually prevents the applicant from
28 filing on a timely basis, as certified by a licensed physician. The
29 assessor shall approve or deny such application as if it had been filed
30 on or before the taxable status date.
31 5-b. Notwithstanding the provisions of this section or any other
32 provision of law, a county with an annual taxable status date of January
33 first or January second and with a population of one million or more,
34 may, at its option and by amendment or adoption of a local law or ordi-
35 nance, authorize its assessor to accept applications for the exemption
36 from real property taxes authorized pursuant to this section on a date
37 later than such county's statutory deadline date for receiving applica-
38 tions. Any application filed later than such statutory deadline date
39 which is in compliance with such local law or ordinance amended or
40 adopted pursuant to this subdivision and which meets all other necessary
41 requirements for granting the exemption authorized by this section shall
42 be deemed to have been timely filed prior to such statutory deadline
43 date, and any individual or individuals for whom such an application has
44 been filed shall be included on the assessment rolls prepared for such
45 county on the basis of the taxable status date immediately preceding the
46 date such application was filed.
47 5-c. Notwithstanding the provisions of this section or any other
48 provision of law, in a city having a population of one million or more,
49 applications authorized pursuant to this section shall be considered
50 timely filed if they are filed on or before the fifteenth day of March
51 of the appropriate year.
52 6. (a) At least sixty days prior to the appropriate taxable status
53 date, the assessing authority shall mail to each person qualifying under
54 this section on the latest completed assessment roll an application form
55 and a notice that such application must be filed on or before the taxa-
56 ble status date and be approved in order for the exemption to be grant-
A. 5504 6
1 ed. The assessing authority shall, within three days of the completion
2 and filing of the tentative assessment roll, notify by mail any appli-
3 cant who has included with his or her application at least one self-ad-
4 dressed, pre-paid envelope, of the approval or denial of the applica-
5 tion; provided, however, that the assessing authority shall, upon the
6 receipt and filing of the application, send by mail notification of
7 receipt to any applicant who has included two of such envelopes with the
8 application. Where an applicant is entitled to a notice of denial
9 pursuant to this subdivision, such notice shall be on a form prescribed
10 by the state board and shall state the reasons for such denial and shall
11 further state that the applicant may have such determination reviewed in
12 the manner provided by law. Failure to mail any such application form or
13 notices or the failure of such person to receive any of the same shall
14 not prevent the levy, collection and enforcement of the payment of the
15 taxes on property owned by such person.
16 (b) Except in cities of one million or more, any person who has quali-
17 fied under this section on five consecutive completed assessment rolls,
18 including any years when the property was owned by a husband and/or wife
19 while both resided in such property, shall not be subject to the
20 requirements set forth in paragraph (a) of this subdivision provided the
21 governing board of the municipality in which said property is situated
22 after public hearing adopts a local law, ordinance or resolution provid-
23 ing therefor, however, said person shall be mailed an application form
24 and a notice informing him or her of his or her rights. Such qualifica-
25 tion shall be automatically granted on each subsequent assessment roll.
26 Provided, however, that when tax payment is made by such person a sworn
27 affidavit must be included with such payment which shall state that such
28 person continues to be eligible under this section. Such affidavit shall
29 be on a form prescribed by the state board. If such affidavit is not
30 included with the tax payment, the collecting officer shall proceed
31 pursuant to section five hundred fifty-one-a of this chapter.
32 7. Any conviction of having made any willful false statement in the
33 application under this section, shall be punishable by a fine of not
34 more than one hundred dollars and shall disqualify the applicant or
35 applicants from further exemption for a period of five years.
36 8. Notwithstanding the provisions of subdivisions five and six of this
37 section, the local governing body of a city, town, village or county
38 having the power to assess may adopt a local law authorizing the asses-
39 sor or assessors of such city, town, village or county to accept appli-
40 cations for renewal pursuant to this section after the taxable status
41 date. Such local law shall provide that in the event the owner, or all
42 of the owners, of property which has qualified pursuant to this section
43 on the preceding assessment roll fail to file the application required
44 pursuant to this section on or before the taxable status date such owner
45 or owners may file the application, executed as if such application had
46 been filed on or before the taxable status date, with the assessor on or
47 before the date for the hearing of complaints.
48 9. Notwithstanding any other provision of law to the contrary, the
49 provisions of this section shall apply to real property in which a
50 person or persons holds a legal life estate or which is held in trust
51 solely for the benefit of a person or persons if such person or persons
52 would otherwise be eligible pursuant to subdivision one of this section,
53 were such person or persons the owner or owners of such real property.
54 § 2. This act shall take effect January 1, 2014.
