Increases the income eligibility levels for the real property tax circuit breaker credit for taxable years beginning on and after January 1, 2020 to $25,000; increases the maximum credit available from a credit of one hundred fifty dollars for the highest income bracket to six hundred fifty dollars for the lowest income bracket.
STATE OF NEW YORK
________________________________________________________________________
5665
2019-2020 Regular Sessions
IN ASSEMBLY
February 14, 2019
___________
Introduced by M. of A. ENGLEBRIGHT, SCHIMMINGER -- read once and
referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to increasing the personal
income tax real property tax circuit breaker credit
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 2 and the paragraph heading of paragraph 3 of
2 subsection (e) of section 606 of the tax law, as amended by chapter 28
3 of the laws of 1987, are amended to read as follows:
4 (2) A qualified taxpayer shall be allowed a credit as provided in
5 paragraph three hereof for taxable years beginning before January first,
6 two thousand twenty and in paragraph three-a of this subsection for
7 taxable years beginning on or after January first, two thousand twenty
8 against the taxes imposed by this article reduced by the credits permit-
9 ted by this article. If the credit exceeds the tax as so reduced for
10 such year under this article the qualified taxpayer may receive, and the
11 comptroller, subject to a certificate of the [state tax commission]
12 commissioner, shall pay as an overpayment, without interest, any excess
13 between such tax as so reduced and the amount of the credit. If a quali-
14 fied taxpayer is not required to file a return pursuant to section six
15 hundred fifty-one of this article, a qualified taxpayer may nevertheless
16 receive and the comptroller, subject to a certificate of the [state tax
17 commission] commissioner, shall pay as an overpayment the full amount of
18 the credit, without interest.
19 Determination of credit for taxable years beginning before January
20 first, two thousand twenty.
21 § 2. Subsection (e) of section 606 of the tax law is amended by adding
22 a new paragraph 3-a to read as follows:
23 (3-a) Determination of credit for taxable years beginning on or after
24 January first, two thousand twenty. (A) For qualified taxpayers who
25 have attained the age of sixty-five years before the beginning of or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09514-01-9
A. 5665 2
1 during the taxable year the amount of the credit allowable under this
2 subsection shall be fifty percent, or in the case of a qualified taxpay-
3 er who has elected to include an additional amount pursuant to subpara-
4 graph (E) of paragraph one of this subsection, twenty-five percent, of
5 the excess of real property taxes or the excess of real property tax
6 equivalent determined as follows:
7 Excessrealpropertytaxesarethe
8 excessofrealpropertytaxequivalent
9 ortheexcessofqualifyingreal
10 Ifhouseholdgrossincomepropertytaxesoverthefollowing
11 forthetaxableyearis:baseamount:
12 $5,000orless$0
13 Over$5,000butnotover$9,000$100
14 Over$9,000butnotover$13,000$270
15 Over$13,000butnotover$17,000$520
16 Over$17,000butnotover$21,000$850
17 Over$21,000butnotover$25,000$1260
18 Notwithstanding the foregoing provisions, the maximum credit deter-
19 mined under this subparagraph may not exceed the amount determined in
20 accordance with the following table:
21 Ifhouseholdgrossincome
22 forthetaxableyearis:Themaximumcreditis:
23 $5,000orless$650
24 Over$5,000butnotover$9,000$550
25 Over$9,000butnotover$13,000$450
26 Over$13,000butnotover$17,000$350
27 Over$17,000butnotover$21,000$250
28 Over$21,000butnotover$25,000$150
29 (B) For all other qualified taxpayers the amount of the credit allow-
30 able under this subsection shall be fifty percent of excess real proper-
31 ty taxes or the excess of the real property tax equivalent determined as
32 follows:
33 Excessrealpropertytaxesare
34 theexcessofrealpropertytax
35 Ifhouseholdgrossequivalentortheexcessof
36 incomeforthequalifyingrealpropertytaxesover
37 taxableyearis:thefollowingbaseamount:
38 $5,000orless$0
39 Over$5,000butnotover$9,000$100
40 Over$9,000butnotover$13,000$270
41 Over$13,000butnotover$17,000$520
42 Over$17,000butnotover$21,000$850
43 Over$21,000butnotover$25,000$1260
44 Notwithstanding the foregoing provisions, the maximum credit deter-
45 mined under this subparagraph may not exceed the amount determined in
46 accordance with the following table:
47 Ifhouseholdgrossincome
48 forthetaxableyearis:Themaximumcreditis:
49 $5,000orless$260
50 Over$5,000butnotover$9,000$225
51 Over$9,000butnotover$13,000$180
52 Over$13,000butnotover$17,000$145
A. 5665 3
1 Over$17,000butnotover$21,000$110
2 Over$21,000butnotover$25,000$75
3 § 3. Paragraph 7 of subsection (e) of section 606 of the tax law, as
4 amended by chapter 28 of the laws of 1987, is amended to read as
5 follows:
6 (7) No credit shall be granted under this subsection:
7 (A) If household gross income for the taxable year exceeds [eighteen]
8 twenty-five thousand dollars.
9 (B) To a property owner unless: (i) the property is used for residen-
10 tial purposes, (ii) not more than twenty percent of the rental income,
11 if any, from the property is from rental for nonresidential purposes and
12 (iii) the property is occupied as a residence in whole or in part by one
13 or more of the owners of the property.
14 (C) To a property owner who owns real property, the [full] value of
15 which exceeds: (i) eighty-five thousand dollars; or (ii) an amount which
16 equals seventy-five percent of the average home value in the county of
17 residence, whichever is more.
18 (D) [To a tenant if the adjusted rent for the residence exceeds four
19 hundred fifty dollars per month on average.
20 (E)] To an individual with respect to whom a deduction under
21 subsection (c) of section one hundred fifty-one of the internal revenue
22 code is allowable to another taxpayer for the taxable year.
23 [(F)] (E) With respect to a residence that is wholly exempted from
24 real property taxation.
25 [(G)] (F) To an individual who is not a resident individual of the
26 state for the entire taxable year.
27 § 4. Paragraph 13 of subsection (e) of section 606 of the tax law, as
28 amended by chapter 28 of the laws of 1987, is amended to read as
29 follows:
30 (13) The credit allowed under this subsection shall be made available
31 on all returns prescribed by the commissioner for the administration of
32 the taxes imposed under this article. Notwithstanding any other
33 provision of this article, the credit allowed under this subsection
34 shall be determined after the determination and application of any other
35 credits permitted under the provisions of this article.
36 § 5. This act shall take effect immediately.
