STATE OF NEW YORK
________________________________________________________________________
275
2023-2024 Regular Sessions
IN SENATE(Prefiled)
January 4, 2023
___________
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to creating an enhanced 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. Section 606 of the tax law is amended by adding a new
2 subsection (e-3) to read as follows:
3 (e-3) Enhanced real property tax circuit breaker credit. (1) For
4 purposes of this subsection:
5 (A) "Qualified taxpayer" means a resident individual of the state, who
6 (i) is a resident of a city with a population over one million, (ii) has
7 occupied the same residence for six months or more of the taxable year,
8 and (iii) is required or chooses to file a return under this article.
9 (B) "Household" or "members of the household" means a qualified
10 taxpayer and all other persons, not necessarily related, who have the
11 same residence and share its furnishings, facilities and accommodations.
12 Such terms shall not include a tenant, subtenant, roomer or boarder who
13 is not related to the qualified taxpayer in any degree specified in
14 subparagraphs (A) through (G) of paragraph two of subsection (d) of
15 section one hundred fifty-two of the internal revenue code. Provided,
16 however, no person may be a member of more than one household at one
17 time.
18 (C) "Household gross income" means the aggregate adjusted gross income
19 of all members of the household for the taxable year as reported for
20 federal income tax purposes, or which would be reported as adjusted
21 gross income if a federal income tax return were required to be filed,
22 with the modifications in subsection (b) of section six hundred twelve
23 of this article but without the modifications in subsection (c) of such
24 section, plus any portion of the gain from the sale or exchange of prop-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01505-01-3
S. 275 2
1 erty otherwise excluded from such amount; earned income from sources
2 without the United States excludable from federal gross income by
3 section nine hundred eleven of the internal revenue code; support money
4 not included in adjusted gross income; nontaxable strike benefits;
5 supplemental security income payments; the gross amount of any pension
6 or annuity benefits to the extent not included in such adjusted gross
7 income (including, but not limited to, railroad retirement benefits and
8 all payments received under the federal social security act and veter-
9 ans' disability pensions); nontaxable interest received from the state
10 of New York, its agencies, instrumentalities, public corporations, or
11 political subdivisions (including a public corporation created pursuant
12 to agreement or compact with another state or Canada); workers' compen-
13 sation; the gross amount of "loss-of-time" insurance; and the amount of
14 cash public assistance and relief, other than medical assistance for the
15 needy, paid to or for the benefit of the qualified taxpayer or members
16 of his or her household. Household gross income shall not include
17 surplus foods or other relief in kind or payments made to individuals
18 because of their status as victims of Nazi persecution as defined in
19 P.L. 103-286. Provided, further, household gross income shall only
20 include all such income received by all members of the household while
21 members of such household. In computing household gross income, the net
22 amount of loss reported on Federal Schedule C, D, E, or F shall not
23 exceed three thousand dollars per schedule. In addition, the net amount
24 of any other separate category of loss shall not exceed three thousand
25 dollars. The aggregate amount of all losses included in computing house-
26 hold gross income shall not exceed fifteen thousand dollars.
27 (D) "Residence" means a dwelling in this state, in a city with a popu-
28 lation of over one million, owned or rented by the taxpayer, and so much
29 of the land abutting it, not exceeding one acre, as is reasonably neces-
30 sary for use of the dwelling as a home, and may consist of a part of a
31 multi-dwelling or multi-purpose building including a cooperative or
32 condominium, and rental units within a single dwelling. Residence
33 includes a trailer or mobile home, used exclusively for residential
34 purposes and defined as real property pursuant to paragraph (g) of
35 subdivision twelve of section one hundred two of the real property tax
36 law.
37 (E) "Qualifying real property taxes" means all real property taxes,
38 special ad valorem levies and special assessments, exclusive of penal-
39 ties and interest, levied on the residence of a qualified taxpayer and
40 paid during the taxable year. A qualified taxpayer may elect to include
41 any additional amount that would have been levied in the absence of an
42 exemption from real property taxation pursuant to section four hundred
43 sixty-seven of the real property tax law. If tenant-stockholders in a
44 cooperative housing corporation have met the requirements of section two
45 hundred sixteen of the internal revenue code by which they are allowed a
46 deduction for real estate taxes, the amount of taxes so allowable, or
47 which would be allowable if the taxpayer had filed returns on a cash
48 basis, shall be qualifying real property taxes. If a residence is owned
49 by two or more individuals as joint tenants or tenants in common, and
50 one or more than one individual is not a member of the household, quali-
51 fying real property taxes is that part of such taxes on the residence
52 which reflects the ownership percentage of the qualified taxpayer and
53 members of his or her household. If a residence is an integral part of a
54 larger unit, qualifying real property taxes shall be limited to that
55 amount of such taxes paid as may be reasonably apportioned to such resi-
56 dence. If a household owns and occupies two or more residences during
S. 275 3
1 different periods in the same taxable year, qualifying real property
2 taxes shall be the sum of the prorated qualifying real property taxes
3 attributable to the household during the periods such household occupies
4 each of such residences. If the household owns and occupies a residence
5 for part of the taxable year and rents a residence for part of the same
6 taxable year, it may include the proration of qualifying real property
7 taxes on the residence owned. Provided, however, for purposes of the
8 credit allowed under this subsection, qualifying real property taxes may
9 be included by a qualified taxpayer only to the extent that such taxpay-
10 er or the spouse of such taxpayer, occupying such residence for one
11 hundred eighty-three days or more of the taxable year, owns or has owned
12 the residence and paid such taxes.
13 (F) "Real property tax equivalent" means fifteen and three-quarters
14 percent of the adjusted rent actually paid in the taxable year by a
15 household solely for the right of occupancy of its New York residence
16 for the taxable year. If (i) a residence is rented to two or more indi-
17 viduals as cotenants, or such individuals share in the payment of a
18 single rent for the right of occupancy of such residence, and (ii) each
19 of such individuals is a member of a different household, one or more of
20 which individuals shares such residence, real property tax equivalent is
21 that portion of fifteen and three-quarters percent of the adjusted rent
22 paid in the taxable year which reflects that portion of the rent attrib-
23 utable to the qualified taxpayer and the members of his or her house-
24 hold.
25 (G) "Adjusted rent" means rental paid for the right of occupancy of a
26 residence, excluding charges for heat, gas, electricity, furnishings and
27 board. Where charges for heat, gas, electricity, furnishings or board
28 are included in rental but where such charges and the amount thereof are
29 not separately set forth in a written rental agreement, for purposes of
30 determining adjusted rent the qualified taxpayer shall reduce rental
31 paid as follows:
32 (i) For heat, or heat and gas, deduct six percent of rental paid.
33 (ii) For heat, gas and electricity, deduct eight percent of rental
34 paid.
35 (iii) For heat, gas, electricity and furnishings, deduct ten percent
36 of rental paid.
37 (iv) For heat, gas, electricity, furnishings and board, deduct twenty
38 percent of rental paid.
39 If the commissioner determines that the adjusted rent shown on the
40 return is excessive, the commissioner may reduce such rent, for purposes
41 of the computation of the credit, to an amount substantially equivalent
42 to rent for a comparable accommodation.
43 (2) A qualified taxpayer shall be allowed a credit as provided in
44 paragraph three of this subsection against the taxes imposed by this
45 article reduced by the credits permitted by this article. If the credit
46 exceeds the tax as so reduced for such year under this article, the
47 excess shall be treated as an overpayment, to be credited or refunded,
48 without interest. If a qualified taxpayer is not required to file a
49 return pursuant to section six hundred fifty-one of this article, a
50 qualified taxpayer may nevertheless receive the full amount of the cred-
51 it to be credited or repaid as an overpayment, without interest.
52 (3) Determination of credit. The amount of the credit allowable under
53 this subsection shall be determined as follows:
54 If household gross incomeExcess real propertyThe credit amount is
55 for the taxable year is:taxes are the excessthe following
56 of real property taxpercentage of excess
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1 equivalent or theproperty taxes:
2 excess of qualifying
3 real property taxes
4 over the following
5 percentage of
6 household gross
7 income:
8 Less than $100,000 215
9 $100,000 to less than2.510
10 $150,000
11 $150,000 to less than35
12 $200,000
13 (4) If a qualified taxpayer occupies a residence for a period of less
14 than twelve months during the taxable year or occupies two or more resi-
15 dences during different periods in such taxable year, the credit allowed
16 pursuant to this subsection shall be computed in such manner as the
17 commissioner may, by regulation, prescribe in order to properly reflect
18 the credit or portion thereof attributable to such residence or resi-
19 dences and such period or periods.
20 (5) The commissioner may prescribe that the credit under this
21 subsection shall be determined in whole or in part by the use of tables
22 prescribed by such commissioner. Such tables shall set forth the credit
23 to the nearest dollar.
24 (6) Only one credit per household and per qualified taxpayer shall be
25 allowed per taxable year under this subsection. When two or more members
26 of a household are able to meet the qualifications for a qualified
27 taxpayer, the credit shall be equally divided between or among such
28 individuals unless such individuals file with the commissioner a written
29 agreement among such individuals setting forth a different division.
30 (A) Provided, however, where a joint income tax return has been filed
31 pursuant to the provisions of section six hundred fifty-one of this
32 article by a qualified taxpayer and his or her spouse (or where both
33 spouses are qualified taxpayers and have filed such joint return), the
34 credit, or the portion of the credit if divided, to which the spouses
35 are entitled shall be applied against the tax of both spouses and any
36 overpayment shall be made to both spouses.
37 (B) Where any return required to be filed pursuant to the provisions
38 of section six hundred fifty-one of this article is combined with any
39 return of tax imposed pursuant to the authority of this chapter or any
40 other law if such tax is administered by the commissioner, the credit or
41 the portion of the credit if divided, allowed to the qualified taxpayer
42 may be applied by the commissioner toward any liability for the afore-
43 mentioned taxes.
44 (7) No credit shall be granted under this subsection:
45 (A) If household gross income for the taxable year equals or exceeds
46 two hundred thousand dollars.
47 (B) To a property owner unless: (i) the property is used for residen-
48 tial purposes, (ii) not more than twenty percent of the rental income,
49 if any, from the property is from rental for nonresidential purposes and
50 (iii) the property is occupied as a residence in whole or in part by one
51 or more of the owners of the property.
52 (C) To an individual with respect to whom a deduction under subsection
53 (c) of section one hundred fifty-one of the internal revenue code is
54 allowable to another taxpayer for the taxable year.
55 (D) With respect to a residence that is wholly exempted from real
56 property taxation.
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1 (E) To an individual who is not a resident individual of a city, with-
2 in the state, with a population over one million, for the entire taxable
3 year.
4 (8) The right to claim a credit or the portion of a credit, where such
5 credit has been divided under this subsection, shall be personal to the
6 qualified taxpayer and shall not survive his or her death, but such
7 right may be exercised on behalf of a claimant by his or her legal guar-
8 dian or attorney in fact during his or her lifetime.
9 (9) Returns. If a qualified taxpayer is not required to file a return
10 pursuant to section six hundred fifty-one of this article, a claim for a
11 credit may be taken on a return filed with the commissioner within three
12 years from the time it would have been required that a return be filed
13 pursuant to such section had the qualified taxpayer had a taxable year
14 ending on December thirty-first. Returns under this paragraph shall be
15 in such form as shall be prescribed by the commissioner, which shall
16 make available such forms and instructions for filing such returns.
17 (10) Proof of claim. The commissioner may require a qualified taxpayer
18 to furnish the following information in support of his or her claim for
19 credit under this subsection: household gross income, real property
20 taxes levied or that would have been levied in the absence of an
21 exemption from real property tax pursuant to section four hundred
22 sixty-seven of the real property tax law, the names of members of the
23 household and other qualifying taxpayers occupying the same residence
24 and their identifying numbers including social security numbers, house-
25 hold gross income, size and nature of property claimed as residence and
26 all other information which may be required by the commissioner to
27 determine the credit.
28 (11) Administration. The provisions of this article, including the
29 provisions of sections six hundred fifty-three, six hundred fifty-eight,
30 and six hundred fifty-nine of this article and the provisions of part
31 six of this article relating to procedure and administration, including
32 the judicial review of the decisions of the commissioner, except so much
33 of section six hundred eighty-seven of this article which permits a
34 claim for credit or refund to be filed after the period provided for in
35 paragraph nine of this subsection and except sections six hundred
36 fifty-seven, six hundred eighty-eight and six hundred ninety-six of this
37 article, shall apply to the provisions of this subsection in the same
38 manner and with the same force and effect as if the language of those
39 provisions had been incorporated in full into this subsection and had
40 expressly referred to the credit allowed or returns filed under this
41 subsection, except to the extent that any such provision is either
42 inconsistent with a provision of this subsection or is not relevant to
43 this subsection. As used in such sections and such part, the term
44 "taxpayer" shall include a qualified taxpayer under this subsection and,
45 notwithstanding the provisions of subsection (e) of section six hundred
46 ninety-seven of this article, where a qualified taxpayer has protested
47 the denial of a claim for credit under this subsection and the time to
48 file a petition for redetermination of a deficiency or for refund has
49 not expired, he or she shall, subject to such conditions as may be set
50 forth by the commissioner, receive such information (A) which is
51 contained in any return filed under this article by a member of his or
52 her household for the taxable year for which the credit is claimed, and
53 (B) which the commissioner finds is relevant and material to the issue
54 of whether such claim was properly denied.
55 (12) Notwithstanding any other provision of this article, the credit
56 allowed under this subsection shall be determined after the determi-
S. 275 6
1 nation and application of any other credits permitted under the
2 provisions of this article.
3 (13) The commissioner shall prepare a written report after December
4 thirty-first of each calendar year, which shall contain statistical
5 information regarding the credits granted on or before such dates under
6 this subsection during such calendar year. Copies of the report shall be
7 submitted by the commissioner to the governor, the temporary president
8 of the senate, the speaker of the assembly, the chairman of the senate
9 finance committee and the chairman of the assembly ways and means
10 committee within forty-five days of December thirty-first. Such report
11 shall contain, but need not be limited to, the number of credits and the
12 average amount of such credits allowed; and of those, the number of
13 credits and the average amount of such credits allowed to qualified
14 taxpayers in each county; and of those, the number of credits and the
15 average amount of such credits allowed to qualified taxpayers whose
16 household gross income falls within each of the household gross income
17 ranges set forth in paragraph three of this subsection.
18 § 2. This act shall take effect immediately and shall apply to taxable
19 years beginning on or after the first of January next succeeding the
20 date on which it shall have become a law.
