Amd §606, Tax L; amd §§844, 467-a & 1801, rpld §§458 & 458-a, RPT L; amd §51, Gen Muni L; rpld §§11-245.45,
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
________________________________________________________________________
767--A
2015-2016 Regular Sessions
IN SENATE(Prefiled)
January 7, 2015
___________
Introduced by Sen. KENNEDY -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations -- recommitted to the Committee on Investigations and
Government Operations in accordance with Senate Rule 6, sec. 8 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
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 (ccc) to read as follows:
3 (ccc) 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.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01461-03-6
S. 767--A 2
1 (2) Any such taxpayer who served in a combat theatre or combat zone of
2 operations, as documented by the award of a United States campaign
3 ribbon or service medal, or the unremarried surviving spouse of such
4 veteran, shall be allowed an additional credit of ten percent of real
5 property taxes paid during the taxable year to a municipality, not to
6 exceed two hundred dollars, against the tax imposed by this article.
7 (3) Any such taxpayer who sustained a one hundred percent service
8 connected disability, or the unremarried surviving spouse of such
9 taxpayer, shall be allowed a credit of sixty percent of real property
10 taxes paid during the taxable year to a municipality, not to exceed one
11 thousand dollars, against the tax imposed by this article.
12 (4) Any such taxpayer who sustained a service connected disability in
13 excess of fifty percent but less than one hundred percent, or the unre-
14 married surviving spouse of such taxpayer, shall be allowed a credit of
15 forty-five percent of real property taxes paid during the taxable year
16 to a municipality, not to exceed seven hundred fifty dollars, against
17 the tax imposed by this article.
18 (5) Any such taxpayer who sustained a service connected disability of
19 less than fifty percent, or the unremarried surviving spouse of such
20 taxpayer, shall be allowed a credit of thirty percent of real property
21 taxes paid during the taxable year to a municipality, not to exceed five
22 hundred dollars, against the tax imposed by this article.
23 (6) A taxpayer, or the unremarried surviving spouse of such taxpayer,
24 described in paragraphs one through five, respectively, of this
25 subsection who rented real property for personal residential purposes
26 shall determine the percentage of total rental payments attributable to
27 payment of real property taxes imposed upon the lessor and treat such
28 percentage of payments, for purposes of credits permitted by this
29 subsection, as if such taxpayer had paid real property taxes directly to
30 the taxing municipality.
31 (7) A taxpayer, or the unremarried surviving spouse of such taxpayer,
32 described in paragraphs one through five, respectively, of this
33 subsection who owns shares of a residential cooperative corporation and
34 occupies an apartment as his or her principal residence pursuant to
35 proprietary lease for said apartment, shall compute his or her propor-
36 tionate share of the real property taxes paid by the cooperative corpo-
37 ration for purposes of credits permitted by this subsection as if such
38 taxpayer had paid real property taxes directly to the taxing munici-
39 pality.
40 (8) Such tax credits will be granted on "qualifying real property".
41 "Qualifying real property" means property containing three or less resi-
42 dential or commercial units (but not less than one residential unit)
43 owned or, in the case of an apartment or other such unit, rented by a
44 taxpayer described in this subsection or in the case of a cooperative
45 apartment, occupied by a tenant-shareholder of a cooperative corporation
46 who is a taxpayer described in this subsection, which is used wholly or
47 partially for residential purposes. Such property, or a unit thereof,
48 must be the primary residence of the veteran or unremarried surviving
49 spouse of the veteran, unless the veteran or unremarried surviving
50 spouse is absent from the property due to medical reasons or institu-
51 tionalization. In the event the veteran dies and there is no unremarried
52 surviving spouse, "qualifying real property" shall mean property
53 containing the primary residence owned by a qualified owner prior to
54 death, provided that the title to the property becomes vested in the
55 dependent father or mother or dependent child or children under twenty-
56 one years of age of a veteran by virtue of devise by or descent from the
S. 767--A 3
1 deceased qualified owner, provided that the property or a unit thereof
2 is the primary residence of one or all of the devisees.
3 (9) Such veterans who received real property tax exemptions pursuant
4 to the provisions of former section four hundred fifty-eight of the real
5 property tax law, for any real property taxable year between nineteen
6 hundred eighty-one and nineteen hundred ninety shall receive either the
7 credits provided for in this subsection or a credit in the amount of
8 real property tax savings in this subsection, resulting from such
9 exemptions for any one of such real property taxable years, whichever is
10 greater.
11 (10) Notwithstanding the foregoing provisions of this subsection, such
12 veterans who have received assistance from the federal government
13 towards the acquisition of a suitable housing unit with special fixtures
14 or movable facilities made necessary by the nature of the veteran's
15 disability shall be entitled to a credit equal to one hundred percent of
16 the real property taxes paid on the veteran's residence or the rent
17 attributable to real property taxes, including school taxes and special
18 assessments, during the calendar year.
19 (11) Credits which exceed the amount of tax due shall be refunded to
20 the taxpayer. The commissioner shall prepare forms to be used for such
21 refunds by taxpayers not required to file returns pursuant to this arti-
22 cle.
23 (12) The commissioner shall promulgate rules and regulations to imple-
24 ment the provisions of this subsection.
25 § 2. Subdivision 1 of section 844 of the real property tax law, as
26 amended by chapter 654 of the laws of 2004 and as further amended by
27 subdivision (b) of section 1 of part W of chapter 56 of the laws of
28 2010, is amended to read as follows:
29 1. In any county to which this title is applicable, county taxes shall
30 be apportioned among the cities and towns within the county on the basis
31 of the proportion of the total full valuation of taxable real property
32 within the county which is located within each city and town. This total
33 valuation shall be determined by dividing the taxable assessed value of
34 taxable real property by the appropriate city or town equalization rate
35 as certified by the commissioner pursuant to this title. For purposes of
36 this section: (a) "taxable real property" excludes real property which,
37 by statute, is wholly exempt from county taxation, (b) "taxable assessed
38 value" is limited to the assessed value actually subject to county taxa-
39 tion except that it also includes the amount of assessed value partially
40 exempt from county taxation pursuant to (i) sections [four hundred
41 fifty-eight,] four hundred sixty and four hundred sixty-four of this
42 chapter, and (ii) such other sections of law as the county legislature
43 designates by resolution to be included in the total valuation. Where
44 the commissioner furnishes the same state equalization or special equal-
45 ization rate for two or more of the cities and towns in the county for
46 use by that county in the apportionment of taxes, the commissioner shall
47 concurrently therewith notify the county that county taxes may be appor-
48 tioned in the manner provided by subdivision two of this section.
49 § 3. Section 51 of the general municipal law, as amended by chapter
50 614 of the laws of 1981, is amended to read as follows:
51 § 51. Prosecution of officers for illegal acts. All officers,
52 agents, commissioners and other persons acting, or who have acted, for
53 and on behalf of any county, town, village or municipal corporation in
54 this state, and each and every one of them, may be prosecuted, and an
55 action may be maintained against them to prevent any illegal official
56 act on the part of any such officers, agents, commissioners or other
S. 767--A 4
1 persons, or to prevent waste or injury to, or to restore and make good,
2 any property, funds or estate of such county, town, village or municipal
3 corporation by any person or corporation whose assessment, or by any
4 number of persons or corporations, jointly, the sum of whose assessments
5 shall amount to one thousand dollars, and who shall be liable to pay
6 taxes on such assessment in the county, town, village or municipal
7 corporation or by any person who owns shares in a cooperative housing
8 corporation where the pro rata share of the assessment attributable to
9 such shares shall amount to one thousand dollars (or by any number of
10 such persons, jointly, the sum of whose pro rata shares shall amount to
11 one thousand dollars) and where the cooperative housing corporation
12 shall be liable to pay taxes on such assessment in the county, town,
13 village or municipal corporation to prevent the waste or injury of whose
14 property the action is brought, or who have been assessed or paid taxes
15 therein upon any assessment of the above-named amount within one year
16 previous to the commencement of any such action, or who has been so
17 assessed but has not paid nor shall be liable to pay any or the full
18 amount of taxes on such assessment because of a veteran's [exemption
19 therefrom] credit thereto pursuant to subsection (ccc) of section [four]
20 six hundred [fifty-eight] six of the [real property] tax law, or who has
21 been so assessed but has not paid nor shall be liable to pay any or the
22 full amount of taxes on such assessment because of an exemption there-
23 from granted to persons sixty-five years of age or over or their spouses
24 pursuant to the real property tax law. Such person or corporation upon
25 the commencement of such action, shall furnish a bond to the defendant
26 therein, to be approved by a justice of the supreme court or the county
27 judge of the county in which the action is brought, in such penalty as
28 the justice or judge approving the same shall direct, but not less than
29 two hundred and fifty dollars, and to be executed by any two of the
30 plaintiffs, if there be more than one party plaintiff, providing said
31 two parties plaintiff shall severally justify in the sum of five thou-
32 sand dollars. Said bond shall be approved by said justice or judge and
33 be conditioned to pay all costs that may be awarded the defendant in
34 such action if the court shall finally determine the same in favor of
35 the defendant. The court shall require, when the plaintiffs shall not
36 justify as above mentioned, and in any case may require two more suffi-
37 cient sureties to execute the bond above provided for. Such bond shall
38 be filed in the office of the county clerk of the county in which the
39 action is brought, and a copy shall be served with the summons in such
40 action. If an injunction is obtained as herein provided for, the same
41 bond may also provide for the payment of the damages arising therefrom
42 to the party entitled to the money, the auditing, allowing or paying of
43 which was enjoined, if the court shall finally determine that the plain-
44 tiff is not entitled to such injunction. In case the waste or injury
45 complained of consists in any board, officer or agent in any county,
46 town, village or municipal corporation, by collusion or otherwise,
47 contracting, auditing, allowing or paying, or conniving at the contract-
48 ing, audit, allowance or payment of any fraudulent, illegal, unjust or
49 inequitable claims, demands or expenses, or any item or part thereof
50 against or by such county, town, village or municipal corporation, or by
51 permitting a judgment to be recovered against such county, town, village
52 or municipal corporation, or against himself in his official capacity,
53 either by default or without the interposition and proper presentation
54 of any existing legal or equitable defenses, or by any such officer or
55 agent, retaining or failing to pay over to the proper authorities any
56 funds or property of any county, town, village or municipal corporation,
S. 767--A 5
1 after he shall have ceased to be such officer or agent, the court may,
2 in its discretion, prohibit the payment or collection of any such
3 claims, demands, expenses or judgments, in whole or in part, and shall
4 enforce the restitution and recovery thereof, if heretofore or hereafter
5 paid, collected or retained by the person or party heretofore or here-
6 after receiving or retaining the same, and also may, in its discretion,
7 adjudge and declare the colluding or defaulting official personally
8 responsible therefor, and out of his property, and that of his bondsmen,
9 if any, provide for the collection or repayment thereof, so as to indem-
10 nify and save harmless the said county, town, village or municipal
11 corporation from a part or the whole thereof; and in case of a judgment
12 the court may in its discretion, vacate, set aside and open said judg-
13 ment, with leave and direction for the defendant therein to interpose
14 and enforce any existing legal or equitable defense therein, under the
15 direction of such person as the court may, in its judgment or order,
16 designate and appoint. All books of minutes, entry or account, and the
17 books, bills, vouchers, checks, contracts or other papers connected with
18 or used or filed in the office of, or with any officer, board or commis-
19 sion acting for or on behalf of any county, town, village or municipal
20 corporation in this state or any body corporate or other unit of local
21 government in this state which possesses the power to levy taxes or
22 benefit assessments upon real estate or to require the levy of such
23 taxes or assessments or for which taxes or benefit assessments upon real
24 estate may be required pursuant to law to be levied, including the Alba-
25 ny port district commission, are hereby declared to be public records,
26 and shall be open during all regular business hours, subject to reason-
27 able regulations to be adopted by the applicable local legislative body,
28 to the inspection of any taxpayer or registered voter, who may copy,
29 photograph or make photocopies thereof on the premises where such
30 records are regularly kept. This section shall not be so construed as to
31 take away any right of action from any county, town, village or munici-
32 pal corporation, or from any public officer, but any right of action now
33 existing, or which may hereafter exist in favor of any county, town,
34 village or municipal corporation, or in favor of any officer thereof,
35 may be enforced by action or otherwise by the persons hereinbefore
36 authorized to prosecute and maintain actions; and whenever by the
37 provisions of this section an action may be prosecuted or maintained
38 against any officer or other person, his bondsmen, if any, may be joined
39 in such action or proceeding and their liabilities as such enforced by
40 the proper judgment or direction of the court; but any recovery under
41 the provisions of this article shall be for the benefit of and shall be
42 paid to the officer entitled by law to hold and disburse the public
43 moneys of such county, town, village or municipal corporation, and
44 shall, to the amount thereof, be credited the defendant in determining
45 his liability in the action by the county, town, village or municipal
46 corporation or public officer. The provisions of this article shall
47 apply as well to those cases in which the body, board, officer, agent,
48 commissioner or other person above named has not, as to those in which
49 it or he has jurisdiction over the subject-matter of its action.
50 § 4. Section 11-245.45 of the administrative code of the city of New
51 York is REPEALED.
52 § 5. Sections 11-245.5, 11-245.6 and 11-245.7 of the administrative
53 code of the city of New York are REPEALED.
54 § 6. Paragraph (f) of subdivision 2 of section 467-a of the real prop-
55 erty tax law, as amended by chapter 97 of the laws of 2013, is amended
56 to read as follows:
S. 767--A 6
1 (f) For purposes of this subdivision, a property shall be deemed not
2 to be receiving complete or partial real property tax exemption or tax
3 abatement if the property is, or certain dwelling units therein are,
4 receiving benefits pursuant to section four hundred, four hundred two,
5 four hundred four, four hundred six, four hundred eight, four hundred
6 ten, four hundred ten-a, four hundred twelve, four hundred twelve-a,
7 four hundred sixteen, four hundred eighteen, four hundred twenty-a, four
8 hundred twenty-b, four hundred twenty-five, four hundred thirty-six,
9 [four hundred fifty-eight, four hundred fifty-eight-a,] four hundred
10 fifty-nine-c, four hundred sixty-two, four hundred sixty-seven, four
11 hundred sixty-seven-b, four hundred ninety-nine-bbb, or four hundred
12 ninety-nine-bbbb of this article, or if the property is receiving a tax
13 abatement but not a tax exemption pursuant to section four hundred
14 eighty-nine of this article.
15 § 7. Subdivision (f) of section 1801 of the real property tax law, as
16 amended by chapter 191 of the laws of 2001, is amended to read as
17 follows:
18 (f) "Base proportion" means either: (1) for a special assessing unit
19 which is not a city, the proportion of the taxable assessed value of
20 real property which each class constituted of the total taxable assessed
21 value of all real property as entered on the final assessment roll
22 completed and filed in calendar year nineteen hundred eighty-one of such
23 special assessing unit or on the part of that assessment roll applicable
24 to a portion of the special assessing unit, except that for town and
25 county special districts not included within the definition of portion,
26 the applicable roll shall be that which was completed and filed in
27 calendar year two thousand one, or (2) for a special assessing unit
28 which is a city, the proportion of the taxable assessed value of real
29 property which each class constituted of the total taxable assessed
30 value of all real property as entered on the final assessment roll
31 completed and filed in calendar year nineteen hundred eighty-four, [and
32 as adjusted to account for properties exempted under section four
33 hundred fifty-eight of this chapter to the extent such properties are
34 taxable for education purposes,] provided, however, that the taxable
35 assessed value of real property subject to a transition assessment
36 pursuant to subdivision three of section eighteen hundred five of this
37 article shall be determined from the lesser of the transition assessment
38 or actual assessment.
39 § 8. Sections 458 and 458-a of the real property tax law are REPEALED.
40 § 9. This act shall take effect immediately and shall apply to
41 personal income taxable years beginning on and after January 1, 2017,
42 provided, however, that section four of this act shall take effect Janu-
43 ary 1, 2017.
