STATE OF NEW YORK
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5294--A
2015-2016 Regular Sessions
IN SENATE
May 12, 2015
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Introduced by Sen. LARKIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Aging -- recommitted to
the Committee on Aging 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 real property tax law, in relation to excluding
annuity roll-over transfers from taxable income for seniors
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of subdivision 3 of section 467 of the real
2 property tax law, as amended by chapter 259 of the laws of 2009, is
3 amended to read as follows:
4 (a) if the income of the owner or the combined income of the owners of
5 the property for the income tax year immediately preceding the date of
6 making application for exemption exceeds the sum of three thousand
7 dollars, or such other sum not less than three thousand dollars nor more
8 than twenty-six thousand dollars beginning July first, two thousand six,
9 twenty-seven thousand dollars beginning July first, two thousand seven,
10 twenty-eight thousand dollars beginning July first, two thousand eight,
11 and twenty-nine thousand dollars beginning July first, two thousand
12 nine, as may be provided by the local law, ordinance or resolution
13 adopted pursuant to this section. Income tax year shall mean the twelve
14 month period for which the owner or owners filed a federal personal
15 income tax return, or if no such return is filed, the calendar year.
16 Where title is vested in either the husband or the wife, their combined
17 income may not exceed such sum, except where the husband or wife, or
18 ex-husband or ex-wife is absent from the property as provided in subpar-
19 agraph (ii) of paragraph (d) of this subdivision, then only the income
20 of the spouse or ex-spouse residing on the property shall be considered
21 and may not exceed such sum. Such income shall include social security
22 and retirement benefits, interest, dividends, total gain from the sale
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04847-08-6
S. 5294--A 2
1 or exchange of a capital asset which may be offset by a loss from the
2 sale or exchange of a capital asset in the same income tax year, net
3 rental income, salary or earnings, and net income from self-employment,
4 but shall not include a return of capital, gifts, inheritances, payments
5 made to individuals because of their status as victims of Nazi perse-
6 cution, as defined in P.L. 103-286 or monies earned through employment
7 in the federal foster grandparent program and any such income shall be
8 offset by all medical and prescription drug expenses actually paid which
9 were not reimbursed or paid for by insurance, if the governing board of
10 a municipality, after a public hearing, adopts a local law, ordinance or
11 resolution providing therefor. In addition, an exchange of an annuity
12 for an annuity contract, which resulted in non-taxable gain, as deter-
13 mined in section one thousand thirty-five of the internal revenue code,
14 shall be excluded from such income. Provided that such exclusion shall
15 be based on satisfactory proof that such an exchange was solely an
16 exchange of an annuity for an annuity contract that resulted in a non-
17 taxable transfer determined by such section of the internal revenue
18 code. Furthermore, such income shall not include the proceeds of a
19 reverse mortgage, as authorized by section six-h of the banking law, and
20 sections two hundred eighty and two hundred eighty-a of the real proper-
21 ty law; provided, however, that monies used to repay a reverse mortgage
22 may not be deducted from income, and provided additionally that any
23 interest or dividends realized from the investment of reverse mortgage
24 proceeds shall be considered income. The provisions of this paragraph
25 notwithstanding, such income shall not include veterans disability
26 compensation, as defined in Title 38 of the United States Code provided
27 the governing board of such municipality, after public hearing, adopts a
28 local law, ordinance or resolution providing therefor. In computing net
29 rental income and net income from self-employment no depreciation
30 deduction shall be allowed for the exhaustion, wear and tear of real or
31 personal property held for the production of income;
32 § 2. This act shall take effect immediately.
