STATE OF NEW YORK
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8388
IN SENATE
February 22, 2022
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Introduced by Sen. THOMAS -- read twice and ordered printed, and when
printed to be committed to the Committee on Aging
AN ACT to amend the real property tax law, in relation to increasing the
allowable maximum income of certain persons otherwise eligible for tax
abatement in certain cases
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 558 of the laws of 2021, 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 twenty-nine thousand dollars beginning July first, two thousand nine,
12 [and] in a city with a population of one million or more fifty thousand
13 dollars beginning July first, two thousand seventeen, and in a county
14 with a population of between one million and one million four hundred
15 thousand, as of the last decennial census fifty thousand dollars begin-
16 ning July first, two thousand twenty-two, as may be provided by the
17 local law, ordinance or resolution adopted pursuant to this section.
18 Where the taxable status date is on or before April fourteenth, income
19 tax year shall mean the twelve-month period for which the owner or
20 owners filed a federal personal income tax return for the year before
21 the income tax year immediately preceding the date of application and
22 where the taxable status date is on or after April fifteenth, income tax
23 year shall mean the twelve-month period for which the owner or owners
24 filed a federal personal income tax return for the income tax year imme-
25 diately preceding the date of application. Where title is vested in
26 either the husband or the wife, their combined income may not exceed
27 such sum, except where the husband or wife, or ex-husband or ex-wife is
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06267-03-2
S. 8388 2
1 absent from the property as provided in subparagraph (ii) of paragraph
2 (d) of this subdivision, then only the income of the spouse or ex-spouse
3 residing on the property shall be considered and may not exceed such
4 sum. Such income shall include social security and retirement benefits,
5 interest, dividends, total gain from the sale or exchange of a capital
6 asset which may be offset by a loss from the sale or exchange of a capi-
7 tal asset in the same income tax year, net rental income, salary or
8 earnings, and net income from self-employment, but shall not include a
9 return of capital, gifts, inheritances, payments made to individuals
10 because of their status as victims of Nazi persecution, as defined in
11 P.L. 103-286 or monies earned through employment in the federal foster
12 grandparent program and any such income shall be offset by all medical
13 and prescription drug expenses actually paid which were not reimbursed
14 or paid for by insurance, if the governing board of a municipality,
15 after a public hearing, adopts a local law, ordinance or resolution
16 providing therefor. In addition, an exchange of an annuity for an annui-
17 ty contract, which resulted in non-taxable gain, as determined in
18 section one thousand thirty-five of the internal revenue code, shall be
19 excluded from such income. Provided that such exclusion shall be based
20 on satisfactory proof that such an exchange was solely an exchange of an
21 annuity for an annuity contract that resulted in a non-taxable transfer
22 determined by such section of the internal revenue code. Furthermore,
23 such income shall not include the proceeds of a reverse mortgage, as
24 authorized by section six-h of the banking law, and sections two hundred
25 eighty and two hundred eighty-a of the real property law; provided,
26 however, that monies used to repay a reverse mortgage may not be
27 deducted from income, and provided additionally that any interest or
28 dividends realized from the investment of reverse mortgage proceeds
29 shall be considered income. The provisions of this paragraph notwith-
30 standing, such income shall not include veterans disability compen-
31 sation, as defined in Title 38 of the United States Code provided the
32 governing board of such municipality, after public hearing, adopts a
33 local law, ordinance or resolution providing therefor. In computing net
34 rental income and net income from self-employment no depreciation
35 deduction shall be allowed for the exhaustion, wear and tear of real or
36 personal property held for the production of income;
37 § 2. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
38 erty tax law, as amended by chapter 131 of the laws of 2017, is amended
39 to read as follows:
40 (a) if the income of the owner or the combined income of the owners of
41 the property for the income tax year immediately preceding the date of
42 making application for exemption exceeds the sum of three thousand
43 dollars, or such other sum not less than three thousand dollars nor more
44 than twenty-six thousand dollars beginning July first, two thousand six,
45 twenty-seven thousand dollars beginning July first, two thousand seven,
46 twenty-eight thousand dollars beginning July first, two thousand eight,
47 twenty-nine thousand dollars beginning July first, two thousand nine,
48 [and] in a city with a population of one million or more fifty thousand
49 dollars beginning July first, two thousand seventeen, and in a county
50 with a population of between one million and one million four hundred
51 thousand as of the last decennial census fifty thousand dollars begin-
52 ning July first, two thousand twenty-two, as may be provided by the
53 local law or resolution adopted pursuant to this section. Income tax
54 year shall mean the twelve month period for which the owner or owners
55 filed a federal personal income tax return, or if no such return is
56 filed, the calendar year. Where title is vested in either the husband or
S. 8388 3
1 the wife, their combined income may not exceed such sum, except where
2 the husband or wife, or ex-husband or ex-wife is absent from the proper-
3 ty due to divorce, legal separation or abandonment, then only the income
4 of the spouse or ex-spouse residing on the property shall be considered
5 and may not exceed such sum. Such income shall include social security
6 and retirement benefits, interest, dividends, total gain from the sale
7 or exchange of a capital asset which may be offset by a loss from the
8 sale or exchange of a capital asset in the same income tax year, net
9 rental income, salary or earnings, and net income from self-employment,
10 but shall not include a return of capital, gifts, inheritances or monies
11 earned through employment in the federal foster grandparent program and
12 any such income shall be offset by all medical and prescription drug
13 expenses actually paid which were not reimbursed or paid for by insur-
14 ance, if the governing board of a municipality, after a public hearing,
15 adopts a local law or resolution providing therefor. In computing net
16 rental income and net income from self-employment no depreciation
17 deduction shall be allowed for the exhaustion, wear and tear of real or
18 personal property held for the production of income;
19 § 3. This act shall take effect immediately and shall apply to appli-
20 cations made for an exemption pursuant to this act for the county fiscal
21 year commencing in 2022 and all county fiscal years thereafter. Appli-
22 cations received for the county fiscal year commencing in 2022 shall be
23 considered timely if they are filed on or before the one hundred twenti-
24 eth day following the effective date of the local law implementing the
25 provisions of this act.