S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1412

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  M.  of  A.  WRIGHT, FARRELL, AUBRY, V. LOPEZ, O'DONNELL,
  GLICK, BING, HEVESI, MILLMAN, ESPAILLAT,  KAVANAGH,  BRENNAN,  TITONE,
  KELLNER,  ROSENTHAL, JEFFRIES -- Multi-Sponsored by -- M. of A. BROOK-
  KRASNY, COLTON, DIAZ, GOTTFRIED,  LANCMAN,  SPANO  --  read  once  and
  referred to the Committee on Ways and Means

AN ACT to amend the tax law, in relation to providing a renter tax cred-
  it

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 1310 of the tax law is  amended  by  adding  a  new
subsection (g) to read as follows:
  (G)  RENTER TAX CREDIT. (1) (A) NOTWITHSTANDING ANY OTHER PROVISION OF
LAW TO THE CONTRARY, ANY CITY HAVING A  POPULATION  OF  ONE  MILLION  OR
MORE,  ACTING  THROUGH  ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED
AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS GRANTING IN ANY  SUCH  CITY,
FOR  TAXABLE YEARS BEGINNING ON OR AFTER TWO THOUSAND NINE, A RENTER TAX
CREDIT AGAINST THE CITY PERSONAL INCOME TAX FOR ANY QUALIFIED  TAXPAYER.
IF  ANY  SUCH  CREDIT  EXCEEDS THE TAX FOR SUCH YEAR, SUCH LOCAL LAW MAY
PROVIDE THAT SUCH  QUALIFIED  TAXPAYER  RECEIVE,  AND  THE  COMPTROLLER,
SUBJECT  TO  A CERTIFICATE OF THE COMMISSIONER, SHALL PAY AS AN OVERPAY-
MENT, WITHOUT INTEREST, ANY EXCESS BETWEEN SUCH TAX AS  SO  REDUCED  AND
THE  AMOUNT  OF  THE  CREDIT. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO
FILE A RETURN PURSUANT TO A LOCAL LAW ENACTED PURSUANT TO THIS  ARTICLE,
SUCH LOCAL LAW MAY PROVIDE THAT SUCH QUALIFIED TAXPAYER MAY NEVERTHELESS
RECEIVE AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE COMMISSION-
ER,  SHALL  PAY AS AN OVERPAYMENT THE FULL AMOUNT OF THE CREDIT, WITHOUT
INTEREST. (B) ANY CREDIT PROVIDED BY A LOCAL  LAW  ADOPTED  PURSUANT  TO
THIS SUBSECTION SHALL NOT EXCEED THREE HUNDRED DOLLARS.
  (2)  ONLY ONE CREDIT PER HOUSEHOLD AND PER QUALIFIED TAXPAYER SHALL BE
ALLOWED PER TAXABLE YEAR UNDER THIS SUBSECTION. (A)  WHEN  TWO  OR  MORE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD00400-01-9

A. 1412                             2

MEMBERS  OF A HOUSEHOLD ARE ABLE TO MEET THE QUALIFICATIONS FOR A QUALI-
FIED TAXPAYER, THE CREDIT SHALL BE EQUALLY DIVIDED BETWEEN OR AMONG SUCH
INDIVIDUALS UNLESS SUCH INDIVIDUALS FILE WITH  THE  NEW  YORK  CITY  TAX
COMMISSION  A  WRITTEN  AGREEMENT AMONG SUCH INDIVIDUALS SETTING FORTH A
DIFFERENT DIVISION.  (B) WHERE ANY RETURN REQUIRED TO BE FILED  PURSUANT
TO  THE  PROVISIONS  OF  SECTION THIRTEEN HUNDRED SIX OF THIS ARTICLE IS
COMBINED WITH ANY RETURN OF TAX IMPOSED PURSUANT  TO  THE  AUTHORITY  OF
THIS CHAPTER OR ANY OTHER LAW IF SUCH TAX IS ADMINISTERED BY THE COMMIS-
SIONER,  THE  CREDIT OR THE PORTION OF THE CREDIT IF DIVIDED, ALLOWED TO
THE QUALIFIED TAXPAYER MAY BE APPLIED BY  THE  COMMISSIONER  TOWARD  ANY
LIABILITY FOR THE AFOREMENTIONED TAXES.
  (3) FOR PURPOSES OF ANY LOCAL LAW ADOPTED PURSUANT TO THIS SUBSECTION:
  (A)  "DEPENDENT"  MEANS AN INDIVIDUAL DESCRIBED IN SECTION ONE HUNDRED
FIFTY-TWO OF THE INTERNAL REVENUE CODE.
  (B) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF  THE  CITY  OF
NEW  YORK  (I) WHO HAS OCCUPIED THE SAME QUALIFIED RESIDENCE AS A RENTER
OR LESSEE FOR SIX MONTHS OR MORE  DURING  THE  TAXABLE  YEAR,  (II)  HAS
ATTAINED  THE  AGE  OF EIGHTEEN, AND (III) WHO IS REQUIRED OR CHOOSES TO
FILE A RETURN UNDER THIS ARTICLE.
  (C) "HOUSEHOLD" OR  "MEMBERS  OF  THE  HOUSEHOLD"  MEANS  A  QUALIFIED
TAXPAYER  AND  ALL  OTHER PERSONS, NOT NECESSARILY RELATED, WHO HAVE THE
SAME QUALIFIED RESIDENCE  AND  SHARE  ITS  FURNISHINGS,  FACILITIES  AND
ACCOMMODATIONS.  SUCH TERMS SHALL INCLUDE A DOMESTIC PARTNER, AS DEFINED
IN SECTION TWENTY-EIGHT HUNDRED FIVE-Q OF THE  PUBLIC  HEALTH  LAW,  BUT
SHALL  NOT  INCLUDE  A  TENANT,  SUBTENANT, ROOMER OR BOARDER WHO IS NOT
RELATED TO THE QUALIFIED TAXPAYER IN ANY DEGREE SPECIFIED IN  PARAGRAPHS
ONE  THROUGH EIGHT OF SUBSECTION (A) OF SECTION ONE HUNDRED FIFTY-TWO OF
THE INTERNAL REVENUE CODE. PROVIDED, HOWEVER, NO PERSON MAY BE A  MEMBER
OF MORE THAN ONE HOUSEHOLD AT ONE TIME.
  (D)  "HOUSEHOLD  GROSS INCOME" MEANS THE NEW YORK STATE ADJUSTED GROSS
INCOME OF ALL MEMBERS OF THE HOUSEHOLD FOR THE TAXABLE  YEAR.  HOUSEHOLD
GROSS  INCOME SHALL ONLY INCLUDE ALL SUCH INCOME RECEIVED BY ALL MEMBERS
OF THE HOUSEHOLD WHILE MEMBERS OF SUCH HOUSEHOLD.
  (E) "QUALIFIED RESIDENCE" MEANS A DWELLING IN THE CITY  OF  NEW  YORK,
WHICH IS RENTED OR LEASED, AND MAY CONSIST OF A PART OF A MULTI-DWELLING
OR  MULTI-PURPOSE  BUILDING  INCLUDING A COOPERATIVE OR CONDOMINIUM, AND
RENTAL UNITS WITHIN A SINGLE  DWELLING,  PROVIDED,  HOWEVER,  THAT  SUCH
DWELLING,  OR  BUILDING  OF WHICH SUCH DWELLING IS A PART, IS SUBJECT TO
THE REAL PROPERTY TAX.  QUALIFIED RESIDENCE INCLUDES A TRAILER OR MOBILE
HOME WHICH IS RENTED AND  USED  EXCLUSIVELY  FOR  RESIDENTIAL  PURPOSES,
WHICH  IS DEFINED AS REAL PROPERTY PURSUANT TO PARAGRAPH (G) OF SUBDIVI-
SION TWELVE OF SECTION ONE HUNDRED TWO OF THE REAL PROPERTY TAX LAW, AND
WHICH IS SUBJECT TO THE REAL PROPERTY  TAX.  QUALIFIED  RESIDENCE  SHALL
ALSO INCLUDE A DWELLING OWNED BY A HOUSING COMPANY ORGANIZED AND OPERAT-
ING PURSUANT TO THE PROVISIONS OF ARTICLES TWO, FOUR, FIVE AND ELEVEN OF
THE PRIVATE HOUSING FINANCE LAW.
  (F)  "RESIDENT  INDIVIDUAL" MEANS AN INDIVIDUAL WHO IS A MEMBER OF THE
HOUSEHOLD AND CANNOT BE CLAIMED AS A PERSONAL EXEMPTION ON ANOTHER INDI-
VIDUAL'S INCOME TAX RETURN DURING THE TAXABLE YEAR.
  (4) NO CREDIT SHALL BE GRANTED UNDER THIS SUBSECTION:
  (A) IF HOUSEHOLD GROSS INCOME, IN THE CASE OF A  RESIDENT  INDIVIDUAL,
EXCEEDS FORTY-THREE THOUSAND DOLLARS.
  (B)  IF  HOUSEHOLD  GROSS  INCOME, IN THE CASE OF TWO OR MORE RESIDENT
INDIVIDUALS, OR IN THE  CASE  OF  ONE  RESIDENT  INDIVIDUAL  HAVING  ONE
DEPENDENT, EXCEEDS FIFTY-FOUR THOUSAND DOLLARS.

A. 1412                             3

  (C)  IF  HOUSEHOLD  GROSS  INCOME, IN THE CASE OF TWO OR MORE RESIDENT
INDIVIDUALS HAVING ONE DEPENDENT, OR IN THE CASE OF ONE  RESIDENT  INDI-
VIDUAL HAVING TWO DEPENDENTS, EXCEEDS SIXTY-FIVE THOUSAND DOLLARS.
  (D)  IF  HOUSEHOLD  GROSS  INCOME, IN THE CASE OF TWO OR MORE RESIDENT
INDIVIDUALS HAVING TWO OR MORE DEPENDENTS, OR IN THE CASE OF  ONE  RESI-
DENT  INDIVIDUAL  HAVING  THREE OR MORE DEPENDENTS, EXCEEDS SEVENTY-FIVE
THOUSAND DOLLARS.
  (E) TO AN INDIVIDUAL WITH RESPECT TO WHOM A DEDUCTION UNDER SUBSECTION
(C) OF SECTION ONE HUNDRED FIFTY-ONE OF THE  INTERNAL  REVENUE  CODE  IS
ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR.
  (F)  TO AN INDIVIDUAL WHO IS NOT A RESIDENT INDIVIDUAL OF THE CITY FOR
THE ENTIRE TAXABLE YEAR.
  (G) FOR PURPOSES OF THIS PARAGRAPH, BEGINNING ON  JANUARY  FIRST,  TWO
THOUSAND  TEN,  HOUSEHOLD  GROSS  INCOME  SHALL BE ADJUSTED ANNUALLY, ON
JANUARY FIRST, BY THE PERCENTAGE CHANGE IN  THE  AVERAGE  COST-OF-LIVING
INDEX  IN  THE PERIOD JANUARY FIRST THROUGH DECEMBER THIRTY-FIRST OF THE
IMMEDIATE PRIOR YEAR COMPARED WITH THE SAME PERIOD FOR THE YEAR PRIOR TO
THAT. FOR PURPOSES OF THIS SUBPARAGRAPH, THE "COST-OF-LIVING  INDEX"  IS
THE  AVERAGE  OF THE MONTHLY CONSUMER-PRICE-INDEX FIGURES FOR THE STATED
TWELVE-MONTH PERIOD, RELATIVE TO THE UNITED STATES AS A WHOLE, ISSUED BY
THE UNITED STATES DEPARTMENT OF LABOR.
  (5) IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN  PURSUANT
TO  SECTION  THIRTEEN  HUNDRED SIX OF THIS ARTICLE, A CLAIM FOR A CREDIT
MAY BE TAKEN ON A RETURN FILED WITH THE COMMISSIONER WITHIN THREE  YEARS
FROM  THE TIME IT WOULD HAVE BEEN REQUIRED THAT A RETURN BE FILED PURSU-
ANT TO SUCH SECTION HAD THE QUALIFIED TAXPAYER HAD A TAXABLE YEAR ENDING
ON DECEMBER THIRTY-FIRST. RETURNS UNDER THIS PARAGRAPH SHALL BE IN  SUCH
FORM AS SHALL BE PRESCRIBED BY THE COMMISSIONER, WHICH SHALL MAKE AVAIL-
ABLE SUCH FORMS AND INSTRUCTIONS FOR FILING SUCH RETURNS.
  (6)  THE  COMMISSIONER MAY REQUIRE A QUALIFIED TAXPAYER TO FURNISH THE
FOLLOWING INFORMATION IN SUPPORT OF HIS OR HER CLAIM  FOR  CREDIT  UNDER
THIS  SUBSECTION: HOUSEHOLD GROSS INCOME, RENT PAID, NAME AND ADDRESS OF
OWNER OR MANAGING AGENT OF THE PROPERTY RENTED, THE NAMES OF MEMBERS  OF
THE  HOUSEHOLD  AND  OTHER QUALIFYING TAXPAYERS OCCUPYING THE SAME RESI-
DENCE AND THEIR IDENTIFYING NUMBERS INCLUDING SOCIAL  SECURITY  NUMBERS,
HOUSEHOLD GROSS INCOME, SIZE AND NATURE OF PROPERTY CLAIMED AS RESIDENCE
AND  ALL  OTHER INFORMATION WHICH MAY BE REQUIRED BY THE COMMISSIONER TO
DETERMINE THE CREDIT.
  (7) THE PROVISIONS OF ARTICLE TWENTY-TWO OF  THIS  CHAPTER,  INCLUDING
THE   PROVISIONS   OF  SECTION  SIX  HUNDRED  FIFTY-THREE,  SIX  HUNDRED
FIFTY-EIGHT AND SIX HUNDRED FIFTY-NINE AND THE PROVISIONS OF PART SIX OF
SUCH ARTICLE RELATING TO PROCEDURE  AND  ADMINISTRATION,  INCLUDING  THE
JUDICIAL  REVIEW OF THE DECISIONS OF THE TAX APPEALS TRIBUNAL, EXCEPT SO
MUCH OF SECTION SIX HUNDRED EIGHTY-SEVEN OF SUCH ARTICLE WHICH PERMITS A
CLAIM FOR CREDIT OR REFUND TO BE FILED AFTER THE PERIOD PROVIDED FOR  IN
PARAGRAPH  FIVE  OF  THIS  SUBSECTION  AND  EXCEPT  SECTIONS SIX HUNDRED
FIFTY-SEVEN, SIX HUNDRED EIGHTY-EIGHT AND SIX HUNDRED NINETY-SIX OF SUCH
ARTICLE, SHALL APPLY TO THE PROVISIONS OF THIS SUBSECTION  IN  THE  SAME
MANNER  AND  WITH  THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE
PROVISIONS HAD BEEN INCORPORATED IN FULL INTO THIS  SUBSECTION  AND  HAD
EXPRESSLY  REFERRED  TO  THE  CREDIT ALLOWED OR RETURNS FILED UNDER THIS
SUBSECTION, EXCEPT TO THE EXTENT  THAT  ANY  SUCH  PROVISION  IS  EITHER
INCONSISTENT  WITH  A PROVISION OF THIS SUBSECTION OR IS NOT RELEVANT TO
THIS SUBSECTION. AS USED IN  SUCH  SECTIONS  AND  SUCH  PART,  THE  TERM
"TAXPAYER" SHALL INCLUDE A QUALIFIED TAXPAYER UNDER THIS SUBSECTION AND,
NOTWITHSTANDING  THE PROVISIONS OF SUBSECTION (E) OF SECTION SIX HUNDRED

A. 1412                             4

NINETY-SEVEN OF THIS CHAPTER, WHERE A QUALIFIED TAXPAYER  HAS  PROTESTED
THE  DENIAL  OF A CLAIM FOR CREDIT UNDER THIS SUBSECTION AND THE TIME TO
FILE A PETITION FOR REDETERMINATION OF A DEFICIENCY OR  FOR  REFUND  HAS
NOT  EXPIRED,  HE OR SHE SHALL, SUBJECT TO SUCH CONDITIONS AS MAY BE SET
BY THE COMMISSIONER, RECEIVE SUCH INFORMATION (A) WHICH IS CONTAINED  IN
ANY  RETURN FILED UNDER THIS ARTICLE BY A MEMBER OF HIS OR HER HOUSEHOLD
FOR THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED, AND (B) WHICH  THE
COMMISSIONER FINDS IS RELEVANT AND MATERIAL TO THE ISSUE OF WHETHER SUCH
CLAIM  WAS PROPERLY DENIED. THE COMMISSIONER SHALL HAVE THE AUTHORITY TO
PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE  PROC-
ESSING,  DETERMINATION  AND  GRANTING  OF CREDITS AND REFUNDS UNDER THIS
SUBSECTION.
  (8) NOTWITHSTANDING ANY OTHER PROVISION OF THIS  ARTICLE,  THE  CREDIT
ALLOWED BY A LOCAL LAW ENACTED UNDER THIS SUBSECTION SHALL BE DETERMINED
AFTER  THE  DETERMINATION AND APPLICATION OF ANY OTHER CREDITS PERMITTED
UNDER THE PROVISIONS OF THIS ARTICLE.
  (9) A LOCAL LAW ENACTED PURSUANT TO THIS SUBSECTION SHALL BE  APPLICA-
BLE  WITH  RESPECT TO ANY TAXABLE YEAR ONLY IF IT HAS BEEN ENACTED ON OR
BEFORE JULY THIRTY-FIRST OF SUCH YEAR. A CERTIFIED COPY  OF  SUCH  LOCAL
LAW  SHALL BE MAILED BY REGISTERED MAIL TO THE STATE DEPARTMENT OF TAXA-
TION AND FINANCE AT ITS OFFICE IN ALBANY  WITHIN  FIFTEEN  DAYS  OF  ITS
ENACTMENT.  HOWEVER,  THE  STATE  DEPARTMENT OF TAXATION AND FINANCE MAY
ALLOW ADDITIONAL TIME FOR SUCH CERTIFIED COPY TO BE MAILED IF  IT  DEEMS
SUCH ACTION TO BE CONSISTENT WITH ITS DUTIES UNDER THIS ARTICLE.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2009.