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.