S T A T E O F N E W Y O R K
________________________________________________________________________
1418
2009-2010 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 7, 2009
___________
Introduced by M. of A. WRIGHT, GORDON, MILLMAN, EDDINGTON -- Multi-Spon-
sored by -- M. of A. BOYLAND, CLARK, HEASTIE, HYER-SPENCER, V. LOPEZ,
PEOPLES, PHEFFER, TOWNS, WEISENBERG -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to benefits and eligibility
under the real property tax circuit breaker credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraphs 1, 3 and 7 of subsection (e) of section 606 of
the tax law, as amended by chapter 28 of the laws of 1987, subparagraph
(C) of paragraph 1 as amended by chapter 713 of the laws of 1996 and
subparagraph (E) of paragraph 1 as amended by chapter 105 of the laws of
2006, are amended to read as follows:
(1) For purposes of this subsection:
(A) "Qualified taxpayer" means a resident individual of the state who
has occupied the same residence for six months or more of the taxable
year, and is required or chooses to file a return under this article.
(B) "Household" or "members of the household" means a qualified
taxpayer and all other persons, not necessarily related, who have the
same residence and share its furnishings, facilities and accommodations.
Such terms 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.
[(c)] (C) "Household gross income" means the aggregate adjusted gross
income of all ADULT members of the household for the taxable year as
reported for federal income tax purposes, or which would be reported as
adjusted gross income if a federal income tax return were required to be
filed, with the modifications in subsection (b) of section six hundred
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00445-01-9
A. 1418 2
twelve OF THIS ARTICLE but without the modifications in subsection (c)
of such section, plus any portion of the gain from the sale or exchange
of property otherwise excluded from such amount; earned income from
sources without the United States excludable from federal gross income
by section nine hundred eleven of the internal revenue code; support
money not included in adjusted gross income; nontaxable strike benefits;
supplemental security income payments; the gross amount of any pension
or annuity benefits to the extent not included in such adjusted gross
income (including, but not limited to, railroad retirement benefits and
all payments received under the federal social security act and veter-
ans' disability pensions); nontaxable interest received from the state
of New York, its agencies, instrumentalities, public corporations, or
political subdivisions (including a public corporation created pursuant
to agreement or compact with another state or Canada); workers' compen-
sation; the gross amount of "loss-of-time" insurance; and the amount of
cash public assistance and relief, other than medical assistance for the
needy, paid to or for the benefit of the qualified taxpayer or members
of his household. Household gross income shall not include surplus foods
or other relief in kind or payments made to individuals because of their
status as victims of Nazi persecution as defined in P.L. 103-286.
Provided, further, household gross income shall only include all such
income received by all members of the household while members of such
household. PROVIDED, FURTHER, THAT HOUSEHOLD GROSS INCOME SHALL NOT
INCLUDE INCOME OF HOUSEHOLD MEMBERS WHO ARE UNDER THE AGE OF EIGHTEEN,
OR INCOME OF HOUSEHOLD MEMBERS UNDER THE AGE OF TWENTY-ONE IF SUCH INDI-
VIDUALS ATTEND AN ACCREDITED COLLEGE OR UNIVERSITY AT LEAST PART-TIME.
(D) "Residence" means a dwelling in this state, whether owned or rent-
ed, and so much of the land abutting it, not exceeding one acre, as is
reasonably necessary for use of the dwelling as a home, 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.
Residence includes a trailer or mobile home, used exclusively for resi-
dential purposes and defined as real property pursuant to paragraph (g)
of subdivision twelve of section one hundred two of the real property
tax law.
(E) "Qualifying real property taxes" means all real property taxes,
special ad valorem levies and special assessments, exclusive of penal-
ties and interest, levied on the residence of a qualified taxpayer and
paid during the taxable year [less the credit claimed under subsection
(n-1) of this section]. In addition, for taxable years beginning after
December thirty-first, nineteen hundred eighty-four, a qualified taxpay-
er may elect to include any additional amount that would have been
levied in the absence of an exemption from real property taxation pursu-
ant to section four hundred sixty-seven of the real property tax law. If
tenant-stockholders in a cooperative housing corporation have met the
requirements of section two hundred sixteen of the internal revenue code
by which they are allowed a deduction for real estate taxes, the amount
of taxes so allowable, or which would be allowable if the taxpayer had
filed returns on a cash basis, shall be qualifying real property taxes.
If a residence is owned by two or more individuals as joint tenants or
tenants in common, and one or more than one individual is not a member
of the household, qualifying real property taxes is that part of such
taxes on the residence which reflects the ownership percentage of the
qualified taxpayer and members of his household. If a residence is an
integral part of a larger unit, qualifying real property taxes shall be
limited to that amount of such taxes paid as may be reasonably appor-
A. 1418 3
tioned to such residence. If a household owns and occupies two or more
residences during different periods in the same taxable year, qualifying
real property taxes shall be the sum of the prorated qualifying real
property taxes attributable to the household during the periods such
household occupies each of such residences. If the household owns and
occupies a residence for part of the taxable year and rents a residence
for part of the same taxable year, it may include both the proration of
qualifying real property taxes on the residence owned and the real prop-
erty tax equivalent with respect to the months the residence is rented.
Provided, however, for purposes of the credit allowed under this
subsection, qualifying real property taxes may be included by a quali-
fied taxpayer only to the extent that such taxpayer or the spouse of
such taxpayer occupying such residence for six months or more of the
taxable year owns or has owned the residence and paid such taxes.
(F) "Real property tax equivalent" means twenty-five percent of the
adjusted rent actually paid in the taxable year by a household solely
for the right of occupancy of its New York residence for the taxable
year. If (i) a residence is rented to two or more individuals as coten-
ants, or such individuals share in the payment of a single rent for the
right of occupancy of such residence, and (ii) each of such individuals
is a member of a different household, one or more of which individuals
shares such residence, real property tax equivalent is that portion of
twenty-five percent of the adjusted rent paid in the taxable year which
reflects that portion of the rent attributable to the qualified taxpayer
and the members of his household.
(G) "Adjusted rent" means rental paid for the right of occupancy of a
residence, excluding charges for heat, gas, electricity, furnishings and
board. Where charges for heat, gas, electricity, furnishing or board are
included in rental but where such charges and the amount thereof are not
separately set forth in a written rental agreement, for purposes of
determining adjusted rent the qualified taxpayer shall reduce rental
paid as follows:
(i) For heat, or heat and gas, deduct fifteen percent of rental paid.
(ii) For heat, gas and electricity, deduct twenty percent of rental
paid.
(iii) For heat, gas, electricity and furnishings, deduct twenty-five
percent of rental paid.
(iv) For heat, gas, electricity, furnishings and board, deduct fifty
percent of rental paid.
If the tax commission determines that the adjusted rent shown on the
return is excessive, the tax commission may reduce such rent, for
purposes of the computation of the credit, to an amount substantially
equivalent to rent for a comparable accommodation.
(3) Determination of credit. (A) For qualified taxpayers who have
attained the age of sixty-five years before the beginning of or during
the taxable year the amount of the credit allowable under this
subsection shall be fifty percent, or in the case of a qualified taxpay-
er who has elected to include an additional amount pursuant to subpara-
graph (E) of paragraph one of this subsection, twenty-five percent, of
the excess of real property taxes or the excess of real property tax
equivalent determined as follows:
Excess real property taxes are the
excess of real property tax equiv-
alent or the excess of qualifying
real property taxes over the fol-
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If household gross income for the lowing percentage of household
taxable year is: gross income:
----------------------------------- -----------------------------------
$3,000 or less 3 1/2
Over $3,000 but not over $5,000 4
Over $5,000 but not over $7,000 4 1/2
Over $7,000 but not over $9,000 5
Over $9,000 but not over $11,000 5 1/2
Over $11,000 but not over $14,000 6
Over $14,000 [but not over $18,000] 6 1/2
Notwithstanding the foregoing provisions, the maximum credit deter-
mined under this subparagraph may not exceed the amount determined in
accordance with the following table:
If household gross income for the
taxable year is: The maximum credit is:
----------------------------------- -----------------------------------
$1,000 or less $375
Over $1,000 but not over $2,000 $358
Over $2,000 but not over $3,000 $341
Over $3,000 but not over $4,000 $324
Over $4,000 but not over $5,000 $307
Over $5,000 but not over $6,000 $290
Over $6,000 but not over $7,000 $273
Over $7,000 but not over $8,000 $256
Over $8,000 but not over $9,000 $239
Over $9,000 but not over $10,000 $222
Over $10,000 but not over $11,000 $205
Over $11,000 but not over $12,000 $188
Over $12,000 but not over $13,000 $171
Over $13,000 but not over $14,000 $154
Over $14,000 but not over $15,000 $137
Over $15,000 but not over $16,000 $120
Over $16,000 but not over $17,000 $103
Over $17,000 [but not over $18,000] $ 86
(B) For all other qualified taxpayers the amount of the credit allow-
able under this subsection shall be fifty percent of excess real proper-
ty taxes or the excess of the real property tax equivalent determined as
follows:
Excess real property taxes are the
excess of real property tax equiv-
alent or the excess of qualifying
real property taxes over the fol-
If household gross income for the lowing percentage of household
taxable year is: gross income:
----------------------------------- -----------------------------------
$3,000 or less 3 1/2
Over $3,000 but not over $5,000 4
Over $5,000 but not over $7,000 4 1/2
Over $7,000 but not over $9,000 5
Over $9,000 but not over $11,000 5 1/2
Over $11,000 but not over $14,000 6
Over $14,000 [but not over $18,000] 6 1/2
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Notwithstanding the foregoing provisions, the maximum credit deter-
mined under this subparagraph may not exceed the amount determined in
accordance with the following table:
If household gross income for the
taxable year is: The maximum credit is:
----------------------------------- -----------------------------------
$1,000 or less $75
Over $1,000 but not over $2,000 $73
Over $2,000 but not over $3,000 $71
Over $3,000 but not over $4,000 $69
Over $4,000 but not over $5,000 $67
Over $5,000 but not over $6,000 $65
Over $6,000 but not over $7,000 $63
Over $7,000 but not over $8,000 $61
Over $8,000 but not over $9,000 $59
Over $9,000 but not over $10,000 $57
Over $10,000 but not over $11,000 $55
Over $11,000 but not over $12,000 $53
Over $12,000 but not over $13,000 $51
Over $13,000 but not over $14,000 $49
Over $14,000 but not over $15,000 $47
Over $15,000 but not over $16,000 $45
Over $16,000 but not over $17,000 $43
Over $17,000 [but not over $18,000] $41
(7) No credit shall be granted under this subsection:
(A) If household gross income for the taxable year exceeds [eighteen
thousand dollars] TWO HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL.
(B) To a property owner unless: (i) the property is used for residen-
tial purposes, (ii) not more than twenty percent of the rental income,
if any, from the property is from rental for nonresidential purposes and
(iii) the property is occupied as a residence in whole or in part by one
or more of the owners of the property.
(C) To a property owner who owns real property, the full value of
which exceeds [eighty-five] TWO HUNDRED thousand dollars.
(D) [To] (I) IN A CITY WITH A POPULATION OF TWO MILLION OR MORE, TO a
tenant if the adjusted rent for the residence exceeds [four] EIGHT
hundred [fifty] dollars per month on average; OR (II) IN ALL OTHER AREAS
OF THE STATE TO A TENANT IF THE ADJUSTED RENT FOR THE RESIDENCE EXCEEDS
SIX HUNDRED DOLLARS PER MONTH ON AVERAGE.
(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) With respect to a residence that is wholly exempted from real
property taxation.
(G) To an individual who is not a resident individual of the state for
the entire taxable year.
S 2. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2009.