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

                                  5334

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 13, 2009
                               ___________

Introduced  by  M.  of  A.  ENGLEBRIGHT -- read once and referred to the
  Committee on Real Property Taxation

AN ACT to amend the real property tax law, in  relation  to  allowing  a
  real property tax freeze for property owned by certain persons over 65
  years of age

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

  Section 1. The real property tax  law  is  amended  by  adding  a  new
section 467-g to read as follows:
  S  467-G. REAL PROPERTY TAX FREEZE FOR CERTAIN PERSONS OVER SIXTY-FIVE
YEARS OF AGE. 1. REAL PROPERTY OWNED BY ONE OR  MORE  PERSONS,  EACH  OF
WHOM  IS  SIXTY-FIVE  YEARS  OF  AGE  OR OVER, OR REAL PROPERTY OWNED BY
HUSBAND AND WIFE, ONE OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER, MAY BE
SUBJECT TO A TAXATION FREEZE PROVIDED THE GOVERNING BOARD OF ANY MUNICI-
PAL CORPORATION IN WHICH THE REAL PROPERTY  IS  LOCATED    AFTER  PUBLIC
HEARING, ADOPTS A LOCAL LAW, ORDINANCE OR RESOLUTION PROVIDING THAT REAL
PROPERTY TAXES FOR SUCH PROPERTY BE FROZEN AT THE AMOUNTS PAYABLE AT THE
TIME SUCH APPLICATION FOR FREEZE IS MADE.
  2. NO FREEZE SHALL BE GRANTED:
  (A) IF THE INCOME OF THE OWNER OR THE COMBINED INCOME OF THE OWNERS OF
THE  PROPERTY  FOR THE INCOME TAX YEAR IMMEDIATELY PRECEDING THE DATE OF
MAKING APPLICATION FOR THE FREEZE EXCEEDS THE SUM OF THIRTY-TWO THOUSAND
DOLLARS. INCOME TAX YEAR SHALL MEAN THE TWELVE MONTH  PERIOD  FOR  WHICH
THE OWNER OR OWNERS FILED A FEDERAL PERSONAL INCOME TAX RETURN, OR IF NO
SUCH RETURN IS FILED, THE CALENDAR YEAR. WHERE TITLE IS VESTED IN EITHER
THE  HUSBAND OR THE WIFE, THEIR COMBINED INCOME MAY NOT EXCEED SUCH SUM.
SUCH INCOME SHALL  INCLUDE  SOCIAL  SECURITY  AND  RETIREMENT  BENEFITS,
INTEREST,  DIVIDENDS,  TOTAL GAIN FROM THE SALE OR EXCHANGE OF A CAPITAL
ASSET WHICH MAY BE OFFSET BY A LOSS FROM THE SALE OR EXCHANGE OF A CAPI-
TAL ASSET IN THE SAME INCOME TAX YEAR,  NET  RENTAL  INCOME,  SALARY  OR
EARNINGS,  AND  NET INCOME FROM SELF-EMPLOYMENT, BUT SHALL NOT INCLUDE A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08799-01-9
              

A. 5334                             2

RETURN OF CAPITAL, GIFTS OR INHERITANCES. IN COMPUTING NET RENTAL INCOME
AND NET INCOME FROM SELF-EMPLOYMENT NO DEPRECIATION DEDUCTION  SHALL  BE
ALLOWED  FOR  THE EXHAUSTION, WEAR AND TEAR OF REAL OR PERSONAL PROPERTY
HELD FOR THE PRODUCTION OF INCOME;
  (B)  UNLESS  THE  TITLE  OF THE PROPERTY SHALL HAVE BEEN VESTED IN THE
OWNER OR ONE OF THE OWNERS OF THE  PROPERTY  FOR  AT  LEAST  TWENTY-FOUR
CONSECUTIVE MONTHS PRIOR TO THE DATE OF MAKING APPLICATION FOR A FREEZE,
PROVIDED, HOWEVER, THAT IN THE EVENT OF THE DEATH OF EITHER A HUSBAND OR
WIFE  IN  WHOSE NAME TITLE OF THE PROPERTY SHALL HAVE BEEN VESTED AT THE
TIME OF DEATH AND THEN BECOMES VESTED SOLELY IN THE SURVIVOR  BY  VIRTUE
OF  DEVISE  BY OR DESCENT FROM THE DECEASED HUSBAND OR WIFE, THE TIME OF
OWNERSHIP OF THE PROPERTY BY THE  DECEASED  HUSBAND  OR  WIFE  SHALL  BE
DEEMED ALSO A TIME OF OWNERSHIP BY THE SURVIVOR AND SUCH OWNERSHIP SHALL
BE  DEEMED CONTINUOUS FOR THE PURPOSES OF COMPUTING SUCH PERIOD OF TWEN-
TY-FOUR CONSECUTIVE MONTHS. IN THE EVENT  OF  A  TRANSFER  BY  EITHER  A
HUSBAND  OR  WIFE TO THE OTHER SPOUSE OF ALL OR PART OF THE TITLE TO THE
PROPERTY, THE TIME OF OWNERSHIP OF THE PROPERTY BY THE TRANSFEROR SPOUSE
SHALL BE DEEMED ALSO A TIME OF OWNERSHIP BY THE  TRANSFEREE  SPOUSE  AND
SUCH  OWNERSHIP SHALL BE DEEMED CONTINUOUS FOR THE PURPOSES OF COMPUTING
SUCH PERIOD OF TWENTY-FOUR CONSECUTIVE MONTHS.  WHERE  PROPERTY  OF  THE
OWNER  OR OWNERS HAS BEEN ACQUIRED TO REPLACE PROPERTY FORMERLY OWNED BY
SUCH OWNER OR OWNERS AND TAKEN BY EMINENT DOMAIN  OR  OTHER  INVOLUNTARY
PROCEEDING,  EXCEPT  A  TAX  SALE, THE PERIOD OF OWNERSHIP OF THE FORMER
PROPERTY SHALL BE COMBINED WITH THE PERIOD OF OWNERSHIP OF THE  PROPERTY
FOR WHICH APPLICATION IS MADE FOR A FREEZE AND SUCH PERIODS OF OWNERSHIP
SHALL  BE DEEMED TO BE CONSECUTIVE FOR PURPOSES OF THIS SECTION. WHERE A
RESIDENCE IS SOLD AND REPLACED WITH ANOTHER WITHIN  ONE  YEAR  AND  BOTH
RESIDENCES ARE WITHIN THE STATE, THE PERIOD OF OWNERSHIP OF BOTH PROPER-
TIES  SHALL BE DEEMED CONSECUTIVE FOR PURPOSES OF A FREEZE FROM TAXATION
BY A MUNICIPALITY WITHIN THE STATE GRANTING  SUCH  FREEZE.    WHERE  THE
OWNER  OR  OWNERS  TRANSFER  TITLE  TO  PROPERTY WHICH AS OF THE DATE OF
TRANSFER WAS EXEMPT FROM TAXATION UNDER THE PROVISIONS OF THIS  SECTION,
THE REACQUISITION OF TITLE BY SUCH OWNER OR OWNERS WITHIN NINE MONTHS OF
THE  DATE OF TRANSFER SHALL BE DEEMED TO SATISFY THE REQUIREMENT OF THIS
PARAGRAPH THAT THE TITLE OF THE PROPERTY SHALL HAVE BEEN VESTED  IN  THE
OWNER  OR  ONE  OF THE OWNERS FOR SUCH PERIOD OF TWENTY-FOUR CONSECUTIVE
MONTHS. WHERE, UPON OR SUBSEQUENT TO THE DEATH OF AN  OWNER  OR  OWNERS,
TITLE  TO  PROPERTY  WHICH  AS OF THE DATE OF SUCH DEATH WAS EXEMPT FROM
TAXATION UNDER SUCH PROVISIONS, BECOMES VESTED, BY VIRTUE OF  DEVISE  OR
DESCENT  FROM  THE DECEASED OWNER OR OWNERS, OR BY TRANSFER BY ANY OTHER
MEANS WITHIN NINE MONTHS AFTER SUCH DEATH, SOLELY IN A PERSON OR PERSONS
WHO, AT THE TIME OF SUCH DEATH, MAINTAINED SUCH PROPERTY  AS  A  PRIMARY
RESIDENCE, THE REQUIREMENT OF THIS PARAGRAPH THAT THE TITLE OF THE PROP-
ERTY  SHALL  HAVE BEEN VESTED IN THE OWNER OR ONE OF THE OWNERS FOR SUCH
PERIOD OF TWENTY-FOUR CONSECUTIVE MONTHS SHALL BE DEEMED SATISFIED;
  (C) UNLESS THE PROPERTY IS USED EXCLUSIVELY FOR RESIDENTIAL  PURPOSES,
PROVIDED, HOWEVER, THAT IN THE EVENT ANY PORTION OF SUCH PROPERTY IS NOT
SO  USED  EXCLUSIVELY  FOR  RESIDENTIAL  PURPOSES  BUT IS USED FOR OTHER
PURPOSES, SUCH PORTION SHALL BE SUBJECT TO TAXATION  AND  THE  REMAINING
PORTION ONLY SHALL BE ENTITLED TO A FREEZE PROVIDED BY THIS SECTION;
  (D) UNLESS THE REAL PROPERTY IS THE LEGAL RESIDENCE OF AND IS OCCUPIED
IN  WHOLE OR IN PART BY THE OWNER OR BY ALL OF THE OWNERS OF THE PROPER-
TY, PROVIDED THAT AN OWNER WHO IS ABSENT WHILE RECEIVING  HEALTH-RELATED
CARE  AS  AN INPATIENT OF A RESIDENTIAL HEALTH CARE FACILITY, AS DEFINED
IN SECTION TWENTY-EIGHT HUNDRED ONE OF THE PUBLIC HEALTH LAW,  SHALL  BE
DEEMED  TO REMAIN A LEGAL RESIDENT AND AN OCCUPANT OF THE PROPERTY WHILE

A. 5334                             3

SO CONFINED AND INCOME ACCRUING TO THAT PERSON SHALL BE INCOME  ONLY  TO
THE  EXTENT  THAT  IT  EXCEEDS THE AMOUNT PAID BY SUCH OWNER, SPOUSE, OR
CO-OWNER FOR CARE IN THE FACILITY; AND  PROVIDED  FURTHER,  THAT  DURING
SUCH  CONFINEMENT SUCH PROPERTY IS NOT OCCUPIED BY OTHER THAN THE SPOUSE
OR CO-OWNER OF SUCH OWNER.
  3. EACH GOVERNING BOARD OF ANY MUNICIPAL CORPORATION SHALL NOTIFY,  OR
CAUSE  TO  BE  NOTIFIED, EACH PERSON OWNING RESIDENTIAL REAL PROPERTY IN
SUCH MUNICIPAL CORPORATION  OF  THE  PROVISIONS  OF  THIS  SECTION.  THE
PROVISIONS  OF THIS SUBDIVISION MAY BE MET BY A NOTICE OR LEGEND SENT ON
OR WITH EACH TAX BILL TO SUCH PERSONS READING "YOU MAY BE ELIGIBLE FOR A
SENIOR CITIZEN TAX FREEZE. SENIOR CITIZENS HAVE  UNTIL  MONTH..........,
DAY.......,    YEAR......,  TO  APPLY  FOR  SUCH FREEZE. FOR INFORMATION
PLEASE CALL OR WRITE ....,"  FOLLOWED  BY  THE  NAME,  TELEPHONE  NUMBER
AND/OR  ADDRESS  OF  A  PERSON  OR  DEPARTMENT SELECTED BY THE COUNTY TO
EXPLAIN THE PROVISIONS OF THIS SECTION.  FAILURE TO NOTIFY, OR CAUSE  TO
BE  NOTIFIED  ANY  PERSON  WHO  IS IN FACT, ELIGIBLE TO RECEIVE A FREEZE
PROVIDED BY THIS SECTION OR THE FAILURE OF SUCH PERSON  TO  RECEIVE  THE
SAME  SHALL  NOT  PREVENT  THE  LEVY,  COLLECTION AND ENFORCEMENT OF THE
PAYMENT OF THE TAXES ON PROPERTY OWNED BY SUCH PERSON.
  4. APPLICATION FOR SUCH FREEZE MUST BE MADE BY THE OWNER,  OR  ALL  OF
THE OWNERS OF THE PROPERTY, ON FORMS PRESCRIBED BY THE STATE BOARD TO BE
FURNISHED  BY  THE APPROPRIATE ASSESSING AUTHORITY AND SHALL FURNISH THE
INFORMATION AND BE EXECUTED IN THE MANNER REQUIRED OR PRESCRIBED IN SUCH
FORMS, AND SHALL BE FILED IN SUCH ASSESSOR'S OFFICE  ON  OR  BEFORE  THE
APPROPRIATE TAXABLE STATUS DATE.
  5.  AT  LEAST SIXTY DAYS PRIOR TO THE APPROPRIATE TAXABLE STATUS DATE,
THE ASSESSING AUTHORITY SHALL MAIL TO EACH  PERSON  WHO  WAS  GRANTED  A
FREEZE  PURSUANT TO THIS SECTION ON THE LATEST COMPLETED ASSESSMENT ROLL
AN APPLICATION FORM AND A NOTICE THAT SUCH APPLICATION MUST BE FILED  ON
OR  BEFORE  THE  TAXABLE  STATUS  DATE  AND BE APPROVED IN ORDER FOR THE
FREEZE TO BE GRANTED.  THE ASSESSING AUTHORITY SHALL, WITHIN THREE  DAYS
OF THE COMPLETION AND FILING OF THE TENTATIVE ASSESSMENT ROLL, NOTIFY BY
MAIL  ANY  APPLICANT  WHO HAS INCLUDED WITH HIS APPLICATION AT LEAST ONE
SELF-ADDRESSED, PRE-PAID ENVELOPE, OF THE  APPROVAL  OR  DENIAL  OF  THE
APPLICATION; PROVIDED, HOWEVER, THAT THE ASSESSING AUTHORITY SHALL, UPON
THE  RECEIPT AND FILING OF THE APPLICATION, SEND BY MAIL NOTIFICATION OF
RECEIPT TO ANY APPLICANT WHO HAS INCLUDED TWO OF SUCH ENVELOPES WITH THE
APPLICATION.   WHERE AN APPLICANT IS ENTITLED  TO  A  NOTICE  OF  DENIAL
PURSUANT  TO THIS SUBDIVISION, SUCH NOTICE SHALL BE ON A FORM PRESCRIBED
BY THE STATE BOARD AND SHALL STATE THE REASONS FOR SUCH DENIAL AND SHALL
FURTHER STATE THAT THE APPLICANT MAY HAVE SUCH DETERMINATION REVIEWED IN
THE MANNER PROVIDED BY LAW.  FAILURE TO MAIL ANY SUCH  APPLICATION  FORM
OR  NOTICES  OR  THE  FAILURE  OF SUCH PERSON TO RECEIVE ANY OF THE SAME
SHALL NOT PREVENT THE LEVY, COLLECTION AND ENFORCEMENT OF THE PAYMENT OF
THE TAXES ON PROPERTY OWNED BY SUCH PERSON.
  6. ANY CONVICTION OF HAVING MADE ANY WILFUL  FALSE  STATEMENT  IN  THE
APPLICATION  FOR  SUCH FREEZE, SHALL BE PUNISHABLE BY A FINE OF NOT MORE
THAN ONE HUNDRED DOLLARS AND SHALL DISQUALIFY THE  APPLICANT  OR  APPLI-
CANTS FROM FURTHER FREEZES FOR A PERIOD OF FIVE YEARS.
  7.  NO  MUNICIPALITY  SHALL ADOPT A LOCAL LAW, ORDINANCE OR RESOLUTION
PURSUANT TO THIS SECTION IF SUCH MUNICIPALITY HAS IN EFFECT A LOCAL LAW,
ORDINANCE OR RESOLUTION PERMITTING A REAL PROPERTY TAX EXEMPTION  PURSU-
ANT TO SECTION FOUR HUNDRED SIXTY-SEVEN OF THIS ARTICLE.
  S  2.  Section 467 of the real property tax law is amended by adding a
new subdivision 11 to read as follows:

A. 5334                             4

  11. NO MUNICIPALITY SHALL ADOPT A LOCAL LAW, ORDINANCE  OR  RESOLUTION
PURSUANT TO THIS SECTION IF SUCH MUNICIPALITY HAS IN EFFECT A LOCAL LAW,
ORDINANCE  OR  RESOLUTION PERMITTING A REAL PROPERTY TAX FREEZE PURSUANT
TO SECTION FOUR HUNDRED SIXTY-SEVEN-G OF THIS ARTICLE.
  S 3. This act shall take effect on the first of February next succeed-
ing  the  date  on  which  it shall have become a law and shall apply to
assessment rolls prepared on the basis of taxable status dates occurring
on or after such date.