S T A T E   O F   N E W   Y O R K
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                                  5843

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 20, 2009
                               ___________

Introduced  by  M.  of  A.  ROSENTHAL, BOYLAND, BROOK-KRASNY, ESPAILLAT,
  GREENE, V. LOPEZ, ORTIZ, WRIGHT -- Multi-Sponsored  by  --  M.  of  A.
  ABBATE,  BENEDETTO,  BING, BRENNAN, COLTON, COOK, DIAZ, GLICK, GORDON,
  HIKIND, JACOBS, KELLNER, MAISEL, MARKEY,  MAYERSOHN,  MILLMAN,  NOLAN,
  O'DONNELL,  PHEFFER, POWELL, TITONE, TOWNS, WEINSTEIN -- read once and
  referred to the Committee on Ways and Means

AN ACT to amend the tax law, in relation to the provision  of  a  credit
  against  state  personal  income tax for tax relief for certain school
  taxpayer renters

  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) STATE SCHOOL TAX REDUCTION CREDIT FOR CERTAIN LOW INCOME  RENTERS.
(1)  FOR  PURPOSES OF THIS SUBSECTION THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
  (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE  WHO
HAS  OCCUPIED THE SAME QUALIFIED RESIDENCE FOR SIX MONTHS OR MORE OF THE
TAXABLE YEAR WITH HIS OR HER CHILD OR CHILDREN AT LEAST ONE OF  WHOM  IS
UNDER  THE  AGE OF EIGHTEEN, WHO IS REQUIRED OR CHOOSES TO FILE A RETURN
UNDER THIS ARTICLE AND WHOSE HOUSEHOLD  GROSS  INCOME  DOES  NOT  EXCEED
SIXTY THOUSAND DOLLARS FOR THE YEAR IN WHICH THE CREDIT IS CLAIMED.
  (B)  "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 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05670-01-9

              

A. 5843                             2

  (C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
OF  ALL  MEMBERS  OF  THE HOUSEHOLD FOR THE TAXABLE YEAR AS REPORTED FOR
FEDERAL INCOME TAX PURPOSES, OR WHICH  WOULD  BE  REPORTED  FOR  FEDERAL
INCOME  TAX  PURPOSES IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE
FILED,  WITH  THE MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX HUNDRED
TWELVE OF THIS CHAPTER, BUT WITHOUT THE MODIFICATIONS IN SUBSECTION  (C)
OF  SUCH  SECTION,  PLUS  ANY  PORTION  FROM  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
VETERANS  DISABILITY  PENSIONS);  NON-TAXABLE INTEREST RECEIVED FROM THE
STATE OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES, PUBLIC  CORPORATIONS
OR POLITICAL SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED PURSU-
ANT  TO  AGREEMENT  OR  COMPACT  WITH ANOTHER STATE OR CANADA); WORKERS'
COMPENSATION; THE GROSS AMOUNT OF "LOSS  OF  TIME"  INSURANCE;  AND  THE
AMOUNT  OF CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSIST-
ANCE 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.
  (D) "QUALIFIED RESIDENCE" MEANS A RESIDENTIAL RENTAL UNIT.
  (E) "ADJUSTED RENT" MEANS ANNUAL RENTAL PAID FOR THE RIGHT OF OCCUPAN-
CY  OF A QUALIFIED RESIDENCE, EXCLUDING CHARGES FOR HEAT, GAS, ELECTRIC-
ITY, FURNISHINGS AND BOARD. WHERE CHARGES FOR  HEAT,  GAS,  ELECTRICITY,
FURNISHINGS  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 OR 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  DEPARTMENT OF TAXATION AND FINANCE DETERMINES THAT THE ADJUSTED
RENT SHOWN ON THE RETURN IS EXCESSIVE, THE COMMISSIONER MAY REDUCE  SUCH
RENT,  FOR  PURPOSES  OF  THE  COMPUTATION  OF  THE CREDIT, TO AN AMOUNT
SUBSTANTIALLY EQUIVALENT TO RENT FOR A COMPARABLE ACCOMMODATION.
  (2) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND EIGHT, A  QUALIFIED
TAXPAYER SHALL BE ALLOWED AN ADDITIONAL STATE SCHOOL TAX REDUCTION CRED-
IT  AGAINST  THE TAXES AUTHORIZED BY THIS ARTICLE REDUCED BY THE CREDITS
PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX  AS SO REDUCED,
THE TAXPAYER MAY RECEIVE, AND THE COMPTROLLER, SUBJECT TO A  CERTIFICATE
OF  THE  TAX  COMMISSION, SHALL PAY AS AN OVERPAYMENT, WITHOUT INTEREST,
THE AMOUNT OF SUCH EXCESS.

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  (3) FOR QUALIFIED TAXPAYERS THE AMOUNT OF THE CREDIT  ALLOWABLE  UNDER
THIS  SUBSECTION  SHALL  BE  THREE PERCENT OF THE ADJUSTED RENT PAID FOR
SUCH QUALIFIED RESIDENCE.
  (4) IF A QUALIFIED TAXPAYER OCCUPIES A QUALIFIED RESIDENCE FOR A PERI-
OD OF LESS THAN TWELVE MONTHS DURING THE TAXABLE YEAR OR OCCUPIES TWO OR
MORE QUALIFIED RESIDENCES DURING DIFFERENT PERIODS IN SUCH TAXABLE YEAR,
THE CREDIT ALLOWED PURSUANT TO THIS SUBSECTION SHALL BE COMPUTED IN SUCH
MANNER  AS  THE  DEPARTMENT  OF  TAXATION AND FINANCE MAY, BY REGULATION
PRESCRIBE, IN ORDER TO PROPERLY REFLECT THE CREDIT  OR  PORTION  THEREOF
ATTRIBUTABLE  TO  SUCH QUALIFIED RESIDENCE OR RESIDENCES AND SUCH PERIOD
OR PERIODS.
  (5) ONLY ONE CREDIT PER HOUSEHOLD AND PER QUALIFIED TAXPAYER SHALL  BE
ALLOWED PER TAXABLE YEAR UNDER THIS SUBSECTION. WHEN TWO OR MORE MEMBERS
OF  A  HOUSEHOLD  ARE  ABLE  TO  MEET THE QUALIFICATIONS FOR A QUALIFIED
TAXPAYER, THE CREDIT SHALL BE EQUALLY  DIVIDED  BETWEEN  OR  AMONG  SUCH
INDIVIDUALS UNLESS SUCH INDIVIDUALS FILE WITH THE DEPARTMENT OF TAXATION
AND  FINANCE  A WRITTEN AGREEMENT AMONG SUCH INDIVIDUALS SETTING FORTH A
DIFFERENT DIVISION.
  (A) PROVIDED, HOWEVER, WHERE A JOINT INCOME TAX RETURN HAS BEEN  FILED
PURSUANT TO THE PROVISIONS OF SECTION THIRTEEN HUNDRED SIX OF THIS ARTI-
CLE BY A QUALIFIED TAXPAYER AND HIS OR HER SPOUSE (OR WHERE BOTH SPOUSES
ARE  QUALIFIED  TAXPAYERS AND HAVE FILED SUCH JOINT RETURN), THE CREDIT,
OR THE PORTION OF THE CREDIT IF DIVIDED, TO WHICH THE HUSBAND  AND  WIFE
ARE  ENTITLED  SHALL  BE APPLIED AGAINST THE TAX OF BOTH SPOUSES AND ANY
OVERPAYMENT SHALL BE MADE TO BOTH SPOUSES.
  (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 DEPARTMENT OF TAXATION AND
FINANCE, THE CREDIT OR THE PORTION OF THE CREDIT IF DIVIDED, ALLOWED  TO
THE  QUALIFIED  TAXPAYER  MAY  BE  APPLIED  BY THE DEPARTMENT TOWARD ANY
LIABILITY FOR THE AFOREMENTIONED TAXES.
  (6) NO CREDIT SHALL BE GRANTED UNDER THIS SUBSECTION:
  (A) IF HOUSEHOLD GROSS INCOME FOR THE TAXABLE YEAR EXCEEDS SIXTY THOU-
SAND DOLLARS;
  (B) 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; OR
  (C) TO AN INDIVIDUAL WHO IS NOT A RESIDENT INDIVIDUAL OF THE STATE FOR
THE ENTIRE TAXABLE YEAR.
  (7) THE RIGHT TO CLAIM A CREDIT OR THE PORTION OF A CREDIT, WHERE SUCH
CREDIT  HAS BEEN DIVIDED UNDER THIS SUBSECTION, SHALL BE PERSONAL TO THE
QUALIFIED TAXPAYER AND SHALL NOT SURVIVE HIS DEATH, BUT SUCH  RIGHT  MAY
BE  EXERCISED  ON BEHALF OF A CLAIMANT BY HIS LEGAL GUARDIAN OR ATTORNEY
IN FACT DURING HIS LIFETIME.
  (8) RETURNS UNDER THIS SECTION SHALL BE  IN  SUCH  FORM  AS  SHALL  BE
PRESCRIBED  BY  THE DEPARTMENT OF TAXATION AND FINANCE, WHICH SHALL MAKE
AVAILABLE SUCH FORMS AND INSTRUCTION FOR FILING SUCH RETURNS.
  (9) THE DEPARTMENT MAY REQUIRE A QUALIFIED  TAXPAYER  TO  FURNISH  THE
FOLLOWING  INFORMATION  IN  SUPPORT  OF  HIS  CLAIM FOR CREDIT UNDER THE
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 RESIDENCE AND
THEIR IDENTIFYING NUMBERS INCLUDING SOCIAL SECURITY  NUMBERS,  HOUSEHOLD
GROSS  INCOME,  SIZE AND NATURE OF PROPERTY CLAIMED AS RESIDENCE AND ALL

A. 5843                             4

OTHER INFORMATION WHICH MAY BE REQUIRED BY THE DEPARTMENT  TO  DETERMINE
THE CREDIT.
  (10)  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS ARTICLE, THE CREDIT
ALLOWED UNDER THIS SUBSECTION SHALL BE  DETERMINED  AFTER  THE  DETERMI-
NATION  AND  APPLICATION  OF  ANY  OTHER  CREDITS  PERMITTED  UNDER  THE
PROVISIONS OF THIS SECTION.
  S 2. This act shall take effect immediately.