S T A T E   O F   N E W   Y O R K
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                                  8208

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              June 6, 2011
                               ___________

Introduced  by M. of A. THIELE -- Multi-Sponsored by -- M. of A. CROUCH,
  SPANO -- read once and referred to  the  Committee  on  Real  Property
  Taxation

AN  ACT to amend the real property tax law, in relation to exempting the
  retroactive payment of social security benefits from consideration  as
  income  for  purposes  of  the  real property tax exemption granted to
  persons with disabilities and limited incomes

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

  Section 1. Paragraph (a) of subdivision 5 of section 459-c of the real
property  tax  law, as separately amended by chapters 187 and 252 of the
laws of 2006, is amended to read as follows:
  (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  exemption  exceeds  the  sum of three thousand
dollars, or such other sum not less than three thousand dollars nor more
than twenty-six thousand dollars beginning July first, two thousand six,
twenty-seven thousand dollars beginning July first, two thousand  seven,
twenty-eight  thousand dollars beginning July first, two thousand eight,
and twenty-nine thousand dollars  beginning  July  first,  two  thousand
nine, as may be provided by the local law or resolution adopted pursuant
to  this section. 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, except where the husband or wife, or ex-husband or ex-wife  is
absent  from  the  property due to divorce, legal separation or abandon-
ment, then only the income of the spouse or ex-spouse  residing  on  the
property  shall  be  considered and may not exceed such sum. Such income
shall include social security and retirement benefits,  interest,  divi-
dends, total gain from the sale or exchange of a capital asset which may

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11663-01-1
              

A. 8208                             2

be  offset by a loss from the sale or exchange of a capital asset in the
same income tax year, net rental income, salary  or  earnings,  and  net
income  from self-employment, but shall not include a return of capital,
gifts,  inheritances  or monies earned through employment in the federal
foster grandparent program and any such income shall be  offset  by  all
medical  and  prescription  drug  expenses  actually paid which were not
reimbursed or paid for by insurance, if the governing board of a munici-
pality, after a public hearing, adopts a local law or resolution provid-
ing therefor.  FURTHERMORE, SUCH INCOME SHALL NOT INCLUDE  ANY  RETROAC-
TIVE PAYMENT OF SOCIAL SECURITY BENEFITS MADE DURING AN INCOME TAX YEAR,
NOR SHALL ANY SUCH PAYMENT BE DEEMED TO BE INCOME IN THE INCOME TAX YEAR
OR  YEARS  IN WHICH THE PAYMENTS ACCRUED. 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;
  S 2. This act shall take effect immediately.