S T A T E   O F   N E W   Y O R K
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                                  4748

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Aging

AN ACT to amend the real property tax law, in relation to increasing the
  allowable maximum income of persons occupying rental  units  otherwise
  eligible for tax abatement in certain cases; and to amend section 4 of
  part  U  of chapter 55 of the laws of 2014, amending the real property
  tax law relating to the tax abatement and exemption for rent regulated
  and rent controlled property occupied by senior citizens, in  relation
  to the effectiveness of certain provisions thereof

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

  Section 1. Paragraph a of subdivision 3 of section 467-b of  the  real
property tax law, as amended by section 1 of part U of chapter 55 of the
laws of 2014, is amended to read as follows:
  a.  for  a  dwelling  unit where the head of the household is a person
sixty-two years of age or older, no tax abatement shall  be  granted  if
the  combined  income of all members of the household for the income tax
year immediately preceding the date of making application  exceeds  four
thousand  dollars,  or such other sum not more than twenty-five thousand
dollars beginning July first, two  thousand  five,  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, twenty-nine thousand
dollars beginning July first, two thousand nine,  [and]  fifty  thousand
dollars beginning July first, two thousand fourteen, AND FIFTY-ONE THOU-
SAND  DOLLARS  BEGINNING  JULY  FIRST,  TWO  THOUSAND SIXTEEN, as may be
provided by the local law, ordinance or resolution adopted  pursuant  to
this  section,  provided  that  when  the  head of the household retires
before the commencement of such income tax year and the date  of  filing
the  application,  the income for such year may be adjusted by excluding

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00705-04-5

              

S. 4748                             2

salary or earnings and projecting his or her retirement income over  the
entire period of such year.
  S 2. Paragraph a of subdivision 3 of section 467-b of the real proper-
ty  tax law, as amended by section 2 of chapter 188 of the laws of 2005,
is amended to read as follows:
  a. for a dwelling unit where the head of the  household  is  a  person
sixty-two  years  of  age or older, no tax abatement shall be granted if
the combined income of all members of the household for the  income  tax
year  immediately preceding the date of making application exceeds three
thousand dollars, or such other sum not more than five thousand dollars,
AND FIFTY-ONE  THOUSAND  DOLLARS  BEGINNING  JULY  FIRST,  TWO  THOUSAND
SIXTEEN,  as  may  be provided by the local law, ordinance or resolution
adopted pursuant to this section, provided that when  the  head  of  the
household  retires  before the commencement of such year and the date of
filing the application, the income for such  year  may  be  adjusted  by
excluding  salary  or earnings and projecting his retirement income over
the entire period of such year.
  S 3. Section 4 of part U of chapter 55 of the laws of  2014,  amending
the  real  property tax law, relating to the tax abatement and exemption
for rent regulated and rent controlled property occupied by senior citi-
zens, is amended to read as follows:
  S 4. This act shall take effect July 1, 2014[, and  sections  one  and
two  of  this  act shall expire and be deemed repealed 2 years after the
effective date thereof]; provided that the amendment to section 467-b of
the real property tax law made by section one  of  this  act  shall  not
affect  the  expiration  of  such  section and shall be deemed to expire
therewith.
  S 4. Subparagraph 1 of paragraph d of subdivision 1 of  section  467-c
of the real property tax law, as amended by section 2 of part U of chap-
ter 55 of the laws of 2014, is amended to read as follows:
  (1)  a  person  or  his or her spouse who is sixty-two years of age or
older and is entitled to the possession or to the use and occupancy of a
dwelling unit, provided, however, with respect to a dwelling  which  was
subject  to  a  mortgage  insured  or  initially  insured by the federal
government pursuant to section two  hundred  thirteen  of  the  National
Housing Act, as amended "eligible head of the household" shall be limit-
ed to that person or his or her spouse who was entitled to possession or
the  use  and occupancy of such dwelling unit at the time of termination
of such mortgage, and whose income when combined with the income of  all
other  members  of  the  household,  does  not  exceed six thousand five
hundred dollars for the taxable period, or such other sum not less  than
sixty-five  hundred  dollars  nor more than twenty-five thousand dollars
beginning July first, two thousand  five,  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, twenty-nine thousand dollars
beginning July first, two thousand nine, [and]  fifty  thousand  dollars
beginning  July  first,  two  thousand  fourteen, AND FIFTY-ONE THOUSAND
DOLLARS BEGINNING JULY FIRST, TWO THOUSAND SIXTEEN, as may  be  provided
by local law; or
  S 5. Paragraph b of subdivision 3 of section 467-b of the real proper-
ty  tax law, as amended by section 1 of chapter 129 of the laws of 2014,
is amended to read as follows:
  b. for a dwelling unit where the head of the household qualifies as  a
person  with  a disability pursuant to subdivision five of this section,
no tax abatement shall be granted if the combined income for all members

S. 4748                             3

of the household for the current income tax year exceeds fifty  THOUSAND
DOLLARS BEGINNING JULY FIRST, TWO THOUSAND FOURTEEN, AND FIFTY-ONE thou-
sand  dollars  beginning July first, two thousand [fourteen] SIXTEEN, as
may be provided by the local law, ordinance or resolution adopted pursu-
ant to this section.
  S 6. Paragraph b of subdivision 3 of section 467-b of the real proper-
ty  tax law, as amended by section 2 of chapter 129 of the laws of 2014,
is amended to read as follows:
  b. for a dwelling unit where the head of the household qualifies as  a
person  with  a disability pursuant to subdivision five of this section,
no tax abatement shall be granted if the combined income for all members
of the household for the current income tax year exceeds fifty  THOUSAND
DOLLARS BEGINNING JULY FIRST, TWO THOUSAND FOURTEEN, AND FIFTY-ONE thou-
sand  dollars  beginning July first, two thousand [fourteen] SIXTEEN, as
may be provided by the local law, ordinance or resolution adopted pursu-
ant to this section.
  S 7. Paragraph b of subdivision 3 of section 467-b of the real proper-
ty tax law, as amended by section 2 of chapter 188 of the laws of  2005,
is amended to read as follows:
  b.  for a dwelling unit where the head of the household qualifies as a
person with a disability pursuant to subdivision five of  this  section,
no tax abatement shall be granted if the combined income for all members
of  the  household  for the current income tax year exceeds [the maximum
income at which such head of the household  would  not  be  eligible  to
receive  cash  supplemental  security  income benefits under federal law
during such tax year] FIFTY-ONE THOUSAND DOLLARS BEGINNING  JULY  FIRST,
TWO  THOUSAND SIXTEEN, AS MAY BE PROVIDED BY THE LOCAL LAW, ORDINANCE OR
RESOLUTION ADOPTED PURSUANT TO THIS SECTION.
  S 8. Paragraph m of subdivision 1 of section 467-c of the real proper-
ty tax law, as amended by chapter 129 of the laws of 2014, is amended to
read as follows:
  m. "Person with a disability" means an  individual  who  is  currently
receiving  social  security  disability insurance (SSDI) or supplemental
security income (SSI) benefits under the federal social security act  or
disability  pension  or disability compensation benefits provided by the
United States department of veterans affairs or those previously  eligi-
ble  by  virtue  of receiving disability benefits under the supplemental
security income program or the social security  disability  program  and
currently  receiving  medical assistance benefits based on determination
of disability as provided in section  three  hundred  sixty-six  of  the
social  services  law  and whose income for the current income tax year,
together with the income of all members of such individual's  household,
does  not  exceed fifty THOUSAND DOLLARS BEGINNING JULY FIRST, TWO THOU-
SAND FOURTEEN, AND FIFTY-ONE thousand dollars beginning July first,  two
thousand [fourteen] SIXTEEN, as may be provided by local law.
  S 9. Paragraph m of subdivision 1 of section 467-c of the real proper-
ty  tax  law, as added by chapter 188 of the laws of 2005, is amended to
read as follows:
  m. "Person with a disability" means an  individual  who  is  currently
receiving  social  security  disability insurance (SSDI) or supplemental
security income (SSI) benefits under the federal social security act  or
disability  pension  or disability compensation benefits provided by the
United States department of veterans affairs or those previously  eligi-
ble  by  virtue  of receiving disability benefits under the supplemental
security income program or the social security  disability  program  and
currently  receiving  medical assistance benefits based on determination

S. 4748                             4

of disability as provided in section  three  hundred  sixty-six  of  the
social  services  law  and whose income for the current income tax year,
together with the income of all members of such individual's  household,
does  not  exceed  [the maximum income at which such individual would be
eligible to receive cash supplemental  security  income  benefits  under
federal  law  during such tax year] FIFTY-ONE THOUSAND DOLLARS BEGINNING
JULY FIRST, TWO THOUSAND SIXTEEN, AS MAY BE PROVIDED BY LOCAL LAW.
  S 10. Paragraph (a) of subdivision 3 of section 467 of the real  prop-
erty  tax law, as amended by chapter 259 of the laws of 2009, 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, FIFTY THOUSAND DOLLARS BEGINNING JULY FIRST, TWO THOUSAND FIFTEEN,
AND  FIFTY-ONE  THOUSAND  DOLLARS  BEGINNING  JULY  FIRST,  TWO THOUSAND
SIXTEEN, as may be provided by the local law,  ordinance  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 as provided in subpar-
agraph (ii) of paragraph (d) of this subdivision, 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, 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 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, payments
made  to  individuals  because of their status as victims of Nazi perse-
cution, as defined in P.L. 103-286 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 municipality, after a public hearing, adopts a local law, ordinance or
resolution  providing  therefor.    Furthermore,  such  income shall not
include the proceeds of a reverse mortgage,  as  authorized  by  section
six-h  of  the  banking  law,  and  sections  two hundred eighty and two
hundred eighty-a of the  real  property  law;  provided,  however,  that
monies used to repay a reverse mortgage may not be deducted from income,
and  provided  additionally that any interest or dividends realized from
the investment of reverse mortgage proceeds shall be considered  income.
The  provisions of this paragraph notwithstanding, such income shall not
include veterans disability compensation, as defined in Title 38 of  the
United  States  Code  provided the governing board of such municipality,
after public hearing,  adopts  a  local  law,  ordinance  or  resolution
providing  therefor.  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. 4748                             5

  S 11. 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, FIFTY THOUSAND DOLLARS BEGINNING JULY FIRST, TWO THOUSAND FIFTEEN,
AND FIFTY-ONE  THOUSAND  DOLLARS  BEGINNING  JULY  FIRST,  TWO  THOUSAND
SIXTEEN,  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
abandonment, 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,
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 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.  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 12. This act shall take effect immediately; provided that:
  a. the amendments to paragraph a of subdivision 3 of section 467-b  of
the  real  property  tax  law  made  by section one of this act shall be
subject to the expiration and reversion  of  such  section  pursuant  to
section  17  of chapter 576 of the laws of 1974, when upon such date the
provisions of section two of this act shall take effect;
  b. the amendments to paragraph b of subdivision 3 of section 467-b  of
the  real  property  tax  law, made by section five of this act shall be
subject to the expiration and reversion of  such  paragraph,  when  upon
such date the provisions of section six of this act shall take effect;
  c.  the amendments to paragraph b of subdivision 3 of section 467-b of
the real property tax law, made by section six  of  this  act  shall  be
subject  to  the  expiration  and reversion of such paragraph, when upon
such date the provisions of section seven of this act shall take effect;
and
  d. the amendments to paragraph m of subdivision 1 of section 467-c  of
the  real  property  tax law, made by section eight of this act shall be
subject to the expiration and reversion of  such  paragraph,  when  upon
such date the provisions of section nine of this act shall take effect.