NY State Senate Bill 2015-S3254A

Senate Bill S3254A

2015-2016 Legislative Session

Establishes the renters' and small homeowners' credit in a city with a population of a million or more

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 02, 2016	reported and committed to finance
Jan 15, 2016	print number 3254a
Jan 15, 2016	amend and recommit to investigations and government operations
Jan 06, 2016	referred to investigations and government operations
Feb 04, 2015	referred to investigations and government operations

Votes

- Jun 2, 2016 - Investigations And Government Operations Committee Vote
  S3254A
  
  6
  
  Aye
  
  1
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Investigations And Government Operations Committee Vote: Jun 2, 2016
      
      aye (6)
      
      Carlucci
      
      Golden
      
      Hoylman-Sigal
      
      Lanza
      
      Nozzolio
      
      Squadron
      
      nay (1)
      
      O'Mara
      
      aye wr (1)
      
      Murphy
      
      excused (1)
      
      Diaz

Bill Amendments

Original

A (Active)

2015-S3254 - Details

Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7417
2017-2018: S3214
2019-2020: S2107
2021-2022: S3861
2023-2024: S4705

2015-S3254 - Summary

Establishes the renters' and small homeowners' credit in a city with a population of a million or more.

2015-S3254 - Sponsor Memo

                                BILL NUMBER:S3254

TITLE OF BILL:  An act to amend the tax law, in relation to
establishing a renters' and small homeowners' tax credit

PURPOSE OR GENERAL IDEA OF BILL: To provide a state tax credit to
renters and small homeowners in the city of New York.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 606 of the tax law by adding a
new subsection (b-1) that will provide a renters' and small
homeowners' tax credit in a city of a million or more.  The bill
defines a "qualified" tax payer to be any one of the following
individuals:

a. A resident individual who lives in a city with a population of a
million or more who has occupied and paid rent for his or her primary
residence in such city for six months or more of the taxable year, is
required or chooses to file a tax return and is one of the following:

* is 65 or older

* is filing a joint return with a spouse who is 65 or older

* is a head of household

* is a married individual filing a joint return with a spouse and has
at least 1 dependent

* is a married individual filing a separate return and has at least 1
dependent * is a surviving spouse and has at least one dependent

b. An owner of any dwelling with six units or less in a city of a
million or more who occupies such dwelling as his or her primary
residence for six months or more of the taxable year and who is
required or chooses to file a tax return.

The bill also states that an individual who is listed as a dependent
allowable to another taxpayer for the taxable year or who pays rent
for his or her primary resident to a family member sharing the same
primary residence shall not be a "qualified taxpayer" for purposes of
this section.

(B) "Residence" means a dwelling in a city with a population of a
million or more and may consist of a part of a multi-dwelling or
multi-purpose building including a cooperative or condominium, one,
two or three family dwellings and rental units within a single
dwelling which are either owner-occupied or rented by a qualified
taxpayer.

(2)(A) A qualified taxpayer shall be allowed a credit against the
taxes imposed by this article reduced by the credits permitted in this
article. If the credit exceeds the tax as so reduced for such year,
the excess shall be treated as an overpayment of tax to be credited or
refunded without interest.


(2)(B) If more than one qualified taxpayer pays rent for the same
primary residence and has a federal adjusted gross income for which a
credit would be due, each such qualified taxpayer shall divide the
base amount of the credit allowed for his or her income level by the
total number of individuals or married couples filing a joint return
who are paying the rent, whether or not eligible for a credit, to
determine the amount of credit allowed to that qualified taxpayer.

(2) (C) A qualified taxpayer shall be allowed the credit under this
subsection or the credit under subsection (e) of this section (real
property tax circuit breaker credit), whichever is the higher amount.

(3)(A) Sets forth the tables to be used for determining the credits
allowed for a qualified taxpayer who is 65 or older with a filing
status of single.

(3)(B) Sets forth the tables to be used for determining the credits
allowed for any other qualified taxpayer, provided, however, that a
qualified taxpayer who is a married individual filing a separate New
York income tax return shall receive one-half of the base amount of
the credit plus any additional amount for which such taxpayer would be
eligible based on the income and number of exemptions claimed by such
taxpayer.

Section 2 sets an immediate effective date.

JUSTIFICATION: In January 2014, Governor Cuomo proposed the creation
of a Renters' Tax Credit in his 2014-2015 Budget in order to give
renters a much needed income tax credit to ease their tax burden.
While it is important to give renters this income tax credit, it is
equally important that small homeowners, including co-op and
condominium owners in the city of New York also be granted this same
tax credit. In December 2011 a property tax cap was implemented
throughout New York State but explicitly exempted the city of New
York. This much needed relief was denied to small homeowners in the
city of New York despite their equally dire need for relief from their
overall tax burden.

This bill Will rectify that inequity and provide much needed relief to
both renters and small homeowners who occupy these residences as their
primary residences. This includes owners of co-ops and condominiums
who are already being treated unfairly under the New York City
property tax laws.

PRIOR LEGISLATIVE HISTORY: New Bill

FISCAL IMPLICATIONS: To be Determined.

EFFECTIVE DATE: This act shall take effect immediately.

2015-S3254 - Bill Text download pdf

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

                                  3254

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 4, 2015
                               ___________

Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to establishing a renters'  and
  small homeowners' tax credit

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

  Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
subsection (b-1) to read as follows:
  (B-1)  RENTERS'  AND  SMALL  HOMEOWNERS' CREDIT IN A CITY WITH A POPU-
LATION OF ONE MILLION OR MORE.
  (1) FOR THE PURPOSES OF THIS SUBSECTION:
  (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL WHO  LIVES  IN  A
CITY  WITH A POPULATION OF ONE MILLION OR MORE WHO HAS OCCUPIED AND PAID
RENT FOR HIS OR HER PRIMARY RESIDENCE IN SUCH CITY  FOR  SIX  MONTHS  OR
MORE  OF THE TAXABLE YEAR, IS REQUIRED OR CHOOSES TO FILE A RETURN UNDER
THIS ARTICLE, AND (I) IS SIXTY-FIVE YEARS  OF  AGE  OR  OLDER,  (II)  IS
FILING  A  JOINT  RETURN WITH A SPOUSE WHO IS SIXTY-FIVE YEARS OF AGE OR
OLDER, (III) IS A HEAD OF HOUSEHOLD, (IV) IS A MARRIED INDIVIDUAL FILING
A JOINT RETURN WITH A SPOUSE AND HAS AT LEAST ONE DEPENDENT,  (V)  IS  A
MARRIED INDIVIDUAL FILING A SEPARATE RETURN AND HAS AT LEAST ONE DEPEND-
ENT,  OR (VI) IS A SURVIVING SPOUSE AND HAS AT LEAST ONE DEPENDENT.  FOR
PURPOSES OF THIS SUBSECTION "QUALIFIED TAXPAYER" SHALL ALSO INCLUDE  THE
OWNER OF ANY DWELLING WITH SIX UNITS OR LESS IN A CITY WITH A POPULATION
OF  ONE MILLION OR MORE WHO OCCUPIES SUCH DWELLING AS HIS OR HER PRIMARY
RESIDENCE FOR SIX MONTHS OR MORE OF THE TAXABLE YEAR AND WHO IS REQUIRED
OR CHOOSES TO FILE A RETURN UNDER THIS ARTICLE.  AN INDIVIDUAL CANNOT BE
A QUALIFIED TAXPAYER IF HE OR SHE IS AN INDIVIDUAL WITH RESPECT TO  WHOM
A  DEDUCTION UNDER SUBSECTION (C) OF SECTION 151 OF THE INTERNAL REVENUE
CODE IS ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR OR PAYS  RENT
FOR  HIS  OR  HER  PRIMARY RESIDENCE TO A FAMILY MEMBER SHARING THE SAME

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08824-01-5

S. 3254                             2

PRIMARY RESIDENCE.  A FAMILY MEMBER OF AN INDIVIDUAL IS THE INDIVIDUAL'S
SPOUSE, BROTHER, SISTER, PARENT, GRANDPARENT, CHILD, GRANDCHILD,  UNCLE,
AUNT,  NEPHEW, OR NIECE, RELATED TO THE INDIVIDUAL BY BLOOD, MARRIAGE OR
ADOPTION.
  (B)  "RESIDENCE"  MEANS  A DWELLING IN A CITY WITH A POPULATION OF ONE
MILLION OR MORE AND MAY CONSIST OF A PART OF A MULTI-DWELLING OR  MULTI-
PURPOSE  BUILDING  INCLUDING  A  COOPERATIVE OR CONDOMINIUM, ONE, TWO OR
THREE FAMILY DWELLINGS AND RENTAL UNITS WITHIN A SINGLE  DWELLING  WHICH
ARE  EITHER  OWNER-OCCUPIED OR RENTED BY A QUALIFIED TAXPAYER. RESIDENCE
INCLUDES A TRAILER OR MOBILE  HOME,  USED  EXCLUSIVELY  FOR  RESIDENTIAL
PURPOSES  AND  DEFINED  AS  REAL  PROPERTY  PURSUANT TO PARAGRAPH (G) OF
SUBDIVISION TWELVE OF SECTION ONE HUNDRED TWO OF THE REAL  PROPERTY  TAX
LAW.
  (2)  (A) A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED IN
THIS SUBSECTION AGAINST THE TAXES IMPOSED BY THIS ARTICLE REDUCED BY THE
CREDITS PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX  AS  SO
REDUCED FOR SUCH YEAR UNDER THIS ARTICLE, THE EXCESS SHALL BE TREATED AS
AN  OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE,  PROVIDED,
HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. IF A QUALIFIED TAXPAYER
IS  NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-
ONE OF THIS ARTICLE BUT OTHERWISE QUALIFIES  FOR  A  CREDIT  UNDER  THIS
SUBSECTION, A CLAIM FOR A CREDIT MAY BE TAKEN ON A RETURN FILED WITH THE
COMMISSIONER  WITHIN  THREE YEARS FROM THE TIME THAT A RETURN WOULD HAVE
BEEN REQUIRED TO BE FILED PURSUANT TO SUCH SECTION  HAD  SUCH  QUALIFIED
TAXPAYER  HAD  A  TAXABLE  YEAR ENDING ON DECEMBER THIRTY-FIRST. RETURNS
SHALL BE IN SUCH FORM AS PRESCRIBED BY  THE  COMMISSIONER.  A  QUALIFIED
TAXPAYER  MUST  PROVIDE ANY INFORMATION THE COMMISSIONER DEEMS NECESSARY
TO DETERMINE THE CREDIT ALLOWED.
  (B) IF MORE THAN ONE QUALIFIED TAXPAYER PAYS RENT FOR THE SAME PRIMARY
RESIDENCE AND HAS A FEDERAL ADJUSTED GROSS INCOME  FOR  WHICH  A  CREDIT
WOULD  OTHERWISE  BE  DUE, EACH SUCH QUALIFIED TAXPAYER SHALL DIVIDE THE
BASE AMOUNT OF THE CREDIT ALLOWED FOR HIS OR HER  INCOME  LEVEL  BY  THE
TOTAL NUMBER OF INDIVIDUALS OR MARRIED COUPLES FILING A JOINT RETURN WHO
ARE  PAYING THE RENT, WHETHER OR NOT ELIGIBLE FOR A CREDIT, TO DETERMINE
THE AMOUNT OF CREDIT ALLOWED TO THAT QUALIFIED TAXPAYER. ANY  ADDITIONAL
AMOUNT OF CREDIT DETERMINED BASED ON THE NUMBER OF EXEMPTIONS CLAIMED BY
SUCH TAXPAYER SHALL NOT BE SO DIVIDED.
  (C)  A  QUALIFIED  TAXPAYER  SHALL  BE  ALLOWED  THE CREDIT UNDER THIS
SUBSECTION OR THE CREDIT UNDER SUBSECTION (E) OF THIS SECTION, WHICHEVER
IS THE HIGHER AMOUNT.
  (3) (A) FOR ANY QUALIFIED TAXPAYER WHO IS SIXTY-FIVE YEARS OF  AGE  OR
OLDER  WITH  A FILING STATUS OF SINGLE, THE AMOUNT OF THE CREDIT ALLOWED
PURSUANT TO THIS PARAGRAPH SHALL BE DETERMINED IN  ACCORDANCE  WITH  THE
FOLLOWING TABLES:

FOR TAXABLE YEARS BEGINNING IN 2015,
IF FEDERAL ADJUSTED GROSS INCOME IS:        THE CREDIT SHALL BE:
$25,000 OR LESS                                     $110
OVER $25,000 BUT NOT OVER $40,000                    $90
OVER $40,000 BUT NOT OVER $50,000                    $70

FOR TAXABLE YEARS BEGINNING IN OR
AFTER 2016, IF FEDERAL ADJUSTED GROSS
INCOME IS:                                  THE CREDIT SHALL BE:
$25,000 OR LESS                                     $220

S. 3254                             3

OVER $25,000 BUT NOT OVER $40,000                   $180
OVER $40,000 BUT NOT OVER $50,000                   $140
  (B) FOR ANY OTHER QUALIFIED TAXPAYER, THE AMOUNT OF THE CREDIT ALLOWED
PURSUANT  TO  THIS  PARAGRAPH SHALL BE DETERMINED IN ACCORDANCE WITH THE
FOLLOWING TABLES; PROVIDED, HOWEVER, THAT A QUALIFIED TAXPAYER WHO IS  A
MARRIED  INDIVIDUAL  FILING  A SEPARATE NEW YORK INCOME TAX RETURN SHALL
RECEIVE ONE-HALF OF THE BASE AMOUNT OF THE CREDIT  PLUS  ANY  ADDITIONAL
AMOUNT FOR WHICH SUCH TAXPAYER WOULD BE ELIGIBLE BASED ON THE INCOME AND
NUMBER OF EXEMPTIONS CLAIMED BY SUCH TAXPAYER:

FOR TAXABLE YEARS BEGINNING IN 2015,
IF FEDERAL ADJUSTED GROSS INCOME IS:         THE CREDIT SHALL BE:
$25,000 OR LESS                              $80 PLUS AN AMOUNT
                                             EQUAL TO $35
                                             MULTIPLIED BY A
                                             NUMBER WHICH IS ONE
                                             LESS THAN THE NUMBER
                                             OF EXEMPTIONS FOR
                                             WHICH THE TAXPAYER
                                             (OR IN THE CASE
                                             OF A MARRIED COUPLE
                                             FILING A JOINT RETURN,
                                             TAXPAYERS) IS ENTITLED
                                             TO A DEDUCTION FOR THE
                                             TAXABLE YEAR FOR FEDERAL
                                             INCOME TAX PURPOSES
                                             UNDER SUBSECTIONS (B)
                                             AND (C) OF SECTION 151
                                             OF THE INTERNAL REVENUE CODE

OVER $25,000 BUT NOT OVER $45,000            $65 PLUS AN AMOUNT
                                             EQUAL TO $24
                                             MULTIPLIED BY A NUMBER
                                             WHICH IS ONE LESS THAN
                                             THE NUMBER OF EXEMPTIONS
                                             FOR WHICH THE TAXPAYER
                                             (OR IN THE CASE OF
                                             A MARRIED COUPLE FILING A
                                             JOINT RETURN, TAXPAYERS)
                                             IS ENTITLED TO A
                                             DEDUCTION FOR THE TAXABLE
                                             YEAR FOR FEDERAL INCOME
                                             TAX PURPOSES UNDER
                                             SUBSECTIONS (B) AND (C)
                                             OF SECTION 151 OF THE
                                             INTERNAL REVENUE CODE

OVER $45,000 BUT NOT OVER $65,000            $55 PLUS AN AMOUNT
                                             EQUAL TO $12 MULTIPLIED
                                             BY A NUMBER WHICH IS ONE
                                             LESS THAN THE NUMBER
                                             OF EXEMPTIONS FOR
                                             WHICH THE TAXPAYER (OR
                                             IN THE CASE OF A MARRIED
                                             COUPLE FILING A JOINT RETURN,
                                             TAXPAYERS) IS ENTITLED

S. 3254                             4

                                             TO A DEDUCTION FOR THE
                                             TAXABLE YEAR FOR FEDERAL
                                             INCOME TAX PURPOSES UNDER
                                             SUBSECTIONS (B) AND (C)
                                             OF SECTION 151 OF THE
                                             INTERNAL REVENUE CODE

OVER $65,000 BUT NOT OVER $100,000           $45 PLUS AN AMOUNT
                                             EQUAL TO $12 MULTIPLIED
                                             BY A NUMBER WHICH IS ONE
                                             LESS THAN THE NUMBER
                                             OF EXEMPTIONS FOR WHICH
                                             THE TAXPAYER (OR IN THE
                                             CASE OF A MARRIED COUPLE
                                             FILING A JOINT RETURN,
                                             TAXPAYERS) IS ENTITLED TO
                                             A DEDUCTION FOR THE TAXABLE
                                             YEAR FOR FEDERAL INCOME TAX
                                             PURPOSES UNDER SUBSECTIONS
                                             (B) AND (C) OF SECTION 151
                                             OF THE INTERNAL REVENUE CODE

FOR TAXABLE YEARS BEGINNING IN OR
AFTER 2016, IF FEDERAL ADJUSTED GROSS
INCOME IS:                                   THE CREDIT SHALL BE:
$25,000 OR LESS                              $160 PLUS AN
                                             AMOUNT EQUAL TO $70
                                             MULTIPLIED BY A NUMBER WHICH
                                             IS ONE LESS THAN THE
                                             NUMBER OF EXEMPTIONS
                                             FOR WHICH THE TAXPAYER
                                             (OR IN THE CASE OF A
                                             MARRIED COUPLE FILING A
                                             JOINT RETURN, TAXPAYERS)
                                             IS ENTITLED TO A DEDUCTION
                                             FOR THE TAXABLE YEAR FOR
                                             FEDERAL INCOME TAX PURPOSES
                                             UNDER SUBSECTIONS (B) AND
                                             (C) OF SECTION 151 OF THE
                                             INTERNAL REVENUE CODE

OVER $25,000 BUT NOT OVER $45,000            $130 PLUS AN AMOUNT
                                             EQUAL TO $48
                                             MULTIPLIED BY A NUMBER
                                             WHICH IS ONE LESS THAN
                                             THE NUMBER OF EXEMPTIONS
                                             FOR WHICH THE TAXPAYER
                                             (OR IN THE CASE OF
                                             A MARRIED COUPLE FILING
                                             A JOINT RETURN, TAXPAYERS)
                                             IS ENTITLED TO A DEDUCTION
                                             FOR THE TAXABLE YEAR FOR
                                             FEDERAL INCOME TAX PURPOSES
                                             UNDER SUBSECTIONS (B)
                                             AND (C) OF SECTION 151
                                             OF THE INTERNAL REVENUE CODE

S. 3254                             5

OVER $45,000 BUT NOT OVER $65,000            $110 PLUS AN AMOUNT
                                             EQUAL TO $24 MULTIPLIED
                                             BY A NUMBER WHICH IS ONE
                                             LESS THAN THE NUMBER
                                             OF EXEMPTIONS FOR
                                             WHICH THE TAXPAYER (OR
                                             IN THE CASE OF A MARRIED
                                             COUPLE FILING A JOINT RETURN,
                                             TAXPAYERS) IS ENTITLED TO A
                                             DEDUCTION FOR THE TAXABLE
                                             YEAR FOR FEDERAL INCOME TAX
                                             PURPOSES UNDER SUBSECTIONS
                                             (B) AND (C) OF SECTION 151
                                             OF THE INTERNAL  REVENUE CODE

OVER $65,000 BUT NOT OVER $100,000           $90 PLUS AN AMOUNT
                                             EQUAL TO $24 MULTIPLIED
                                             BY A NUMBER WHICH IS ONE
                                             LESS THAN THE NUMBER
                                             OF EXEMPTIONS FOR
                                             WHICH THE TAXPAYER (OR
                                             IN THE CASE OF A MARRIED
                                             COUPLE FILING A JOINT RETURN,
                                             TAXPAYERS) IS
                                             ENTITLED TO A DEDUCTION
                                             FOR THE TAXABLE YEAR FOR
                                             FEDERAL INCOME TAX PURPOSES
                                             UNDER SUBSECTIONS (B) AND
                                             (C) OF SECTION 151 OF THE
                                             INTERNAL REVENUE CODE
  S 2. This act shall take effect immediately.

2015-S3254A (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7417
2017-2018: S3214
2019-2020: S2107
2021-2022: S3861
2023-2024: S4705

2015-S3254A (ACTIVE) - Summary

Establishes the renters' and small homeowners' credit in a city with a population of a million or more.

2015-S3254A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3254A

 TITLE OF BILL :  An act to amend the tax law, in relation to
establishing a renters' and small homeowners' tax credit

 PURPOSE :

To provide a state tax credit to renters and small homeowners in the
city of New York.

 SUMMARY OF PROVISIONS :

Section 1 of the bill amends section 606 of the tax law by adding a
new subsection (b-1) that will provide a renters' and small
homeowners' tax credit in a city of a million or more. The bill
defines a "qualified" tax payer to be any one of the following
individuals:

a. A resident individual who lives in a city with a population of a
million or more who has occupied and paid rent for his or her primary
residence in such city for six months or more of the taxable year, is
required or chooses to file a tax return and is one of the following:

*is 65 or older

*is filing a joint return with a spouse who is 65 or older

*is a head of household

*is a married individual filing a joint return with a spouse and has
at least 1 dependent

*is a married individual filing a separate return and has at least 1
dependent

*is a surviving spouse and has at least one dependent

b. An owner of any dwelling with six units or less in a city of a
million or more who occupies such dwelling as his or her primary
residence for six months or more of the taxable year and who is
required or chooses to file a tax return.

The bill also states that an individual who is listed as a dependent
allowable to another taxpayer for the taxable year or who pays rent
for his or her primary resident to a family member sharing the same
primary residence shall not be a "qualified taxpayer" for purposes of
this section.

(B) "Residence" means a dwelling in a city with a population of a
million or more and may consist of a part of a multi-dwelling or
multi-purpose building including a cooperative or condominium, one,
two or three family dwellings and rental units within a single
dwelling which are either owner-occupied or rented by a qualified
taxpayer.

(2)(A) A qualified taxpayer shall be allowed a credit against the
taxes imposed by this article reduced by the credits permitted in this
article. If the credit exceeds the tax as so reduced for such year,
the excess shall be treated as an overpayment of tax to be credited or
refunded without interest.

(2)(B) If more than one qualified taxpayer pays rent for the same
primary residence and has a federal adjusted gross income for which a
credit would be due, each such qualified taxpayer shall divide the
base amount of the credit allowed for his or her income level by the
total number of individuals or married couples filing a joint return
who are paying the rent, whether or not eligible for a credit, to
determine the amount of credit allowed to that qualified taxpayer.

(2) (C) A qualified taxpayer shall be allowed the credit under this
subsection or the credit under subsection (e) of this section (real
property tax circuit breaker credit), whichever is the higher amount.

(3)(A) Sets forth the tables to be used for determining the credits
allowed for a qualified taxpayer who is 65 or older with a filing
status of single.

(3)(B) Sets forth the tables to be used for determining the credits
allowed for any other qualified taxpayer, provided, however, that a
qualified taxpayer who is a married individual filing a separate New
York income tax return shall receive one-half of the base amount of
the credit plus any additional amount for which such taxpayer would be
eligible based on the income and number of exemptions claimed by such
taxpayer.

Section 2 sets an immediate effective date.

 EXISTING LAW :

This tax credit is not in place under existing law.

 JUSTIFICATION :

In January 2014, Governor Cuomo proposed the creation of a Renters'
Tax Credit in his 20142015 Budget in order to give renters a much
needed income tax credit to ease their tax burden. While it is
important to give renters this income tax credit, it is equally
important that small homeowners, including co-op and condominium
owners in the city of New York also be granted this same tax credit.
In December 2011 a property tax cap was implemented throughout New
York State but explicitly exempted the city of New York. This much
needed relief was denied to small homeowners in the city of New York
despite their equally dire need for relief from their overall tax
burden.

This bill Will rectify that inequity and provide much needed relief to
both renters and small homeowners who occupy these residences as their
primary residences. This includes owners of co-ops and condominiums
who are already being treated unfairly under the New York City
property tax laws.

 LEGISLATIVE HISTORY :

2014 A9059 Referred to Ways and Means
2014 S7417 Referred to Investigations and Government Operations

 FISCAL IMPLICATIONS :

To be determined

 LOCAL FISCAL IMPLICATIONS :

To be determined

 EFFECTIVE DATE :
This act shall take effect immediately.

2015-S3254A (ACTIVE) - Bill Text download pdf

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

                                 3254--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 4, 2015
                               ___________

Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT to amend the tax law, in relation to establishing a renters' and
  small homeowners' tax credit

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

  Section  1.  Section  606  of  the  tax law is amended by adding a new
subsection (b-1) to read as follows:
  (B-1) RENTERS' AND SMALL HOMEOWNERS' CREDIT IN A  CITY  WITH  A  POPU-
LATION OF ONE MILLION OR MORE.
  (1) FOR THE PURPOSES OF THIS SUBSECTION:
  (A)  "QUALIFIED  TAXPAYER"  MEANS A RESIDENT INDIVIDUAL WHO LIVES IN A
CITY WITH A POPULATION OF ONE MILLION OR MORE WHO HAS OCCUPIED AND  PAID
RENT  FOR  HIS  OR  HER PRIMARY RESIDENCE IN SUCH CITY FOR SIX MONTHS OR
MORE OF THE TAXABLE YEAR, IS REQUIRED OR CHOOSES TO FILE A RETURN  UNDER
THIS  ARTICLE,  AND  (I)  IS  SIXTY-FIVE  YEARS OF AGE OR OLDER, (II) IS
FILING A JOINT RETURN WITH A SPOUSE WHO IS SIXTY-FIVE YEARS  OF  AGE  OR
OLDER, (III) IS A HEAD OF HOUSEHOLD, (IV) IS A MARRIED INDIVIDUAL FILING
A  JOINT  RETURN  WITH A SPOUSE AND HAS AT LEAST ONE DEPENDENT, (V) IS A
MARRIED INDIVIDUAL FILING A SEPARATE RETURN AND HAS AT LEAST ONE DEPEND-
ENT, OR (VI) IS A SURVIVING SPOUSE AND HAS AT LEAST ONE DEPENDENT.   FOR
PURPOSES  OF THIS SUBSECTION "QUALIFIED TAXPAYER" SHALL ALSO INCLUDE THE
OWNER OF ANY DWELLING WITH SIX UNITS OR LESS IN A CITY WITH A POPULATION
OF ONE MILLION OR MORE WHO OCCUPIES SUCH DWELLING AS HIS OR HER  PRIMARY
RESIDENCE FOR SIX MONTHS OR MORE OF THE TAXABLE YEAR AND WHO IS REQUIRED
OR CHOOSES TO FILE A RETURN UNDER THIS ARTICLE.  AN INDIVIDUAL CANNOT BE
A  QUALIFIED TAXPAYER IF HE OR SHE IS AN INDIVIDUAL WITH RESPECT TO WHOM

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08824-02-6

S. 3254--A                          2

A DEDUCTION UNDER SUBSECTION (C) OF SECTION 151 OF THE INTERNAL  REVENUE
CODE  IS ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR OR PAYS RENT
FOR HIS OR HER PRIMARY RESIDENCE TO A FAMILY  MEMBER  SHARING  THE  SAME
PRIMARY RESIDENCE.  A FAMILY MEMBER OF AN INDIVIDUAL IS THE INDIVIDUAL'S
SPOUSE,  BROTHER, SISTER, PARENT, GRANDPARENT, CHILD, GRANDCHILD, UNCLE,
AUNT, NEPHEW, OR NIECE, RELATED TO THE INDIVIDUAL BY BLOOD, MARRIAGE  OR
ADOPTION.
  (B)  "RESIDENCE"  MEANS  A DWELLING IN A CITY WITH A POPULATION OF ONE
MILLION OR MORE AND MAY CONSIST OF A PART OF A MULTI-DWELLING OR  MULTI-
PURPOSE  BUILDING  INCLUDING  A  COOPERATIVE OR CONDOMINIUM, ONE, TWO OR
THREE FAMILY DWELLINGS AND RENTAL UNITS WITHIN A SINGLE  DWELLING  WHICH
ARE  EITHER  OWNER-OCCUPIED OR RENTED BY A QUALIFIED TAXPAYER. RESIDENCE
INCLUDES A TRAILER OR MOBILE  HOME,  USED  EXCLUSIVELY  FOR  RESIDENTIAL
PURPOSES  AND  DEFINED  AS  REAL  PROPERTY  PURSUANT TO PARAGRAPH (G) OF
SUBDIVISION TWELVE OF SECTION ONE HUNDRED TWO OF THE REAL  PROPERTY  TAX
LAW.
  (2)  (A) A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED IN
THIS SUBSECTION AGAINST THE TAXES IMPOSED BY THIS ARTICLE REDUCED BY THE
CREDITS PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX  AS  SO
REDUCED FOR SUCH YEAR UNDER THIS ARTICLE, THE EXCESS SHALL BE TREATED AS
AN  OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE,  PROVIDED,
HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. IF A QUALIFIED TAXPAYER
IS  NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-
ONE OF THIS ARTICLE BUT OTHERWISE QUALIFIES  FOR  A  CREDIT  UNDER  THIS
SUBSECTION, A CLAIM FOR A CREDIT MAY BE TAKEN ON A RETURN FILED WITH THE
COMMISSIONER  WITHIN  THREE YEARS FROM THE TIME THAT A RETURN WOULD HAVE
BEEN REQUIRED TO BE FILED PURSUANT TO SUCH SECTION  HAD  SUCH  QUALIFIED
TAXPAYER  HAD  A  TAXABLE  YEAR ENDING ON DECEMBER THIRTY-FIRST. RETURNS
SHALL BE IN SUCH FORM AS PRESCRIBED BY  THE  COMMISSIONER.  A  QUALIFIED
TAXPAYER  MUST  PROVIDE ANY INFORMATION THE COMMISSIONER DEEMS NECESSARY
TO DETERMINE THE CREDIT ALLOWED.
  (B) IF MORE THAN ONE QUALIFIED TAXPAYER PAYS RENT FOR THE SAME PRIMARY
RESIDENCE AND HAS A FEDERAL ADJUSTED GROSS INCOME  FOR  WHICH  A  CREDIT
WOULD  OTHERWISE  BE  DUE, EACH SUCH QUALIFIED TAXPAYER SHALL DIVIDE THE
BASE AMOUNT OF THE CREDIT ALLOWED FOR HIS OR HER  INCOME  LEVEL  BY  THE
TOTAL NUMBER OF INDIVIDUALS OR MARRIED COUPLES FILING A JOINT RETURN WHO
ARE  PAYING THE RENT, WHETHER OR NOT ELIGIBLE FOR A CREDIT, TO DETERMINE
THE AMOUNT OF CREDIT ALLOWED TO THAT QUALIFIED TAXPAYER. ANY  ADDITIONAL
AMOUNT OF CREDIT DETERMINED BASED ON THE NUMBER OF EXEMPTIONS CLAIMED BY
SUCH TAXPAYER SHALL NOT BE SO DIVIDED.
  (C)  A  QUALIFIED  TAXPAYER  SHALL  BE  ALLOWED  THE CREDIT UNDER THIS
SUBSECTION OR THE CREDIT UNDER SUBSECTION (E) OF THIS SECTION, WHICHEVER
IS THE HIGHER AMOUNT.
  (3) (A) FOR ANY QUALIFIED TAXPAYER WHO IS SIXTY-FIVE YEARS OF  AGE  OR
OLDER  WITH  A FILING STATUS OF SINGLE, THE AMOUNT OF THE CREDIT ALLOWED
PURSUANT TO THIS PARAGRAPH SHALL BE DETERMINED IN  ACCORDANCE  WITH  THE
FOLLOWING TABLES:

FOR TAXABLE YEARS BEGINNING IN 2016,
IF FEDERAL ADJUSTED GROSS INCOME IS:        THE CREDIT SHALL BE:
$25,000 OR LESS                                     $110
OVER $25,000 BUT NOT OVER $40,000                    $90
OVER $40,000 BUT NOT OVER $50,000                    $70

S. 3254--A                          3

FOR TAXABLE YEARS BEGINNING IN OR
AFTER 2017, IF FEDERAL ADJUSTED GROSS
INCOME IS:                                  THE CREDIT SHALL BE:
$25,000 OR LESS                                     $220
OVER $25,000 BUT NOT OVER $40,000                   $180
OVER $40,000 BUT NOT OVER $50,000                   $140
  (B) FOR ANY OTHER QUALIFIED TAXPAYER, THE AMOUNT OF THE CREDIT ALLOWED
PURSUANT  TO  THIS  PARAGRAPH SHALL BE DETERMINED IN ACCORDANCE WITH THE
FOLLOWING TABLES; PROVIDED, HOWEVER, THAT A QUALIFIED TAXPAYER WHO IS  A
MARRIED  INDIVIDUAL  FILING  A SEPARATE NEW YORK INCOME TAX RETURN SHALL
RECEIVE ONE-HALF OF THE BASE AMOUNT OF THE CREDIT  PLUS  ANY  ADDITIONAL
AMOUNT FOR WHICH SUCH TAXPAYER WOULD BE ELIGIBLE BASED ON THE INCOME AND
NUMBER OF EXEMPTIONS CLAIMED BY SUCH TAXPAYER:

FOR TAXABLE YEARS BEGINNING IN 2016,
IF FEDERAL ADJUSTED GROSS INCOME IS:         THE CREDIT SHALL BE:
$25,000 OR LESS                              $80 PLUS AN AMOUNT
                                             EQUAL TO $35
                                             MULTIPLIED BY A
                                             NUMBER WHICH IS ONE
                                             LESS THAN THE NUMBER
                                             OF EXEMPTIONS FOR
                                             WHICH THE TAXPAYER
                                             (OR IN THE CASE
                                             OF A MARRIED COUPLE
                                             FILING A JOINT RETURN,
                                             TAXPAYERS) IS ENTITLED
                                             TO A DEDUCTION FOR THE
                                             TAXABLE YEAR FOR FEDERAL
                                             INCOME TAX PURPOSES
                                             UNDER SUBSECTIONS (B)
                                             AND (C) OF SECTION 151
                                             OF THE INTERNAL REVENUE CODE

OVER $25,000 BUT NOT OVER $45,000            $65 PLUS AN AMOUNT
                                             EQUAL TO $24
                                             MULTIPLIED BY A NUMBER
                                             WHICH IS ONE LESS THAN
                                             THE NUMBER OF EXEMPTIONS
                                             FOR WHICH THE TAXPAYER
                                             (OR IN THE CASE OF
                                             A MARRIED COUPLE FILING A
                                             JOINT RETURN, TAXPAYERS)
                                             IS ENTITLED TO A
                                             DEDUCTION FOR THE TAXABLE
                                             YEAR FOR FEDERAL INCOME
                                             TAX PURPOSES UNDER
                                             SUBSECTIONS (B) AND (C)
                                             OF SECTION 151 OF THE
                                             INTERNAL REVENUE CODE

OVER $45,000 BUT NOT OVER $65,000            $55 PLUS AN AMOUNT
                                             EQUAL TO $12 MULTIPLIED
                                             BY A NUMBER WHICH IS ONE
                                             LESS THAN THE NUMBER
                                             OF EXEMPTIONS FOR

S. 3254--A                          4

                                             WHICH THE TAXPAYER (OR
                                             IN THE CASE OF A MARRIED
                                             COUPLE FILING A JOINT RETURN,
                                             TAXPAYERS) IS ENTITLED
                                             TO A DEDUCTION FOR THE
                                             TAXABLE YEAR FOR FEDERAL
                                             INCOME TAX PURPOSES UNDER
                                             SUBSECTIONS (B) AND (C)
                                             OF SECTION 151 OF THE
                                             INTERNAL REVENUE CODE

OVER $65,000 BUT NOT OVER $100,000           $45 PLUS AN AMOUNT
                                             EQUAL TO $12 MULTIPLIED
                                             BY A NUMBER WHICH IS ONE
                                             LESS THAN THE NUMBER
                                             OF EXEMPTIONS FOR WHICH
                                             THE TAXPAYER (OR IN THE
                                             CASE OF A MARRIED COUPLE
                                             FILING A JOINT RETURN,
                                             TAXPAYERS) IS ENTITLED TO
                                             A DEDUCTION FOR THE TAXABLE
                                             YEAR FOR FEDERAL INCOME TAX
                                             PURPOSES UNDER SUBSECTIONS
                                             (B) AND (C) OF SECTION 151
                                             OF THE INTERNAL REVENUE CODE

FOR TAXABLE YEARS BEGINNING IN OR
AFTER 2017, IF FEDERAL ADJUSTED GROSS
INCOME IS:                                   THE CREDIT SHALL BE:
$25,000 OR LESS                              $160 PLUS AN
                                             AMOUNT EQUAL TO $70
                                             MULTIPLIED BY A NUMBER WHICH
                                             IS ONE LESS THAN THE
                                             NUMBER OF EXEMPTIONS
                                             FOR WHICH THE TAXPAYER
                                             (OR IN THE CASE OF A
                                             MARRIED COUPLE FILING A
                                             JOINT RETURN, TAXPAYERS)
                                             IS ENTITLED TO A DEDUCTION
                                             FOR THE TAXABLE YEAR FOR
                                             FEDERAL INCOME TAX PURPOSES
                                             UNDER SUBSECTIONS (B) AND
                                             (C) OF SECTION 151 OF THE
                                             INTERNAL REVENUE CODE

OVER $25,000 BUT NOT OVER $45,000            $130 PLUS AN AMOUNT
                                             EQUAL TO $48
                                             MULTIPLIED BY A NUMBER
                                             WHICH IS ONE LESS THAN
                                             THE NUMBER OF EXEMPTIONS
                                             FOR WHICH THE TAXPAYER
                                             (OR IN THE CASE OF
                                             A MARRIED COUPLE FILING
                                             A JOINT RETURN, TAXPAYERS)
                                             IS ENTITLED TO A DEDUCTION
                                             FOR THE TAXABLE YEAR FOR

S. 3254--A                          5

                                             FEDERAL INCOME TAX PURPOSES
                                             UNDER SUBSECTIONS (B)
                                             AND (C) OF SECTION 151
                                             OF THE INTERNAL REVENUE CODE

OVER $45,000 BUT NOT OVER $65,000            $110 PLUS AN AMOUNT
                                             EQUAL TO $24 MULTIPLIED
                                             BY A NUMBER WHICH IS ONE
                                             LESS THAN THE NUMBER
                                             OF EXEMPTIONS FOR
                                             WHICH THE TAXPAYER (OR
                                             IN THE CASE OF A MARRIED
                                             COUPLE FILING A JOINT RETURN,
                                             TAXPAYERS) IS ENTITLED TO A
                                             DEDUCTION FOR THE TAXABLE
                                             YEAR FOR FEDERAL INCOME TAX
                                             PURPOSES UNDER SUBSECTIONS
                                             (B) AND (C) OF SECTION 151
                                             OF THE INTERNAL  REVENUE CODE

OVER $65,000 BUT NOT OVER $100,000           $90 PLUS AN AMOUNT
                                             EQUAL TO $24 MULTIPLIED
                                             BY A NUMBER WHICH IS ONE
                                             LESS THAN THE NUMBER
                                             OF EXEMPTIONS FOR
                                             WHICH THE TAXPAYER (OR
                                             IN THE CASE OF A MARRIED
                                             COUPLE FILING A JOINT RETURN,
                                             TAXPAYERS) IS
                                             ENTITLED TO A DEDUCTION
                                             FOR THE TAXABLE YEAR FOR
                                             FEDERAL INCOME TAX PURPOSES
                                             UNDER SUBSECTIONS (B) AND
                                             (C) OF SECTION 151 OF THE
                                             INTERNAL REVENUE CODE
  S 2. This act shall take effect immediately.

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