S T A T E   O F   N E W   Y O R K
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                                  4628--A
     Cal. No. 379
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 23, 2017
                                ___________
 
 Introduced  by  Sens. SAVINO, HOYLMAN, PERALTA -- read twice and ordered
   printed, and when printed to be committed to the Committee on Aging --
   reported favorably from said committee, ordered to  first  and  second
   report,  ordered  to  a  third reading, amended and ordered reprinted,
   retaining its place in the order of third reading
 
 AN ACT to amend the real property tax law, in relation to increasing the
   allowable maximum income of certain persons otherwise eligible for tax
   abatement in certain cases
 
   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 of the real
 property 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, AND IN A CITY WITH A POPULATION OF ONE MILLION OR MORE FIFTY THOU-
 SAND DOLLARS BEGINNING JULY FIRST, TWO THOUSAND  SEVENTEEN,  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 subparagraph (ii) of paragraph
 (d) of this subdivision, then only the income of the spouse or ex-spouse
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD09852-05-7

 S. 4628--A                          2
 
 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 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
 return  of  capital,  gifts,  inheritances, payments made to individuals
 because of their status as victims of Nazi persecution,  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 addi-
 tionally 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;
   § 2. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
 erty  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, AND IN A CITY WITH A POPULATION OF ONE MILLION OR MORE FIFTY THOU-
 SAND  DOLLARS  BEGINNING  JULY  FIRST, TWO THOUSAND SEVENTEEN, 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

 S. 4628--A                          3
 
 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;
   § 3. This act shall take effect immediately and shall apply to  appli-
 cations  made  for an exemption pursuant to this act for the city fiscal
 year commencing in 2017 and all city fiscal years  thereafter.  Applica-
 tions  received  for  the  city  fiscal year commencing in 2017 shall be
 considered timely if they are filed on or before the one hundred twenti-
 eth day following the effective date of the local law  implementing  the
 provisions of this act.