S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5252
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 8, 2019
                                ___________
 
 Introduced  by M. of A. RA -- read once and referred to the Committee on
   Aging
 
 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 separately amended by chapters 131 and 279  of  the
 laws of 2017, 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,
 twenty-nine  thousand  dollars  beginning July first, two thousand nine,
 [and] in a city with a population of one million or more fifty  thousand
 dollars  beginning  July  first, two thousand seventeen, AND IN A COUNTY
 WITH A POPULATION OF BETWEEN ONE MILLION AND ONE  MILLION  FOUR  HUNDRED
 THOUSAND  AS  OF THE LAST DECENNIAL CENSUS FIFTY THOUSAND DOLLARS BEGIN-
 NING JULY FIRST, TWO THOUSAND TWENTY, 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 proper-
 ty as provided in subparagraph (ii) of paragraph (d)  of  this  subdivi-
 sion,  then  only  the income of the spouse or ex-spouse residing on the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09328-01-9

 A. 5252                             2
 
 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
 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 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. In  addition,  an  exchange  of  an  annuity  for  an  annuity
 contract,  which  resulted in non-taxable gain, as determined in section
 one thousand thirty-five of the internal revenue code, shall be excluded
 from such income. Provided that such exclusion shall be based on  satis-
 factory proof that such an exchange was solely an exchange of an annuity
 for  an  annuity contract that resulted in a non-taxable transfer deter-
 mined by such section of the internal revenue  code.  Furthermore,  such
 income  shall not include the proceeds of a reverse mortgage, as author-
 ized 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 notwith-
 standing, such income shall  not  include  veterans  disability  compen-
 sation,  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 amended by chapter 131 of the laws of 2017, 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,
 twenty-nine  thousand  dollars  beginning July first, two thousand nine,
 [and] in a city with a population of one million or more fifty  thousand
 dollars  beginning  July  first, two thousand seventeen, AND IN A COUNTY
 WITH A POPULATION OF BETWEEN ONE MILLION AND ONE  MILLION  FOUR  HUNDRED
 THOUSAND  AS  OF THE LAST DECENNIAL CENSUS FIFTY THOUSAND DOLLARS BEGIN-
 NING JULY FIRST, TWO THOUSAND TWENTY, 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

 A. 5252                             3
 
 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  insur-
 ance,  if the governing board of a municipality, after a public hearing,
 adopts a local law 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;
   §  3. This act shall take effect immediately and shall apply to appli-
 cations made for an exemption pursuant to this act for the county fiscal
 year commencing in 2020 and all county fiscal years thereafter.   Appli-
 cations  received for the county fiscal year commencing in 2020 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.