NY State Senate Bill 2019-S1062A

Senate Bill S1062A

2019-2020 Legislative Session

Grants a tax deferment for persons sixty-five years of age or older who own and occupy real property in N.Y. city

download bill text pdf

Archive: Last Bill Status - In Senate Committee Aging 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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to aging
May 20, 2019	print number 1062a
May 20, 2019	amend and recommit to aging
Jan 10, 2019	referred to aging

Bill Amendments

Original

A (Active)

co-Sponsors

2019-S1062 - Details

Current Committee:: Senate Aging
Law Section:: Real Property Tax Law
Laws Affected:: Add §467-l, RPT L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S6929
2021-2022: S103

2019-S1062 - Summary

Grants a tax deferment for persons sixty-five years of age or over who own and occupy real property in a city having a population of one million or more persons.

2019-S1062 - Sponsor Memo

                                
 
BILL NUMBER: S1062

SPONSOR: PERSAUD
 
TITLE OF BILL:  An act to amend the real property tax law, in relation
to granting a tax deferment for persons sixty-five years of age or older
who reside in a city having a population of one million or more persons

 
PURPOSE:

The purpose of this bill is to allow seniors to remain in their homes as
the value of the property continues to rise.

 
SUMMARY OF PROVISIONS:

Section 1: Adds a new section to the Real Property Tax law to grant
property tax deferment to senior citizen homeowners who reside in city
with a population of one million or more people.

Section 2: Effective Date.

JUSTIFICATION:

Cities with a population of million or more continue to experience expo-
nential population growth, which has led to an affordable housing crisis
in these metropolitan areas. As the value of real property (and accompa-
nying taxes) has risen, senior homeowners have become particularly
vulnerable to shifts in the housing market, especially those with fixed
incomes that are unable to absorb tax increases.

This legislation would shield seniors from an increase in real property
taxes by deferring the annual increase. The state would receive the
difference in the annual increase, without interest, once the home is
sold or when the senior resident passes away. The senior would continue
to pay the same real property tax they paid when this bill is enacted,
allowing them to maintain their budget in light of uncontrollable market
forces. Currently, twenty-eight states and the District of Columbia
offer similar programs for senior homeowners.

It is important to note that only the increases in real property tax
would be deferred, not the entire tax. The tax deferment for seniors
will not result in a monetary loss for the state.

By allowing seniors to remain in their homes, they can maintain impor-
tant ties to the community, family and friends that they have developed
over decades of occupancy. The prospect of moving away from these long-
term support networks can be devastating to seniors.  Seniors are
sustained by a strong sense of place and community, coupled with famili-
arity of certain locations. Often times, seniors tend to live in older
buildings that often require repairs. Old houses in cities occupied by
the elderly are more likely to have physical problems than newer houses.

By deferring the increase in real property tax, seniors will be able to
maintain their homes and a safe living environment. In addition, the
recent rise in fuel costs is another example of an unforeseen
s/i.tuation that seniors had to face this winter. Many seniors live on a
fixed ineoMe and cannot afford a healthy standard of living when faced
with these circumstances. This deferment will ease some financial
stress.

In 2017, the New York City Council enacted legislation (Local Law No.
140) which increased the maximum income level for the Senior Citizen
Homeowner's Exemption (SCHE) and Disabled Homeowner's Exemption (DHE)
program from $50,000 to $58,400. While this program offers property tax
relief for senior citizen homeowners, a tax deferral program, as
proposed in this legislation, will help senior homeowners avoid the
burden of rising property tax increases and enable them to remain in
their home.

 
PRIOR LEGISLATIVE HISTORY:

2017/2018: Advanced to Third Reading, Committed to Rules
A3683 (2013);
A3393 (2011-2012);
A5323/S4501 (2009-2010);
A6480(2007-2008);
A11822 of (2005-2006)

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall become a law.

2019-S1062 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1062
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2019
                                ___________
 
 Introduced  by  Sen. PERSAUD -- 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 granting a tax
   deferment for persons sixty-five years of age or older who reside in a
   city having a population of one million or more persons

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  real  property  tax  law  is amended by adding a new
 section 467-l to read as follows:
   § 467-L. DEFERRAL OF REAL PROPERTY TAX FOR PERSONS SIXTY-FIVE YEARS OF
 AGE OR OLDER RESIDING IN A CITY HAVING A POPULATION OF  ONE  MILLION  OR
 MORE  PERSONS.  1.  (A)  ANY CITY OF ONE MILLION OR MORE PERSONS MAY, BY
 LOCAL LAW, GRANT A TAX DEFERMENT FOR REAL PROPERTY OWNED AND OCCUPIED BY
 ONE OR MORE PERSONS, EACH OF WHOM IS SIXTY-FIVE YEARS OF AGE  OR  OLDER,
 OR  REAL PROPERTY OWNED AND OCCUPIED BY HUSBAND AND WIFE OR BY SIBLINGS,
 ONE OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OLDER. FOR  PURPOSES  OF  THIS
 SECTION,  "SIBLING"  SHALL  MEAN  A BROTHER OR A SISTER, WHETHER RELATED
 THROUGH HALF BLOOD, WHOLE BLOOD OR ADOPTION.
   (B) APPLICATION FOR SUCH DEFERMENT SHALL BE MADE ANNUALLY BY THE OWNER
 OR OWNERS OF SUCH REAL PROPERTY. NO APPLICATION FOR SUCH DEFERMENT SHALL
 BE GRANTED TO ANY OWNER WITH A TOTAL INCOME EXCEEDING FIFTY-EIGHT  THOU-
 SAND  FOUR HUNDRED DOLLARS. FOR PURPOSES OF THIS SECTION, "INCOME" SHALL
 MEAN THE GROSS INCOME OF THE OWNER OR OWNERS OF SUCH  PROPERTY  FOR  THE
 INCOME  TAX  YEAR IMMEDIATELY PRECEDING THE DATE OF APPLICATION FOR SUCH
 DEFERMENT AND 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, EARNED  INCOME
 FROM  SALARY  OR EARNINGS AND NET INCOME FROM SELF-EMPLOYMENT, BUT SHALL
 NOT INCLUDE A RETURN OF CAPITAL, GIFTS OR INHERITANCES. THE AGE OF  EACH
 OWNER  OF SUCH PROPERTY SHALL BE THE AGE OF SUCH PERSON AT THE COMMENCE-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00915-01-9

 S. 1062                             2
 
 MENT OF THE CITY'S FISCAL YEAR FOR WHICH AN APPLICATION FOR  TAX  DEFER-
 MENT IS MADE.
   2.  SUCH  DEFERMENT  SHALL EQUAL THE TOTAL PER CENTUM OF THE DEFERMENT
 BASE. FOR PURPOSES OF THIS SECTION,  "DEFERMENT  BASE"  SHALL  MEAN  THE
 INCREASE  IN  REAL  PROPERTY  TAX  ATTRIBUTABLE  TO  THE INCREASE IN THE
 ASSESSED VALUE OF SUCH PROPERTY FROM THE TAX YEAR IMMEDIATELY  PRECEDING
 THE YEAR IN WHICH SUCH PERSON REACHED THE AGE OF SIXTY-FIVE YEARS TO THE
 TAX YEAR FOR WHICH AN APPLICATION FOR TAX DEFERMENT IS MADE.
   3.  THE  AMOUNT  OF  TAXES  DEFERRED SHALL ACCRUE AGAINST SUCH PERSON,
 WITHOUT INTEREST, AND SHALL, ON THE  DATE  SUCH  DEFERMENT  IS  GRANTED,
 CONSTITUTE  A  LIEN  AGAINST  SUCH  PROPERTY IN FAVOR OF THE APPROPRIATE
 MUNICIPAL CORPORATION. THE OWNER OR  OWNERS  OF  SUCH  PROPERTY,  HAVING
 RECEIVED  SUCH  DEFERMENT  PURSUANT  TO  THIS SECTION, MAY, AT ANY TIME,
 TERMINATE THE DEFERMENT AND REMOVE THE RESULTANT LIEN ON  SAID  PROPERTY
 BY PAYING IN FULL THE CUMULATIVE AMOUNT OF SUCH LIEN.
   4.  A  TAX  DEFERMENT  GRANTED  TO A HUSBAND AND WIFE PURSUANT TO THIS
 SECTION, ONCE GRANTED, SHALL NOT BE  RESCINDED  SOLELY  BECAUSE  OF  THE
 DEATH  OF  THE  OLDER SPOUSE SO LONG AS THE SURVIVING SPOUSE IS AT LEAST
 SIXTY-TWO YEARS OF AGE. IN THE EVENT THAT THE SURVIVING SPOUSE  IS  LESS
 THAN SIXTY-TWO YEARS OF AGE, SUCH SURVIVING SPOUSE SHALL BE ELIGIBLE FOR
 THE  TAX  DEFERMENT  UPON  REACHING  SIXTY-TWO YEARS OF AGE PROVIDED ALL
 OTHER ELIGIBILITY REQUIREMENTS ARE MET.
   5. ANY PERSON WHO HAS ALREADY ATTAINED THE AGE OF SIXTY-FIVE YEARS  OR
 OLDER  IS  ELIGIBLE  FOR  SUCH  DEFERRAL  AND SHALL BE ENTITLED TO A TAX
 DEFERMENT BASED ON THE TAX YEAR IMMEDIATELY PRECEDING THE EFFECTIVE DATE
 OF THIS SECTION.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

co-Sponsors

View additional co-sponsors

2019-S1062A (ACTIVE) - Details

Current Committee:: Senate Aging
Law Section:: Real Property Tax Law
Laws Affected:: Add §467-l, RPT L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S6929
2021-2022: S103

2019-S1062A (ACTIVE) - Summary

Grants a tax deferment for persons sixty-five years of age or over who own and occupy real property in a city having a population of one million or more persons.

2019-S1062A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1062A

SPONSOR: PERSAUD
 
TITLE OF BILL:  An act to amend the real property tax law, in relation
to granting a tax deferment for persons sixty-five years of age or older
who reside in a city having a population of one million or more persons

 
PURPOSE:

The purpose of this bill is to allow seniors to remain in their homes as
the value of the property continues to rise.

 
SUMMARY OF PROVISIONS:

Section 1: Adds a new section to the Real Property Tax law to grant
property tax deferment to senior citizen homeowners who reside in city
with a population of one million or more people.

Section 2: Effective Date.

JUSTIFICATION

Cities with a population of million or more continue to experience expo-
nential population growth, which has led to an affordable housing crisis
in these metropolitan areas. As the value of real property (and accompa-
nying taxes) has risen, senior homeowners have become particularly
vulnerable to shifts in the housing market, especially those with fixed
incomes that are unable to absorb tax increases.

This legislation would shield seniors from an increase in real property
taxes by deferring any increase. The state would receive the difference
in the annual increase, without interest, once the home is sold or when
the senior resident passes away. The senior would continue to pay the
same real property tax they paid when this bill is enacted, allowing
them to maintain their budget in light of uncontrollable market forces.
Currently, twenty-eight states and the District of Columbia offer simi-
lar programs for senior homeowners.

It is important to note that only the increases in real property tax
would be deferred, not the entire tax. The tax deferment for seniors
will not result in a monetary loss for the state.

By allowing seniors to remain in their homes, they can maintain impor-
tant ties to the community, family and friends that they have developed
over decades of occupancy. The prospect of moving away from these long-
term support networks can be devastating to seniors.  Seniors are
sustained by a strong sense of place and community, coupled with famili-
arity of certain locations. Often times, seniors tend to live in older
buildings that often require repairs. Old houses in cities occupied by
the elderly are more likely to have physical problems than newer houses.

By deferring the increase in real property tax, seniors will be able to
maintain their homes and a safe living environment. In addition, the
recent rise in fuel costs is another example of an unforeseen situation
that seniors had to face this winter. Many seniors live on a fixed
income and cannot afford a healthy standard of living when faced with
these circumstances. This deferment will ease some financial stress.


In 2017, the New York City Council enacted legislation (Local Law No.
140) which increased the maximum income level for the Senior Citizen
Homeowner's Exemption (SCHE) and Disabled Homeowner's Exemption (DHE)
program from $50,000 to $58,400. While this program offers property tax
relief for senior citizen homeowners, a tax deferral program, as
proposed in this legislation, will help senior homeowners avoid the
burden of rising property tax increases and enable them to remain in
their home.

 
PRIOR LEGISLATIVE HISTORY:

2017/2018: Advanced to Third Reading, Committed to Rules
A3683 (2013);
A3393 (2011-2012);
A5323/S4501 (2009-2010);
A6480(2007-2008);
A11822 of (2005-2006)

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall become a law.

2019-S1062A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1062--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2019
                                ___________
 
 Introduced  by  Sens. PERSAUD, ADDABBO, BIAGGI, MONTGOMERY -- read twice
   and ordered printed, and when printed to be committed to the Committee
   on Aging -- committee discharged, bill amended, ordered  reprinted  as
   amended and recommitted to said committee
 
 AN ACT to amend the real property tax law, in relation to granting a tax
   deferment for persons sixty-five years of age or older who reside in a
   city having a population of one million or more persons
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 467-l to read as follows:
   § 467-L. DEFERRAL OF REAL PROPERTY TAX FOR PERSONS SIXTY-FIVE YEARS OF
 AGE  OR  OLDER  RESIDING IN A CITY HAVING A POPULATION OF ONE MILLION OR
 MORE PERSONS. 1. (A) ANY CITY OF ONE MILLION OR  MORE  PERSONS  MAY,  BY
 LOCAL  LAW, GRANT A TAX DEFERMENT FOR QUALIFYING REAL PROPERTY OWNED AND
 OCCUPIED BY ONE OR MORE PERSONS, EACH OF WHOM IS SIXTY-FIVE YEARS OF AGE
 OR OLDER, OR QUALIFYING REAL PROPERTY OWNED AND OCCUPIED BY HUSBAND  AND
 WIFE  OR  BY  SIBLINGS, ONE OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OLDER.
 FOR PURPOSES OF THIS SECTION,  "SIBLING"  SHALL  MEAN  A  BROTHER  OR  A
 SISTER, WHETHER RELATED THROUGH HALF BLOOD, WHOLE BLOOD OR ADOPTION.
   (B) FOR THE PURPOSES OF THIS SECTION, "QUALIFYING REAL PROPERTY" SHALL
 MEAN  A  ONE, TWO OR THREE FAMILY RESIDENCE, A FARM DWELLING OR RESIDEN-
 TIAL PROPERTY HELD IN CONDOMINIUM OR COOPERATIVE FORM OF  OWNERSHIP.  IF
 THE  PROPERTY  IS NOT AN ELIGIBLE TYPE OF PROPERTY, BUT A PORTION OF THE
 PROPERTY IS PARTIALLY USED BY THE OWNER AS  A  PRIMARY  RESIDENCE,  THAT
 PORTION  WHICH IS SO USED SHALL BE ENTITLED TO THE DEFERMENT PROVIDED BY
 THIS SECTION; PROVIDED THAT IN NO EVENT SHALL THE DEFERMENT  EXCEED  THE
 ASSESSED  VALUE  ATTRIBUTABLE TO THAT PORTION. THE PRIMARY RESIDENCE AND
 OCCUPANCY REQUIREMENT SHALL  BE  WAIVED  IF  THE  QUALIFYING  PERSON  OR
 PERSONS  ARE ABSENT FROM THE PROPERTY DUE TO MEDICAL REASONS OR INSTITU-
 TIONALIZATION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00915-02-9

 S. 1062--A                          2
 
   (C) APPLICATION FOR SUCH DEFERMENT SHALL BE MADE ANNUALLY BY THE OWNER
 OR OWNERS OF SUCH REAL PROPERTY. NO APPLICATION FOR SUCH DEFERMENT SHALL
 BE GRANTED TO ANY OWNER WITH A TOTAL INCOME EXCEEDING FIFTY-EIGHT  THOU-
 SAND  FOUR HUNDRED DOLLARS. FOR PURPOSES OF THIS SECTION, "INCOME" SHALL
 MEAN  THE  GROSS  INCOME OF THE OWNER OR OWNERS OF SUCH PROPERTY FOR THE
 INCOME TAX YEAR IMMEDIATELY PRECEDING THE DATE OF APPLICATION  FOR  SUCH
 DEFERMENT  AND  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, EARNED INCOME
 FROM SALARY OR EARNINGS AND NET INCOME FROM SELF-EMPLOYMENT,  BUT  SHALL
 NOT  INCLUDE A RETURN OF CAPITAL, GIFTS OR INHERITANCES. THE AGE OF EACH
 OWNER OF SUCH PROPERTY SHALL BE THE AGE OF SUCH PERSON AT THE  COMMENCE-
 MENT  OF  THE CITY'S FISCAL YEAR FOR WHICH AN APPLICATION FOR TAX DEFER-
 MENT IS MADE.
   2. SUCH DEFERMENT SHALL EQUAL THE TOTAL PER CENTUM  OF  THE  DEFERMENT
 BASE.  FOR  PURPOSES  OF  THIS  SECTION, "DEFERMENT BASE" SHALL MEAN ANY
 INCREASE IN REAL PROPERTY TAX FROM THE TAX  YEAR  IMMEDIATELY  PRECEDING
 THE YEAR IN WHICH SUCH PERSON REACHED THE AGE OF SIXTY-FIVE YEARS TO THE
 TAX YEAR FOR WHICH AN APPLICATION FOR TAX DEFERMENT IS MADE.
   3.  THE  AMOUNT  OF  TAXES  DEFERRED SHALL ACCRUE AGAINST SUCH PERSON,
 WITHOUT INTEREST, AND SHALL, ON THE  DATE  SUCH  DEFERMENT  IS  GRANTED,
 CONSTITUTE  A  LIEN  AGAINST  SUCH  PROPERTY IN FAVOR OF THE APPROPRIATE
 MUNICIPAL CORPORATION. THE OWNER OR  OWNERS  OF  SUCH  PROPERTY,  HAVING
 RECEIVED  SUCH  DEFERMENT  PURSUANT  TO  THIS SECTION, MAY, AT ANY TIME,
 TERMINATE THE DEFERMENT AND REMOVE THE RESULTANT LIEN ON  SAID  PROPERTY
 BY PAYING IN FULL THE CUMULATIVE AMOUNT OF SUCH LIEN.
   4.  A  TAX  DEFERMENT  GRANTED  TO A HUSBAND AND WIFE PURSUANT TO THIS
 SECTION, ONCE GRANTED, SHALL NOT BE  RESCINDED  SOLELY  BECAUSE  OF  THE
 DEATH  OF  THE  OLDER SPOUSE SO LONG AS THE SURVIVING SPOUSE IS AT LEAST
 SIXTY-TWO YEARS OF AGE. IN THE EVENT THAT THE SURVIVING SPOUSE  IS  LESS
 THAN SIXTY-TWO YEARS OF AGE, SUCH SURVIVING SPOUSE SHALL BE ELIGIBLE FOR
 THE  TAX  DEFERMENT  UPON  REACHING  SIXTY-TWO YEARS OF AGE PROVIDED ALL
 OTHER ELIGIBILITY REQUIREMENTS ARE MET.
   5. ANY PERSON WHO HAS ALREADY ATTAINED THE AGE OF SIXTY-FIVE YEARS  OR
 OLDER  IS  ELIGIBLE  FOR  SUCH  DEFERRAL  AND SHALL BE ENTITLED TO A TAX
 DEFERMENT BASED ON THE TAX YEAR IMMEDIATELY PRECEDING THE EFFECTIVE DATE
 OF THIS SECTION.
   6. THE DEFERMENT PERIOD WILL EXPIRE WHEN  EITHER  NO  ELIGIBLE  PERSON
 REMAINS  IN THE PROPERTY, OR WHEN THE BENEFICIARY OF THE DEFERMENT FAILS
 TO REAPPLY FOR SUCH DEFERMENT; PROVIDED, HOWEVER, THAT THE  MUNICIPALITY
 MUST PROVIDE A NOTICE SIXTY DAYS PRIOR TO THE ANNUAL REAPPLICATION DEAD-
 LINE VIA UNITED STATES POSTAL SERVICE TO THE BENEFICIARY'S PRIMARY RESI-
 DENCE. UPON THE EXPIRATION OF THE DEFERMENT PERIOD, THE MUNICIPAL CORPO-
 RATION  MAY  COLLECT UPON THE LIEN UTILIZING ITS STANDARD PROCEDURES FOR
 TAX LIENS AND TAX SALES PURSUANT TO CHAPTER THREE OF TITLE ELEVEN OF THE
 ADMINISTRATIVE CODE OF THE CITY OF NEW YORK.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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Senate Bill S1062A

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Sponsored By

Archive: Last Bill Status - In Senate Committee Aging Committee

Bill Amendments

co-Sponsors

2019-S1062 - Details

2019-S1062 - Summary

2019-S1062 - Sponsor Memo

2019-S1062 - Bill Text download pdf

co-Sponsors

2019-S1062A (ACTIVE) - Details

2019-S1062A (ACTIVE) - Summary

2019-S1062A (ACTIVE) - Sponsor Memo

2019-S1062A (ACTIVE) - Bill Text download pdf

Comments