S T A T E O F N E W Y O R K
________________________________________________________________________
1244
2019-2020 Regular Sessions
I N S E N A T E
January 11, 2019
___________
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government
AN ACT to amend the real property tax law, in relation to the senior
citizen and disabled property owner exemption
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (b) of subdivision 1 of section 467 of the real
property tax law, as amended by chapter 261 of the laws of 1994, subpar-
agraph 3 as added by chapter 402 of the laws of 1995, is amended to read
as follows:
(b) (1) Any local law, ordinance or resolution adopted pursuant to
paragraph (a) of this subdivision may be amended, or a local law, ordi-
nance or resolution may be adopted, to provide an exemption so as to
increase the maximum income eligibility level of such municipal corpo-
ration as provided in subdivision three of this section (represented in
the hereinbelow schedule as M), to the extent provided in the following
schedule:
ANNUAL INCOME PERCENTAGE ASSESSED VALUATION
EXEMPT FROM TAXATION
More than (M) but
[less than (M+ $1,000) 45 per centum
(M+ $1,000 or more) but
less than (M+ $2,000) 40 per centum
(M+ $2,000 or more) but]
less than (M+ [$3,000] $10,000) 35 per centum
[(M+ $3,000 or more) but
less than (M+ $3,900) 30 per centum
(M+ $3,900 or more) but
less than (M+ $4,800) 25 per centum
(M+ $4,800 or more) but
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06541-01-9
S. 1244 2
less than (M+ $5,700) 20 per centum]
(2) Any local law, ordinance or resolution adopted pursuant to subpar-
agraph one of this paragraph may be amended, or a local law, ordinance
or resolution may be adopted, to provide an exemption so as to increase
the maximum income eligibility level of such municipal corporation as
provided in subdivision three of this section (represented in the here-
inbelow schedule as M), and as increased as provided for in such subpar-
agraph one to the extent provided in the following schedule:
ANNUAL INCOME PERCENTAGE ASSESSED VALUATION
EXEMPT FROM TAXATION
(M+ [$5,700] $10,000 or more) but
less than (M+ [$6,600] $25,000) 15 per centum
[(M+ $6,600 or more) but
less than (M+ $7,500 10 per centum]
(3) Any local law, ordinance or resolution adopted pursuant to subpar-
agraphs one and two of this paragraph may be amended, or a local law,
ordinance or resolution may be adopted, to provide an exemption so as to
increase the maximum income eligibility level of such municipal corpo-
ration as provided in subdivision three of this section (represented in
the hereinbelow schedule as M), and as increased as provided for in such
subparagraph one to the extent provided in the following schedule:
ANNUAL INCOME PERCENTAGE ASSESSED VALUATION
EXEMPT FROM TAXATION
(M+ [$7,500] $25,000 or more) but
less than (M+ [$8,400] $35,000) 5 per centum
§ 2. Paragraph (a) of subdivision 3 of section 467 of the real proper-
ty 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, 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 resid-
ing 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
S. 1244 3
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 annui-
ty 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 satisfactory proof that such an exchange was solely an exchange of an
annuity for an annuity contract that resulted in a non-taxable transfer
determined by such section of the internal revenue code. 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 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;
§ 3. Paragraph (b) of subdivision 1 of section 459-c of the real prop-
erty tax law, as added by chapter 315 of the laws of 1997, is amended to
read as follows:
(b) Any local law or resolution adopted pursuant to paragraph (a) of
this subdivision may be amended, or a local law or resolution may be
adopted, to provide an exemption so as to increase the maximum income
eligibility level of such municipal corporation as provided in subdivi-
sion five of this section (represented in the hereinbelow schedule as
M), to the extent provided in the following schedule:
ANNUAL INCOME PERCENTAGE ASSESSED VALUATION
EXEMPT FROM TAXATION
More than (M) but
[less than (M+ $1,000) 45 per centum
(M+ $1,000 or more) but
less than (M+ $2,000) 40 per centum
(M+ $2,000 or more) but]
less than (M+ [$3,000] $10,000) 35 per centum
[(M+ $3,000 or more) but
less than (M+ $3,900) 30 per centum
(M+ $3,900 or more) but
less than (M+ $4,800) 25 per centum
(M+ $4,800 or more) but
less than (M+ $5,700) 20 per centum]
(M+ [$5,700] $10,000 or more) but
less than (M+ [$6,600] $25,000) 15 per centum
[(M+ $6,600 or more) but
less than (M+ $7,500) 10 per centum]
(M + [$7,500] $25,000 or more) but
less than (M+ [$8,400] $35,000) 5 per centum
S. 1244 4
§ 4. 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, 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 proper-
ty 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 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;
§ 5. The state shall, within an appropriation made available therefor,
reimburse municipal corporations for the difference between the amount
of real property tax revenue abated for the fiscal year of such munici-
pality that occurs after April 1, 2019 pursuant to the income thresholds
established pursuant to the provisions of this act, and the amount of
real property tax revenue that would have been abated for such period
pursuant to the income thresholds that were in effect immediately prior
to the effective date of this act.
§ 6. This act shall take effect immediately.
