S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3085
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2021
                                ___________
 
 Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
   tee on Aging
 
 AN ACT to amend the real property tax law,  in  relation  to  qualifying
   income  for  a  property tax exemption for persons sixty-five years of
   age or over
 
   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]  THIRTY-FIVE  THOUSAND  DOLLARS BEGINNING JULY FIRST, TWO THOUSAND
 TWENTY-TWO, 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
 residing on the property shall be considered and  may  not  exceed  such
 sum.  Such income shall include social security and retirement benefits,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02921-01-1

 A. 3085                             2
 
 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. 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;
   § 2. This act shall take effect immediately.