S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  480--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  M.  of A. ROZIC, HEVESI -- read once and referred to the
   Committee on Aging -- recommitted to the Committee on Aging in accord-
   ance with Assembly Rule  3,  sec.  2  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee

 AN ACT to amend the real property tax law, in relation to tax  abatement
   for  rent-controlled  and rent regulated property occupied by and real
   property owned by senior citizens or persons with disabilities
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraphs a and b of subdivision 3 of section 467-b of the
 real  property tax law, paragraph a as amended by section 1 of part U of
 chapter 55 of the laws of 2014 and paragraph b as amended by chapter 129
 of the laws of 2014, are amended to read as follows:
   a. for a dwelling unit where the head of the  household  is  a  person
 sixty-two  years  of  age or older, no tax abatement shall be granted if
 the combined income of all members of the household for the  income  tax
 year  immediately  preceding the date of making application exceeds four
 thousand dollars, or such other sum not more than  twenty-five  thousand
 dollars  beginning  July  first,  two thousand five, 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 fifty thousand
 dollars beginning July first,  two  thousand  fourteen,  AND  FIFTY-FIVE
 THOUSAND  DOLLARS  BEGINNING JULY FIRST, TWO THOUSAND TWENTY-TWO, as may
 be provided by the local law, ordinance or resolution  adopted  pursuant
 to  this  section,  provided that when the head of the household retires
 before the commencement of such income tax year and the date  of  filing
 the  application,  the income for such year may be adjusted by excluding
 salary or earnings and projecting his or her retirement income over  the
 entire period of such year.
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03380-05-2
 A. 480--A                           2
 
   b.  for a dwelling unit where the head of the household qualifies as a
 person with a disability pursuant to subdivision five of  this  section,
 no tax abatement shall be granted if the combined income for all members
 of  the household for the current income tax year exceeds fifty thousand
 dollars  beginning  July  first,  two  thousand fourteen, AND FIFTY-FIVE
 THOUSAND DOLLARS BEGINNING JULY FIRST, TWO THOUSAND TWENTY-TWO,  as  may
 be  provided  by the local law, ordinance or resolution adopted pursuant
 to this section.
   § 2. Paragraph (a) of subdivision 3 of section 467 of the real proper-
 ty tax law, as amended by chapter 558 of the laws of 2021, 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  FIFTY-FIVE
 THOUSAND DOLLARS BEGINNING JULY FIRST, TWO THOUSAND TWENTY-TWO as may be
 provided  by  the local law, ordinance or resolution adopted pursuant to
 this section. Where the taxable status date is on or before April  four-
 teenth, income tax year shall mean the twelve-month period for which the
 owner  or owners filed a federal personal income tax return for the year
 before the income tax year immediately preceding the date of application
 and where the taxable status date is on or after April fifteenth, income
 tax year shall mean the twelve-month  period  for  which  the  owner  or
 owners  filed  a  federal  personal income tax return for the income tax
 year immediately preceding the date of application. Where title is vest-
 ed 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  retire-
 ment 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,  payments
 made  to  individuals  because of their status as victims of Nazi perse-
 cution, 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  deter-
 mined  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
 A. 480--A                           3
 
 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 proper-
 ty  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
 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;
   § 3. 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  FIFTY-FIVE
 THOUSAND DOLLARS BEGINNING JULY FIRST, TWO THOUSAND TWENTY-TWO 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
 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;
   §  4. This act shall take effect immediately, provided that the amend-
 ments to paragraphs a and b of subdivision 3 of  section  467-b  of  the
 real  property  tax law made by section one of this act shall not affect
 the expiration of such paragraphs and shall be deemed to  expire  there-
 with.