S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5100--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 11, 2021
                                ___________
 
 Introduced  by  M.  of  A.  SOLAGES, RA -- 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 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 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 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-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  fourteenth,  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06267-04-2
              

 A. 5100--A                          2
 
 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 imme-
 diately  preceding  the  date  of  application. 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,
 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. 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
 A. 5100--A                          3
 
 THOUSAND  AS  OF THE LAST DECENNIAL CENSUS FIFTY THOUSAND DOLLARS BEGIN-
 NING 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 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;
   §  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 2022 and all county fiscal years thereafter.   Appli-
 cations  received for the county fiscal year commencing in 2022 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.