S T A T E   O F   N E W   Y O R K
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                                  3085--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2021
                                ___________
 
 Introduced  by  Sen.  STEWART-COUSINS -- read twice and ordered printed,
   and when printed to be committed to the Committee on Aging  --  recom-
   mitted  to  the  Committee  on Aging in accordance with Senate Rule 6,
   sec. 8 -- 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 increasing the
   amount of income property owners may earn for the purpose of eligibil-
   ity for the property tax exemption for persons sixty-five years of age
   or over and for persons with disabilities and limited income
 
   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,
 FIFTY  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. 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
 where the taxable status date is on or after April fifteenth, income tax
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01417-02-2
              

 S. 3085--A                          2
 
 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  FIFTY  THOUSAND  DOLLARS BEGINNING JULY FIRST, TWO THOUSAND TWENTY-
 TWO, and in a city with a population of one million or more fifty  thou-
 sand  dollars  beginning  July  first, two thousand seventeen, as may be
 provided by the  local  law  or  resolution  adopted  pursuant  to  this
 S. 3085--A                          3
 
 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;
   § 3. This act shall take effect immediately.