S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2122
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2023
                                ___________
 
 Introduced  by  M.  of A. ROZIC, HEVESI -- read once and referred to the
   Committee on Aging
 
 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-THREE, 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.
   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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04986-01-3
              

 A. 2122                             2
 
 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-THREE, 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 separately amended by chapter 488 and section 1 of part B
 of chapter 686 of the laws of 2022, 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,
 FIFTY-FIVE THOUSAND DOLLARS BEGINNING JULY FIRST, TWO  THOUSAND  TWENTY-
 THREE,  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 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
 reverse mortgage, as authorized by section six-h of the banking law, and
 A. 2122                             3
 
 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 separately amended by chapter 488 and section 2 of part
 B of chapter 686 of the laws of 2022, 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 FIFTY-FIVE THOUSAND DOLLARS BEGINNING JULY FIRST, TWO  THOUSAND
 TWENTY-THREE,  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 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.