S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1133
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2023
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the real property tax law and the tax law,  in  relation
   to the definition of income in relation to the enhanced STAR exemption
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (ii) of paragraph  (b)  of  subdivision  4  of
 section  425  of  the  real property tax law, as amended by section 1 of
 part B of chapter 59 of the laws of 2018, is amended to read as follows:
   (ii) The term "income" as used herein shall mean the  "adjusted  gross
 income"  for  federal income tax purposes as reported on the applicant's
 federal or state income tax return for the applicable income  tax  year,
 subject  to  any subsequent amendments or revisions, reduced by distrib-
 utions, to  the  extent  included  in  federal  adjusted  gross  income,
 received from an individual retirement account and an individual retire-
 ment  annuity,  AND  DISTRIBUTION FROM A THRIFT SAVINGS PLAN ESTABLISHED
 PRIOR TO JANUARY FIRST, NINETEEN HUNDRED EIGHTY-FOUR; provided  that  if
 no  such  return  was filed for the applicable income tax year, "income"
 shall mean the adjusted gross income that would have been so reported if
 such a return had been filed.   Provided further,  that  effective  with
 exemption applications for final assessment rolls to be completed in two
 thousand  nineteen,  where an income-eligibility determination is wholly
 or partly based upon the income of one or more individuals who  did  not
 file  a return for the applicable income tax year, then in order for the
 application to be considered complete, each such individual must file  a
 statement  with  the  department showing the source or sources of his or
 her income for that income tax year, and the amount or amounts  thereof,
 that  would  have  been reported on such a return if one had been filed.
 Such statement shall be filed at such time, and in such form and manner,
 as may be prescribed by the department, and  shall  be  subject  to  the
 secrecy  provisions  of  the  tax law to the same extent that a personal
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03727-01-3
              

 S. 1133                             2
 
 income tax return would be.  The department shall make  such  forms  and
 instructions  available  for  the  filing  of such statements. The local
 assessor shall upon the request of a taxpayer assist  such  taxpayer  in
 the filing of the statement with the department.
   §  2.  Subparagraph  (B) of paragraph 1 of subsection (eee) of section
 606 of the tax law, as amended by section 10 of part B of chapter 59  of
 the laws of 2018, is amended to read as follows:
   (B)  "Affiliated  income"  shall  mean  for purposes of the basic STAR
 credit, the combined income of all of  the  owners  of  the  parcel  who
 resided  primarily  thereon  as  of December thirty-first of the taxable
 year, and of any owners' spouses residing primarily thereon as  of  such
 date,  and for purposes of the enhanced STAR credit, the combined income
 of all of the owners of the parcel as of December  thirty-first  of  the
 taxable  year,  and of any owners' spouses residing primarily thereon as
 of such date; provided that for  both  purposes  the  income  to  be  so
 combined  shall  be  the "adjusted gross income" for the taxable year as
 reported for federal income tax purposes, or that would be  reported  as
 adjusted gross income if a federal income tax return were required to be
 filed,  reduced  by  distributions,  to  the  extent included in federal
 adjusted gross income, received from an  individual  retirement  account
 and  an  individual  retirement  annuity, AND DISTRIBUTION FROM A THRIFT
 SAVINGS PLAN ESTABLISHED PRIOR TO JANUARY FIRST, NINETEEN HUNDRED EIGHT-
 Y-FOUR. For taxable years beginning on  and  after  January  first,  two
 thousand  nineteen,  where an income-eligibility determination is wholly
 or partly based upon the income of one or more individuals who  did  not
 file  a return pursuant to section six hundred fifty-one of this article
 for the applicable income tax year, then in order to be eligible for the
 credit authorized by this subsection, each such individual must  file  a
 statement  with  the  department showing the source or sources of his or
 her income for that income tax year, and the amount or amounts  thereof,
 that  would  have  been reported on such a return if one had been filed.
 Such statement shall be filed at such time, and in such form and manner,
 as may be prescribed by the department, and  shall  be  subject  to  the
 provisions  of  section  six hundred ninety-seven of this article to the
 same extent that a return would be. The department shall make such forms
 and instructions available for the filing of such statements. The  local
 assessor  shall  upon  the request of a taxpayer assist such taxpayer in
 the filing of the statement with the department. Provided further,  that
 if  the qualified taxpayer was an owner of the property during the taxa-
 ble year but did not own it on  December  thirty-first  of  the  taxable
 year,  then  the determination as to whether the income of an individual
 should be included in "affiliated income" shall be based upon the owner-
 ship and/or residency status of that individual as of the first  day  of
 the  month  during which the qualified taxpayer ceased to be an owner of
 the property, rather than as of December  thirty-first  of  the  taxable
 year.
   §  3. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.