S T A T E O F N E W Y O R K
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1819
2023-2024 Regular Sessions
I N S E N A T E
January 17, 2023
___________
Introduced by Sen. STAVISKY -- read twice and ordered printed, and when
printed to be committed 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
S. 1819 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
S. 1819 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.
