BILL NUMBER: S2574

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to tax exemptions
for persons with disabilities

 
PURPOSE OR GENERAL IDEA OF BILL:

To include workers compensation certifications of disability as proof of
disability for disabled homeowners property tax exemption programs.

 
SUMMARY OF PROVISIONS:

Section one amends paragraph (b) of subdivision two of section 459-c of
the Real Property Tax Law to include workers compensation award letters
for either total or partial permanent disability in the list of docu-
ments which may be used to prove disability for applicants of disabled
homeowners exemption programs.

Section two sets the effective date.
              

 
JUSTIFICATION:

Article 4 of the Real Property Tax Law creates various exemption and
abatement programs property owners may use to reduce tax liability,
based on either characteristics of the property owner, such as limited
income, or of the property, such as green retrofits_ One of the
programs, called "exemptions for persons with disabilities", helps prop-
erty owners reduce the assessed value of their properties by up to 50%
if a locality opts in. This program is known as the Disabled Homeowners'
Exemption (DHE) in New York City and can be claimed for gross household
incomes up to $58,399.

Chapter 315 of 1997, which first created DHE programs, lists a range of
documents which may be submitted by property owners to prove disability,
such as an award letter from the Social Security Administration for
Social Security Disability Insurance (SSDI) or Supplemental Security
Income (SSI), an award letter from the federal Railroad Retirement Board
certifying railroad retirement disability benefits, or a certificate
from the State Commission for the Blind and Visually Handicapped stating
that the applicant is legally blind. This list was later amended with
Chapter 421 of 2000, which added award letters from the United States
Postal Service (USPS) for a USPS disability pension, and later Chapter
353 of 2009, which added award letters from the US Department of Veter-
ans Affairs for veterans disability pensions. The list has not been
updated since.

This bill adds certifications of disability from the Workers Compen-
sation Board to the list of acceptable documents which may be submitted
to prove disability. Applicants for workers compensation benefits under-
go a rigorous process, which includes submitting proof of medical treat-
ment as well as details of the work-related accident, defending the
claim if the insurer (either a private employer or the NYS Insurance
Fund for the public sector) chooses to dispute the claim, attending
hearings where a judge reviews medical records and wages, and if neces-
sary, filing an appeal. Workers deemed partially or totally permanently
disabled at the end of this process have been found by medical experts
as well as the Workers Compensation Board to have permanently lost some
or all wage-earning capacity. There is no reason why the list of accept-
able documents by which a homeowner may prove disability, last updated
more than a decade ago, should not be amended to include such determi-
nations.

By updating the list of proofs of disability while retaining all exist-
ing requirements for DHE programs, this bill will help disabled homeown-
ers unable to afford sky-high property taxes keep a roof over their
heads. While low- to middle-income homeowners in localities such as New
York City deserve sweeping property tax reform to upend an antiquated,
opaque, and deeply unjust system, a small step such as easing the admin-
istrative process by which they may receive property tax exemptions will
provide immediate, much-needed relief.

 
PRIOR LEGISLATIVE HISTORY:

2022: S8218 - Passed Senate, died in Assembly

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.