S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2960
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2023
                                ___________
 
 Introduced  by  Sens. KAVANAGH, HOYLMAN-SIGAL, SERRANO -- 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 increasing the
   combined  household  income limit for eligibility for a senior citizen
   rent increase exemption (SCRIE), disability  rent  increase  exemption
   (DRIE),  senior  citizen  homeowners'  exemption  (SCHE), and disabled
   homeowners' exemption (DHE) on the basis of the consumer price index
 
   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, 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 applica-
 tion, 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.  THE MAXIMUM INCOME THRESHOLD PROVIDED  FOR  HEREIN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07217-01-3
              

 S. 2960                             2
 
 SHALL BE INCREASED BY ORDER OF THE COMMISSIONER OF THE STATE DIVISION OF
 HOUSING  AND COMMUNITY RENEWAL  ON JANUARY FIRST OF EACH YEAR TO REFLECT
 ANY INCREASE  IN  THE  REGIONAL  CONSUMER  PRICE  INDEX  FOR  THE  N.Y.,
 N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON THE INDEX FOR ALL URBAN CONSUM-
 ERS (CPI-U) DURING THE PRECEDING TWELVE MONTH PERIOD.
   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,
 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, as may be  provided
 by  the  local  law,  ordinance  or  resolution adopted pursuant to this
 section.   THE MAXIMUM INCOME THRESHOLD PROVIDED  FOR  HEREIN  SHALL  BE
 INCREASED  BY ORDER OF THE COMMISSIONER OF THE STATE DIVISION OF HOUSING
 AND COMMUNITY RENEWAL ON JANUARY FIRST  OF  EACH  YEAR  TO  REFLECT  ANY
 INCREASE   IN   THE   REGIONAL   CONSUMER  PRICE  INDEX  FOR  THE  N.Y.,
 N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON THE INDEX FOR ALL URBAN CONSUM-
 ERS (CPI-U) DURING THE PRECEDING TWELVE MONTH PERIOD.
   § 2. Paragraphs d and m of subdivision 1 of section 467-c of the  real
 property  tax law, paragraph d as separately amended by chapters 188 and
 205 of the laws of 2005, subparagraph 1 of paragraph  d  as  amended  by
 section 2 of part U of chapter 55 of the laws of 2014 and paragraph m as
 amended  by  chapter  129  of  the  laws of 2014, are amended to read as
 follows:
   d. "Eligible head of the household" means (1) a person or his  or  her
 spouse  who  is  sixty-two  years of age or older and is entitled to the
 possession or to the use and occupancy of  a  dwelling  unit,  provided,
 however,  with  respect  to  a  dwelling which was subject to a mortgage
 insured or initially insured  by  the  federal  government  pursuant  to
 section  two  hundred  thirteen  of the National Housing Act, as amended
 "eligible head of the household" shall be limited to that person or  his
 or her spouse who was entitled to possession or the use and occupancy of
 such  dwelling  unit  at  the  time of termination of such mortgage, and
 whose income when combined with the income of all other members  of  the
 household,  does  not  exceed  six thousand five hundred dollars for the
 taxable period, or such other  sum  not  less  than  sixty-five  hundred
 dollars nor 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, as may be provided by local law; or (2) a person with
 a disability as defined in this subdivision.  THE MAXIMUM INCOME THRESH-
 OLD  PROVIDED FOR HEREIN SHALL BE INCREASED BY ORDER OF THE COMMISSIONER
 OF THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL  ON JANUARY FIRST
 OF EACH YEAR TO REFLECT ANY INCREASE  IN  THE  REGIONAL  CONSUMER  PRICE
 INDEX  FOR  THE N.Y., N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON THE INDEX
 FOR ALL URBAN CONSUMERS (CPI-U) DURING THE PRECEDING TWELVE MONTH  PERI-
 OD.
   m.  "Person  with  a  disability" means an individual who is currently
 receiving social security disability insurance  (SSDI)  or  supplemental
 security  income (SSI) benefits under the federal social security act or
 disability pension or disability compensation benefits provided  by  the
 United  States department of veterans affairs or those previously eligi-
 ble by virtue of receiving disability benefits  under  the  supplemental
 security  income  program  or the social security disability program and
 S. 2960                             3
 
 currently receiving medical assistance benefits based  on  determination
 of  disability  as  provided  in  section three hundred sixty-six of the
 social services law and whose income for the current  income  tax  year,
 together  with the income of all members of such individual's household,
 does not exceed fifty thousand dollars beginning July first,  two  thou-
 sand  fourteen,  as  may  be provided by local law.   THE MAXIMUM INCOME
 THRESHOLD PROVIDED FOR HEREIN SHALL BE INCREASED BY ORDER OF THE COMMIS-
 SIONER OF THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL ON JANUARY
 FIRST OF EACH YEAR TO REFLECT ANY  INCREASE  IN  THE  REGIONAL  CONSUMER
 PRICE  INDEX FOR THE N.Y., N.Y.-NORTHEASTERN, N.J.  AREA, BASED UPON THE
 INDEX FOR ALL URBAN CONSUMERS (CPI-U) DURING THE PRECEDING TWELVE  MONTH
 PERIOD.
   § 3. Paragraph (a) of subdivision 3 of section 467 of the real proper-
 ty  tax law, as separately amended by chapters 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,
 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.   THE MAXIMUM INCOME THRESHOLD PROVIDED  FOR  HEREIN  SHALL  BE
 INCREASED  BY ORDER OF THE COMMISSIONER ON JANUARY FIRST OF EACH YEAR TO
 REFLECT ANY INCREASE IN THE REGIONAL CONSUMER PRICE INDEX FOR THE  N.Y.,
 N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON THE INDEX FOR ALL URBAN CONSUM-
 ERS  (CPI-U) DURING THE PRECEDING TWELVE MONTH PERIOD. 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 imme-
 diately  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 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 proper-
 ty as provided in subparagraph (ii) of paragraph (d)  of  this  subdivi-
 sion,  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, divi-
 dends, 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 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
 S. 2960                             4
 
 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 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 satis-
 factory proof that such an exchange was solely an exchange of an annuity
 for an annuity contract that resulted in a non-taxable  transfer  deter-
 mined  by  such  section of the internal revenue code. Furthermore, such
 income shall not include the proceeds of a reverse mortgage, as  author-
 ized  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;
   § 4. 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 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
 section. THE MAXIMUM INCOME  THRESHOLD  PROVIDED  FOR  HEREIN  SHALL  BE
 INCREASED  BY ORDER OF THE COMMISSIONER ON JANUARY FIRST OF EACH YEAR TO
 REFLECT ANY INCREASE IN THE REGIONAL CONSUMER PRICE INDEX FOR THE  N.Y.,
 N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON THE INDEX FOR ALL URBAN CONSUM-
 ERS  (CPI-U)  DURING  THE PRECEDING TWELVE MONTH PERIOD. 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
 S. 2960                             5
 
 any such income shall be offset by all  medical  and  prescription  drug
 expenses  actually  paid which were not reimbursed or paid for by insur-
 ance, if the governing board of a municipality, after a public  hearing,
 adopts  a  local  law 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;
   § 5. This act shall take effect immediately; provided that:
   (a) the amendments to paragraph a 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 paragraph pursuant to section 4 of part U
 of chapter 55 of the laws of 2014, as amended, and shall  be  deemed  to
 expire therewith;
   (b) the amendments to paragraph 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 paragraph pursuant to section 4 of chapter
 129 of the laws of 2014, as amended, and shall be deemed to expire ther-
 ewith;
   (c) the amendments to subparagraph 1 of paragraph d of  subdivision  1
 of  section  467-c  of the real property tax law, made by section two of
 this act shall not affect the expiration of such  subparagraph  pursuant
 to  section  4  of part U of chapter 55 of the laws of 2014, as amended,
 and shall be deemed expired therewith; and
   (d) the amendments to paragraph m of subdivision 1 of section 467-c of
 the real property tax law, made by section two of  this  act  shall  not
 affect the expiration of such paragraph pursuant to section 4 of chapter
 129  of the laws of 2014, as amended, and shall be deemed expired there-
 with.