NY State Senate Bill 2023-S4705

Senate Bill S4705

2023-2024 Legislative Session

Establishes the renters' and small homeowners' credit in a city with a population of a million or more

download bill text pdf

Current Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to budget and revenue
Feb 13, 2023	referred to budget and revenue

2023-S4705 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7417
2015-2016: S3254
2017-2018: S3214
2019-2020: S2107
2021-2022: S3861

2023-S4705 (ACTIVE) - Summary

Establishes the renters' and small homeowners' credit in a city with a population of one million or more.

2023-S4705 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4705

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a renters' and
small homeowners' tax credit

 
PURPOSE:

To provide a state tax credit to renters and small homeowners in the
city of New York.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 606 of the tax law by adding a new
subsection (b-1) that will provide a renters' and small homeowners' tax
credit in a city of a million or more. The bill defines a "qualified"
tax payer to be any one of the following individuals:

a. A resident individual who lives in a city with a population of a
million or more who has occupied and paid rent for his or her primary

residence in such city for six months or more of the taxable year, is
required or chooses to file a tax return and is one of the following:

*is 65 or older

*is filing a joint return with a spouse who is 65 or older *is a head of
household

*is a married individual filing a joint return with a spouse and has at
least 1 dependent

*is a married individual filing a separate return and has at least 1
dependent

*is a surviving spouse and has at least one dependent

b. An owner of any dwelling with six units or less in a city of a
million or more who occupies such dwelling as his or her primary resi-
dence for six months or more of the taxable year and who is required or
chooses to file a tax return.

The bill also states that an individual who is listed as a dependent
allowable to another taxpayer for the taxable year or who pays rent for
his or her primary resident to a family member sharing the same primary
residence shall not be a "qualified taxpayer" for purposes of this
section.

(B) "Residence" means a dwelling in a city with a population of a
million or more and may consist of a part of a multi-dwelling or multi-
purpose building including a cooperative or condominium, one, two or
three family dwellings and rental units within a single dwelling which
are either owner-occupied or rented by a qualified taxpayer.

(2)(A) A qualified taxpayer shall be allowed a credit against the taxes
imposed by this article reduced by the credits permitted in this arti-
cle. If the credit exceeds the tax as so reduced for such year, the

excess shall be treated as an overpayment of tax to be credited or
refunded without interest.

(2)(B) If more than one qualified taxpayer pays rent for the same prima-
ry residence and has a federal adjusted gross income for which a credit
would be due, each such qualified taxpayer shall divide the base amount
of the credit allowed for his or her income level by the total number of
individuals or married couples filing a joint return who are paying the
rent, whether or not eligible for a credit, to determine the amount of
credit allowed to that qualified taxpayer.

(2) (C) A qualified taxpayer shall be allowed the credit under this
subsection or the credit under subsection (e) of this section (real
property tax circuit breaker credit), whichever is the higher amount.

(3)(A) Sets forth the tables to be used for determining the credits
allowed for a qualified taxpayer who is 65 or older with a filing status
of single.

(3)(B) Sets forth the tables to be used for determining the credits
allowed for any other qualified taxpayer, provided, however, that a
qualified taxpayer who is a married individual filing a separate New
York income tax return shall receive one-half of the base amount of the
credit plus any additional amount for which such taxpayer would be
eligible based on the income and number of exemptions claimed by such
taxpayer.

Section 2 sets an immediate effective date.

 
EXISTING LAW:

This tax credit is not in place under existing law.

 
JUSTIFICATION:

In January 2014, Governor Cuomo proposed the creation of a Renters' Tax
Credit in his 20142015 Budget in order to give renters a much needed
income tax credit to ease their tax burden. While it is important to
give renters this income tax credit, it is equally important that small
homeowners, including co-op and condominium owners in the city of New
York also be granted this same tax credit.  In December 2011 a property
tax cap was implemented throughout New York State but explicitly
exempted the city of New York. This much needed relief was denied to
small homeowners in the city of New York despite their equally dire need
for relief from their overall tax burden.

This bill Will rectify that inequity and provide much needed relief to
both renters and small homeowners who occupy these residences as their
primary residences. This includes owners of co-ops and condominiums who
are already being treated unfairly under the New York City property tax
laws.

 
LEGISLATIVE HISTORY:

2021-22 REFERRED TO SENATE BUDGET AND REVENUE

2019-20 REFERRED TO SENATE BUDGET AND REVENUE

 
FISCAL IMPLICATIONS:

To be determined

 
LOCAL FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S4705 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4705
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 13, 2023
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to establishing a renters'  and
   small homeowners' tax credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
 subsection (b-1) to read as follows:
   (B-1)  RENTERS'  AND  SMALL  HOMEOWNERS' CREDIT IN A CITY WITH A POPU-
 LATION OF ONE MILLION OR MORE.
   (1) FOR THE PURPOSES OF THIS SUBSECTION:
   (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL WHO  LIVES  IN  A
 CITY  WITH A POPULATION OF ONE MILLION OR MORE WHO HAS OCCUPIED AND PAID
 RENT FOR HIS OR HER PRIMARY RESIDENCE IN SUCH CITY  FOR  SIX  MONTHS  OR
 MORE  OF THE TAXABLE YEAR, IS REQUIRED OR CHOOSES TO FILE A RETURN UNDER
 THIS ARTICLE, AND (I) IS SIXTY-FIVE YEARS  OF  AGE  OR  OLDER,  (II)  IS
 FILING  A  JOINT  RETURN WITH A SPOUSE WHO IS SIXTY-FIVE YEARS OF AGE OR
 OLDER, (III) IS A HEAD OF HOUSEHOLD, (IV) IS A MARRIED INDIVIDUAL FILING
 A JOINT RETURN WITH A SPOUSE AND HAS AT LEAST ONE DEPENDENT,  (V)  IS  A
 MARRIED INDIVIDUAL FILING A SEPARATE RETURN AND HAS AT LEAST ONE DEPEND-
 ENT,  OR (VI) IS A SURVIVING SPOUSE AND HAS AT LEAST ONE DEPENDENT.  FOR
 PURPOSES OF THIS SUBSECTION "QUALIFIED TAXPAYER" SHALL ALSO INCLUDE  THE
 OWNER OF ANY DWELLING WITH SIX UNITS OR LESS IN A CITY WITH A POPULATION
 OF  ONE MILLION OR MORE WHO OCCUPIES SUCH DWELLING AS HIS OR HER PRIMARY
 RESIDENCE FOR SIX MONTHS OR MORE OF THE TAXABLE YEAR AND WHO IS REQUIRED
 OR CHOOSES TO FILE A RETURN UNDER THIS ARTICLE.  AN INDIVIDUAL CANNOT BE
 A QUALIFIED TAXPAYER IF HE OR SHE IS AN INDIVIDUAL WITH RESPECT TO  WHOM
 A  DEDUCTION UNDER SUBSECTION (C) OF SECTION 151 OF THE INTERNAL REVENUE
 CODE IS ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR OR PAYS  RENT
 FOR  HIS  OR  HER  PRIMARY RESIDENCE TO A FAMILY MEMBER SHARING THE SAME
 PRIMARY RESIDENCE.  A FAMILY MEMBER OF AN INDIVIDUAL IS THE INDIVIDUAL'S
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09536-01-3

 S. 4705                             2
 
 SPOUSE, BROTHER, SISTER, PARENT, GRANDPARENT, CHILD, GRANDCHILD,  UNCLE,
 AUNT,  NEPHEW, OR NIECE, RELATED TO THE INDIVIDUAL BY BLOOD, MARRIAGE OR
 ADOPTION.
   (B)  "RESIDENCE"  MEANS  A DWELLING IN A CITY WITH A POPULATION OF ONE
 MILLION OR MORE AND MAY CONSIST OF A PART OF A MULTI-DWELLING OR  MULTI-
 PURPOSE  BUILDING  INCLUDING  A  COOPERATIVE OR CONDOMINIUM, ONE, TWO OR
 THREE FAMILY DWELLINGS AND RENTAL UNITS WITHIN A SINGLE  DWELLING  WHICH
 ARE  EITHER  OWNER-OCCUPIED OR RENTED BY A QUALIFIED TAXPAYER. RESIDENCE
 INCLUDES A TRAILER OR MOBILE  HOME,  USED  EXCLUSIVELY  FOR  RESIDENTIAL
 PURPOSES  AND  DEFINED  AS  REAL  PROPERTY  PURSUANT TO PARAGRAPH (G) OF
 SUBDIVISION TWELVE OF SECTION ONE HUNDRED TWO OF THE REAL  PROPERTY  TAX
 LAW.
   (2)  (A) A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED IN
 THIS SUBSECTION AGAINST THE TAXES IMPOSED BY THIS ARTICLE REDUCED BY THE
 CREDITS PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX  AS  SO
 REDUCED FOR SUCH YEAR UNDER THIS ARTICLE, THE EXCESS SHALL BE TREATED AS
 AN  OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
 PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE,  PROVIDED,
 HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. IF A QUALIFIED TAXPAYER
 IS  NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-
 ONE OF THIS ARTICLE BUT OTHERWISE QUALIFIES  FOR  A  CREDIT  UNDER  THIS
 SUBSECTION, A CLAIM FOR A CREDIT MAY BE TAKEN ON A RETURN FILED WITH THE
 COMMISSIONER  WITHIN  THREE YEARS FROM THE TIME THAT A RETURN WOULD HAVE
 BEEN REQUIRED TO BE FILED PURSUANT TO SUCH SECTION  HAD  SUCH  QUALIFIED
 TAXPAYER  HAD  A  TAXABLE  YEAR ENDING ON DECEMBER THIRTY-FIRST. RETURNS
 SHALL BE IN SUCH FORM AS PRESCRIBED BY  THE  COMMISSIONER.  A  QUALIFIED
 TAXPAYER  MUST  PROVIDE ANY INFORMATION THE COMMISSIONER DEEMS NECESSARY
 TO DETERMINE THE CREDIT ALLOWED.
   (B) IF MORE THAN ONE QUALIFIED TAXPAYER PAYS RENT FOR THE SAME PRIMARY
 RESIDENCE AND HAS A FEDERAL ADJUSTED GROSS INCOME  FOR  WHICH  A  CREDIT
 WOULD  OTHERWISE  BE  DUE, EACH SUCH QUALIFIED TAXPAYER SHALL DIVIDE THE
 BASE AMOUNT OF THE CREDIT ALLOWED FOR HIS OR HER  INCOME  LEVEL  BY  THE
 TOTAL NUMBER OF INDIVIDUALS OR MARRIED COUPLES FILING A JOINT RETURN WHO
 ARE  PAYING THE RENT, WHETHER OR NOT ELIGIBLE FOR A CREDIT, TO DETERMINE
 THE AMOUNT OF CREDIT ALLOWED TO THAT QUALIFIED TAXPAYER. ANY  ADDITIONAL
 AMOUNT OF CREDIT DETERMINED BASED ON THE NUMBER OF EXEMPTIONS CLAIMED BY
 SUCH TAXPAYER SHALL NOT BE SO DIVIDED.
   (C)  A  QUALIFIED  TAXPAYER  SHALL  BE  ALLOWED  THE CREDIT UNDER THIS
 SUBSECTION OR THE CREDIT UNDER SUBSECTION (E) OF THIS SECTION, WHICHEVER
 IS THE HIGHER AMOUNT.
   (3) (A) FOR ANY QUALIFIED TAXPAYER WHO IS SIXTY-FIVE YEARS OF  AGE  OR
 OLDER  WITH  A FILING STATUS OF SINGLE, THE AMOUNT OF THE CREDIT ALLOWED
 PURSUANT TO THIS PARAGRAPH SHALL BE DETERMINED IN  ACCORDANCE  WITH  THE
 FOLLOWING TABLES:
 
 FOR TAXABLE YEARS BEGINNING IN 2023,
 IF FEDERAL ADJUSTED GROSS INCOME IS:        THE CREDIT SHALL BE:
 $25,000 OR LESS                                     $110
 OVER $25,000 BUT NOT OVER $40,000                    $90
 OVER $40,000 BUT NOT OVER $50,000                    $70
 
 FOR TAXABLE YEARS BEGINNING IN OR
 AFTER 2024, IF FEDERAL ADJUSTED GROSS
 INCOME IS:                                  THE CREDIT SHALL BE:
 $25,000 OR LESS                                     $220
 S. 4705                             3
 
 OVER $25,000 BUT NOT OVER $40,000                   $180
 OVER $40,000 BUT NOT OVER $50,000                   $140
   (B) FOR ANY OTHER QUALIFIED TAXPAYER, THE AMOUNT OF THE CREDIT ALLOWED
 PURSUANT  TO  THIS  PARAGRAPH SHALL BE DETERMINED IN ACCORDANCE WITH THE
 FOLLOWING TABLES; PROVIDED, HOWEVER, THAT A QUALIFIED TAXPAYER WHO IS  A
 MARRIED  INDIVIDUAL  FILING  A SEPARATE NEW YORK INCOME TAX RETURN SHALL
 RECEIVE ONE-HALF OF THE BASE AMOUNT OF THE CREDIT  PLUS  ANY  ADDITIONAL
 AMOUNT FOR WHICH SUCH TAXPAYER WOULD BE ELIGIBLE BASED ON THE INCOME AND
 NUMBER OF EXEMPTIONS CLAIMED BY SUCH TAXPAYER:
 
 FOR TAXABLE YEARS BEGINNING IN 2023,
 IF FEDERAL ADJUSTED GROSS INCOME IS:         THE CREDIT SHALL BE:
 $25,000 OR LESS                              $80 PLUS AN AMOUNT
                                              EQUAL TO $35
                                              MULTIPLIED BY A
                                              NUMBER WHICH IS ONE
                                              LESS THAN THE NUMBER
                                              OF EXEMPTIONS FOR
                                              WHICH THE TAXPAYER
                                              (OR IN THE CASE
                                              OF A MARRIED COUPLE
                                              FILING A JOINT RETURN,
                                              TAXPAYERS) IS ENTITLED
                                              TO A DEDUCTION FOR THE
                                              TAXABLE YEAR FOR FEDERAL
                                              INCOME TAX PURPOSES
                                              UNDER SUBSECTIONS (B)
                                              AND (C) OF SECTION 151
                                              OF THE INTERNAL REVENUE CODE
 
 OVER $25,000 BUT NOT OVER $45,000            $65 PLUS AN AMOUNT
                                              EQUAL TO $24
                                              MULTIPLIED BY A NUMBER
                                              WHICH IS ONE LESS THAN
                                              THE NUMBER OF EXEMPTIONS
                                              FOR WHICH THE TAXPAYER
                                              (OR IN THE CASE OF
                                              A MARRIED COUPLE FILING A
                                              JOINT RETURN, TAXPAYERS)
                                              IS ENTITLED TO A
                                              DEDUCTION FOR THE TAXABLE
                                              YEAR FOR FEDERAL INCOME
                                              TAX PURPOSES UNDER
                                              SUBSECTIONS (B) AND (C)
                                              OF SECTION 151 OF THE
                                              INTERNAL REVENUE CODE
 
 OVER $45,000 BUT NOT OVER $65,000            $55 PLUS AN AMOUNT
                                              EQUAL TO $12 MULTIPLIED
                                              BY A NUMBER WHICH IS ONE
                                              LESS THAN THE NUMBER
                                              OF EXEMPTIONS FOR
                                              WHICH THE TAXPAYER (OR
                                              IN THE CASE OF A MARRIED
                                              COUPLE FILING A JOINT RETURN,
                                              TAXPAYERS) IS ENTITLED
 S. 4705                             4
 
                                              TO A DEDUCTION FOR THE
                                              TAXABLE YEAR FOR FEDERAL
                                              INCOME TAX PURPOSES UNDER
                                              SUBSECTIONS (B) AND (C)
                                              OF SECTION 151 OF THE
                                              INTERNAL REVENUE CODE
 
 OVER $65,000 BUT NOT OVER $100,000           $45 PLUS AN AMOUNT
                                              EQUAL TO $12 MULTIPLIED
                                              BY A NUMBER WHICH IS ONE
                                              LESS THAN THE NUMBER
                                              OF EXEMPTIONS FOR WHICH
                                              THE TAXPAYER (OR IN THE
                                              CASE OF A MARRIED COUPLE
                                              FILING A JOINT RETURN,
                                              TAXPAYERS) IS ENTITLED TO
                                              A DEDUCTION FOR THE TAXABLE
                                              YEAR FOR FEDERAL INCOME TAX
                                              PURPOSES UNDER SUBSECTIONS
                                              (B) AND (C) OF SECTION 151
                                              OF THE INTERNAL REVENUE CODE
 
 FOR TAXABLE YEARS BEGINNING IN OR
 AFTER 2024, IF FEDERAL ADJUSTED GROSS
 INCOME IS:                                   THE CREDIT SHALL BE:
 $25,000 OR LESS                              $160 PLUS AN
                                              AMOUNT EQUAL TO $70
                                              MULTIPLIED BY A NUMBER WHICH
                                              IS ONE LESS THAN THE
                                              NUMBER OF EXEMPTIONS
                                              FOR WHICH THE TAXPAYER
                                              (OR IN THE CASE OF A
                                              MARRIED COUPLE FILING A
                                              JOINT RETURN, TAXPAYERS)
                                              IS ENTITLED TO A DEDUCTION
                                              FOR THE TAXABLE YEAR FOR
                                              FEDERAL INCOME TAX PURPOSES
                                              UNDER SUBSECTIONS (B) AND
                                              (C) OF SECTION 151 OF THE
                                              INTERNAL REVENUE CODE
 
 OVER $25,000 BUT NOT OVER $45,000            $130 PLUS AN AMOUNT
                                              EQUAL TO $48
                                              MULTIPLIED BY A NUMBER
                                              WHICH IS ONE LESS THAN
                                              THE NUMBER OF EXEMPTIONS
                                              FOR WHICH THE TAXPAYER
                                              (OR IN THE CASE OF
                                              A MARRIED COUPLE FILING
                                              A JOINT RETURN, TAXPAYERS)
                                              IS ENTITLED TO A DEDUCTION
                                              FOR THE TAXABLE YEAR FOR
                                              FEDERAL INCOME TAX PURPOSES
                                              UNDER SUBSECTIONS (B)
                                              AND (C) OF SECTION 151
                                              OF THE INTERNAL REVENUE CODE
 S. 4705                             5
 
 OVER $45,000 BUT NOT OVER $65,000            $110 PLUS AN AMOUNT
                                              EQUAL TO $24 MULTIPLIED
                                              BY A NUMBER WHICH IS ONE
                                              LESS THAN THE NUMBER
                                              OF EXEMPTIONS FOR
                                              WHICH THE TAXPAYER (OR
                                              IN THE CASE OF A MARRIED
                                              COUPLE FILING A JOINT RETURN,
                                              TAXPAYERS) IS ENTITLED TO A
                                              DEDUCTION FOR THE TAXABLE
                                              YEAR FOR FEDERAL INCOME TAX
                                              PURPOSES UNDER SUBSECTIONS
                                              (B) AND (C) OF SECTION 151
                                              OF THE INTERNAL  REVENUE CODE
 
 OVER $65,000 BUT NOT OVER $100,000           $90 PLUS AN AMOUNT
                                              EQUAL TO $24 MULTIPLIED
                                              BY A NUMBER WHICH IS ONE
                                              LESS THAN THE NUMBER
                                              OF EXEMPTIONS FOR
                                              WHICH THE TAXPAYER (OR
                                              IN THE CASE OF A MARRIED
                                              COUPLE FILING A JOINT RETURN,
                                              TAXPAYERS) IS
                                              ENTITLED TO A DEDUCTION
                                              FOR THE TAXABLE YEAR FOR
                                              FEDERAL INCOME TAX PURPOSES
                                              UNDER SUBSECTIONS (B) AND
                                              (C) OF SECTION 151 OF THE
                                              INTERNAL REVENUE CODE
   § 2. This act shall take effect immediately.

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