S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    539
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sen.  THOMAS -- 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
   allowable maximum income of certain persons otherwise eligible for tax
   abatement in certain cases

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph (a) of subdivision 3 of section 467 of the real
 property tax law, as separately amended by section 1 of part B of  chap-
 ter  686  and  chapter  488  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, AND IN A COUNTY
 WITH A POPULATION OF BETWEEN ONE MILLION AND ONE  MILLION  FOUR  HUNDRED
 THOUSAND,  AS OF THE LAST DECENNIAL CENSUS FIFTY THOUSAND DOLLARS BEGIN-
 NING JULY FIRST, TWO THOUSAND TWENTY-THREE, 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  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 immediately preceding the date of application and
 where the taxable status date is on or after April fifteenth, income tax
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01972-01-3
              

 S. 539                              2
 
 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 imme-
 diately  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 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 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 capi-
 tal  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  public  hearing,  adopts  a local law, ordinance or resolution
 providing therefor. In addition, an exchange of an annuity for an annui-
 ty 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 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 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;
   § 2. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
 erty  tax  law,  as separately amended by section 2 of part B of chapter
 686 and chapter 488 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
 thousand  dollars beginning July first, two thousand seventeen, AND IN A
 COUNTY WITH A POPULATION OF BETWEEN ONE MILLION  AND  ONE  MILLION  FOUR
 S. 539                              3
 
 HUNDRED  THOUSAND AS OF THE LAST DECENNIAL CENSUS FIFTY THOUSAND DOLLARS
 BEGINNING JULY FIRST, TWO THOUSAND TWENTY-THREE, 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 proper-
 ty 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  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;
   §  3. This act shall take effect immediately and shall apply to appli-
 cations made for an exemption pursuant to this act for the county fiscal
 year commencing in 2023 and all county fiscal years thereafter.   Appli-
 cations  received for the county fiscal year commencing in 2023 shall be
 considered timely if they are filed on or before the one hundred twenti-
 eth day following the effective date of the local law  implementing  the
 provisions of this act.