S. 7384--A 2
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 FOR THE PURPOSES OF
THIS ITEM, 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 3 of section 467 of the real proper-
ty tax law is amended by adding a new subparagraph (v) to read as
follows:
(V) NOTWITHSTANDING SUBPARAGRAPH (IV) OF THIS PARAGRAPH, IN A CITY
HAVING A POPULATION OF ONE MILLION PERSONS OR MORE:
(1) EXCEPT AS PROVIDED IN CLAUSE TWO OF THIS SUBPARAGRAPH, THE TERM
"INCOME" AS USED IN THIS SECTION SHALL MEAN THE "ADJUSTED GROSS INCOME"
FOR FEDERAL INCOME TAX PURPOSES AS REPORTED ON THE APPLICANT'S FEDERAL
OR STATE INCOME TAX RETURN FOR THE INCOME TAX YEAR IMMEDIATELY PRECEDING
THE DATE OF APPLICATION, SUBJECT TO ANY SUBSEQUENT AMENDMENTS OR
REVISIONS, MINUS ANY DISTRIBUTIONS, TO THE EXTENT INCLUDED IN FEDERAL
ADJUSTED GROSS INCOME, RECEIVED FROM AN INDIVIDUAL RETIREMENT ACCOUNT
AND AN INDIVIDUAL RETIREMENT ANNUITY; PROVIDED THAT IF NO SUCH RETURN
WAS FILED FOR SUCH INCOME TAX YEAR, THE APPLICANT'S INCOME SHALL BE
DETERMINED BASED ON THE AMOUNTS THAT WOULD HAVE SO BEEN REPORTED IF SUCH
A RETURN HAD BEEN FILED; AND
(2) IF AN OWNER WHO HAS RECEIVED AN EXEMPTION PURSUANT TO THIS SECTION
FOR A PROPERTY ON AN ASSESSMENT ROLL FOR A TAX YEAR ENDING ON OR BEFORE
JUNE THIRTIETH, TWO THOUSAND TWENTY-FOUR WOULD RECEIVE A GREATER
EXEMPTION FOR ANY TAX YEAR ENDING ON OR AFTER JUNE THIRTIETH, TWO THOU-
SAND TWENTY-FIVE, THE TERM "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, 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, A PUBLIC HEARING, ADOPTS A LOCAL LAW OR RESOLUTION
PROVIDING THEREFOR. IN ADDITION, AN EXCHANGE OF AN ANNUITY FOR AN ANNU-
ITY 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
S. 7384--A 3
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.
§ 3. Paragraph c of subdivision 1 of section 467-b of the real proper-
ty tax law, as amended by section 10 of part K of chapter 59 of the laws
of 2023, is amended to read as follows:
c. "Income" means:
(I) the "adjusted gross income" for federal income tax purposes as
reported on the applicant's federal or state income tax return for the
applicable income tax year, subject to any subsequent amendments or
revisions, plus any social security benefits not included in such feder-
al adjusted gross income; provided that if no such return was filed for
the applicable income tax year, the applicant's income shall be deter-
mined based on the amounts that would have so been reported if such a
return had been filed; and provided further, that when determining
income for purposes of this section, the following conditions shall be
applicable:
[(i)] (A) the governing body of a municipal corporation, after a
public hearing, may adopt a local law, ordinance or resolution providing
that any social security benefits that were not included in the appli-
cant's federal adjusted gross income shall not be considered income;
[(ii)] (B) distributions received from an individual retirement
account or individual retirement annuity that were included in the
applicant's federal adjusted gross income shall not be considered income
unless the governing body of a municipal corporation, after a public
hearing, adopts a local law, ordinance or resolution providing other-
wise;
[(iii)] (C) the applicant's income shall be offset by all medical and
prescription drug expenses actually paid that were not reimbursed or
paid for by insurance, if the governing body of a municipal corporation,
after a public hearing, adopts a local law, ordinance or resolution
providing therefor;
[(iv)] (D) any tax-exempt interest or dividends that were excluded
from the applicant's federal adjusted gross income shall be considered
income; and
[(v)] (E) any losses that were applied to reduce the applicant's
federal adjusted gross income shall be subject to the following limita-
tions:
[(A)] (1) the net amount of loss reported on federal Schedule C, D, E,
or F shall not exceed three thousand dollars per schedule,
[(B)] (2) the net amount of any other separate category of loss shall
not exceed three thousand dollars, and
[(C)] (3) the aggregate amount of all losses shall not exceed fifteen
thousand dollars; OR
(II) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, IN A CITY
WITH A POPULATION OF ONE MILLION OR MORE PERSONS:
(A) THE SUM OF THE ADJUSTED GROSS INCOMES REPORTED ON THE FEDERAL
INCOME TAX RETURNS OF THE APPLICANT AND ALL OTHER MEMBERS OF THE APPLI-
CANT'S HOUSEHOLD FOR THE INCOME TAX YEAR IMMEDIATELY PRECEDING THE DATE
S. 7384--A 4
OF APPLICATION, SUBJECT TO ANY SUBSEQUENT AMENDMENTS OR REVISIONS, LESS
ANY DISTRIBUTIONS, TO THE EXTENT INCLUDED IN EACH SUCH ADJUSTED GROSS
INCOME, RECEIVED FROM AN INDIVIDUAL RETIREMENT ACCOUNT OR RETIREMENT
ANNUITY; PROVIDED THAT IF NO SUCH INCOME TAX RETURN WAS FILED BY ANY
MEMBER OF THE APPLICANT'S HOUSEHOLD FOR SUCH INCOME TAX YEAR, THE INCOME
OF SUCH APPLICANT OR MEMBER OF THE APPLICANT'S HOUSEHOLD SHALL BE DETER-
MINED AS IF SUCH A RETURN HAD BEEN FILED;
(B) PROVIDED, HOWEVER, THAT INCOME MAY BE CALCULATED AS THE INCOME
FROM ALL SOURCES AFTER DEDUCTION OF ALL INCOME AND SOCIAL SECURITY TAXES
AND INCLUDES SOCIAL SECURITY AND RETIREMENT BENEFITS, SUPPLEMENTAL SECU-
RITY INCOME AND ADDITIONAL STATE PAYMENTS, PUBLIC ASSISTANCE BENEFITS,
INTEREST, DIVIDENDS, NET RENTAL INCOME, SALARY OR EARNINGS, AND NET
INCOME FROM SELF-EMPLOYMENT, BUT SHALL NOT INCLUDE GIFTS OR INHERITANC-
ES, PAYMENTS MADE TO INDIVIDUALS BECAUSE OF THEIR STATUS AS VICTIMS OF
NAZI PERSECUTION, AS DEFINED IN FEDERAL P.L. 103-286, OR INCREASES IN
BENEFITS ACCORDED PURSUANT TO THE SOCIAL SECURITY ACT OR A PUBLIC OR
PRIVATE PENSION PAID TO ANY MEMBER OF THE HOUSEHOLD WHICH INCREASE, IN
ANY GIVEN YEAR, DOES NOT EXCEED THE CONSUMER PRICE INDEX (ALL ITEMS
UNITED STATES CITY AVERAGE) FOR SUCH YEAR WHICH TAKE EFFECT AFTER THE
DATE OF ELIGIBILITY OF HEAD OF THE HOUSEHOLD RECEIVING BENEFITS HERE-
UNDER WHETHER RECEIVED BY THE HEAD OF THE HOUSEHOLD OR ANY OTHER MEMBER
OF THE HOUSEHOLD, WHEN THE FOLLOWING CONDITIONS ARE MET:
(1) A RENT INCREASE EXEMPTION ORDER WAS GRANTED TO THE HEAD OF HOUSE-
HOLD PRIOR TO JULY FIRST, TWO THOUSAND TWENTY-FOUR;
(2) SUCH RENT INCREASE EXEMPTION ORDER IS EITHER RENEWED AFTER EACH
BENEFIT PERIOD OR GRANTED PURSUANT TO PARAGRAPH (D) OF SUBDIVISION TWO
OF THIS SECTION TO ACCOUNT FOR A TEMPORARY INCREASE IN INCOME;
(3) INCOME CALCULATED AS DESCRIBED IN THIS SUBPARAGRAPH WOULD YIELD A
LOWER AMOUNT THAN INCOME CALCULATED AS DESCRIBED IN SUBPARAGRAPH (I) OF
THIS PARAGRAPH; AND
(C) PROVIDED, FURTHER, THAT A CHANGE IN THE METHOD OF CALCULATING
INCOME PURSUANT TO THIS PARAGRAPH SHALL NOT AFFECT ELIGIBILITY TO FILE A
SHORT-FORM RENEWAL APPLICATION IN ACCORDANCE WITH SUBPARAGRAPH TWO OF
PARAGRAPH A OF SUBDIVISION FOUR OF THIS SECTION;
§ 4. Paragraph f of subdivision 1 of section 467-c of the real proper-
ty tax law, as amended by section 11 of part K of chapter 59 of the laws
of 2023, is amended to read as follows:
f. "Income" means:
(1) the "adjusted gross income" for federal income tax purposes as
reported on the applicant's federal or state income tax return for the
applicable income tax year, subject to any subsequent amendments or
revisions, plus any social security benefits not included in such feder-
al adjusted gross income; provided that if no such return was filed for
the applicable income tax year, the applicant's income shall be deter-
mined based on the amounts that would have so been reported if such a
return had been filed; and provided further, that when determining
income for purposes of this section, the following conditions shall be
applicable:
[(1)] (I) the governing body of a municipal corporation, after a
public hearing, may adopt a local law, ordinance or resolution providing
that any social security benefits that were not included in the appli-
cant's adjusted gross income shall not be considered income;
[(2)] (II) distributions received from an individual retirement
account or individual retirement annuity that were included in the
applicant's federal adjusted gross income shall not be considered income
unless the governing body of a municipal corporation, after a public
S. 7384--A 5
hearing, adopts a local law, ordinance or resolution providing other-
wise;
[(3)] (III) the applicant's income shall be offset by all medical and
prescription drug expenses actually paid that were not reimbursed or
paid for by insurance, if the governing body of a municipal corporation,
after a public hearing, adopts a local law, ordinance or resolution
providing therefor;
[(4)] (IV) any tax-exempt interest or dividends that were excluded
from the applicant's federal adjusted gross income shall be considered
income; and
[(5)] (V) any losses that were applied to reduce the applicant's
federal adjusted gross income shall be subject to the following limita-
tions:
[(i)] (A) the net amount of loss reported on federal Schedule C, D, E,
or F shall not exceed three thousand dollars per schedule,
[(ii)] (B) the net amount of any other separate category of loss shall
not exceed three thousand dollars, and
[(iii)] (C) the aggregate amount of all losses shall not exceed
fifteen thousand dollars[.]; AND
[(6)] (VI) When the eligible head of the household has retired on or
after the commencement of the taxable period and prior to the date of
making an application for a rent increase exemption order/tax abatement
certificate pursuant to this section, such person's income shall be
adjusted by excluding salary or earnings and projecting such person's
retirement income over the entire taxable period[.]; OR
(2) NOTWITHSTANDING SUBPARAGRAPH ONE OF THIS PARAGRAPH, IN A CITY WITH
A POPULATION OF ONE MILLION OR MORE PERSONS:
(I) THE SUM OF THE ADJUSTED GROSS INCOMES REPORTED ON THE FEDERAL
INCOME TAX RETURNS OF THE APPLICANT AND ALL OTHER MEMBERS OF THE APPLI-
CANT'S HOUSEHOLD FOR THE INCOME TAX YEAR IMMEDIATELY PRECEDING THE DATE
OF APPLICATION, SUBJECT TO ANY SUBSEQUENT AMENDMENTS OR REVISIONS, LESS
ANY DISTRIBUTIONS, TO THE EXTENT INCLUDED IN EACH SUCH ADJUSTED GROSS
INCOME, RECEIVED FROM AN INDIVIDUAL RETIREMENT ACCOUNT OR RETIREMENT
ANNUITY; PROVIDED THAT IF NO SUCH INCOME TAX RETURN WAS FILED BY ANY
MEMBER OF THE APPLICANT'S HOUSEHOLD FOR SUCH INCOME TAX YEAR, THE INCOME
OF SUCH APPLICANT OR MEMBER OF THE APPLICANT'S HOUSEHOLD SHALL BE DETER-
MINED AS IF SUCH A RETURN HAD BEEN FILED;
(II) PROVIDED, HOWEVER, THAT INCOME MAY BE CALCULATED AS THE INCOME
RECEIVED BY THE ELIGIBLE HEAD OF THE HOUSEHOLD COMBINED WITH THE INCOME
OF ALL OTHER MEMBERS OF THE HOUSEHOLD FROM ALL SOURCES AFTER DEDUCTION
OF ALL INCOME AND SOCIAL SECURITY TAXES AND INCLUDES WITHOUT LIMITATION,
SOCIAL SECURITY AND RETIREMENT BENEFITS, SUPPLEMENTAL SECURITY INCOME
AND ADDITIONAL STATE PAYMENTS, PUBLIC ASSISTANCE BENEFITS, INTEREST,
DIVIDENDS, NET RENTAL INCOME, SALARY AND EARNINGS, AND NET INCOME FROM
SELF EMPLOYMENT, BUT SHALL NOT INCLUDE GIFTS OR INHERITANCES, PAYMENTS
MADE TO INDIVIDUALS BECAUSE OF THEIR STATUS AS VICTIMS OF NAZI PERSE-
CUTION AS DEFINED IN FEDERAL P.L. 103-286, NOR INCREASES IN BENEFITS
ACCORDED PURSUANT TO THE SOCIAL SECURITY ACT OR A PUBLIC OR PRIVATE
PENSION PAID TO ANY MEMBER OF THE HOUSEHOLD WHICH INCREASE, IN ANY GIVEN
YEAR, DOES NOT EXCEED THE CONSUMER PRICE INDEX (ALL ITEMS UNITED STATES
CITY AVERAGE) FOR SUCH YEAR WHICH TAKE EFFECT AFTER THE ELIGIBILITY DATE
OF AN ELIGIBLE HEAD OF THE HOUSEHOLD RECEIVING BENEFITS HEREUNDER WHETH-
ER RECEIVED BY THE ELIGIBLE HEAD OF THE HOUSEHOLD OR ANY OTHER MEMBER OF
THE HOUSEHOLD, WHEN THE FOLLOWING CONDITIONS ARE MET:
(A) A RENT INCREASE EXEMPTION ORDER WAS GRANTED TO THE HEAD OF HOUSE-
HOLD PRIOR TO JULY FIRST, TWO THOUSAND TWENTY-FOUR;
S. 7384--A 6
(B) SUCH RENT INCREASE EXEMPTION ORDER IS EITHER RENEWED AFTER EACH
BENEFIT PERIOD OR GRANTED PURSUANT TO SUBPARAGRAPH FOUR OF PARAGRAPH A
OF SUBDIVISION THREE OF THIS SECTION TO ACCOUNT FOR A TEMPORARY INCREASE
IN INCOME;
(C) INCOME CALCULATED AS DESCRIBED IN THIS CLAUSE WOULD YIELD A LOWER
AMOUNT THAN INCOME CALCULATED AS DESCRIBED IN CLAUSE (I) OF THIS SUBPAR-
AGRAPH; AND
(III) PROVIDED, FURTHER, THAT A CHANGE IN THE METHOD OF CALCULATING
INCOME PURSUANT TO THIS SUBPARAGRAPH SHALL NOT AFFECT ELIGIBILITY TO
FILE A SHORT-FORM RENEWAL APPLICATION IN ACCORDANCE WITH SUBPARAGRAPH
TWO OF PARAGRAPH A OF SUBDIVISION FOUR OF THIS SECTION.
§ 5. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after May 3, 2023.
