S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1805
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 14, 2025
                                ___________
 
 Introduced  by Sens. FERNANDEZ, JACKSON, MAYER, RAMOS, SEPULVEDA -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee on Cities 1
 
 AN ACT to amend the real property tax law, in relation to tax abatements
   for  dwelling units occupied by certain persons residing in rent-cont-
   rolled or rent regulated properties; and providing state aid to cities
   affected by such tax abatements
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The section heading of section 467-b of the real property
 tax law, as amended by chapter 188 of the laws of 2005,  is  amended  to
 read as follows:
   Tax abatement for rent-controlled and rent regulated property occupied
 by  senior  citizens  or  persons  with disabilities OR PERSONS PAYING A
 MAXIMUM RENT OR LEGAL REGULATED  RENT  WHICH  EXCEEDS  ONE-HALF  OF  THE
 COMBINED INCOME OF ALL MEMBERS OF THEIR HOUSEHOLD.
   § 2. Paragraph b of subdivision 1 of section 467-b of the real proper-
 ty tax law, as amended by chapter 188 of the laws of 2005, is amended to
 read as follows:
   b.  "Head  of the household" means a person (i) who is sixty-two years
 of age or older, [or] (ii) who qualifies as a person with  a  disability
 pursuant  to subdivision five of this section, OR (III) WHO PAYS A MAXI-
 MUM RENT OR LEGAL REGULATED RENT WHICH EXCEEDS ONE-HALF OF THE  COMBINED
 INCOME  OF  ALL  MEMBERS  OF  THEIR  HOUSEHOLD,  and  is entitled to the
 possession or to the use or occupancy of a dwelling unit;
   § 3. Subdivision 2 of section 467-b of the real property tax  law,  as
 amended  by  chapter  747 of the laws of 1985, paragraph (c) as added by
 chapter 553 of the laws of 2015 and paragraph (d) as  added  by  chapter
 343 of the laws of 2016, is amended to read as follows:
   2.  The  governing body of any municipal corporation is hereby author-
 ized and empowered to adopt, after public hearing,  in  accordance  with
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03910-01-5
              

 S. 1805                             2
 
 the  provisions  of  this  section, a local law, ordinance or resolution
 providing for the abatement  of  taxes  of  said  municipal  corporation
 imposed on real property containing a dwelling unit as defined herein by
 one  of the following amounts:  (a) where the head of the household does
 not receive a monthly allowance  for  shelter  pursuant  to  the  social
 services law, an amount not in excess of that portion of any increase in
 maximum  rent  or legal regulated rent which causes such maximum rent or
 legal regulated rent to exceed one-third of the combined income  of  all
 members of the household; or
   (b)  WHERE  THE  HEAD  OF THE HOUSEHOLD QUALIFIES AS A PERSON PAYING A
 MAXIMUM RENT OR LEGAL REGULATED  RENT  WHICH  EXCEEDS  ONE-HALF  OF  THE
 COMBINED  INCOME  OF ALL MEMBERS OF THE HOUSEHOLD AND DOES NOT RECEIVE A
 MONTHLY ALLOWANCE FOR SHELTER PURSUANT TO THE SOCIAL  SERVICES  LAW,  AN
 AMOUNT  NOT IN EXCESS OF THAT PORTION OF ANY INCREASE IN MAXIMUM RENT OR
 LEGAL REGULATED RENT WHICH CAUSES SUCH MAXIMUM RENT OR  LEGAL  REGULATED
 RENT  TO  EXCEED  ONE-HALF  OF THE COMBINED INCOME OF ALL MEMBERS OF THE
 HOUSEHOLD; OR
   (C) where the head of the household receives a monthly  allowance  for
 shelter  pursuant to the social services law, an amount not in excess of
 that portion of any increase in maximum rent  or  legal  regulated  rent
 which  is  not  covered  by the maximum allowance for shelter which such
 person is entitled to receive pursuant to the social services law.
   [(c)] Provided, however, that in a city of a population of one million
 or more, where the head of household has been granted  a  rent  increase
 exemption  order  that  is  in  effect as of January first, two thousand
 fifteen or takes effect on or before July first, two  thousand  fifteen,
 the  amount  determined by paragraph (a) of this subdivision shall be an
 amount not in excess of the difference between the maximum rent or legal
 regulated rent and the amount specified in such order,  as  adjusted  by
 any other provision of this section.
   (d)(1)  Provided,  however,  that  in  a city with a population of one
 million or more, a head  of  the  household  who  has  received  a  rent
 increase exemption order that has expired and who, upon renewal applica-
 tion  for  the  period  commencing immediately after such expiration, is
 determined to be ineligible for a rent increase exemption order  because
 the  combined income of all members of the household exceeds the maximum
 amount allowed by this section or the maximum rent  or  legal  regulated
 rent  does not exceed one-third of the combined income of all members of
 the household, may submit a new application during the following  calen-
 dar  year,  and  if  such head of the household receives a rent increase
 exemption order that commences during such calendar year, the tax abate-
 ment amount for such order shall be calculated as  if  such  prior  rent
 increase  exemption  order  had  not  expired. However, no tax abatement
 benefits may be provided for the period of ineligibility.
   (2) No head of the household may receive more than three rent increase
 exemption orders calculated as if a prior rent increase exemption  order
 had not expired, as described in subparagraph one of this paragraph.
   § 4. Paragraph a of subdivision 3 of section 467-b of the real proper-
 ty  tax law, as amended by section 1 of part U of chapter 55 of the laws
 of 2014, is 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 OR WHERE THE HEAD OF THE HOUSEHOLD PAYS
 A MAXIMUM RENT OR LEGAL REGULATED RENT WHICH  EXCEEDS  ONE-HALF  OF  THE
 COMBINED  INCOME OF ALL MEMBERS OF THE HOUSEHOLD, 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
 S. 1805                             3
 
 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-sev-
 en   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 application, the income for such  year  may  be  adjusted  by
 excluding  salary or earnings and projecting [his or her] THE retirement
 income OF SUCH HEAD OF HOUSEHOLD over the entire period of such year.
   § 5. Paragraph a of subdivision 3 of section 467-b of the real proper-
 ty tax law, as separately amended by chapter 188 and chapter 205 of  the
 laws of 2005, is 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 OR WHERE THE HEAD OF THE HOUSEHOLD  PAYS
 A  MAXIMUM  RENT  OR  LEGAL REGULATED RENT WHICH EXCEEDS ONE-HALF OF THE
 COMBINED INCOME OF ALL MEMBERS OF THE HOUSEHOLD, 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-sev-
 en  thousand  dollars  beginning  July  first,   two   thousand   seven,
 twenty-eight  thousand dollars beginning July first, two thousand eight,
 and twenty-nine thousand dollars  beginning  July  first,  two  thousand
 nine,  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 application, the income  for  such  year  may  be
 adjusted by excluding salary or earnings and projecting [his or her] THE
 retirement  income  OF  SUCH HEAD OF HOUSEHOLD over the entire period of
 such year.
   § 6. Paragraph d of subdivision 1 of section 467-c of the real proper-
 ty tax law, as separately amended by chapters 188 and 205 of the laws of
 2005, and subparagraph 1 as amended by section 2 of part U of chapter 55
 of the laws of 2014, is amended to read as follows:
   d. "Eligible head of the household" means (1) a person or [his or her]
 THEIR spouse who is sixty-two years of age or older,  OR  A  PERSON  WHO
 PAYS A MAXIMUM RENT WHICH EXCEEDS ONE-HALF OF THE COMBINED INCOME OF ALL
 MEMBERS  OF  THE  HOUSEHOLD, 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] THEIR 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
 S. 1805                             4
 
 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.
   § 7. Subparagraph 1 of paragraph d of subdivision 1 of  section  467-c
 of  the real property tax law, as separately amended by chapters 188 and
 205 of the laws of 2005, is amended to read as follows:
   (1) a person or [his or her] THEIR spouse who is  sixty-two  years  of
 age or older, OR A PERSON WHO PAYS A MAXIMUM RENT WHICH EXCEEDS ONE-HALF
 OF  THE COMBINED INCOME OF ALL MEMBERS OF THE HOUSEHOLD, 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] THEIR spouse who was entitled to possession or the use and occu-
 pancy 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,  and twenty-nine thousand dollars beginning July first,
 two thousand nine, as may be provided by local law; or
   § 8. Subparagraph 1 of paragraph a of subdivision 3 of  section  467-c
 of  the  real property tax law, as amended by chapter 747 of the laws of
 1985, is amended to read as follows:
   (1) where the eligible head of the household WHO IS  EITHER  SIXTY-TWO
 YEARS  OF  AGE OR OLDER OR IS DISABLED does not receive a monthly allow-
 ance for shelter pursuant to the social  services  law,  the  amount  by
 which  increases  in the maximum rent subsequent to such person's eligi-
 bility date have resulted in the maximum rent exceeding one-third of the
 combined income of all members of the household for the taxable period,
 OR WHERE THE ELIGIBLE HEAD OF THE HOUSEHOLD IS A PERSON WHO PAYS A MAXI-
 MUM RENT WHICH EXCEEDS ONE-HALF OF THE COMBINED INCOME OF ALL MEMBERS OF
 THE HOUSEHOLD DOES NOT RECEIVE A MONTHLY ALLOWANCE FOR SHELTER  PURSUANT
 TO THE SOCIAL SERVICES LAW, THE AMOUNT BY WHICH INCREASES IN THE MAXIMUM
 RENT  SUBSEQUENT TO SUCH PERSON'S DATE HAVE RESULTED IN THE MAXIMUM RENT
 EXCEEDING ONE-HALF OF THE COMBINED INCOME OF ALL MEMBERS OF  THE  HOUSE-
 HOLD  FOR  THE  TAXABLE  PERIOD,  except  that  in no event shall a rent
 increase exemption  order/tax  abatement  certificate  become  effective
 prior to January first, nineteen hundred seventy-six; or
   §  9.  The state comptroller shall annually pay to each city providing
 real property tax abatements pursuant to sections 467-b and 467-c of the
 real property tax law an amount equal to 10 per centum of the real prop-
 erty tax revenue lost during the city fiscal year due to the implementa-
 tion of the provisions  of  this  act.  Each  city  eligible  for  state
 payments  pursuant  to  this section shall provide the state comptroller
 with such information as they shall deem necessary.
   § 10. This act shall take effect July 1, 2026; provided however, that:
   a. the amendments to paragraph a of subdivision 3 of section 467-b  of
 the  real  property  tax  law, made by section four of this act shall be
 subject to the expiration of such paragraph pursuant  to  section  4  of
 S. 1805                             5

 part  U  of  chapter  55  of  the laws of 2014, as amended, and shall be
 deemed to expire therewith, when upon such date section five of this act
 shall take effect; and
   b.  the amendments to subparagraph (1) of paragraph d of subdivision 1
 of section 467-c of the real property tax law, made by  section  six  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  expire and be deemed repealed therewith, when upon such date
 section seven of this act shall take effect.