senate Bill S884

Establishes the "Caregiver's Assistance Act" giving income tax credits and deductions and a real property tax exemption to certain persons who help seniors

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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  • 05 / Jan / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Establishes the "caregiver's assistance act"; allows a personal income tax credit equal to twenty percent of qualified care expenses in an amount equal to or less than two thousand four hundred dollars for the taxable year that are paid by the taxpayer for the care of a qualifying senior family member; authorizes a basic or an enhanced (STAR) exemption on a pro-rated basis to property where a senior citizen residing with a taxpayer would otherwise meet the eligibility requirements, except for ownership requirements, and where, in the case of an enhanced exemption, the income of the senior and the spouse of the senior considered separately from the remainder of the household would meet the applicable income requirements; provides that such basic or an enhanced exemption shall be on a pro-rated basis.

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Bill Details

See Assembly Version of this Bill:
A3849
Versions:
S884
Legislative Cycle:
2011-2012
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §606, Tax L; amd §425, RPT L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S1574, A2656
2007-2008: A1464

Sponsor Memo

BILL NUMBER:S884

TITLE OF BILL:
An act
to amend the tax law and the real property tax law, in relation to
establishing the Caregiver's Assistance Act

PURPOSE OR GENERAL IDEA OF THE BILL:
To provide tax credits and exemptions to aid those who provide
informal, unpaid care of their elderly relatives.

SUMMARY OF PROVISIONS:
The bill makes the following changes in State tax law:

Section 1. Short Title: Caregiver's Assistance Act.

Section 2. Adds a new subsection (gg) to section 606 of the tax law,
to provide a refundable credit to qualified taxpayers who provide
informal, unpaid care to senior family members. The credit amount is
20% of the first $2,400 spent by the taxpayer on behalf of a
senior relative, plus $75 for any amount spent in excess of $240. The
maximum credit is thus $555. A senior family member is a person
who is 60 years old or older, who is related within the third degree
of consanguinity and who resides in the taxpayer's home and whose New
York adjusted gross income is $13,000 or less for a single
person, or $20,000 or less for a married couple. The credit is not
applicable to taxpayers whose adjusted gross income is $45,000 for
a single taxpayer, or $60,000 for married taxpayers.

Section 3. Adds a new paragraph (d) to subdivision 4-a of section 425
of the real property tax law, to allow a pro-rated basic or enhanced
STAR exemption that would apply if the senior owned the home to
a residence in which a senior lives with taxpayer. The exemption would
apply to that portion of the home used
by the senior for living and the provision of care. Thus, in a 2,000
square foot house, if the senior member occupied one 1Ox12 room
(120 square feet), and there was a second room used for the provision
of care of equal size, the amount of the STAR exemption would be
12% of the total basic or enhanced exemption.

JUSTIFICATION:
The largest amount of care provided to seniors in New York is provided
by family. In the most reliable and recent study, "Informal, Unpaid,
Care Giving To New York State Elders: A Telephone Survey,
2001," Center For Aging Policy Research, State University Of New York
At Stonybrook, the number of caregivers is estimated at
734,000, or roughly 9.6% of the 7,650,000 households in New York,
providing an average of 22 hours of care per week. The study estimates
the value of this care at $11.2 billion annually. These are charges and
costs which the State does not now bear.

The purpose of this legislation is to provide not only a recognition
of what has been termed the "love-equity" provided by these care
givers for their senior relatives, but also to provide an
incentive for more families


to provide the care, and to encourage families currently providing the
care to continue to do so for longer periods.

LEGISLATIVE HISTORY:
S.6004 of 2004 - Reported to Finance, then passed as part
of larger Senate Tax Package
S.1194 of 2005/06 - Aging, Finance
S.459 - 2007-08 - Finance
S.1574 - 2009-10 - Finance

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
January 1, after it becomes law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   884

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced by Sens. GOLDEN, FUSCHILLO, LARKIN, MAZIARZ -- read twice and
  ordered  printed, and when printed to be committed to the Committee on
  Investigations and Government Operations

AN ACT to amend the tax law and the real property tax law,  in  relation
  to establishing the Caregiver's Assistance Act

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Short title. This act shall be known and may  be  cited  as
the "Caregiver's Assistance Act".
  S  2. Section 606 of the tax law is amended by adding a new subsection
(ss) to read as follows:
  (SS) ELDER CARE CREDIT. (1) A  TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT
AGAINST THE TAX IMPOSED UNDER SECTION SIX HUNDRED ONE OF THIS PART EQUAL
TO  TWENTY  PERCENT  OF QUALIFIED CARE EXPENSES IN AN AMOUNT EQUAL TO OR
LESS THAN TWO THOUSAND FOUR HUNDRED DOLLARS FOR THE  TAXABLE  YEAR  THAT
ARE  PAID  BY  THE  TAXPAYER  FOR THE CARE OF A QUALIFYING SENIOR FAMILY
MEMBER. A TAXPAYER WITH QUALIFIED CARE EXPENSES PURSUANT TO THE  PRECED-
ING  SENTENCE  WHICH  ARE  EQUAL  TO  OR  IN EXCESS OF TWO HUNDRED FORTY
DOLLARS FOR ANY TAXABLE YEAR SHALL RECEIVE  AN  ADDITIONAL  SEVENTY-FIVE
DOLLAR  CREDIT  AGAINST THE TAX IMPOSED UNDER SECTION SIX HUNDRED ONE OF
THIS PART. IF THE CREDIT OR CREDITS PROVIDED PURSUANT  TO  THIS  SECTION
EXCEED  THE TAX FOR SUCH TAXABLE YEAR, THE TAXPAYER MAY RECEIVE, AND THE
COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE COMMISSIONER, SHALL PAY  AS
AN  OVERPAYMENT,  WITHOUT  INTEREST,  ANY  EXCESS BETWEEN SUCH TAX AS SO
REDUCED AND THE AMOUNT OF THE CREDITOR CREDITS. IF  A  TAXPAYER  IS  NOT
REQUIRED  TO  FILE  A RETURN PURSUANT TO SECTION SIX HUNDRED ONE OF THIS
PART, A TAXPAYER MAY NEVERTHELESS RECEIVE AND THE  COMPTROLLER,  SUBJECT
TO  A  CERTIFICATE  OF THE COMMISSIONER, SHALL PAY AS AN OVERPAYMENT THE
FULL AMOUNT OF THE CREDIT OR CREDITS, WITHOUT INTEREST. NO CREDIT  SHALL
BE  GRANTED  UNDER  THIS SUBSECTION IF NEW YORK ADJUSTED GROSS INCOME IS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04415-01-1

S. 884                              2

GREATER THAN FORTY-FIVE THOUSAND DOLLARS FOR A SINGLE TAXPAYER OR  SIXTY
THOUSAND DOLLARS FOR MARRIED TAXPAYERS, OR IF THE TAXPAYER HAS TAKEN THE
CREDIT  FOR  CERTAIN HOUSEHOLD AND DEPENDENT CARE SERVICES AUTHORIZED IN
THIS SECTION.
  (2) AS USED IN THIS SUBSECTION:
  (A)  "TAXPAYER" IS A RESIDENT INDIVIDUAL OF THIS STATE WHO IS REQUIRED
OR CHOOSES TO FILE A RETURN UNDER THIS ARTICLE, BUT THE  TERM  DOES  NOT
INCLUDE A NONRESIDENT TAXPAYER OR A PART-YEAR RESIDENT TAXPAYER.
  (B)  "QUALIFYING  SENIOR  FAMILY MEMBER" IS A RELATIVE OF THE TAXPAYER
WITHIN THE THIRD DEGREE OF CONSANGUINITY WHO RESIDES WITH  THE  TAXPAYER
AND WHO IS SIXTY YEARS OR OLDER AND WHOSE NEW YORK ADJUSTED GROSS INCOME
IS THIRTEEN THOUSAND DOLLARS OR LESS FOR A SINGLE FAMILY MEMBER OR TWEN-
TY  THOUSAND  OR  LESS  FOR  MARRIED FAMILY MEMBERS. A QUALIFYING SENIOR
FAMILY MEMBER INCLUDES A PERSON WHO OTHERWISE MEETS  THE  QUALIFICATIONS
SPECIFIED  IN THE PRECEDING SENTENCE BUT WHO OCCUPIES A SEPARATE ROOM OR
ROOMS IN OR AT THE RESIDENCE OF THE TAXPAYER,  SUCH  AS  THOSE  COMMONLY
REFERRED TO AS MOTHER-IN-LAW APARTMENTS, BUT SHALL NOT INCLUDE A TENANT,
SUBTENANT,  ROOMER  OR  BOARDER  WHO  PAYS  A LEASE OR RENTAL FEE TO THE
TAXPAYER FOR THE SPACE.
  (C) "QUALIFIED CARE EXPENSES" ARE PAYMENTS MADE BY  THE  TAXPAYER  FOR
GOODS  AND  SERVICES  NECESSARY  TO  ALLOW  THE QUALIFYING SENIOR FAMILY
MEMBER TO BE MAINTAINED IN THE  TAXPAYER'S  RESIDENCE  WHICH  GOODS  AND
SERVICES  ARE:  (I)  PROVIDED  TO  OR  FOR THE BENEFIT OF THE QUALIFYING
SENIOR FAMILY MEMBER OR TO ASSIST THE TAXPAYER IN CARING FOR THE  QUALI-
FYING  SENIOR  FAMILY MEMBER; OR PROVIDED BY AN ORGANIZATION OR AN INDI-
VIDUAL NOT RELATED TO THE  TAXPAYER  OR  THE  QUALIFYING  SENIOR  FAMILY
MEMBER;  AND  (II)  NOT COMPENSATED FOR BY INSURANCE OR FEDERAL OR STATE
PROGRAMS. SUCH EXPENSES INCLUDE, BUT ARE NOT  LIMITED  TO,  HOME  HEALTH
AGENCY  SERVICES,  ADULT DAY CARE, COMPANIONSHIP SERVICES, PERSONAL CARE
ATTENDANT SERVICES, HOMEMAKER SERVICES, RESPITE CARE, HEALTH CARE EQUIP-
MENT AND SUPPLIES, HOME  MODIFICATION,  OR  ANY  SERVICES  NECESSARY  TO
PROVIDE  HELP  IN  TWO  OR  MORE  ACTIVITIES IN DAILY LIVING, OR FOR THE
PROVISION OF ASSISTIVE DEVICES.
  (3) WHEN TWO OR MORE MEMBERS OF A HOUSEHOLD  MEET  THE  QUALIFICATIONS
FOR A CREDIT OR CREDITS PURSUANT TO THIS SUBSECTION, THE CREDIT OR CRED-
ITS  SHALL  BE  EQUALLY DIVIDED BETWEEN OR AMONG SUCH INDIVIDUALS UNLESS
SUCH INDIVIDUALS FILE WITH THE COMMISSIONER A WRITTEN AGREEMENT  SETTING
FORTH  A  DIFFERENT DIVISION.   WHERE A JOINT INCOME TAX RETURN HAS BEEN
FILED PURSUANT TO THIS CHAPTER BY A TAXPAYER AND HIS OR HER  SPOUSE  (OR
WHERE  BOTH SPOUSES ARE TAXPAYERS AND HAVE FILED SUCH JOINT RETURN), WHO
QUALIFY FOR SUCH CREDIT OR  CREDITS,  THE  CREDIT  OR  CREDITS,  OR  THE
PORTION  THEREOF  IF DIVIDED, TO WHICH THE HUSBAND AND WIFE ARE ENTITLED
SHALL BE APPLIED AGAINST THE TAX OF BOTH  SPOUSES  AND  ANY  OVERPAYMENT
SHALL  BE  MADE  TO  BOTH SPOUSES. WHERE ANY RETURN REQUIRED TO BE FILED
PURSUANT TO THIS CHAPTER IS COMBINED WITH  ANY  RETURN  OF  TAX  IMPOSED
PURSUANT  TO  THE AUTHORITY OF THIS CHAPTER OR ANY OTHER LAW IF SUCH TAX
IS ADMINISTERED BY THE  COMMISSIONER,  THE  CREDIT  OR  CREDITS  OR  THE
PORTION OF THEREOF IF DIVIDED, ALLOWED TO THE TAXPAYER MAY BE APPLIED BY
THE COMMISSIONER TOWARD ANY LIABILITY FOR THE AFOREMENTIONED TAXES.
  (4)  NO  CREDIT  OR  CREDITS OR PORTION THEREOF SHALL BE GRANTED UNDER
THIS SUBSECTION WITH RESPECT TO CARE PROVIDED IN  A  RESIDENCE  THAT  IS
WHOLLY  EXEMPTED  FROM REAL PROPERTY TAXATION OR TO AN INDIVIDUAL WHO IS
NOT A RESIDENT INDIVIDUAL OF THE STATE FOR THE ENTIRE TAXABLE YEAR.  THE
RIGHT  TO  CLAIM  A  CREDIT  OR CREDITS OR A PORTION THEREOF, WHERE SUCH
CREDIT OR CREDITS HAVE BEEN DIVIDED  UNDER  THIS  SUBSECTION,  SHALL  BE
PERSONAL  TO  THE  QUALIFIED  TAXPAYER  AND SHALL NOT SURVIVE HIS OR HER

S. 884                              3

DEATH, BUT SUCH RIGHT MAY BE EXERCISED ON BEHALF OF A CLAIMANT BY HIS OR
HER LEGAL GUARDIAN OR ATTORNEY IN FACT DURING HIS OR HER LIFETIME.
  (5)  THE  COMMISSIONER MAY REQUIRE A TAXPAYER TO FURNISH AS SUPPORT OF
HIS OR HER CLAIM FOR CREDIT UNDER THIS SUBSECTION RECEIPTS FOR QUALIFIED
CARE EXPENSES OR OTHER SUCH PROOFS  OF  PAYMENT  AS  SHALL  SATISFY  THE
COMMISSIONER.
  S  3.  Subdivision  4-a of section 425 of the real property tax law is
amended by adding a new paragraph (d) to read as follows:
  (D) A BASIC OR AN ENHANCED EXEMPTION SHALL BE PROVIDED ON A  PRO-RATED
BASIS  TO PROPERTY WHERE A SENIOR CITIZEN RESIDING WITH A TAXPAYER WOULD
OTHERWISE MEET THE ELIGIBILITY REQUIREMENTS SET  FORTH  IN  SUBDIVISIONS
THREE  AND/OR  FOUR  OF THIS SECTION, EXCEPT FOR OWNERSHIP REQUIREMENTS,
AND WHERE, IN THE CASE OF AN  ENHANCED  EXEMPTION,  THE  INCOME  OF  THE
SENIOR  AND  THE  SPOUSE  OF  THE  SENIOR CONSIDERED SEPARATELY FROM THE
REMAINDER OF THE HOUSEHOLD WOULD MEET THE INCOME REQUIREMENTS SET  FORTH
IN SUBDIVISION FOUR OF THIS SECTION. SUCH BASIC OR AN ENHANCED EXEMPTION
SHALL  BE  PROVIDED  ON  A  PRO-RATED  BASIS TO THE PROPERTY AS FOLLOWS:
MULTIPLY THE EXEMPTION THAT WOULD BE GRANTED TO THE PROPERTY AS A  WHOLE
IF  THE  PROPERTY WERE ELIGIBLE FOR THE BASIC OR THE ENHANCED EXEMPTION,
AS APPLICABLE, BY A FRACTION, THE  NUMERATOR  OF  WHICH  IS  THE  SQUARE
FOOTAGE  OF  THE  ROOM  OR  ROOMS  USED BY SUCH SENIOR FAMILY MEMBER FOR
LIVING SPACE, AND THE DENOMINATOR OF WHICH IS THE TOTAL  SQUARE  FOOTAGE
OF THE RESIDENCE. EXCEPT AS PROVIDED IN THIS PARAGRAPH, OR AS INCONSIST-
ENT  WITH THE PURPOSES OF THIS PARAGRAPH, ALL OTHER REQUIREMENTS OF THIS
SECTION  SHALL  BE  APPLICABLE  TO  SUCH  PRO-RATES  BASIC  OR  ENHANCED
EXEMPTION.
  S  4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.

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