senate Bill S5409

Amended

Allows municipalities to pass local laws granting a real property tax deferment to seniors

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 16 / May / 2013
    • REFERRED TO AGING
  • 04 / Jun / 2013
    • 1ST REPORT CAL.1043
  • 05 / Jun / 2013
    • 2ND REPORT CAL.
  • 10 / Jun / 2013
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2013
    • COMMITTED TO RULES
  • 08 / Jan / 2014
    • REFERRED TO AGING
  • 29 / Jan / 2014
    • AMEND AND RECOMMIT TO AGING
  • 29 / Jan / 2014
    • PRINT NUMBER 5409A

Summary

Allows municipalities to pass local laws granting a real property tax deferment to seniors.

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Bill Details

Versions:
S5409
S5409A
Legislative Cycle:
2013-2014
Current Committee:
Senate Aging
Law Section:
Real Property Tax Law
Laws Affected:
Add ยง467-g, RPT L

Votes

6
3
6
Aye
3
Nay
2
aye with reservations
0
absent
0
excused
0
abstained
show Aging committee vote details

Sponsor Memo

BILL NUMBER:S5409

TITLE OF BILL: An act to amend the real property tax law, in relation
to allowing municipalities to pass a local law granting a tax
deferment for persons sixty-five years of age or older

PURPOSE: To allow municipalities the ability to grant real property
tax deferment for seniors.

SUMMARY OF PROVISIONS:

Section 1 adds a new section 467-g to the real property tax law to
allow a county, city, town, or village to adopt a local law granting
tax deferment to persons 65 years or older, after holding a public
hearing. Provisions of the tax deferment are as follows:

* establishes the criteria for the tax deferment eligibility. It is
available for property owners who are each 65 years of age or older,
or siblings and spouses, in which one party is at least 65 years of
age. Should the of-age spouse pass away, the deferment will not be
rescinded if the surviving spouse is as least 62 years of age.

* Applicants for tax deferment must reapply annually, and not exceed a
gross income of $70,000 per year

* The deferment must equal 75% of the applicant's tax obligation

* The amount of taxes deferred will accrue 3% interest rate, and will
constitute a lien on the property; the applicant can cancel the
deferment at any time

Section 2 establishes an effective date.

JUSTIFICATION: Seniors on fixed incomes often face the difficult task
of paying for their necessities, and must sometimes choose between
paying for food, medications, or their property taxes. With the
changing and rising costs of real property tax, some seniors may be
unable to immediately pay, and risk losing their homes, This poses a
serious problem for not only seniors, but also neighbors and
municipalities, who may face declining property values due to an
increase in foreclosed homes in the area.

This legislation allows municipalities the option of deferring tax
payments for seniors who are on a fixed income, allowing seniors to
remain in their homes, and keeping communities stable and intact.

LEGISLATIVE HISTORY: None.

FISCAL & LOCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect on the one hundred
eightieth day after it shall have become a law.

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

                                  5409

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 16, 2013
                               ___________

Introduced  by  Sen.  GIPSON -- 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 allowing muni-
  cipalities to pass a local law granting a tax  deferment  for  persons
  sixty-five years of age or older

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

  Section 1. The real property tax  law  is  amended  by  adding  a  new
section 467-g to read as follows:
  S 467-G. DEFERRAL OF REAL PROPERTY TAX FOR PERSONS SIXTY-FIVE YEARS OF
AGE  OR  OLDER.  1.  (A) AFTER A PUBLIC HEARING, THE GOVERNING BODY OF A
COUNTY, CITY, TOWN OR VILLAGE MAY ADOPT A  LOCAL  LAW,  GRANTING  A  TAX
DEFERMENT  FOR  REAL PROPERTY OWNED AND OCCUPIED BY ONE OR MORE PERSONS,
EACH OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OLDER, OR REAL PROPERTY OWNED
AND OCCUPIED BY SPOUSES OR BY SIBLINGS, ONE OF WHOM IS SIXTY-FIVE  YEARS
OF  AGE  OR  OLDER. FOR PURPOSES OF THIS SECTION, "SIBLING" SHALL MEAN A
BROTHER OR A SISTER, WHETHER RELATED THROUGH HALF BLOOD, WHOLE BLOOD  OR
ADOPTION.
  (B) APPLICATION FOR SUCH DEFERMENT SHALL BE MADE ANNUALLY BY THE OWNER
OR OWNERS OF SUCH REAL PROPERTY. NO APPLICATION FOR SUCH DEFERMENT SHALL
BE  GRANTED  TO ANY OWNER WITH A TOTAL INCOME EXCEEDING SEVENTY THOUSAND
DOLLARS.  FOR PURPOSES OF THIS SECTION, "INCOME" SHALL  MEAN  THE  GROSS
INCOME  OF  THE OWNER OR OWNERS OF SUCH PROPERTY FOR THE INCOME TAX YEAR
IMMEDIATELY PRECEDING THE DATE OF APPLICATION  FOR  SUCH  DEFERMENT  AND
SHALL  INCLUDE  SOCIAL SECURITY AND RETIREMENT BENEFITS, INTEREST, DIVI-
DENDS, 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, EARNED INCOME FROM SALARY OR
EARNINGS AND NET INCOME FROM SELF-EMPLOYMENT, BUT SHALL  NOT  INCLUDE  A
RETURN  OF CAPITAL, GIFTS OR INHERITANCES. THE AGE OF EACH OWNER OF SUCH
PROPERTY SHALL BE THE AGE OF SUCH PERSON  AT  THE  COMMENCEMENT  OF  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11000-02-3

S. 5409                             2

MUNICIPALITY'S FISCAL YEAR FOR WHICH AN APPLICATION FOR TAX DEFERMENT IS
MADE.
  2.  SUCH  DEFERMENT  SHALL EQUAL SEVENTY-FIVE PER CENTUM OF THE APPLI-
CANT'S TAX OBLIGATION.
  3. THE AMOUNT OF TAXES DEFERRED SHALL ACCRUE AGAINST SUCH PERSON, WITH
A THREE PER CENTUM INTEREST RATE, AND SHALL, ON THE DATE SUCH  DEFERMENT
IS  GRANTED,  CONSTITUTE  A  LIEN  AGAINST SUCH PROPERTY IN FAVOR OF THE
APPROPRIATE MUNICIPAL CORPORATION. THE OWNER OR OWNERS OF SUCH PROPERTY,
HAVING RECEIVED SUCH DEFERMENT PURSUANT TO THIS  SECTION,  MAY,  AT  ANY
TIME,  TERMINATE  THE  DEFERMENT  AND  REMOVE THE RESULTANT LIEN ON SAID
PROPERTY BY PAYING IN FULL THE CUMULATIVE AMOUNT OF SUCH LIEN.
  4. A TAX DEFERMENT GRANTED TO SPOUSES PURSUANT TO THIS  SECTION,  ONCE
GRANTED, SHALL NOT BE RESCINDED SOLELY BECAUSE OF THE DEATH OF THE OLDER
SPOUSE  SO  LONG  AS THE SURVIVING SPOUSE IS AT LEAST SIXTY-TWO YEARS OF
AGE. IN THE EVENT THAT THE SURVIVING SPOUSE IS LESS THAN SIXTY-TWO YEARS
OF AGE, SUCH SURVIVING SPOUSE SHALL BE ELIGIBLE FOR  THE  TAX  DEFERMENT
UPON  REACHING  SIXTY-TWO  YEARS  OF  AGE PROVIDED ALL OTHER ELIGIBILITY
REQUIREMENTS ARE MET.
  5. ANY PERSON WHO HAS ALREADY ATTAINED THE AGE OF SIXTY-FIVE YEARS  OR
OLDER  IS  ELIGIBLE  FOR  SUCH  DEFERRAL  AND SHALL BE ENTITLED TO A TAX
DEFERMENT BASED ON THE TAX YEAR IMMEDIATELY PRECEDING THE EFFECTIVE DATE
OF THIS SECTION.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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