senate Bill S5409A

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-h, RPT L

Sponsor Memo

BILL NUMBER:S5409A

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-h 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rescinded if the surviving spouse is as least 62 years of age.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--A

                       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  --  recommitted  to
  the  Committee  on  Aging  in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

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-h to read as follows:
  S 467-H. 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11000-03-4

S. 5409--A                          2

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
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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