S T A T E O F N E W Y O R K
________________________________________________________________________
6565
I N S E N A T E
February 6, 2014
___________
Introduced by Sen. GIPSON -- read twice and ordered printed, and when
printed to be committed to the Committee on Education
AN ACT to amend the education law, in relation to capping expenditures
for administrative services; and to amend the tax law, in relation to
creating the middle class circuit breaker tax credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "Property
Tax Relief Act".
S 2. Section 2 of the education law is amended by adding a new subdi-
vision 25 to read as follows:
25. CENTRAL ADMINISTRATION SERVICES. THE TERM "CENTRAL ADMINISTRATION
SERVICES" MEANS ALL CENTRAL ADMINISTRATION SERVICES PROVIDED BY A
COMMON, UNION FREE, CENTRAL SCHOOL DISTRICT, OR CENTRAL HIGH SCHOOL
DISTRICT INCLUDING, BUT NOT LIMITED TO EXPENDITURES, SALARIES AND OTHER-
WISE, FOR THE CHIEF SCHOOL OFFICER, THE SCHOOL PRINCIPAL, THE BUSINESS
OFFICE, THE PURCHASING OFFICE, THE PERSONNEL OFFICE, THE RECORDS MANAGE-
MENT OFFICE, PUBLIC INFORMATION AND SERVICES, FEES FOR FISCAL AGENTS,
THE DISTRICT CLERK'S OFFICE, THE DISTRICT MEETING, AUDITING SERVICES,
THE TREASURER'S OFFICE, THE TAX COLLECTOR'S OFFICE, LEGAL SERVICES, THE
SCHOOL CENSUS, THE SUPPORT STAFF AND CLERICAL STAFF FOR SUCH SERVICES,
OFFICERS AND OFFICES AND INDIRECT COSTS AND OTHER UNCLASSIFIED EXPENDI-
TURES. "CENTRAL ADMINISTRATION SERVICES" SHALL NOT INCLUDE TEACHER SALA-
RIES, TRANSPORTATION SERVICES OR CAPITAL COSTS.
S 3. The education law is amended by adding a new section 1510-a to
read as follows:
S 1510-A. CENTRAL ADMINISTRATION SERVICES. NO COMMON, UNION FREE,
CENTRAL SCHOOL DISTRICT, OR CENTRAL HIGH SCHOOL DISTRICT SHALL, IN ANY
FISCAL YEAR, EXPEND MORE THAN THREE PERCENT OF ITS TOTAL BUDGET FOR
CENTRAL ADMINISTRATION SERVICES, AS SUCH TERM IS DEFINED PURSUANT TO
SUBDIVISION TWENTY-FIVE OF SECTION TWO OF THIS CHAPTER.
S 4. The education law is amended by adding a new section 2023-b to
read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13916-01-4
S. 6565 2
S 2023-B. CENTRAL ADMINISTRATION SERVICES. IN THE TWO THOUSAND FOUR-
TEEN--TWO THOUSAND FIFTEEN SCHOOL YEAR, EVERY SCHOOL DISTRICT SHALL
DECREASE THE TAX LEVY BY THE AMOUNT OF THE DECREASE IN ADMINISTRATIVE
SERVICES FROM THE PREVIOUS YEAR REQUIRED BY SECTION FIFTEEN HUNDRED
TEN-A OF THIS CHAPTER.
S 5. Subsections (yy) and (zz) of section 606 of the tax law, as
relettered by section 5 of part H of chapter 1 of the laws of 2003, are
relettered subsections (yyy) and (zzz) and a new subsection (xx) is
added to read as follows:
(XX) MIDDLE CLASS CIRCUIT BREAKER CREDIT. (1) DEFINITIONS. FOR THE
PURPOSES OF THIS SUBSECTION:
(A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO
OWNS OR RENTS THE RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE RESIDES,
AND HAS RESIDED IN SUCH RESIDENTIAL REAL PROPERTY FOR NOT LESS THAN FIVE
YEARS.
(B) "HOUSEHOLD" OR "MEMBERS OF THE HOUSEHOLD" MEANS A QUALIFIED
TAXPAYER OR QUALIFIED TAXPAYERS AND ALL OTHER PERSONS, NOT NECESSARILY
RELATED, WHO ALL RESIDE IN THE RESIDENTIAL REAL PROPERTY OWNED BY THE
TAXPAYER OR TAXPAYERS, AND SHARE ITS FURNISHINGS, FACILITIES AND ACCOM-
MODATIONS; PROVIDED THAT NO PERSON MAY BE A MEMBER OF MORE THAN ONE
HOUSEHOLD AT ONE TIME.
(C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
OF ALL MEMBERS OF THE HOUSEHOLD FOR THE TAXABLE YEAR AS REPORTED FOR
FEDERAL INCOME TAX PURPOSES, OR WHICH WOULD BE REPORTED AS ADJUSTED
GROSS INCOME IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED,
WITH THE MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX HUNDRED TWELVE
OF THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF SUCH
SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
ERTY OTHERWISE EXCLUDED FROM SUCH AMOUNT; EARNED INCOME FROM SOURCES
WITHOUT THE UNITED STATES EXCLUDABLE FROM FEDERAL GROSS INCOME BY
SECTION NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT MONEY
NOT INCLUDED IN ADJUSTED GROSS INCOME; NONTAXABLE STRIKE BENEFITS;
SUPPLEMENTAL SECURITY INCOME PAYMENTS; THE GROSS AMOUNT OF ANY PENSION
OR ANNUITY BENEFITS TO THE EXTENT NOT INCLUDED IN SUCH ADJUSTED GROSS
INCOME (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS AND
ALL PAYMENTS RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT AND VETER-
ANS' DISABILITY PENSIONS); NONTAXABLE INTEREST RECEIVED FROM THE STATE
OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES, PUBLIC CORPORATIONS, OR
POLITICAL SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT
TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS' COMPEN-
SATION; THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT OF
CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
NEEDY, PAID TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER OR MEMBERS
OF HIS OR HER HOUSEHOLD. HOUSEHOLD GROSS INCOME SHALL NOT INCLUDE
SURPLUS FOODS OR OTHER RELIEF IN KIND OR PAYMENTS MADE TO INDIVIDUALS
BECAUSE OF THEIR STATUS AS VICTIMS OF NAZI PERSECUTION AS DEFINED IN
PUBLIC LAW 103-286 OR ANY DISABILITY COMPENSATION RECEIVED BY VETERANS
ON ACCOUNT OF INJURY OR ILLNESS INCURRED OR AGGRAVATED DURING MILITARY
SERVICE IN THE WARS IN AFGHANISTAN AND IRAQ SINCE SEPTEMBER ELEVENTH,
TWO THOUSAND ONE. PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME SHALL ONLY
INCLUDE ALL SUCH INCOME RECEIVED BY ALL MEMBERS OF THE HOUSEHOLD WHILE
MEMBERS OF SUCH HOUSEHOLD.
(D) "ADJUSTED RENT" MEANS RENT PAID FOR THE RIGHT OF OCCUPANCY OF A
RESIDENCE.
(E) "REAL PROPERTY TAX EQUIVALENT" MEANS (1) FOR TAXABLE YEARS BEGIN-
NING IN TWO THOUSAND FIFTEEN, FIFTEEN PERCENT OF THE ADJUSTED RENT ACTU-
S. 6565 3
ALLY PAID IN THE TAXABLE YEAR BY A HOUSEHOLD SOLELY FOR THE RIGHT OF
OCCUPANCY OF ITS NEW YORK RESIDENCE FOR THE TAXABLE YEAR. IF (I) A RESI-
DENCE IS RENTED TO TWO OR MORE INDIVIDUALS AS COTENANTS, OR SUCH INDI-
VIDUALS SHARE IN THE PAYMENT OF A SINGLE RENT FOR THE RIGHT OF OCCUPANCY
OF SUCH RESIDENCE, AND (II) EACH OF SUCH INDIVIDUALS IS A MEMBER OF A
DIFFERENT HOUSEHOLD, ONE OR MORE OF WHICH INDIVIDUALS SHARES SUCH RESI-
DENCE, REAL PROPERTY TAX EQUIVALENT IS THAT PORTION OF FIFTEEN PERCENT
OF THE ADJUSTED RENT PAID IN THE TAXABLE YEAR WHICH REFLECTS THAT
PORTION OF THE RENT ATTRIBUTABLE TO THE QUALIFIED TAXPAYER AND THE
MEMBERS OF HIS OR HER HOUSEHOLD; AND (2) FOR TAXABLE YEARS BEGINNING IN
TWO THOUSAND SEVENTEEN AND THEREAFTER, TWENTY PERCENT OF THE ADJUSTED
RENT ACTUALLY PAID IN THE TAXABLE YEAR BY A HOUSEHOLD SOLELY FOR THE
RIGHT OF OCCUPANCY OF ITS NEW YORK RESIDENCE FOR THE TAXABLE YEAR. IF
(I) A RESIDENCE IS RENTED TO TWO OR MORE INDIVIDUALS AS COTENANTS, OR
SUCH INDIVIDUALS SHARE IN THE PAYMENT OF A SINGLE RENT FOR THE RIGHT OF
OCCUPANCY OF SUCH RESIDENCE, AND (II) EACH OF SUCH INDIVIDUALS IS A
MEMBER OF A DIFFERENT HOUSEHOLD, ONE OR MORE OF WHICH INDIVIDUALS SHARES
SUCH RESIDENCE, REAL PROPERTY TAX EQUIVALENT IS THAT PORTION OF TWENTY
PERCENT OF THE ADJUSTED RENT PAID IN THE TAXABLE YEAR WHICH REFLECTS
THAT PORTION OF THE RENT ATTRIBUTABLE TO THE QUALIFIED TAXPAYER AND THE
MEMBERS OF HIS OR HER HOUSEHOLD.
(F) "NET REAL PROPERTY TAX" MEANS THE REAL PROPERTY TAXES ASSESSED ON
THE RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED BY THE TAXPAYER OR
TAXPAYERS AFTER ANY EXEMPTION OR ABATEMENT RECEIVED PURSUANT TO THE REAL
PROPERTY TAX LAW.
(2) CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE
TAXES IMPOSED BY THIS ARTICLE, EQUAL TO SEVENTY PERCENT OF THE AMOUNT BY
WHICH THE TAXPAYER'S NET REAL PROPERTY TAX OR THE TAXPAYER'S REAL PROP-
ERTY TAX EQUIVALENT EXCEEDS THE TAXPAYER'S MAXIMUM REAL PROPERTY TAX, AS
DETERMINED BY PARAGRAPH THREE OF THIS SUBSECTION. IF SUCH CREDIT EXCEEDS
THE TAX FOR SUCH TAXABLE YEAR, AS REDUCED BY THE OTHER CREDITS PERMITTED
BY THIS ARTICLE, THE QUALIFIED TAXPAYER MAY RECEIVE, AND THE COMP-
TROLLER, SUBJECT TO A CERTIFICATE OF THE DEPARTMENT, SHALL PAY AS AN
OVERPAYMENT, WITHOUT INTEREST, ANY EXCESS BETWEEN SUCH TAX AS SO REDUCED
AND THE AMOUNT OF THE CREDIT. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO
FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE,
A QUALIFIED TAXPAYER MAY NEVERTHELESS RECEIVE AND THE COMPTROLLER,
SUBJECT TO A CERTIFICATE OF THE DEPARTMENT, SHALL PAY AS AN OVERPAYMENT
THE FULL AMOUNT OF THE CREDIT, WITHOUT INTEREST.
(3) MAXIMUM REAL PROPERTY TAX. (A) A QUALIFIED TAXPAYER'S MAXIMUM REAL
PROPERTY TAX SHALL BE DETERMINED AS FOLLOWS:
(I) FOR TAX YEARS BEGINNING IN TWO THOUSAND FIFTEEN:
HOUSEHOLD GROSS INCOME MAXIMUM REAL PROPERTY TAX
ONE HUNDRED THOUSAND NINE PERCENT OF THE
DOLLARS OR LESS HOUSEHOLD GROSS INCOME
MORE THAN ONE HUNDRED NO LIMITATION.
THOUSAND DOLLARS
(II) FOR TAX YEARS BEGINNING IN TWO THOUSAND SIXTEEN:
HOUSEHOLD GROSS INCOME MAXIMUM REAL PROPERTY TAX
ONE HUNDRED THOUSAND EIGHT AND ONE-HALF PERCENT OF THE
DOLLARS OR LESS HOUSEHOLD GROSS INCOME
MORE THAN ONE HUNDRED NO LIMITATION.
THOUSAND DOLLARS
(III) FOR TAX YEARS BEGINNING IN TWO THOUSAND SEVENTEEN:
HOUSEHOLD GROSS INCOME MAXIMUM REAL PROPERTY TAX
S. 6565 4
ONE HUNDRED THOUSAND DOLLARS SEVEN AND ONE-HALF PERCENT OF
OR LESS HOUSEHOLD GROSS INCOME
MORE THAN ONE HUNDRED THOUSAND SEVEN AND ONE-HALF PERCENT OF
DOLLARS, BUT LESS THAN OR EQUAL TO ONE HUNDRED THOUSAND DOLLARS
ONE HUNDRED FIFTY THOUSAND DOLLARS PLUS EIGHT AND ONE-HALF PERCENT OF
HOUSEHOLD GROSS INCOME ABOVE
ONE HUNDRED THOUSAND DOLLARS
MORE THAN ONE HUNDRED FIFTY NO LIMITATION.
THOUSAND DOLLARS
(IV) FOR TAX YEARS BEGINNING IN TWO THOUSAND EIGHTEEN AND THEREAFTER:
HOUSEHOLD GROSS INCOME MAXIMUM REAL PROPERTY TAX
ONE HUNDRED THOUSAND SIX PERCENT OF HOUSEHOLD GROSS
DOLLARS OR LESS INCOME
MORE THAN ONE HUNDRED THOUSAND SIX PERCENT OF ONE HUNDRED
DOLLARS, BUT LESS THAN OR EQUAL TO THOUSAND DOLLARS PLUS SEVEN
ONE HUNDRED FIFTY THOUSAND DOLLARS PERCENT OF HOUSEHOLD GROSS INCOME
ABOVE ONE HUNDRED THOUSAND DOLLARS
MORE THAN ONE HUNDRED FIFTY SIX PERCENT OF ONE HUNDRED THOUSAND
THOUSAND DOLLARS, BUT LESS THAN DOLLARS PLUS SEVEN
OR EQUAL TO TWO HUNDRED FIFTY PERCENT OF FIFTY THOUSAND DOLLARS
THOUSAND DOLLARS PLUS EIGHT AND ONE-HALF PERCENT OF
HOUSEHOLD GROSS INCOME ABOVE ONE
HUNDRED FIFTY THOUSAND DOLLARS
MORE THAN TWO HUNDRED FIFTY NO LIMITATION.
THOUSAND DOLLARS
(B) THE THRESHOLDS OF HOUSEHOLD GROSS INCOME ESTABLISHED BY CLAUSE
(IV) OF SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL BE INDEXED FOR
INFLATION FOR TAX YEARS BEGINNING IN TWO THOUSAND NINETEEN AND THEREAFT-
ER.
(4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS
SUBSECTION IF THE QUALIFIED TAXPAYER CLAIMS THE REAL PROPERTY TAX
CIRCUIT BREAKER CREDIT, PURSUANT TO SUBSECTION (E) OF THIS SECTION,
DURING THE TAXABLE YEAR.
S 6. This act shall take effect immediately.