senate Bill S6645

Allows for increases in the amount of income property owners may earn for purposes of qualification for certain tax exemptions

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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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actions

  • 21 / Feb / 2014
    • REFERRED TO AGING

Summary

Allows for increases in the amount of income property owners may earn for purposes of qualification for certain tax exemptions.

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Bill Details

Versions:
S6645
Legislative Cycle:
2013-2014
Current Committee:
Senate Aging
Law Section:
Real Property Tax Law
Laws Affected:
Amd ยง467, RPT L

Sponsor Memo

BILL NUMBER:S6645

TITLE OF BILL: An act to amend the real property tax law, in relation
to allowing for increases in the amount of income property owners may
earn for purposes of qualification for certain tax exemptions

PURPOSE OR GENERAL IDEA OF BILL:

The bill increases the maximum income eligibility limit for the Senior
Citizen Homeowner Exemption (SCHE) from $29,000 to $32,000 starting
July 1, 2014. Future increases to the income eligibility limit will
automatically take effect every two years starting July 1, 2016, by
the average annual percentage change in the U.S. Department of Labor's
Consumer Price Index for all urban consumers (CPI-U).

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends paragraph a of subdivision 3 of section 467 of the
real property tax law to increase the maximum income eligibility limit
for the Senior Citizen Homeowner. Exemption and establish automatic
biennial increases to the maximum income eligibility limit.

Section 2 states that the bill will take effect immediately.

JUSTIFICATION:

Section 467 of the Real Property Tax Law authorizes local governments
to provide a partial property tax exemption to senior citizens. The
exemptions are based on income, and provided on a sliding scale from
5%-50% exemption. The current maximum income for the 50% exemption is
$29,000, and was last increased in 2009.

According to the U.S. Department of Labor, $29,000 in 2009 dollars
equals $31,600 in 2014 dollars, due to inflation. Many seniors who
previously qualified for the SCHE exemption may no longer qualify due
to cost-of-living adjustments to their fixed sources of income. This
bill would raise the maximum income to $32,000 starting on July 1,
2014, and tie future increases of the eligibility limit to the
Consumer Price Index. Doing so will ensure that seniors aren't "priced
out" of the exemption due to nominal increases in their fixed incomes,
and remove the need for the state legislature to revisit the income
eligibility every few years.

PRIOR LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

None to the state.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                  6645

                            I N  S E N A T E

                            February 21, 2014
                               ___________

Introduced  by  Sen. HOYLMAN -- 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  for
  increases  in  the  amount  of  income  property  owners  may earn for
  purposes of qualification for certain tax exemptions

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

  Section  1.  Paragraph (a) of subdivision 3 of section 467 of the real
property tax law, as amended by chapter 259 of  the  laws  of  2009,  is
amended to read as follows:
  (a) if the income of the owner or the combined income of the owners of
the  property  for the income tax year immediately preceding the date of
making application for exemption  exceeds  the  sum  of  three  thousand
dollars,  or  such  other  sum not less than three thousand dollars [nor
more than 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],  THIRTY-TWO  thousand  dollars  beginning  July
first,  two  thousand  [nine]  FOURTEEN, as may be provided by the local
law, ordinance or resolution adopted pursuant to this section; PROVIDED,
HOWEVER, BEGINNING JULY FIRST, TWO THOUSAND SIXTEEN AND EVERY TWO  YEARS
THEREAFTER,  THE  MAXIMUM ALLOWABLE INCOME SHALL INCREASE BY THE PRODUCT
OF THE AVERAGE ANNUAL PERCENTAGE CHANGES IN THE CONSUMER PRICE INDEX FOR
ALL URBAN CONSUMERS (CPI-U) AS PUBLISHED BY THE UNITED STATES DEPARTMENT
OF LABOR BUREAU OF LABOR STATISTICS FOR THE TWO YEAR PERIOD  ROUNDED  TO
THE NEAREST ONE THOUSAND DOLLARS.  Income tax year shall mean the twelve
month  period  for  which  the  owner or owners filed a federal personal
income tax return, or if no such return is  filed,  the  calendar  year.
Where  title is vested in either the husband or the wife, their combined
income may not exceed such sum, except where the  husband  or  wife,  or
ex-husband or ex-wife is absent from the property as provided in subpar-
agraph  (ii)  of paragraph (d) of this subdivision, then only the income
of the spouse or ex-spouse residing on the property shall be  considered
and  may  not exceed such sum. Such income shall include social security

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14067-01-4

S. 6645                             2

and retirement benefits, interest, dividends, 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, salary or earnings, and net income from self-employment,
but shall not include a return of capital, gifts, inheritances, payments
made to individuals because of their status as victims  of  Nazi  perse-
cution,  as  defined in P.L. 103-286 or monies earned through employment
in the federal foster grandparent program and any such income  shall  be
offset by all medical and prescription drug expenses actually paid which
were  not reimbursed or paid for by insurance, if the governing board of
a municipality, after a public hearing, adopts a local law, ordinance or
resolution providing therefor.    Furthermore,  such  income  shall  not
include  the  proceeds  of  a reverse mortgage, as authorized by section
six-h of the banking law,  and  sections  two  hundred  eighty  and  two
hundred  eighty-a  of  the  real  property  law; provided, however, that
monies used to repay a reverse mortgage may not be deducted from income,
and provided additionally that any interest or dividends  realized  from
the  investment of reverse mortgage proceeds shall be considered income.
The provisions of this paragraph notwithstanding, such income shall  not
include  veterans disability compensation, as defined in Title 38 of the
United States Code provided the governing board  of  such  municipality,
after  public  hearing,  adopts  a  local  law,  ordinance or resolution
providing therefor.  In computing net rental income and net income  from
self-employment  no  depreciation  deduction  shall  be  allowed for the
exhaustion, wear and tear of real or  personal  property  held  for  the
production of income;
  S 2. This act shall take effect immediately.

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