S T A T E O F N E W Y O R K
________________________________________________________________________
4029
2009-2010 Regular Sessions
I N A S S E M B L Y
January 29, 2009
___________
Introduced by M. of A. THIELE -- Multi-Sponsored by -- M. of A. CROUCH,
SPANO -- read once and referred to the Committee on Real Property
Taxation
AN ACT to amend the real property tax law, in relation to exempting the
retroactive payment of social security benefits from consideration as
income for purposes of the real property tax exemption granted to
persons with disabilities and limited incomes
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (a) of subdivision 5 of section 459-c of the real
property tax law, as separately amended by chapters 187 and 252 of the
laws of 2006, 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 thousand dollars beginning July first, two thousand
nine, as may be provided by the local law or resolution adopted pursuant
to this section. 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 due to divorce, legal separation or abandon-
ment, 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 and retirement benefits, interest, divi-
dends, total gain from the sale or exchange of a capital asset which may
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05121-01-9
A. 4029 2
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 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 munici-
pality, after a public hearing, adopts a local law or resolution provid-
ing therefor. FURTHERMORE, SUCH INCOME SHALL NOT INCLUDE ANY RETROAC-
TIVE PAYMENT OF SOCIAL SECURITY BENEFITS MADE DURING AN INCOME TAX YEAR,
NOR SHALL ANY SUCH PAYMENT BE DEEMED TO BE INCOME IN THE INCOME TAX YEAR
OR YEARS IN WHICH THE PAYMENTS ACCRUED. 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.