Assembly Bill A7279

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

                                 7279--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 27, 2009
                               ___________

Introduced  by M. of A. BOYLE -- read once and referred to the Committee
  on Aging -- 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 excluding
  social security income  from  computing  tax  exemptions  for  persons
  sixty-five years of age or over

  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 thousand dollars  beginning  July  first,  two  thousand
nine,  as  may  be  provided  by  the local law, ordinance 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 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
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09339-02-9
              

A. 7279--A                          2

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 SOCIAL  SECURITY,  a  return  of  capital,  gifts,
inheritances,  payments  made  to individuals because of their status as
victims of Nazi persecution, 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  insur-
ance,  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 proper-
ty  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 on the second of January next succeed-
ing  the  date  on  which it shall have become a law, and shall apply to
assessment rolls prepared on the basis of taxable status dates occurring
on and after such effective date.

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

                                 7279--B

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 27, 2009
                               ___________

Introduced  by M. of A. BOYLE -- read once and referred to the Committee
  on Aging -- committee discharged, bill amended, ordered  reprinted  as
  amended  and  recommitted  to  said  committee  --  recommitted to the
  Committee on Aging in accordance with  Assembly  Rule  3,  sec.  2  --
  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  excluding
  social  security  income  from  computing  tax  exemptions for persons
  sixty-five years of age or over

  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  thousand  dollars  beginning  July first, two thousand
nine, as may be provided by  the  local  law,  ordinance  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 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09339-04-0
              

A. 7279--B                          2

and may not exceed such sum. Such income shall include [social  security
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  SOCIAL  SECURITY,  a return of capital, gifts,
inheritances, payments made to individuals because of  their  status  as
victims of Nazi persecution, 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 insur-
ance, 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 proper-
ty 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 on the second of January next succeed-
ing the date on which it shall have become a law,  and  shall  apply  to
assessment rolls prepared on the basis of taxable status dates occurring
on and after such effective date.