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

                                  5796

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 20, 2009
                               ___________

Introduced  by  M. of A. HAYES, FINCH, HAWLEY, KOLB, MOLINARO, WALKER --
  Multi-Sponsored by -- M. of A.  BACALLES,  BARCLAY,  BURLING,  ERRIGO,
  McDONOUGH,  RABBITT, TOWNSEND -- read once and referred to the Commit-
  tee on Aging

AN ACT to amend the real property tax law, in relation to  defining  the
  term "income" for senior citizens

  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 section 2 of chapter 186 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, 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.
                                                           LBD07571-01-9
              

A. 5796                             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 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.    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;] THE TERM "INCOME"
AS USED HEREIN SHALL MEAN THE "ADJUSTED GROSS INCOME" FOR FEDERAL INCOME
TAX PURPOSES AS REPORTED ON THE APPLICANT'S LATEST AVAILABLE FEDERAL  OR
STATE  INCOME  TAX  RETURN,  SUBJECT  TO  ANY  SUBSEQUENT  AMENDMENTS OR
REVISIONS, REDUCED BY DISTRIBUTIONS, TO THE EXTENT INCLUDED  IN  FEDERAL
ADJUSTED  GROSS  INCOME,  RECEIVED FROM AN INDIVIDUAL RETIREMENT ACCOUNT
AND AN INDIVIDUAL RETIREMENT ANNUITY; PROVIDED THAT IF  NO  SUCH  RETURN
WAS  FILED  WITHIN  THE  ONE  YEAR PERIOD PRECEDING TAXABLE STATUS DATE,
"INCOME" SHALL MEAN THE ADJUSTED GROSS INCOME THAT WOULD  HAVE  BEEN  SO
REPORTED IF SUCH A RETURN HAD BEEN FILED.  FOR PURPOSES OF THIS SUBDIVI-
SION,  "LATEST  AVAILABLE RETURN" SHALL MEAN THE FEDERAL OR STATE INCOME
TAX RETURN FOR THE TAX YEAR IMMEDIATELY PRECEDING  THE  DATE  OF  MAKING
APPLICATION,  PROVIDED HOWEVER, THAT IF THE TAX RETURN FOR SUCH TAX YEAR
HAS NOT BEEN FILED, THEN THE INCOME TAX RETURN  FOR  THE  TAX  YEAR  TWO
YEARS  PRECEDING  THE DATE OF MAKING APPLICATION SHALL BE CONSIDERED THE
LATEST AVAILABLE;
  S 2. This act shall take effect immediately.