Assembly Bill A9375

                                BILL NUMBER:A9375

TITLE OF BILL:  An act to amend the real property tax law, in relation
to including pension and retirement plans as plans eligible for income
reduction when determining eligibility for the enhanced STAR exemption

PURPOSE OR GENERAL IDEA OF BILL:

This bill amends the Real Property Tax Law to conform the treatment of
pension and retirement plan distributions to that of individual retire-
ment account and individual retirement annuity distributions which are
currently excluded from income for the purposes of eligibility for the
enhanced STAR exemption.

SUMMARY OF SPECIFIC PROVISIONS:

Section one amends subparagraph (ii) of paragraph (b) of subdivision 4
of section 425 of the real property tax law, as amended by section 3 of
part E of chapter 83 of the laws of 2002, by including up to twenty
(20%) percent or five thousand ($5,000) dollars, whichever is greater,
of distributions from pension and retirement plans to the list of types
of distributions which are to be treated as reductions in "income" for
purposes of eligibility for the enhanced STAR exemption.

EFFECTS OF PRESENT LAW WHICH THE BILL WILL ALTER:

              

This bill amends the real property tax law by conforming the treatment
of pension and retirement plan distributions to that of individual
retirement account and individual retirement annuity distributions which
are currently excluded from income for the purposes of eligibility for
the enhanced STAR exemption.

JUSTIFICATION:

Under current law an applicant for enhanced STAR exemption must include
all distributions from his or her pension and retirement plan in calcu-
lating his or her income for purposes of determining whether he or she
is eligible for the enhanced STAR exemption although similar distrib-
utions from an applicant's individual retirement account and individual
retirement annuity are excluded from the calculation of his or her
income. This bill would correct the disparate treatment of similar
distributions to seniors - a disparity that denies otherwise eligible
seniors of the benefits of the enhanced STAR exemption, by allowing up
to twenty (20%) percent or five thousand ($5,000) dollars, whichever is
greater, of distributions from pension and retirement plans to the list
of types of distributions which are to be treated as reductions in
"income" for purposes of eligibility for the enhanced STAR exemption.

PRIOR LEGISLATIVE HISTORY:

A9530 of 2003-2004
A6726 of 2004-2005

A6726 of 2005-2006 A3099/S1950 of 2007-2008 A3229 of 2009 (Bradley)

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined

EFFECTIVE DATE:

Immediately.