S T A T E O F N E W Y O R K
________________________________________________________________________
687
2011-2012 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 5, 2011
___________
Introduced by M. of A. SAYWARD, REILICH, FINCH, THIELE, KOLB -- Multi-
Sponsored by -- M. of A. CONTE, CROUCH, DUPREY, GIGLIO, HAWLEY,
P. LOPEZ, RAIA -- read once and referred to the Committee on Ways and
Means
AN ACT to amend the tax law, in relation to establishing a personal
income tax credit for a cap on real property tax based off of a house-
hold's gross income
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
"Twenty-first century STAR".
S 2. Section 606 of the tax law is amended by adding a new subsection
(ss) to read as follows:
(SS) CAP ON REAL PROPERTY TAX. (1) A TAXPAYER SHALL BE ALLOWED A CRED-
IT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX
IMPOSED BY THIS ARTICLE. A CAP ON REAL PROPERTY TAX SHALL BE ESTABLISHED
BASED ON A HOUSEHOLD'S GROSS INCOME AND INDEXED TO THE CONSUMER PRICE
INDEX.
(2) THE NET REAL PROPERTY TAX FOR ANY TAXABLE YEAR ON A PARCEL OF
OWNER-OCCUPIED RESIDENTIAL REAL PROPERTY SHALL NOT EXCEED AN AMOUNT
EQUAL TO THE FOLLOWING PERCENTAGE OF THE HOUSEHOLD GROSS INCOME:
HOUSEHOLD GROSS INCOME CAP ON REAL PROPERTY TAX
$50,000 OR LESS 3% OF HOUSEHOLD GROSS INCOME
MORE THAN $50,000 BUT LESS THAN OR EQUAL
TO $100,000 5% OF HOUSEHOLD GROSS INCOME
MORE THAN $100,000 BUT LESS THAN OR EQUAL
TO $150,000 6% OF HOUSEHOLD GROSS INCOME
MORE THAN $150,000 BUT LESS THAN OR EQUAL
TO $200,000 7% OF HOUSEHOLD GROSS INCOME
MORE THAN $200,000 NO LIMITATION
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01297-01-1
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(3) A TAXPAYER SHALL FILE INCOME TAX RETURNS IN THE MANNER PRESCRIBED
BY THIS ARTICLE. ANY AMOUNT PAID OVER THE REAL PROPERTY TAX CAP SHALL BE
RETURNED TO THE TAXPAYER IN THE FORM OF A REFUNDABLE PERSONAL INCOME TAX
CREDIT. SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW
SHALL NOT BE AFFECTED BY ANY PROVISION OF THIS SUBSECTION.
(4) THE PERSONAL INCOME TAX CREDIT PURSUANT TO THIS SECTION SHALL ONLY
BE AVAILABLE TO NEW YORK STATE RESIDENTS FOR A PRIMARY RESIDENCE. SUCH
CREDIT SHALL BE CLAIMED ON THE NEW YORK STATE RESIDENT INCOME TAX
RETURN, FORM IT-201.
(5) FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
(A) A "HOMEOWNER" SHALL MEAN ANY PERSON:
(I) WHO IS A RESIDENT INDIVIDUAL OF THE STATE WHO OWNS THE RESIDENTIAL
REAL PROPERTY IN WHICH HE OR SHE RESIDES, AND HAS RESIDED IN SUCH RESI-
DENTIAL REAL PROPERTY FOR NOT LESS THAN FIVE YEARS;
(II) WHO PAID REAL PROPERTY TAXES ON SUCH PERSON'S RESIDENCE;
(III) WHO COULD NOT BE CLAIMED AS A DEPENDENT ON ANOTHER TAXPAYER'S
FEDERAL INCOME TAX RETURN; AND
(IV) WHOSE RESIDENCE WAS NOT COMPLETELY EXEMPTED FROM REAL PROPERTY
TAXES.
(B) "MEMBERS OF A HOUSEHOLD" INCLUDE ALL WHO SHARE A RESIDENCE AND ITS
FURNISHINGS, FACILITIES, AND ACCOMMODATIONS WHETHER SUCH PERSONS ARE
RELATED OR NOT.
HOWEVER, TENANTS, SUBTENANTS, ROOMERS, OR BOARDERS ARE NOT MEMBERS OF
A HOUSEHOLD UNLESS SUCH PERSONS ARE RELATED IN ONE OF THE FOLLOWING
WAYS:
(I) A SON, DAUGHTER, OR A DESCENDENT OF EITHER; (II) A STEPSON OR
STEPDAUGHTER; (III) A BROTHER, SISTER, STEPBROTHER, OR STEPSISTER; (IV)
A FATHER, MOTHER, OR AN ANCESTOR OF EITHER; (V) A STEPFATHER OR STEP-
MOTHER; (VI) A NIECE OR NEPHEW; (VII) AN AUNT OR UNCLE; OR (VIII) A
SON-IN-LAW, DAUGHTER-IN-LAW, FATHER-IN-LAW, MOTHER-IN-LAW,
BROTHER-IN-LAW, OR SISTER-IN-LAW.
PROVIDED, FURTHER, THAT NO ONE CAN BE A MEMBER OF MORE THAN ONE HOUSE-
HOLD AT ONE TIME.
(C) "HOUSEHOLD GROSS INCOME" MEANS THE ANNUAL TOTAL OF THE FOLLOWING
INCOME ITEMS THAT A HOMEOWNER AND ALL MEMBERS OF HIS OR HER HOUSEHOLD
RECEIVED DURING THE TAX YEAR;
(I) FEDERAL ADJUSTED GROSS INCOME (EVEN IF SUCH PERSON DOES NOT HAVE
TO FILE A FEDERAL RETURN);
(II) NEW YORK STATE ADDITIONS TO FEDERAL ADJUSTED GROSS INCOME. FOR A
LIST OF THESE ADDITIONS, SEE PUBLICATION 22, GENERAL INFORMATION ON NEW
YORK STATE'S REAL PROPERTY TAX CREDIT FOR HOMEOWNERS AND RENTERS, OR THE
INSTRUCTIONS FOR FORM IT-201. FOR FORM IT-200 FILERS, THE NEW YORK STATE
ADDITIONS TO FEDERAL ADJUSTED GROSS INCOME ARE SHOWN ON FORM IT-200,
LINE 9, PUBLIC EMPLOYEE 414(H) RETIREMENT CONTRIBUTIONS AND LINE 10, IRC
125 AMOUNTS FROM THE NEW YORK CITY FLEXIBLE BENEFITS PROGRAM. FOR FORM
IT-201 FILERS, THE NEW YORK STATE ADDITIONS TO FEDERAL ADJUSTED GROSS
INCOME ARE SHOWN ON FORM IT-201, LINES 19 THROUGH 22;
(III) SUPPORT MONEY, INCLUDING FOSTER CARE SUPPORT PAYMENTS;
(IV) INCOME EARNED ABROAD EXEMPTED BY SECTION 911 OF THE INTERNAL
REVENUE CODE;
(V) SUPPLEMENTAL SECURITY INCOME (SSI) PAYMENTS;
(VI) NONTAXABLE INTEREST RECEIVED FROM NEW YORK STATE, ITS AGENCIES,
INSTRUMENTALITIES, PUBLIC CORPORATIONS, OR POLITICAL SUBDIVISIONS;
(VII) WORKERS' COMPENSATION;
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(VIII) THE GROSS AMOUNT OF LOSS-OF-TIME INSURANCE. (FOR EXAMPLE, AN
ACCIDENT OR HEALTH INSURANCE POLICY AND DISABILITY BENEFITS RECEIVED
UNDER A NO-FAULT AUTOMOBILE POLICY, ETC.);
(IX) CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE
FOR THE NEEDY (FOR EXAMPLE, CASH GRANTS TO CLIENTS, EMERGENCY AID TO
ADULTS, VALUE OF FOOD VOUCHERS RECEIVED BY CLIENTS, ETC.), EXCEPT
AMOUNTS RECEIVED FROM THE HOME ENERGY ASSISTANCE PROGRAM (HEAP);
(X) NONTAXABLE STRIKE BENEFITS;
(XI) THE GROSS AMOUNT OF PENSIONS AND ANNUITIES, INCLUDING RAILROAD
RETIREMENT BENEFITS;
(XII) ALL PAYMENTS RECEIVED UNDER THE SOCIAL SECURITY ACT AND VETERANS
DISABILITY PENSIONS REDUCED BY ANY MEDICARE PREMIUMS DEDUCTED FROM YOUR
BENEFIT REPORTED ON FEDERAL FORM SSA-1099, SOCIAL SECURITY BENEFIT
STATEMENT.
HOUSEHOLD GROSS INCOME SHALL NOT INCLUDE FOOD STAMPS, MEDICARE, MEDI-
CAID, SCHOLARSHIPS, GRANTS, SURPLUS FOOD, OR OTHER RELIEF IN KIND. IT
ALSO SHALL NOT INCLUDE PAYMENTS MADE TO VETERANS UNDER THE FEDERAL
VETERANS' DIOXIN AND RADIATION EXPOSURE COMPENSATION STANDARDS ACT
BECAUSE OF EXPOSURE TO HERBICIDES CONTAINING DIOXIN (AGENT ORANGE), OR
PURSUANT TO CERTAIN AGENT ORANGE PRODUCT LIABILITY LITIGATION.
ALSO, HOUSEHOLD GROSS INCOME SHALL NOT INCLUDE PAYMENTS MADE TO INDI-
VIDUALS BECAUSE OF THEIR STATUS AS VICTIMS OF NAZI PERSECUTION AS
DEFINED IN FEDERAL PUBLIC LAW 103-286.
(D) A "RESIDENCE" MEANS A DWELLING THAT A PERSON OWNS THAT IS LOCATED
IN NEW YORK STATE. FOR PURPOSES OF THIS SUBPARAGRAPH, A DWELLING SHALL
MEAN THE MINIMUM LOT SIZE REQUIRED BY THE COUNTY TO CONSTITUTE A RESI-
DENTIAL UNIT. IF SUCH RESIDENCE IS ON MORE THAN ONE ACRE OF LAND, ONLY
THE AMOUNT OF REAL PROPERTY TAXES THAT APPLIES TO THE RESIDENCE AND ONLY
ONE ACRE AROUND IT MAY BE USED TO FIGURE THE CREDIT. EACH RESIDENCE
WITHIN A MULTIPLE DWELLING UNIT MAY QUALIFY. A CONDOMINIUM OR A COOPER-
ATIVE WITHIN A SINGLE DWELLING IS ALSO A RESIDENCE.
A TRAILER OR MOBILE HOME THAT IS USED ONLY FOR RESIDENTIAL PURPOSES IS
ALSO A RESIDENCE IF THE TRAILER OR MOBILE HOME IS ASSESSED FOR REAL
PROPERTY TAX PURPOSES.
(E) "REAL PROPERTY TAXES PAID" ARE:
(I) ALL CURRENT, PRIOR, AND PREPAID REAL PROPERTY TAXES, SPECIAL AD
VALOREM LEVIES AND ASSESSMENTS LEVIED AND PAID UPON A RESIDENCE OWNED OR
PREVIOUSLY OWNED BY A QUALIFIED TAXPAYER (OR SPOUSE, IF THE SPOUSE OCCU-
PIED THE RESIDENCE FOR AT LEAST SIX MONTHS) DURING THE TAX YEAR. SUCH
PERSON MAY ELECT TO INCLUDE REAL PROPERTY TAXES THAT ARE EXEMPTED FROM
TAX UNDER SECTION FOUR HUNDRED SIXTY-SEVEN (FOR PERSONS SIXTY-FIVE AND
OLDER) OF THE REAL PROPERTY TAX LAW (VETERANS' TAX EXEMPTION DOES NOT
QUALIFY).
(II) REAL PROPERTY TAXES PAID ALSO INCLUDE ANY REAL ESTATE TAXES
ALLOWED (OR WHICH WOULD BE ALLOWABLE IF THE TAXPAYER HAD FILED A RETURN
ON A CASH BASIS) AS A DEDUCTION FOR TENANT-STOCKHOLDERS IN A COOPERATIVE
HOUSING CORPORATION UNDER SECTION 216 OF THE INTERNAL REVENUE CODE.
(III) IF ANY PART OF A RESIDENCE WAS OWNED BY SOMEONE WHO WAS NOT A
MEMBER OF A HOUSEHOLD, INCLUDE ONLY THE REAL PROPERTY TAXES PAID THAT
APPLY TO THE PART SUCH PERSON AND OTHER QUALIFIED MEMBERS OF A HOUSEHOLD
OWN.
IF A RESIDENCE WAS PART OF A LARGER UNIT, INCLUDE ONLY THE AMOUNT OF
REAL PROPERTY TAXES PAID THAT CAN BE REASONABLY APPLIED TO SUCH PERSON'S
RESIDENCE.
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IF A HOMEOWNER OWNED AND OCCUPIED MORE THAN ONE RESIDENCE DURING THE
TAX YEAR, ADD TOGETHER THE PRORATED PART OF REAL PROPERTY TAXES PAID FOR
THE PERIOD YOU OCCUPIED EACH RESIDENCE.
S 3. This act shall take effect immediately and shall apply to the
2008 tax year and thereafter.