S T A T E O F N E W Y O R K
________________________________________________________________________
860
2011-2012 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 5, 2011
___________
Introduced by M. of A. PHEFFER, FARRELL, DINOWITZ, ROSENTHAL -- Multi-
Sponsored by -- M. of A. BING, WEINSTEIN -- read once and referred to
the Committee on Aging
AN ACT to amend the real property tax law, in relation to increasing the
allowable maximum income of persons occupying rental units otherwise
eligible for tax abatement in certain cases, increasing the combined
household income limit for eligibility for a senior citizen rent
increase exemption (SCRIE) and for a municipal property tax abatement
for rent-controlled and rent regulated property occupied by senior
citizens on the basis of the consumer price index, and including with-
in the definition of "income" the deduction of the out-of-pocket
expenses for all medical and prescription drugs not reimbursed or
paid for by insurance
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-b of the real
property tax law, as separately amended by chapters 188 and 205 of the
laws of 2005, is amended to read as follows:
a. for a dwelling unit where the head of the household is a person
sixty-two years of age or older, no tax abatement shall be granted if
the combined income of all members of the household for the income tax
year immediately preceding the date of making application exceeds four
thousand dollars, or such other sum not more than [twenty-five thousand
dollars beginning July first, two thousand five, 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 thou-
sand dollars beginning July first, two thousand nine,] THIRTY THOUSAND
DOLLARS as may be provided by the local law, ordinance or resolution
adopted pursuant to this section, provided that when the head of the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00347-01-1
A. 860 2
household retires before the commencement of such income tax year and
the date of filing the application, the income for such year may be
adjusted by excluding salary or earnings and projecting his or her
retirement income over the entire period of such year. THE MAXIMUM
INCOME THRESHOLD PROVIDED FOR IN THIS PARAGRAPH SHALL BE INCREASED BY
ORDER OF THE COMMISSIONER OF THE STATE DIVISION OF HOUSING AND COMMUNITY
RENEWAL ON JANUARY FIRST OF EACH YEAR TO REFLECT ANY INCREASE IN THE
REGIONAL CONSUMER PRICE INDEX FOR THE N.Y., N.Y.-NORTHEASTERN, N.J.
AREA, BASED UPON THE INDEX FOR ALL URBAN CONSUMERS (CPI-U) DURING THE
PRECEDING TWELVE MONTH PERIOD; PROVIDED THAT THE GOVERNING BODY OF A
MUNICIPAL CORPORATION, AFTER A PUBLIC HEARING, ADOPTS A LOCAL LAW, ORDI-
NANCE, OR RESOLUTION PROVIDING THEREFOR.
S 2. Paragraph d of subdivision 1 of section 467-c of the real proper-
ty tax law, as separately amended by chapters 188 and 205 of the laws of
2005, is amended to read as follows:
d. "Eligible head of the household" means (1) a person or his or her
spouse who is sixty-two years of age or older and is entitled to the
possession or to the use and occupancy of a dwelling unit, provided,
however, with respect to a dwelling which was subject to a mortgage
insured or initially insured by the federal government pursuant to
section two hundred thirteen of the National Housing Act, as amended
"eligible head of the household" shall be limited to that person or his
or her spouse who was entitled to possession or the use and occupancy of
such dwelling unit at the time of termination of such mortgage, and
whose income when combined with the income of all other members of the
household, does not exceed six thousand five hundred dollars for the
taxable period, or such other sum not less than [sixty-five hundred
dollars nor more than twenty-five thousand dollars beginning July first,
two thousand five, 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,] THIRTY THOUSAND DOLLARS as may be provided by local
law; or (2) a person with a disability as defined in this subdivision.
THE MAXIMUM INCOME THRESHOLD PROVIDED FOR IN THIS PARAGRAPH SHALL BE
INCREASED BY ORDER OF THE COMMISSIONER OF THE STATE DIVISION OF HOUSING
AND COMMUNITY RENEWAL ON JANUARY FIRST OF EACH YEAR TO REFLECT ANY
INCREASE IN THE REGIONAL CONSUMER PRICE INDEX FOR THE N.Y.,
N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON THE INDEX FOR ALL URBAN CONSUM-
ERS (CPI-U) DURING THE PRECEDING TWELVE MONTH PERIOD; PROVIDED THAT THE
GOVERNING BODY OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE,
AFTER A PUBLIC HEARING, ADOPTS A LOCAL LAW, ORDINANCE, OR RESOLUTION
PROVIDING THEREFOR.
S 3. Paragraph c of subdivision 1 of section 467-b of the real proper-
ty tax law, as amended by chapter 500 of the laws of 2001, is amended to
read as follows:
c. "Income" means income from all sources after deduction of all
income and social security taxes and includes social security and
retirement benefits, supplemental security income and additional state
payments, public assistance benefits, interest, dividends, net rental
income, salary or earnings, and net income from self-employment, but
shall not include gifts or inheritances, payments made to individuals
because of their status as victims of Nazi persecution, as defined in
P.L. 103-286, [or] increases in benefits accorded pursuant to the social
security act or a public or private pension paid to any member of the
household which increase, in any given year, does not exceed the consum-
A. 860 3
er price index (all items United States city average) for such year
which take effect after the date of eligibility of head of the household
receiving benefits hereunder whether received by the head of the house-
hold or any other member of the household, OR, PROVIDED THAT THE GOVERN-
ING BOARD OF A MUNICIPAL CORPORATION, AFTER A PUBLIC HEARING, ADOPTS A
LOCAL LAW, ORDINANCE, OR RESOLUTION PROVIDING THEREFOR, ALL OUT-OF-POCK-
ET MEDICAL AND PRESCRIPTION DRUG EXPENSES NOT REIMBURSED OR PAID FOR BY
INSURANCE;
S 4. Paragraph f of subdivision 1 of section 467-c of the real proper-
ty tax law, as amended by chapter 500 of the laws of 2001, is amended to
read as follows:
f. "Income" means income received by the eligible head of the house-
hold combined with the income of all other members of the household from
all sources after deduction of all income and social security taxes and
includes without limitation, social security and retirement benefits,
supplemental security income and additional state payments, public
assistance benefits, interest, dividends, net rental income, salary and
earnings, and net income from self employment, but shall not include
gifts or inheritances, payments made to individuals because of their
status as victims of Nazi persecution as defined in P.L. 103-286, nor
increases in benefits accorded pursuant to the social security act or a
public or private pension paid to any member of the household which
increase, in any given year, does not exceed the consumer price index
(all items United States city average) for such year which take effect
after the eligibility date of an eligible head of the household receiv-
ing benefits hereunder whether received by the eligible head of the
household or any other member of the household. When the eligible head
of the household has retired on or after the commencement of the taxable
period and prior to the date of making an application for a rent
increase exemption order/tax abatement certificate pursuant to this
section, such person's income shall be adjusted by excluding salary or
earnings and projecting such person's retirement income over the entire
taxable period. NOR SHALL INCOME INCLUDE, PROVIDED THAT THE GOVERNING
BOARD OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE, AFTER A
PUBLIC HEARING, ADOPTS A LOCAL LAW, ORDINANCE, OR RESOLUTION PROVIDING
THEREFOR, ALL OUT-OF-POCKET MEDICAL AND PRESCRIPTION DRUG EXPENSES NOT
REIMBURSED OR PAID FOR BY INSURANCE.
S 5. This act shall take effect immediately, provided that the amend-
ment to paragraph a of subdivision 3 of section 467-b of the real prop-
erty tax law made by section one of this act and the amendment to para-
graph c of subdivision 1 of section 467-b of the real property tax law
made by section three of this act shall not affect the expiration of
such section as enacted by chapter 576 of the laws of 1974, as last
extended, and shall be deemed to expire therewith.