Assembly Bill A4322

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

                                  4322

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 3, 2011
                               ___________

Introduced  by  M.  of  A.  ENGLEBRIGHT -- read once and referred to the
  Committee on Ways and Means

AN ACT to amend the tax law, in  relation  to  increasing  the  personal
  income tax real property tax circuit breaker credit

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Paragraph 2 and the paragraph heading of  paragraph  3  of
subsection  (e)  of section 606 of the tax law, as amended by chapter 28
of the laws of 1987, are amended to read as follows:
  (2) A qualified taxpayer shall be allowed  a  credit  as  provided  in
paragraph three hereof FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST,
TWO  THOUSAND  TWELVE  AND  IN  PARAGRAPH THREE-A OF THIS SUBSECTION FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO  THOUSAND  TWELVE
against the taxes imposed by this article reduced by the credits permit-
ted  by  this  article.  If the credit exceeds the tax as so reduced for
such year under this article the qualified taxpayer may receive, and the
comptroller, subject to a certificate  of  the  [state  tax  commission]
COMMISSIONER,  shall pay as an overpayment, without interest, any excess
between such tax as so reduced and the amount of the credit. If a quali-
fied taxpayer is not required to file a return pursuant to  section  six
hundred fifty-one OF THIS ARTICLE, a qualified taxpayer may nevertheless
receive  and the comptroller, subject to a certificate of the [state tax
commission] COMMISSIONER, shall pay as an overpayment the full amount of
the credit, without interest.
  Determination of credit FOR TAXABLE  YEARS  BEGINNING  BEFORE  JANUARY
FIRST, TWO THOUSAND TWELVE.
  S 2. Subsection (e) of section 606 of the tax law is amended by adding
a new paragraph 3-a to read as follows:
  (3-A)  DETERMINATION OF CREDIT FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWELVE. (A) FOR QUALIFIED TAXPAYERS WHO HAVE
ATTAINED  THE AGE OF SIXTY-FIVE YEARS BEFORE THE BEGINNING OF OR  DURING

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07439-01-1
              

A. 4322                             2

THE  TAXABLE  YEAR  THE  AMOUNT  OF  THE  CREDIT  ALLOWABLE  UNDER  THIS
SUBSECTION SHALL BE FIFTY PERCENT, OR IN THE CASE OF A QUALIFIED TAXPAY-
ER WHO HAS ELECTED TO INCLUDE AN ADDITIONAL AMOUNT PURSUANT TO  SUBPARA-
GRAPH  (E)  OF PARAGRAPH ONE OF THIS SUBSECTION, TWENTY-FIVE PERCENT, OF
THE EXCESS OF REAL PROPERTY TAXES OR THE EXCESS  OF  REAL  PROPERTY  TAX
EQUIVALENT DETERMINED AS FOLLOWS:
                                  EXCESS REAL PROPERTY TAXES ARE THE
                                  EXCESS OF REAL PROPERTY TAX EQUIVALENT
                                  OR THE EXCESS OF QUALIFYING REAL
   IF HOUSEHOLD GROSS INCOME      PROPERTY TAXES OVER THE FOLLOWING
   FOR THE TAXABLE YEAR IS:       BASE AMOUNT:

   $5,000 OR LESS                                  $  0
   OVER $5,000 BUT NOT OVER $9,000                 $100
   OVER $9,000 BUT NOT OVER $13,000                $270
   OVER $13,000 BUT NOT OVER $17,000               $520
   OVER $17,000 BUT NOT OVER $21,000               $850
   OVER $21,000 BUT NOT OVER $25,000              $1260
  NOTWITHSTANDING  THE  FOREGOING  PROVISIONS, THE MAXIMUM CREDIT DETER-
MINED UNDER THIS SUBPARAGRAPH MAY NOT EXCEED THE  AMOUNT  DETERMINED  IN
ACCORDANCE WITH THE FOLLOWING TABLE:
   IF HOUSEHOLD GROSS INCOME
   FOR THE TAXABLE YEAR IS:               THE MAXIMUM CREDIT IS:

   $5,000 OR LESS                                 $650
   OVER $5,000 BUT NOT OVER $9,000                $550
   OVER $9,000 BUT NOT OVER $13,000               $450
   OVER $13,000 BUT NOT OVER $17,000              $350
   OVER $17,000 BUT NOT OVER $21,000              $250
   OVER $21,000 BUT NOT OVER $25,000              $150
  (B)  FOR ALL OTHER QUALIFIED TAXPAYERS THE AMOUNT OF THE CREDIT ALLOW-
ABLE UNDER THIS SUBSECTION SHALL BE FIFTY PERCENT OF EXCESS REAL PROPER-
TY TAXES OR THE EXCESS OF THE REAL PROPERTY TAX EQUIVALENT DETERMINED AS
FOLLOWS:
                                  EXCESS REAL PROPERTY TAXES ARE
                                  THE EXCESS OF REAL PROPERTY TAX
    IF HOUSEHOLD GROSS            EQUIVALENT OR THE EXCESS OF
    INCOME FOR THE                QUALIFYING REAL PROPERTY TAXES OVER
    TAXABLE YEAR IS:              THE FOLLOWING BASE AMOUNT:

    $5,000 OR LESS                                 $  0
    OVER $5,000 BUT NOT OVER $9,000                $100
    OVER $9,000 BUT NOT OVER $13,000               $270
    OVER $13,000 BUT NOT OVER $17,000              $520
    OVER $17,000 BUT NOT OVER $21,000              $850
    OVER $21,000 BUT NOT OVER $25,000             $1260
  NOTWITHSTANDING THE FOREGOING PROVISIONS, THE  MAXIMUM  CREDIT  DETER-
MINED  UNDER  THIS  SUBPARAGRAPH MAY NOT EXCEED THE AMOUNT DETERMINED IN
ACCORDANCE WITH THE FOLLOWING TABLE:
   IF HOUSEHOLD GROSS INCOME
   FOR THE TAXABLE YEAR IS:               THE MAXIMUM CREDIT IS:

   $5,000 OR LESS                                 $260
   OVER $5,000 BUT NOT OVER $9,000                $225
   OVER $9,000 BUT NOT OVER $13,000               $180
   OVER $13,000 BUT NOT OVER $17,000              $145

A. 4322                             3

   OVER $17,000 BUT NOT OVER $21,000              $110
   OVER $21,000 BUT NOT OVER $25,000              $ 75
  S  3.  Paragraph 7 of subsection (e) of section 606 of the tax law, as
amended by chapter 28 of the  laws  of  1987,  is  amended  to  read  as
follows:
  (7)  No credit shall be granted under this subsection:
  (A)  If household gross income for the taxable year exceeds [eighteen]
TWENTY-FIVE thousand dollars.
  (B) To a property owner unless:  (i) the property is used for residen-
tial purposes, (ii) not more than twenty percent of the  rental  income,
if any, from the property is from rental for nonresidential purposes and
(iii) the property is occupied as a residence in whole or in part by one
or more of the owners of the property.
  (C)  To  a  property owner who owns real property, the [full] value of
which exceeds: (I) eighty-five thousand dollars; OR (II) AN AMOUNT WHICH
EQUALS SEVENTY-FIVE PERCENT OF THE AVERAGE HOME VALUE IN THE  COUNTY  OF
RESIDENCE, WHICHEVER IS MORE.
  (D)  [To  a tenant if the adjusted rent for the residence exceeds four
hundred fifty dollars per month on average.
  (E)]  To  an  individual  with  respect  to  whom  a  deduction  under
subsection  (c) of section one hundred fifty-one of the internal revenue
code is allowable to another taxpayer for the taxable year.
  [(F)] (E) With respect to a residence that  is  wholly  exempted  from
real property taxation.
  [(G)]  (F)  To  an  individual who is not a resident individual of the
state for the entire taxable year.
  S 4. Paragraph 13 of subsection (e) of section 606 of the tax law,  as
amended  by  chapter  28  of  the  laws  of  1987, is amended to read as
follows:
  (13) THE CREDIT ALLOWED UNDER THIS SUBSECTION SHALL BE MADE  AVAILABLE
ON  ALL RETURNS PRESCRIBED BY THE COMMISSIONER FOR THE ADMINISTRATION OF
THE  TAXES  IMPOSED  UNDER  THIS  ARTICLE.  Notwithstanding  any   other
provision  of  this  article,  the  credit allowed under this subsection
shall be determined after the determination and application of any other
credits permitted under the provisions of this article.
  S 5.  This act shall take effect immediately.