S T A T E   O F   N E W   Y O R K
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                                  7180

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             April 15, 2011
                               ___________

Introduced  by M. of A. J. MILLER, BURLING, CALHOUN, REILICH, SAYWARD --
  Multi-Sponsored by -- M. of A. CROUCH,  McDONOUGH  --  read  once  and
  referred to the Committee on Real Property Taxation

AN  ACT  to  amend  the  real property tax law, the tax law and the real
  property law, in relation to funding for school districts

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

  Section  1.  Legislative  findings  and intent. The legislature hereby
finds that the real property tax on residential properties is  often  an
archaic  and  inequitable  form  of taxation which requires lower income
taxpayers to pay a higher percentage of their income on property  taxes.
The  current  property tax system often creates a disincentive for local
residents to become homeowners and hinders the ability to sell or trans-
fer property.
  The legislature finds that a tax on personal income instead of the tax
on residential property would be a fairer and more  progressive  way  to
raise  the  revenue  needed to fund local school districts. However, the
legislature further finds that it is necessary to maintain  the  current
system of taxation for real property that is non-residential.
  S 2. The real property tax law is amended by adding a new section 1301
to read as follows:
  S  1301.  APPLICABILITY  OF  ARTICLE.  THE PROVISIONS OF THIS ARTICLE,
INCLUDING ALL PROVISIONS RELATING TO THE ASSESSMENT  OF  PROPERTIES  AND
THE  TAXATION OF SUCH PROPERTIES SHALL APPLY TO NON-RESIDENTIAL PROPERTY
AND ALL RENTAL PROPERTY WHETHER OR NOT SUCH RENTAL PROPERTY IS ALSO  THE
RESIDENCE  OF  THE LANDLORD ONLY FOLLOWING IMPLEMENTATION OF SECTION SIX
HUNDRED ONE-A OF THE TAX LAW.
  S 3. Section 1308 of the real property tax law is amended to  read  as
follows:
  S 1308. Property subject to levy. [Except as provided in section thir-
teen hundred ten of this chapter, school] SCHOOL district taxes shall be

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08223-02-1
              

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levied  by the school authorities upon all NON-RESIDENTIAL real property
AND ALL RENTAL PROPERTY WHETHER OR NOT SUCH RENTAL PROPERTY IS ALSO  THE
RESIDENCE OF THE LANDLORD within the boundaries of the district which is
not by law exempt from such taxation. Such taxes shall be levied against
each parcel of such real property. In all cases the levy shall be deemed
as  against  the real property itself. The name of the owner, last known
owner or reputed owner shall be regarded as  an  aid  to  identify  such
parcel.  A mistake in any such name shall not affect the validity of the
levy against the parcel.
  S  4.  The tax law is amended by adding a new section 601-a to read as
follows:
  S 601-A. ADDITIONAL PERSONAL INCOME TAX FOR EDUCATION. (A) IN ADDITION
TO THE TAXES ON INCOME IMPOSED BY THIS CHAPTER, THERE SHALL BE IMPOSED A
TAX FOR THE FUNDING OF EDUCATION IN THE LOCAL SCHOOL  DISTRICTS  OF  THE
STATE.
  (B)  IN  ESTABLISHING THE INITIAL RATES OF TAXATION FOR THE ADDITIONAL
PERSONAL INCOME TAX AUTHORIZED BY THIS  SECTION,  THE  DEPARTMENT  SHALL
DETERMINE  THE  TOTAL  AMOUNT  FOR EDUCATION THAT WAS LEVIED THROUGH THE
RESIDENTIAL PROPERTY TAX IN EFFECT PURSUANT TO ARTICLE THIRTEEN  OF  THE
REAL  PROPERTY TAX LAW IN THE YEAR PRECEDING IMPLEMENTATION OF THE ADDI-
TIONAL PERSONAL INCOME TAX FOR EDUCATION  AUTHORIZED  BY  THIS  SECTION.
SUCH  RATES  OF  TAXATION  SHALL  RESULT IN AN AMOUNT OF FUNDING THAT IS
EQUAL TO OR MORE THAN THE FUNDING PREVIOUSLY PROVIDED  TO  LOCAL  SCHOOL
DISTRICTS  UNDER THE SYSTEM OF RESIDENTIAL PROPERTY TAXATION, AS WELL AS
THE NECESSARY AMOUNT OF FUNDING TO FULFILL THE  BUDGET  OF  EVERY  LOCAL
SCHOOL DISTRICT.
  (C)  THE  BASE  AMOUNT OF TOTAL TAXPAYER INCOME THAT MAY BE SUBJECT TO
THE ADDITIONAL PERSONAL INCOME TAX AUTHORIZED BY THIS SECTION  SHALL  BE
THIRTY  THOUSAND  DOLLARS.    IN  NO EVENT SHALL A TAXPAYER WITH A TOTAL
INCOME OF LESS THAN THIRTY THOUSAND DOLLARS BE SUBJECT TO THE ADDITIONAL
TAX AUTHORIZED BY THIS SECTION.
  (D) THE COMMISSIONER SHALL ESTABLISH A SEPARATE ACCOUNT OR ACCOUNTS TO
RECEIVE THE ADDITIONAL TAX IMPOSED BY SUBSECTION (A) OF THIS SECTION AND
SHALL PAY INTO SUCH ACCOUNT OR ACCOUNTS THE TOTAL OF ALL SUCH TAXES WHEN
RECEIVED AND RETAIN THE SAME SUBJECT TO DISBURSEMENT BY THE STATE.
  S 5. The real property law is amended by adding a new section 235-h to
read as follows:
  S 235-H. NOTICE TO TENANT OF RENT AMOUNT ATTRIBUTABLE TO  TAXATION  ON
PROPERTY.  IT  SHALL  BE  THE  DUTY  OF  THE LANDLORD TO PROVIDE WRITTEN
NOTIFICATION TO EACH TENANT OF THE PRO-RATA AMOUNT OF RENT FOR EACH UNIT
WHICH IS ATTRIBUTABLE TO THE AMOUNT OF  TAXATION  OF  SUCH  PROPERTY  IN
ACCORDANCE  WITH  THE  ASSESSMENT  AND  TAXATION OF SUCH RENTAL PROPERTY
PURSUANT TO ARTICLE THIRTEEN OF  THE  REAL  PROPERTY  TAX  LAW  FOR  THE
PURPOSES  OF  ENABLING SUCH TENANT TO DETERMINE THE AMOUNT OF TAX CREDIT
AUTHORIZED PURSUANT TO SUBSECTION (TT) OF SECTION SIX HUNDRED SIX OF THE
TAX LAW.
  S 6. Section 606 of the tax law is amended by adding a new  subsection
(tt) to read as follows:
  (TT)  CREDIT  FOR  RENT  AMOUNT  ATTRIBUTABLE  TO PROPERTY TAXATION. A
TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE EQUAL TO THE AMOUNT OF SUCH  TAXPAYER'S  RENT  ATTRIBUTABLE  TO  THE
TAXATION  ON SUCH RENTAL PROPERTY AS DETERMINED BY THE WRITTEN NOTIFICA-
TION PROVIDED TO SUCH TENANT BY HIS OR HER LANDLORD PURSUANT TO  SECTION
TWO HUNDRED THIRTY-FIVE-H OF THE REAL PROPERTY LAW.
  S 7. Construction with other laws. The provisions of this act shall be
controlling, notwithstanding the provisions of any other law, code, rule

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or  regulation  to the contrary. However, no existing right or remedy of
any character shall be lost, impaired or affected by reason of this act,
nor shall the validity of any action taken by any public official  under
the  law  in  force  immediately  prior  to the time this act shall take
effect be affected by the enactment  of  this  act.  Collection  of  all
outstanding  tax  liens  shall be pursuant to the provisions of the real
property tax law.
  S 8. Severability. If any clause, sentence, paragraph, section or part
of this act shall be adjudged by any court of competent jurisdiction  to
be  invalid,  such  judgment  shall not affect, impair or invalidate the
remainder thereof, but shall be confined in its operation to the clause,
sentence, paragraph, section or part thereof directly  involved  in  the
controversy in which such judgment shall have been rendered.
  S  9. This act shall take effect on the first of January next succeed-
ing the date upon which it shall have become a law.