S T A T E O F N E W Y O R K
________________________________________________________________________
1941
2013-2014 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 9, 2013
___________
Introduced by M. of A. GALEF, PAULIN, CAHILL, GUNTHER, JAFFEE, LIFTON,
RIVERA, ZEBROWSKI, SCHIMEL, KOLB, FINCH, GIGLIO, McDONOUGH -- Multi-
Sponsored by -- M. of A. BARCLAY, CORWIN, DUPREY, GABRYSZAK, HAWLEY,
JORDAN, RABBITT, RAIA, SALADINO, SCARBOROUGH, SWEENEY, THIELE -- read
once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to the school district property
tax credit and establishing the maximum residential real property,
personal income tax credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subparagraph (E) of paragraph 1 of subsection (e) of
section 606 of the tax law, as amended by chapter 105 of the laws of
2006, is amended to read as follows:
(E) "Qualifying real property taxes" means all real property taxes,
special ad valorem levies and special assessments, exclusive of penal-
ties and interest, levied on the residence of a qualified taxpayer and
paid during the taxable year [less the credit claimed under subsection
(n-1) of this section]. In addition, for taxable years beginning after
December thirty-first, nineteen hundred eighty-four, a qualified taxpay-
er may elect to include any additional amount that would have been
levied in the absence of an exemption from real property taxation pursu-
ant to section four hundred sixty-seven of the real property tax law. If
tenant-stockholders in a cooperative housing corporation have met the
requirements of section two hundred sixteen of the internal revenue code
by which they are allowed a deduction for real estate taxes, the amount
of taxes so allowable, or which would be allowable if the taxpayer had
filed returns on a cash basis, shall be qualifying real property taxes.
If a residence is owned by two or more individuals as joint tenants or
tenants in common, and one or more than one individual is not a member
of the household, qualifying real property taxes is that part of such
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01144-01-3
A. 1941 2
taxes on the residence which reflects the ownership percentage of the
qualified taxpayer and members of his household. If a residence is an
integral part of a larger unit, qualifying real property taxes shall be
limited to that amount of such taxes paid as may be reasonably appor-
tioned to such residence. If a household owns and occupies two or more
residences during different periods in the same taxable year, qualifying
real property taxes shall be the sum of the prorated qualifying real
property taxes attributable to the household during the periods such
household occupies each of such residences. If the household owns and
occupies a residence for part of the taxable year and rents a residence
for part of the same taxable year, it may include both the proration of
qualifying real property taxes on the residence owned and the real prop-
erty tax equivalent with respect to the months the residence is rented.
Provided, however, for purposes of the credit allowed under this
subsection, qualifying real property taxes may be included by a quali-
fied taxpayer only to the extent that such taxpayer or the spouse of
such taxpayer occupying such residence for six months or more of the
taxable year owns or has owned the residence and paid such taxes.
S 2. Section 606 of the tax law is amended by adding a new subsection
(vv) to read as follows:
(VV) MAXIMUM RESIDENTIAL REAL PROPERTY TAX CREDIT. (1) DEFINITIONS.
FOR THE PURPOSES OF THIS SUBSECTION:
(A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO
OWNS THE RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE RESIDES, AND HAS
RESIDED IN SUCH RESIDENTIAL REAL PROPERTY FOR NOT LESS THAN FIVE YEARS.
(B) "HOUSEHOLD" MEANS THE TAXPAYER OR TAXPAYERS AND ALL OTHER PERSONS,
NOT NECESSARILY RELATED, WHO ALL RESIDE IN THE RESIDENTIAL REAL PROPERTY
OWNED BY THE TAXPAYER OR TAXPAYERS, AND SHARE ITS FURNISHINGS, FACILI-
TIES AND ACCOMMODATIONS; PROVIDED THAT NO PERSON MAY BE A MEMBER OF MORE
THAN ONE HOUSEHOLD AT ONE TIME.
(C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
OF ALL MEMBERS OF THE HOUSEHOLD FOR THE TAXABLE YEAR AS REPORTED FOR
FEDERAL INCOME TAX PURPOSES, OR WHICH WOULD BE REPORTED AS ADJUSTED
GROSS INCOME IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED,
WITH THE MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX HUNDRED TWELVE
OF THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF SUCH
SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
ERTY OTHERWISE EXCLUDED FROM SUCH AMOUNT; EARNED INCOME FROM SOURCES
WITHOUT THE UNITED STATES EXCLUDABLE FROM FEDERAL GROSS INCOME BY
SECTION NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT MONEY
NOT INCLUDED IN ADJUSTED GROSS INCOME; NONTAXABLE STRIKE BENEFITS;
SUPPLEMENTAL SECURITY INCOME PAYMENTS; THE GROSS AMOUNT OF ANY PENSION
OR ANNUITY BENEFITS TO THE EXTENT NOT INCLUDED IN SUCH ADJUSTED GROSS
INCOME (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS AND
ALL PAYMENTS RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT AND VETER-
ANS' DISABILITY PENSIONS); NONTAXABLE INTEREST RECEIVED FROM THE STATE
OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES, PUBLIC CORPORATIONS, OR
POLITICAL SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT
TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS' COMPEN-
SATION; THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT OF
CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
NEEDY, PAID TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER OR MEMBERS
OF HIS OR HER HOUSEHOLD. HOUSEHOLD GROSS INCOME SHALL NOT INCLUDE
SURPLUS FOODS OR OTHER RELIEF IN KIND OR PAYMENTS MADE TO INDIVIDUALS
BECAUSE OF THEIR STATUS AS VICTIMS OF NAZI PERSECUTION AS DEFINED IN
PUBLIC LAW 103-286. PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME SHALL ONLY
A. 1941 3
INCLUDE ALL SUCH INCOME RECEIVED BY ALL MEMBERS OF THE HOUSEHOLD WHILE
MEMBERS OF SUCH HOUSEHOLD.
(D) "NET REAL PROPERTY TAX" MEANS THE REAL PROPERTY TAXES ASSESSED ON
THE RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED BY THE TAXPAYER OR
TAXPAYERS AFTER ANY EXEMPTION OR ABATEMENT RECEIVED PURSUANT TO THE REAL
PROPERTY TAX LAW.
(2) CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE
TAXES IMPOSED BY THIS ARTICLE, EQUAL TO SEVENTY PERCENT OF THE AMOUNT
WHICH THE TAXPAYER'S NET REAL PROPERTY TAX EXCEEDS THE TAXPAYER'S MAXI-
MUM REAL PROPERTY TAX, AS DETERMINED BY PARAGRAPH THREE OF THIS
SUBSECTION, PROVIDED, HOWEVER, SUCH CREDIT SHALL NOT EXCEED FIVE THOU-
SAND DOLLARS. IF SUCH CREDIT EXCEEDS THE TAX FOR SUCH TAXABLE YEAR, AS
REDUCED BY THE OTHER CREDITS PERMITTED BY THIS ARTICLE, THE QUALIFIED
TAXPAYER MAY RECEIVE, AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE OF
THE DEPARTMENT, SHALL PAY AS AN OVERPAYMENT, WITHOUT INTEREST, ANY
EXCESS BETWEEN SUCH TAX AS SO REDUCED AND THE AMOUNT OF THE CREDIT. IF A
QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION
SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A QUALIFIED TAXPAYER MAY NEVER-
THELESS RECEIVE AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE
DEPARTMENT, SHALL PAY AS AN OVERPAYMENT THE FULL AMOUNT OF THE CREDIT,
WITHOUT INTEREST.
(3) MAXIMUM REAL PROPERTY TAX. (A) A QUALIFIED TAXPAYER'S MAXIMUM REAL
PROPERTY TAX SHALL BE DETERMINED AS FOLLOWS:
(I) IN THE CITY OF NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:
HOUSEHOLD GROSS INCOME MAXIMUM REAL PROPERTY TAX
ONE HUNDRED TWENTY THOUSAND SIX PERCENT OF THE
DOLLARS OR LESS HOUSEHOLD GROSS INCOME
MORE THAN ONE HUNDRED SEVEN PERCENT OF
TWENTY THOUSAND THE HOUSEHOLD
DOLLARS, BUT GROSS INCOME
LESS THAN OR EQUAL TO
ONE HUNDRED SEVENTY-FIVE
THOUSAND DOLLARS
MORE THAN ONE HUNDRED EIGHT PERCENT OF
SEVENTY-FIVE THOUSAND THE HOUSEHOLD
DOLLARS, BUT LESS THAN GROSS INCOME
OR EQUAL TO TWO HUNDRED
FIFTY THOUSAND DOLLARS
MORE THAN TWO HUNDRED NO LIMITATION.
FIFTY THOUSAND
DOLLARS
(II) IN ALL OTHER COUNTIES IN THE STATE:
HOUSEHOLD GROSS MAXIMUM REAL
INCOME PROPERTY TAX
NINETY THOUSAND SIX PERCENT OF THE
DOLLARS OR LESS HOUSEHOLD GROSS INCOME
MORE THAN NINETY SEVEN PERCENT OF
A. 1941 4
THOUSAND DOLLARS, BUT THE HOUSEHOLD
LESS THAN OR EQUAL TO GROSS INCOME
ONE HUNDRED FIFTY
THOUSAND DOLLARS
MORE THAN ONE HUNDRED EIGHT PERCENT OF
FIFTY THOUSAND DOLLARS, THE HOUSEHOLD
BUT LESS THAN OR EQUAL GROSS INCOME
TO TWO HUNDRED FIFTY THOUSAND
DOLLARS
MORE THAN TWO HUNDRED FIFTY NO LIMITATION.
THOUSAND DOLLARS
(B) THE THRESHOLDS OF HOUSEHOLD GROSS INCOME FOR ELIGIBILITY FOR THE
MAXIMUM REAL PROPERTY TAX CREDIT, ESTABLISHED BY SUBPARAGRAPH (A) OF
THIS PARAGRAPH, SHALL BE INDEXED FOR INFLATION.
(4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS
SUBSECTION IF THE QUALIFIED TAXPAYER CLAIMS THE REAL PROPERTY TAX
CIRCUIT BREAKER CREDIT, PURSUANT TO SUBSECTION (E) OF THIS SECTION,
DURING THE TAXABLE YEAR.
S 3. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law, and shall apply to
taxable years commencing on or after such date.