senate Bill S1002

2013-2014 Legislative Session

Establishes a personal income tax credit for portion of residential real property taxes which exceeds a certain percentage of the household gross income

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to investigations and government operations
Jan 09, 2013 referred to investigations and government operations

S1002 - Bill Details

See Assembly Version of this Bill:
A1941
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง606, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S137, A877
2009-2010: S253, A7094

S1002 - Bill Texts

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Establishes a personal income tax credit for a portion of a taxpayer's residential real property taxes which exceeds a certain percentage of the taxpayer's household gross income; provides that the taxpayer shall have resided in such residential real property for not less than 5 years; provides that such credit shall not apply to taxpayers who have claimed the real property tax circuit breaker credit during the taxable year.

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BILL NUMBER:S1002

TITLE OF BILL:
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

PURPOSE:
To place a limit on the real property tax for certain owners and
provide a personal income tax credit for certain property taxpayers.

SUMMARY OF PROVISIONS:

SECTION 1: Makes technical amendments to 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.

SECTION 2: Adds a new subsection (vv) to section 606 of the tax law to
provide for a real property tax credit. The credit will be based on
the income of the household and the percentage that said household
pays for real property taxes.

City of New York, and the counties of Nassau, Suffolk. Rockland,
Westchester, Putnam, Orange and Dutchess

Household Adjusted Gross
Income Tax Maximum Real Property Tax

$120,000 or less Real Property taxes paid in excess
of 6% of said income can receive
a personal income tax credit of 70%
of the overage.

$120,000 - $175,000 Real Property taxes paid in excess of
7% of said income can receive a
personal income tax credit of 70%
of the overage.

$175,001 - $250,000 Real Property taxes paid in
excess of 8% of said income
can receive a personal income tax credit
of 70% of the overage.

$250,001 + No credit

All other counties in the State

Household Adjusted Gross
Income Tax Maximum Real Property Tax

$90,000 or less Real Property taxes paid in excess
of 6% of said income can receive a
personal income tax credit of 70%
of the overage.


$90,001 - S 150,000 Real Property taxes paid in excess
of 7% of said income can receive a
personal income tax credit of 70% of
of the overage.

$150,001 - $250,000 Real Property taxes paid in excess
of 8% of said income can receive
a personal income tax credit of 70%
of the overage.

$250,001 + No credit.

To qualify, the taxpayer must have resided in the home for not less
than five years. Also, the taxpayer may still benefit from the Basic
STAR exemption or the Enhanced STAR exemption for senior citizens.
The credit will equal seventy percent of the taxes paid over the
allowed percentage cap as provided in the bill. Such credit shall not
exceed $5,000. Taxpayers will have the option to receive either the
Circuit Breaker credit or the Middle Class STAR Rebate check.

SECTION 3: Contains the effective date.

JUSTIFICATION:
With the increased reliance on the real property tax for local
government revenue, some homeowners are facing sky-rocking real
property tax bills as a result they are often faced with the serious
threat of defaulting on their property taxes and/or seriously
consider selling their homes. This legislation seeks to establish a
cap on the maximum real property tax paid for New Yorkers who have a
household adjusted gross income of $250,000 or less. This proposal is
a viable alternative response to the serious problem of high real
property taxes.

LEGISLATIVE HISTORY:
2011-12: S. 137 Investigations and Government Operations
2009/10: S. 253 Investigations and Government Operations; A. 7094 held
for consideration in Ways & Means
2007/08 S. 1053-C Finance; Similar to A. 1575-B Ways & Means
2006: S. 5982-B Local Government, A. 11551, Local Government

FISCAL IMPLICATIONS: To be determined.

LOCAL FISCAL IMPLICATIONS: There are no local fiscal
implications.

EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law, and shall apply to taxable
years commencing on or after such date.

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

                                  1002

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  LITTLE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

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
taxes  on  the  residence which reflects the ownership percentage of the
qualified taxpayer and members of his household. If a  residence  is  an

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01144-01-3

S. 1002                             2

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
INCLUDE ALL SUCH INCOME RECEIVED BY ALL MEMBERS OF THE  HOUSEHOLD  WHILE
MEMBERS OF SUCH HOUSEHOLD.

S. 1002                             3

  (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
       THOUSAND DOLLARS, BUT                    THE HOUSEHOLD
       LESS THAN OR EQUAL TO                    GROSS INCOME

S. 1002                             4

       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.

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