senate Bill S1421A

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

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


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

do you support this bill?

Actions

view actions (4)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 29, 2014 print number 1421a
amend and recommit to investigations and government operations
Jan 08, 2014 referred to investigations and government operations
Jan 09, 2013 referred to investigations and government operations

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S1421 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §606, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S1796
2009-2010: S4165

S1421 - Bill Texts

view summary

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 10 years; provides that such credit shall not apply to taxpayers whose household gross income exceeds $250,000 or who have received the school tax relief exemption on such real property.

view sponsor memo
BILL NUMBER:S1421

TITLE OF BILL:
An act
to amend the tax law, in relation to establishing the maximum
residential real property, personal income tax credit

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

SUMMARY OF PROVISIONS:
Section 1 - adds a new subsection to section 606 to the tax law to
provide for a maximum real property tax credit for the following
household gross incomes: $25,000 or less, four percent of the
household gross income; more than $25,000, but less than or equal to
$50,000, five percent of the household gross income; more than
$50,000 but less than or equal to 100,000, six percent of the
household gross income; more than $100,000 but less than or equal to
$150,000, seven percent of the household gross income; more than
$150,000, but less than or equal to $200,000 eight percent of the
household gross income; and more than $200,000, but less than or
equal to $250,000, nine percent of the household gross income. To
qualify, the taxpayer must have resided in the home for not less than
ten years and must forfeit any benefit from the STAR program. The
credit will equal seventy percent of the taxes paid over the allowed
percentage cap as provided in the bill.

Section 2 - contains the effective. date.

JUSTIFICATION:
With the increased reliance on the property tax for local government
revenue, some homeowners are facing skyrocketing property tax bills
and the prospect of selling their homes. This legislation seeks to
establish a cap on the maximum real property tax paid for New Yorkers
who have an household adjusted gross income of $250,000 or less. This
proposal is a immediate solution to the serious problem of high
property taxes.

LEGISLATIVE HISTORY:
First introduced in 2007.
2011-2012; S.1796 - Died in Committee

FISCAL IMPLICATIONS:
To be determined.

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.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1421

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens.  MONTGOMERY,  HASSELL-THOMPSON  --  read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Investigations and Government Operations

AN  ACT  to  amend  the tax law, in relation to 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.  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 TEN 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; PROVIDED THAT SUCH
TERM SHALL ONLY 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-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04018-01-3

S. 1421                             2

MUM  REAL  PROPERTY  TAX,  AS  DETERMINED  BY  PARAGRAPH  THREE  OF THIS
SUBSECTION. 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 QUALIFIED TAXPAYER'S MAXIMUM REAL
PROPERTY TAX SHALL BE DETERMINED AS FOLLOWS:

       HOUSEHOLD GROSS INCOME                   MAXIMUM REAL PROPERTY TAX

       LESS THAN TWENTY-FIVE                    FOUR PERCENT OF THE
       THOUSAND DOLLARS                         HOUSEHOLD GROSS INCOME

       MORE THAN TWENTY-FIVE                    FIVE PERCENT OF THE
       THOUSAND DOLLARS, BUT                    HOUSEHOLD GROSS INCOME
       LESS THAN OR EQUAL TO
       FIFTY THOUSAND DOLLARS

       MORE THAN FIFTY THOUSAND                 SIX PERCENT OF THE
       DOLLARS, BUT LESS THAN OR                HOUSEHOLD GROSS INCOME
       EQUAL TO ONE HUNDRED
       THOUSAND DOLLARS

       MORE THAN ONE HUNDRED                    SEVEN PERCENT OF
       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 THOUSAND
       DOLLARS

       MORE THAN TWO HUNDRED                    NINE PERCENT
       THOUSAND DOLLARS, BUT                    OF THE HOUSE-
       LESS THAN OR EQUAL TO                    HOLD GROSS
       TWO HUNDRED FIFTY                        INCOME
       THOUSAND DOLLARS

       MORE THAN TWO HUNDRED                    NO LIMITATION
       FIFTY THOUSAND
       DOLLARS
  (4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS
SUBSECTION:
  (A) IF THE QUALIFIED TAXPAYER'S HOUSEHOLD  GROSS  INCOME  EXCEEDS  TWO
HUNDRED FIFTY THOUSAND DOLLARS; OR

S. 1421                             3

  (B)  THE  QUALIFIED TAXPAYER RECEIVED THE SCHOOL TAX RELIEF EXEMPTION,
PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE  REAL  PROPERTY  TAX
LAW, DURING THE TAXABLE YEAR.
  S  2. 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.

Co-Sponsors

S1421A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §606, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S1796
2009-2010: S4165

S1421A (ACTIVE) - Bill Texts

view summary

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 10 years; provides that such credit shall not apply to taxpayers whose household gross income exceeds $250,000 or who have received the school tax relief exemption on such real property.

view sponsor memo
BILL NUMBER:S1421A

TITLE OF BILL: An act to amend the tax law, in relation to
establishing the maximum residential real property, personal income
tax credit

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

SUMMARY OF PROVISIONS:

Section 1 - adds a new subsection to section 606 to the tax law to
provide for a maximum real property tax credit for the following
household gross incomes: $25,000 or less, four percent of the
household gross income; more than $25,000, but less than or equal to
$50,000, five percent of the household gross income; more than $50,000
but less than or equal to 100,000, six percent of the household gross
income; more than $100,000 but less than or equal to $150,000, seven
percent of the household gross income; more than $150,000, but less
than or equal to $200,000 eight percent of the household gross income;
and more than $200,000, but less than or equal to $250,000, nine
percent of the household gross income. To qualify, the taxpayer must
have resided in the home for not less than ten years and must forfeit
any benefit from the STAR program. The credit will equal seventy
percent of the taxes paid over the allowed percentage cap as provided
in the bill.

JUSTIFICATION: With the increased reliance on the property tax for
local government revenue, some homeowners are facing skyrocketing
property tax bills and the prospect of selling their homes. This
legislation seeks to establish a cap on the maximum, real property tax
paid for New Yorkers who have an household adjusted gross income of
$250,000 or less. This proposal is a immediate solution to the serious
problem of high Property taxes.

LEGISLATIVE HISTORY: First introduced in 2007. 2011-2012; S.1796 -
Died in Committee 2013: Died in Committee

FISCAL IMPLICATIONS: To be determined.

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.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1421--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens.  MONTGOMERY,  HASSELL-THOMPSON  --  read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Investigations and Government Operations -- recommitted to the Commit-
  tee  on  Investigations  and  Government Operations in accordance with
  Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the tax law, in relation to 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.  Section  606  of  the  tax law is amended by adding a new
subsection (vv-1) to read as follows:
  (VV-1) 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 TEN 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; PROVIDED THAT SUCH
TERM SHALL ONLY 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04018-02-4

S. 1421--A                          2

  (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.  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 QUALIFIED TAXPAYER'S MAXIMUM REAL
PROPERTY TAX SHALL BE DETERMINED AS FOLLOWS:

       HOUSEHOLD GROSS INCOME                   MAXIMUM REAL PROPERTY TAX

       LESS THAN TWENTY-FIVE                    FOUR PERCENT OF THE
       THOUSAND DOLLARS                         HOUSEHOLD GROSS INCOME

       MORE THAN TWENTY-FIVE                    FIVE PERCENT OF THE
       THOUSAND DOLLARS, BUT                    HOUSEHOLD GROSS INCOME
       LESS THAN OR EQUAL TO
       FIFTY THOUSAND DOLLARS

       MORE THAN FIFTY THOUSAND                 SIX PERCENT OF THE
       DOLLARS, BUT LESS THAN OR                HOUSEHOLD GROSS INCOME
       EQUAL TO ONE HUNDRED
       THOUSAND DOLLARS

       MORE THAN ONE HUNDRED                    SEVEN PERCENT OF
       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 THOUSAND
       DOLLARS

       MORE THAN TWO HUNDRED                    NINE PERCENT
       THOUSAND DOLLARS, BUT                    OF THE HOUSE-
       LESS THAN OR EQUAL TO                    HOLD GROSS
       TWO HUNDRED FIFTY                        INCOME
       THOUSAND DOLLARS

       MORE THAN TWO HUNDRED                    NO LIMITATION
       FIFTY THOUSAND
       DOLLARS
  (4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS
SUBSECTION:

S. 1421--A                          3

  (A) IF THE QUALIFIED TAXPAYER'S HOUSEHOLD  GROSS  INCOME  EXCEEDS  TWO
HUNDRED FIFTY THOUSAND DOLLARS; OR
  (B)  THE  QUALIFIED TAXPAYER RECEIVED THE SCHOOL TAX RELIEF EXEMPTION,
PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE  REAL  PROPERTY  TAX
LAW, DURING THE TAXABLE YEAR.
  S  2. 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.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.