senate Bill S2277A

2013-2014 Legislative Session

Increases income limitations and tax credits for real property tax circuit breaker credit

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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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Senate Actions - UPPERCASE
Feb 19, 2014 print number 2277a
amend and recommit to investigations and government operations
Jan 08, 2014 referred to investigations and government operations
Jan 15, 2013 referred to investigations and government operations

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S2277 - Bill Details

See Assembly Version of this Bill:
A2394A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §606, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3324A, A5352A
2009-2010: S3728, A7589

S2277 - Bill Texts

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Increases to $36,000 the household gross income limitations for tax credits for real property tax circuit breaker credit; makes such tax credits available to disabled persons as well as to those persons 65 years of age.

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BILL NUMBER:S2277

TITLE OF BILL: An act to amend the tax law, in relation to the real
property tax circuit breaker credit

PURPOSE: To increase income limitations and tax credits for real
property tax circuit breaker credit and provide circuit breaker
legislation to include disabled citizens with persons 65 years of age.

SUMMARY OF PROVISIONS: This legislation would increase household
gross income to $36,000; increase property value limitation to the
median full value of residential real property sales within the county
where it is located or the median full value of residential real
property in the state, whichever is less and increase the monthly rent
limitation to $800. It would increase the current limit on the
maximum credit for senior citizens from $375 to $550 in two steps. The
maximum credit for other eligible New Yorkers would be increased to
5250 from $75. Disabled citizens would be eligible to receive circuit
breaker tax credit along with senior citizens.

JUSTIFICATION: The real property tax circuit breaker program is a
method of providing tax relief, in the form of a State income tax
credit, to eligible homeowners and renters who pay a disproportional
amount of property tax in relation to their household income. The
burden of real property taxes have forced older citizens from their
residences. They are forced to sell their homes because their fixed
incomes cannot support the escalating real property taxes. The present
circuit breaker legislation is inadequate to handle the crisis which
exists for older citizens and disabled persons.

LEGISLATIVE HISTORY: 2011-12 S.3324A; 2009-10 S 3728/A.7589; 2007-08,
S.3820/A6624; 2005-06: S.2861-A/A.6864; 2003-04: S. I 837/A.4209;
2001-02: S.2974-A/A.5683; 1999-00: S.2768/A.4895;1997-98:
S.2847-A/A.4832;1995-96: S.2489-A/A.4121; 1994: S.6703-A;1994:
S.6703-A;1993: S.5431;1991-92: S.748;1989-90: S:7773

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately; provided,
however, that 39 section two of this act shall take effect January 1,
2014.

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

    S. 2277                                                  A. 2394

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                            January 15, 2013
                               ___________

IN  SENATE  --  Introduced  by  Sens.  LAVALLE, LARKIN -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Investigations and Government Operations

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

AN ACT to amend the tax law,  in  relation  to  the  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. Subsection (e) of section 606 of the tax law, as amended by
chapter 28 of the laws of 1987,  subparagraph  (c)  of  paragraph  1  as
amended  by  chapter  713 of the laws of 1996, subparagraph (E) of para-
graph 1 as amended by chapter 105 of the laws of 2006, and paragraph  14
as  amended  by  chapter  23  of the laws of 1990, is amended to read as
follows:
  (e)  Real property tax circuit breaker credit.  (1)   For purposes  of
this subsection:
  (A)  "Qualified taxpayer" means a resident individual of the state who
has occupied the same residence for six months or more  of  the  taxable
year, and is required or chooses to file a return under this article.
  (B)    "Household"  or  "members  of  the household" means a qualified
taxpayer and all other persons, not necessarily related,  who  have  the
same residence and share its furnishings, facilities and accommodations.
Such  terms shall not include a tenant, subtenant, roomer or boarder who
is not related to the qualified taxpayer  in  any  degree  specified  in
paragraphs  one  through  eight of subsection (a) of section one hundred
fifty-two of the internal revenue code.   Provided, however,  no  person
may be a member of more than one household at one time.
  [(c)]  (C) "Household gross income" means the aggregate adjusted gross
income  of all members of the household for the taxable year as reported

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06127-01-3

S. 2277                             2                            A. 2394

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
but  without  the  modifications in subsection (c) of such section, plus
any portion of the gain from the sale or exchange of property  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   veterans'   disability
pensions);  nontaxable interest received from the state of New York, its
agencies, instrumentalities, public corporations, or political  subdivi-
sions  (including  a public corporation created pursuant to agreement or
compact with another state or Canada); workers' compensation; 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 house-
hold.  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 P.L.  103-286.    Provided,
further,  household  gross  income  shall  only  include all such income
received by all members of the household while members  of  such  house-
hold.
  (D)    "Residence"  means  a  dwelling in this state, whether owned or
rented, and so much of the land abutting it, not exceeding one acre,  as
is  reasonably  necessary  for  use  of  the dwelling as a home, and may
consist of a part of a multi-dwelling or multi-purpose building  includ-
ing  a  cooperative  or  condominium,  and  rental units within a single
dwelling.  Residence includes a trailer or mobile home, used exclusively
for residential purposes and defined as real property pursuant to  para-
graph  (g)  of subdivision twelve of section one hundred two of the real
property tax law.
  (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 THE FORMER
subsection (n-1) of this section. In addition, for taxable years  begin-
ning after December thirty-first, nineteen hundred eighty-four, a quali-
fied taxpayer may elect to include any additional amount that would have
been  levied  in the absence of an exemption from real property taxation
pursuant 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 integral part of a larger unit, qualifying real property
taxes  shall  be  limited  to  that  amount of such taxes paid as may be

S. 2277                             3                            A. 2394

reasonably apportioned to such residence. If a household owns and  occu-
pies 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  house-
hold  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  property  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 qualified 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.
  (F)  "Real  property  tax equivalent" means twenty-five percent of the
adjusted rent actually paid in the taxable year by  a  household  solely
for  the  right  of  occupancy of its New York residence for the taxable
year.  If (i) a residence is rented to two or more individuals as coten-
ants, or such individuals share in the payment of a single rent for  the
right  of occupancy of such residence, and (ii) each of such individuals
is a member of a different household, one or more of  which  individuals
shares  such  residence, real property tax equivalent is that portion of
twenty-five percent of the adjusted rent paid in the taxable year  which
reflects that portion of the rent attributable to the qualified taxpayer
and the members of his household.
  (G)  "Adjusted rent" means rental paid for the right of occupancy of a
residence, excluding charges for heat, gas, electricity, furnishings and
board.  Where charges for heat, gas, electricity,  furnishing  or  board
are included in rental but where such charges and the amount thereof are
not  separately set forth in a written rental agreement, for purposes of
determining adjusted rent the qualified  taxpayer  shall  reduce  rental
paid as follows:
  (i)  For heat, or heat and gas, deduct fifteen percent of rental paid.
  (ii)    For heat, gas and electricity, deduct twenty percent of rental
paid.
  (iii)  For heat, gas, electricity and furnishings, deduct  twenty-five
percent of rental paid.
  (iv)   For heat, gas, electricity, furnishings and board, deduct fifty
percent of rental paid.
If the [tax commission] COMMISSIONER determines that the  adjusted  rent
shown  on the return is excessive, the [tax commission] COMMISSIONER may
reduce such rent, for purposes of the computation of the credit,  to  an
amount substantially equivalent to rent for a comparable accommodation.
  (2)  A  qualified  taxpayer  shall  be allowed a credit as provided in
paragraph three hereof against the taxes imposed by this article reduced
by the credits permitted 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  qualified taxpayer is not required to file a return
pursuant to section six hundred  fifty-one,  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.

S. 2277                             4                            A. 2394

  (3)  Determination of credit.  (A) For qualified  taxpayers  who  have
attained the age of sixty-five years OR A PERMANENT AND TOTAL DISABILITY
AS DEFINED IN SECTION TWENTY-TWO OF THE INTERNAL REVENUE CODE before the
beginning  of or during the taxable year the amount of the credit allow-
able  under  this subsection shall be fifty percent, or in the case of a
qualified taxpayer who has  elected  to  include  an  additional  amount
pursuant  to subparagraph (E) of paragraph one of this subsection, twen-
ty-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
     If household gross                 qualifying real property taxes
     income for the                     over the following percentage of
     taxable year is:                   household gross income:
     ___________________                __________________________________

     [$3,000] $6,000 or less             3 1/2
     Over [$3,000] $6,000 but not
        over [$5,000] $10,000            4
     Over [$5,000] $10,000 but not
        over [$7,000] $14,000            4 1/2
     Over [$7,000] $14,000 but not
        over [$9,000] $18,000            5
     Over [$9,000] $18,000 but not
        over [$11,000] $22,000           5 1/2
     Over [$11,000] $22,000 but not
        over [$14,000] $28,000           6
     Over [$14,000] $28,000 but not
        over [$18,000] $36,000           6 1/2
  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                 The maximum
     income for the                     credit is:
     taxable year is:
     ___________________                __________________________________
     [$1,000] $2,000 or less            [$375] $463
     Over [$1,000] $2,000 but
        not over [$2,000] $4,000        [$358] $442
     Over [$2,000] $4,000 but
        not over [$3,000] $6,000        [$341] $421
     Over [$3,000] $6,000 but
        not over [$4,000] $8,000        [$324] $400
     Over [$4,000] $8,000 but
        not over [$5,000] $10,000       [$307] $379
     Over [$5,000] $10,000 but
        not over [$6,000] $12,000       [$290] $358
     Over [$6,000] $12,000 but
        not over [$7,000] $14,000       [$273] $337
     Over [$7,000] $14,000 but
        not over [$8,000] $16,000       [$256] $316
     Over [$8,000] $16,000 but
        not over [$9,000] $18,000       [$239] $295
     Over [$9,000] $18,000 but

S. 2277                             5                            A. 2394

        not over [$10,000] $20,000      [$222] $274
     Over [$10,000] $20,000 but
        not over [$11,000] $22,000      [$205] $253
     Over [$11,000] $22,000 but
        not over [$12,000] $24,000      [$188] $232
     Over [$12,000] $24,000 but
        not over [$13,000] $26,000      [$171] $211
     Over [$13,000] $26,000 but
        not over [$14,000] $28,000      [$154] $190
     Over [$14,000] $28,000 but
        not over [$15,000] $30,000      [$137] $169
     Over [$15,000] $30,000 but
        not over [$16,000] $32,000      [$120] $148
     Over [$16,000] $32,000 but
        not over [$17,000] $34,000      [$103] $127
     Over [$17,000] $34,000 but
        not over [$18,000] $36,000      [$86] $106
  (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
                                        equivalent or the excess of
     If household gross                 qualifying real property taxes
     income for the                     over the following percentage of
     taxable year is:                   household gross income:
     ___________________                __________________________________

     [$3,000] $6,000 or less            3 1/2
     Over [$3,000] $6,000 but not
        over [$5,000] $10,000           4
     Over [$5,000] $10,000 but not
        over [$7,000] $14,000           4 1/2
     Over [$7,000] $14,000 but not
        over [$9,000] $18,000           5
     Over [$9,000] $18,000 but not
        over [$11,000] $22,000          5 1/2
     Over [$11,000] $22,000 but not
        over [$14,000] $28,000          6
     Over [$14,000] $28,000 but not
        over [$18,000] $36,000          6 1/2
  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                 The maximum
     income for the                     credit is:
     taxable year is:
     ___________________                __________________________________
     [$1,000] $2,000 or less            [$75] $163
     Over [$1,000] $2,000 but
        not over [$2,000] $4,000        [$73] $158
     Over [$2,000] $4,000 but
        not over [$3,000] $6,000        [$71] $154
     Over [$3,000] $6,000 but
        not over [$4,000] $8,000        [$69] $149

S. 2277                             6                            A. 2394

     Over [$4,000] $8,000 but
        not over [$5,000] $10,000       [$67] $145
     Over [$5,000] $10,000 but
        not over [$6,000] $12,000       [$65] $140
     Over [$6,000] $12,000 but
        not over [$7,000] $14,000       [$63] $136
     Over [$7,000] $14,000 but
        not over [$8,000] $16,000       [$61] $132
     Over [$8,000] $16,000 but
        not over [$9,000] $18,000       [$59] $128
     Over [$9,000] $18,000 but
        not over [$10,000] $20,000      [$57] $123
     Over [$10,000] $20,000 but
        not over [$11,000] $22,000      [$55] $119
     Over [$11,000] $22,000 but
        not over [$12,000] $24,000      [$53] $115
     Over [$12,000] $24,000 but
        not over [$13,000] $26,000      [$51] $110
     Over [$13,000] $26,000 but
        not over [$14,000] $28,000      [$49] $106
     Over [$14,000] $28,000 but
        not over [$15,000] $30,000      [$47] $102
     Over [$15,000] $30,000 but
        not over [$16,000] $32,000      [$45] $97
     Over [$16,000] $32,000 but
        not over [$17,000] $34,000      [$43] $93
     Over [$17,000] $34,000 but
        not over [$18,000] $36,000      [$41] $89
  (4)  If a qualified taxpayer occupies a residence for a period of less
than twelve months during the taxable year or occupies two or more resi-
dences during different periods in such taxable year, the credit allowed
pursuant to this subsection shall be computed in such manner as the [tax
commission] COMMISSIONER may, by regulation, prescribe in order to prop-
erly reflect the credit or portion thereof attributable  to  such  resi-
dence or residences and such period or periods.
  (5)    The [tax commission] COMMISSIONER may prescribe that the credit
under this subsection shall be determined in whole or in part by the use
of tables prescribed by such [commission]  COMMISSIONER.    Such  tables
shall set forth the credit to the nearest dollar.
  (6)  Only one credit per household and per qualified taxpayer shall be
allowed  per  taxable  year  under  this  subsection.   When two or more
members of a household are able to meet the qualifications for a  quali-
fied taxpayer, the credit shall be equally divided between or among such
individuals  unless  such  individuals  file  with  the [tax commission]
COMMISSIONER a written agreement among such individuals setting forth  a
different  division.   Where two or more members of a household are able
to meet the qualifications of a qualified taxpayer and one  of  them  is
sixty-five years of age or more OR HAS A PERMANENT AND TOTAL DISABILITY,
the credit which may be taken shall be the credit applicable to individ-
uals who have attained the age of sixty-five years.
  (A)  Provided, however, where a joint income tax return has been filed
pursuant to the provisions of section six hundred fifty-one by a  quali-
fied taxpayer and his OR HER spouse (or where both spouses are qualified
taxpayers  and have filed such joint return), the credit, or the portion
of the credit if divided, to which the husband  and  wife  are  entitled

S. 2277                             7                            A. 2394

shall  be  applied  against  the tax of both spouses and any overpayment
shall be made to both spouses.
 (B) Where any return required to be filed pursuant to the provisions of
section six hundred fifty-one is combined with any return of tax imposed
pursuant  to  the authority of this chapter or any other law if such tax
is administered by the [tax commission] COMMISSIONER, the credit or  the
portion  of the credit if divided, allowed to the qualified taxpayer may
be applied by the [tax commission] COMMISSIONER toward any liability for
the aforementioned taxes.
  (7)  No credit shall be granted under this subsection:
  (A) If household gross income for the taxable year exceeds  [eighteen]
THIRTY-SIX 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 FOR OVER TWO YEARS, the
full value of which exceeds [eighty-five thousand  dollars]  THE  MEDIAN
FULL VALUE OF RESIDENTIAL REAL PROPERTY SALES WITHIN THE COUNTY WHERE IT
IS  LOCATED, AS DETERMINED BY THE STATE BOARD OF REAL PROPERTY SERVICES,
OR THE MEDIAN FULL VALUE OF RESIDENTIAL REAL PROPERTY IN THE  STATE,  AS
DETERMINED  BY  THE  STATE BOARD OF REAL PROPERTY SERVICES, WHICHEVER IS
LESS.
  (D) To a tenant if the adjusted rent for the residence exceeds  [four]
EIGHT 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) With respect to a residence that  is  wholly  exempted  from  real
property taxation.
  (G) To an individual who is not a resident individual of the state for
the entire taxable year.
  (H)  WHERE  A  HOUSEHOLD  OR  QUALIFIED TAXPAYER HAS CLAIMED AN EARNED
INCOME TAX CREDIT PURSUANT TO THIS SECTION.
  (I) TO AN INDIVIDUAL WHOSE HOUSEHOLD GROSS INCOME IS MORE THAN  EIGHTY
PERCENT OF THE STATE MEDIAN FAMILY INCOME.
  (8)    The  right  to claim a credit or the portion of a credit, where
such credit has been divided under this subsection, shall be personal to
the qualified taxpayer and shall not survive his OR HER death, but  such
right may be exercised on behalf of a claimant by his OR HER legal guar-
dian or attorney in fact during his OR HER lifetime.
  (9)  Returns. If a qualified taxpayer is not required to file a return
pursuant  to  section six hundred fifty-one, a claim for a credit may be
taken on a return filed with the [tax  commission]  COMMISSIONER  within
three  years  from the time it would have been required that a return be
filed pursuant to such section had the qualified taxpayer had a  taxable
year ending on December thirty-first. Returns under this paragraph shall
be  in  such form as shall be prescribed by the [tax commission] COMMIS-
SIONER, which shall make  available  such  forms  and  instructions  for
filing such returns.
  (10)  Proof of claim.  The [tax commission] COMMISSIONER may require a
qualified  taxpayer  to  furnish the following information in support of
his claim for credit under this subsection:    household  gross  income,
rent  paid,  name and address of owner or managing agent of the property
rented, real property taxes levied or that would have been levied in the

S. 2277                             8                            A. 2394

absence of an exemption from real property tax pursuant to section  four
hundred  sixty-seven  of the real property tax law, the names of members
of the household and other qualifying taxpayers occupying the same resi-
dence  and  their identifying numbers including social security numbers,
household gross income, size and nature of property claimed as residence
and all other information which may be required by the [tax  commission]
COMMISSIONER to determine the credit.
  (11)   Administration.   The provisions of this article, including the
provisions of section six hundred fifty-three, six hundred  fifty-eight,
and  six hundred fifty-nine and the provisions of part six of this arti-
cle relating to procedure and  administration,  including  the  judicial
review  of the decisions of the [tax commission] COMMISSIONER, except so
much of section six hundred eighty-seven which permits a claim for cred-
it or refund to be filed after the period provided for in paragraph nine
of this subsection and except  sections  six  hundred  fifty-seven,  six
hundred  eighty-eight  and  six  hundred  ninety-six, shall apply to the
provisions of this subsection in the same manner and with the same force
and effect as if the language of those provisions had been  incorporated
in  full  into  this subsection and had expressly referred to the credit
allowed or returns filed under this subsection,  except  to  the  extent
that  any such provision is either inconsistent with a provision of this
subsection or is not relevant to this  subsection.    As  used  in  such
sections  and  such  part, the term "taxpayer" shall include a qualified
taxpayer under this subsection and, notwithstanding  the  provisions  of
subsection  (e)  of  section six hundred ninety-seven, where a qualified
taxpayer has protested the denial of  a  claim  for  credit  under  this
subsection  and  the  time  to  file a petition for redetermination of a
deficiency or for refund has not expired, he OR SHE  shall,  subject  to
such  conditions  as  may  be  set by the [tax commission] COMMISSIONER,
receive such information (A) which is  contained  in  any  return  filed
under  this  article by a member of his OR HER household for the taxable
year for which the credit is claimed, and (B) which the [tax commission]
COMMISSIONER finds is relevant and material to the issue of whether such
claim was properly denied.  The [tax commission] COMMISSIONER shall have
the authority to promulgate such rules and regulations as may be  neces-
sary  for  the  processing,  determination  and  granting of credits and
refunds under this subsection.
  (13)  Notwithstanding any other provision of this article, the  credit
allowed  under  this  subsection  shall be determined after the determi-
nation  and  application  of  any  other  credits  permitted  under  the
provisions of this article.
  (14)  The  commissioner  [of  taxation  and  finance]  shall prepare a
preliminary written report after July thirty-first and a  final  written
report  after  December  thirty-first of each calendar year, which shall
contain statistical information regarding  the  credits  granted  on  or
before  such  dates  under  this  subsection  during such calendar year.
Copies of these reports shall be submitted by such commissioner  to  the
governor,  the  temporary  president  of  the senate, the speaker of the
assembly, the chairman of the senate finance committee and the  chairman
of the assembly ways and means committee within sixty days of July thir-
ty-first  with  respect to the preliminary report, and within forty-five
days of December thirty-first with respect to  the  final  report.  Such
reports shall contain, but need not be limited to, the number of credits
and the average amount of such credits allowed; and of those, the number
of  credits  and the average amount of such credits allowed to qualified
taxpayers in each county; and of those, the number of  credits  and  the

S. 2277                             9                            A. 2394

average  amount  of  such  credits  allowed to qualified taxpayers whose
household gross income falls within each of the household  gross  income
ranges  set  forth  in paragraph three of this subsection; and of those,
the  number of credits and the average amount of such credits allowed to
qualified taxpayers whose credit amount falls within credit amount rang-
es set forth in twenty-five dollar increments.
  S 2. Paragraph 3 of subsection (e) of section 606 of the tax  law,  as
amended by section one of this act, is amended to read as follows:
  (3)    Determination of credit.   (A) For qualified taxpayers who have
attained the age of sixty-five years or a permanent and total disability
as defined in section twenty-two of the internal revenue code before the
beginning of or during the taxable year the amount of the credit  allow-
able  under  this subsection shall be fifty percent, or in the case of a
qualified taxpayer who has  elected  to  include  an  additional  amount
pursuant  to subparagraph (E) of paragraph one of this subsection, twen-
ty-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
     If household gross                 qualifying real property taxes
     income for the                     over the following percentage of
     taxable year is:                   household gross income:
     ___________________                __________________________________

     $6,000 or less                     3 1/2
     Over $6,000 but not
        over $10,000                    4
     Over $10,000 but not
        over $14,000                    4 1/2
     Over $14,000 but not
        over $18,000                    5
     Over $18,000 but not
        over $22,000                    5 1/2
     Over $22,000 but not
        over $28,000                    6
     Over $28,000 but not
        over $36,000                    6 1/2
  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                 The maximum
     income for the                     credit is:
     taxable year is:
     ___________________                __________________________________
     $2,000 or less                     [$463] $550
     Over $2,000 but
        not over $4,000                 [$442] $525
     Over $4,000 but
        not over $6,000                 [$421] $500
     Over $6,000 but
        not over $8,000                 [$400] $475
     Over $8,000 but
        not over $10,000                [$379] $450
     Over $10,000 but
        not over $12,000                [$358] $425

S. 2277                            10                            A. 2394

     Over $12,000 but
        not over $14,000                [$337] $400
     Over $14,000 but
        not over $16,000                [$316] $375
     Over $16,000 but
        not over $18,000                [$295] $350
     Over $18,000 but
        not over $20,000                [$274] $325
     Over $20,000 but
        not over $22,000                [$253] $300
     Over $22,000 but
        not over $24,000                [$232] $275
     Over $24,000 but
        not over $26,000                [$211] $250
     Over $26,000 but
        not over $28,000                [$190] $225
     Over $28,000 but
        not over $30,000                [$169] $200
     Over $30,000 but
        not over $32,000                [$148] $175
     Over $32,000 but
        not over $34,000                [$127] $150
     Over $34,000 but
        not over $36,000                [$106] $125
  (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
                                        equivalent or the excess of
     If household gross                 qualifying real property taxes
     income for the                     over the following percentage of
     taxable year is:                   household gross income:
     ___________________                __________________________________

     $6,000 or less                     3 1/2
     Over $6,000 but not
        over $10,000                    4
     Over  $10,000 but not
        over $14,000                    4 1/2
     Over  $14,000 but not
        over  $18,000                   5
     Over $18,000 but not
        over $22,000                    5 1/2
     Over $22,000 but not
        over  $28,000                   6
     Over $28,000 but not
        over $36,000                    6 1/2
  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                 The maximum
     income for the                     credit is:
     taxable year is:
     ___________________                __________________________________

S. 2277                            11                            A. 2394

     $2,000 or less                     [$163] $250
     Over $2,000 but
        not over $4,000                 [$158] $243
     Over $4,000 but
        not over $6,000                 [$154] $237
     Over $6,000 but
        not over $8,000                 [$149] $230
     Over $8,000 but
        not over $10,000                [$145] $223
     Over $10,000 but
        not over $12,000                [$140] $217
     Over $12,000 but
        not over $14,000                [$136] $210
     Over $14,000 but
        not over $16,000                [$132] $203
     Over $16,000 but
        not over $18,000                [$128] $197
     Over $18,000 but
        not over $20,000                [$123] $190
     Over $20,000 but
        not over $22,000                [$119] $183
     Over $22,000 but
        not over $24,000                [$115] $177
     Over $24,000 but
        not over $26,000                [$110] $170
     Over $26,000 but
        not over $28,000                [$106] $163
     Over $28,000 but
        not over $30,000                [$102] $157
     Over $30,000 but
        not over $32,000                [$97] $150
     Over $32,000 but
        not over $34,000                [$93] $143
     Over $34,000 but
        not over $36,000                [$89] $137
  S  3.  This act shall take effect immediately; provided, however, that
section two of this act shall take effect January 1, 2014.

Co-Sponsors

S2277A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A2394A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §606, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3324A, A5352A
2009-2010: S3728, A7589

S2277A (ACTIVE) - Bill Texts

view summary

Increases to $36,000 the household gross income limitations for tax credits for real property tax circuit breaker credit; makes such tax credits available to disabled persons as well as to those persons 65 years of age.

view sponsor memo
BILL NUMBER:S2277A

TITLE OF BILL: An act to amend the tax law, in relation to the real
property tax circuit breaker credit

PURPOSE:

To increase income limitations and tax credits for real property tax
circuit breaker credit and provide circuit breaker legislation to
include disabled citizens with persons 65 years of age.

SUMMARY OF PROVISIONS:

This legislation would increase household gross income to $36,000;
increase property value limitation to the median full value of
residential real property sales within the county where it is located
or the median full value of residential real property in the state,
whichever is less and increase the monthly rent limitation to $800.
It would increase the current limit on the maximum credit for senior
citizens from $375 to $550 in two steps. The maximum credit for other
eligible New Yorkers would be increased to $250 from $75. Disabled
citizens would be eligible to receive circuit breaker tax credit along
with senior citizens.

JUSTIFICATION:

The real property tax circuit breaker program is a method of providing
tax relief; in the form of a State income tax credit, to eligible
homeowners and renters who pay a disproportional amount of property
tax in relation to their household income. The burden of real property
taxes have forced older citizens from their residences. They are
forced to sell their homes because their fixed incomes cannot support
the escalating real property taxes. The present circuit breaker
legislation is inadequate to handle the crisis which exists for older
citizens and disabled persons.

LEGISLATIVE HISTORY:

2011-12 S.3324A;
2009-10 S.3728/A.7589;
2007-08, S.3820/A6624;
2005-06: S.2861-A/A.6864;
2003-04: S.1837/A.4209;
2001-02: S.2974-A/A.5683;
1999-00: S.2768/A.4895;
1997-98: S.2847-A/A.4832;
1995-96: S.2489-A/A.4121; 1994: S.6703-A;
1994: S.6703-A;
1993: S.5431;
1991-92: S.748;
1989-90: S.7773

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:


This act shall take effect immediately; provided, however, that
section two of this act shall take effect January 1, 2015.

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

    S. 2277--A                                            A. 2394--A

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                            January 15, 2013
                               ___________

IN  SENATE  --  Introduced  by  Sens.  LAVALLE, LARKIN -- 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

IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
  to the Committee on Ways and Means -- recommitted to the Committee  on
  Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the  tax  law,  in relation to the 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. Subsection (e) of section 606 of the tax law, as amended by
chapter  28  of  the  laws  of  1987, subparagraph (c) of paragraph 1 as
amended by chapter 713 of the laws of 1996, subparagraph  (E)  of  para-
graph  1 as amended by chapter 105 of the laws of 2006, and paragraph 14
as amended by chapter 23 of the laws of 1990,  is  amended  to  read  as
follows:
  (e)    Real property tax circuit breaker credit.  (1)  For purposes of
this subsection:
  (A) "Qualified taxpayer" means a resident individual of the state  who
has  occupied  the  same residence for six months or more of the taxable
year, and is required or chooses to file a return under this article.
  (B)   "Household" or "members of  the  household"  means  a  qualified
taxpayer  and  all  other persons, not necessarily related, who have the
same residence and share its furnishings, facilities and accommodations.
Such terms shall not include a tenant, subtenant, roomer or boarder  who

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06127-02-4

S. 2277--A                          2                         A. 2394--A

is  not  related  to  the  qualified taxpayer in any degree specified in
paragraphs one through eight of subsection (a) of  section  one  hundred
fifty-two  of  the  internal revenue code.  Provided, however, no person
may be a member of more than one household at one time.
  [(c)]  (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
but  without  the  modifications in subsection (c) of such section, plus
any portion of the gain from the sale or exchange of property  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   veterans'   disability
pensions);  nontaxable interest received from the state of New York, its
agencies, instrumentalities, public corporations, or political  subdivi-
sions  (including  a public corporation created pursuant to agreement or
compact with another state or Canada); workers' compensation; 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 house-
hold.  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 P.L.  103-286.    Provided,
further,  household  gross  income  shall  only  include all such income
received by all members of the household while members  of  such  house-
hold.
  (D)    "Residence"  means  a  dwelling in this state, whether owned or
rented, and so much of the land abutting it, not exceeding one acre,  as
is  reasonably  necessary  for  use  of  the dwelling as a home, and may
consist of a part of a multi-dwelling or multi-purpose building  includ-
ing  a  cooperative  or  condominium,  and  rental units within a single
dwelling.  Residence includes a trailer or mobile home, used exclusively
for residential purposes and defined as real property pursuant to  para-
graph  (g)  of subdivision twelve of section one hundred two of the real
property tax law.
  (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 THE FORMER
subsection (n-1) of this section. In addition, for taxable years  begin-
ning after December thirty-first, nineteen hundred eighty-four, a quali-
fied taxpayer may elect to include any additional amount that would have
been  levied  in the absence of an exemption from real property taxation
pursuant 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

S. 2277--A                          3                         A. 2394--A

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 integral part of a larger unit, qualifying real property
taxes shall be limited to that amount of  such  taxes  paid  as  may  be
reasonably  apportioned to such residence. If a household owns and occu-
pies 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  house-
hold  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  property  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 qualified 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.
  (F)  "Real  property  tax equivalent" means twenty-five percent of the
adjusted rent actually paid in the taxable year by  a  household  solely
for  the  right  of  occupancy of its New York residence for the taxable
year.  If (i) a residence is rented to two or more individuals as coten-
ants, or such individuals share in the payment of a single rent for  the
right  of occupancy of such residence, and (ii) each of such individuals
is a member of a different household, one or more of  which  individuals
shares  such  residence, real property tax equivalent is that portion of
twenty-five percent of the adjusted rent paid in the taxable year  which
reflects that portion of the rent attributable to the qualified taxpayer
and the members of his household.
  (G)  "Adjusted rent" means rental paid for the right of occupancy of a
residence, excluding charges for heat, gas, electricity, furnishings and
board.  Where charges for heat, gas, electricity,  furnishing  or  board
are included in rental but where such charges and the amount thereof are
not  separately set forth in a written rental agreement, for purposes of
determining adjusted rent the qualified  taxpayer  shall  reduce  rental
paid as follows:
  (i)  For heat, or heat and gas, deduct fifteen percent of rental paid.
  (ii)    For heat, gas and electricity, deduct twenty percent of rental
paid.
  (iii)  For heat, gas, electricity and furnishings, deduct  twenty-five
percent of rental paid.
  (iv)   For heat, gas, electricity, furnishings and board, deduct fifty
percent of rental paid.
If the [tax commission] COMMISSIONER determines that the  adjusted  rent
shown  on the return is excessive, the [tax commission] COMMISSIONER may
reduce such rent, for purposes of the computation of the credit,  to  an
amount substantially equivalent to rent for a comparable accommodation.
  (2)  A  qualified  taxpayer  shall  be allowed a credit as provided in
paragraph three hereof against the taxes imposed by this article reduced
by the credits permitted 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

S. 2277--A                          4                         A. 2394--A

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,  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.
  (3)  Determination of credit.  (A) For qualified  taxpayers  who  have
attained the age of sixty-five years OR A PERMANENT AND TOTAL DISABILITY
AS DEFINED IN SECTION TWENTY-TWO OF THE INTERNAL REVENUE CODE before the
beginning  of or during the taxable year the amount of the credit allow-
able under this subsection shall be fifty percent, or in the case  of  a
qualified  taxpayer  who  has  elected  to  include an additional amount
pursuant to subparagraph (E) of paragraph one of this subsection,  twen-
ty-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
     If household gross                 qualifying real property taxes
     income for the                     over the following percentage of
     taxable year is:                   household gross income:
     ___________________                __________________________________

     [$3,000] $6,000 or less             3 1/2
     Over [$3,000] $6,000 but not
        over [$5,000] $10,000            4
     Over [$5,000] $10,000 but not
        over [$7,000] $14,000            4 1/2
     Over [$7,000] $14,000 but not
        over [$9,000] $18,000            5
     Over [$9,000] $18,000 but not
        over [$11,000] $22,000           5 1/2
     Over [$11,000] $22,000 but not
        over [$14,000] $28,000           6
     Over [$14,000] $28,000 but not
        over [$18,000] $36,000           6 1/2
  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                 The maximum
     income for the                     credit is:
     taxable year is:
     ___________________                __________________________________
     [$1,000] $2,000 or less            [$375] $463
     Over [$1,000] $2,000 but
        not over [$2,000] $4,000        [$358] $442
     Over [$2,000] $4,000 but
        not over [$3,000] $6,000        [$341] $421
     Over [$3,000] $6,000 but
        not over [$4,000] $8,000        [$324] $400
     Over [$4,000] $8,000 but
        not over [$5,000] $10,000       [$307] $379
     Over [$5,000] $10,000 but
        not over [$6,000] $12,000       [$290] $358
     Over [$6,000] $12,000 but

S. 2277--A                          5                         A. 2394--A

        not over [$7,000] $14,000       [$273] $337
     Over [$7,000] $14,000 but
        not over [$8,000] $16,000       [$256] $316
     Over [$8,000] $16,000 but
        not over [$9,000] $18,000       [$239] $295
     Over [$9,000] $18,000 but
        not over [$10,000] $20,000      [$222] $274
     Over [$10,000] $20,000 but
        not over [$11,000] $22,000      [$205] $253
     Over [$11,000] $22,000 but
        not over [$12,000] $24,000      [$188] $232
     Over [$12,000] $24,000 but
        not over [$13,000] $26,000      [$171] $211
     Over [$13,000] $26,000 but
        not over [$14,000] $28,000      [$154] $190
     Over [$14,000] $28,000 but
        not over [$15,000] $30,000      [$137] $169
     Over [$15,000] $30,000 but
        not over [$16,000] $32,000      [$120] $148
     Over [$16,000] $32,000 but
        not over [$17,000] $34,000      [$103] $127
     Over [$17,000] $34,000 but
        not over [$18,000] $36,000      [$86] $106
  (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
                                        equivalent or the excess of
     If household gross                 qualifying real property taxes
     income for the                     over the following percentage of
     taxable year is:                   household gross income:
     ___________________                __________________________________

     [$3,000] $6,000 or less            3 1/2
     Over [$3,000] $6,000 but not
        over [$5,000] $10,000           4
     Over [$5,000] $10,000 but not
        over [$7,000] $14,000           4 1/2
     Over [$7,000] $14,000 but not
        over [$9,000] $18,000           5
     Over [$9,000] $18,000 but not
        over [$11,000] $22,000          5 1/2
     Over [$11,000] $22,000 but not
        over [$14,000] $28,000          6
     Over [$14,000] $28,000 but not
        over [$18,000] $36,000          6 1/2
  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                 The maximum
     income for the                     credit is:
     taxable year is:
     ___________________                __________________________________
     [$1,000] $2,000 or less            [$75] $163

S. 2277--A                          6                         A. 2394--A

     Over [$1,000] $2,000 but
        not over [$2,000] $4,000        [$73] $158
     Over [$2,000] $4,000 but
        not over [$3,000] $6,000        [$71] $154
     Over [$3,000] $6,000 but
        not over [$4,000] $8,000        [$69] $149
     Over [$4,000] $8,000 but
        not over [$5,000] $10,000       [$67] $145
     Over [$5,000] $10,000 but
        not over [$6,000] $12,000       [$65] $140
     Over [$6,000] $12,000 but
        not over [$7,000] $14,000       [$63] $136
     Over [$7,000] $14,000 but
        not over [$8,000] $16,000       [$61] $132
     Over [$8,000] $16,000 but
        not over [$9,000] $18,000       [$59] $128
     Over [$9,000] $18,000 but
        not over [$10,000] $20,000      [$57] $123
     Over [$10,000] $20,000 but
        not over [$11,000] $22,000      [$55] $119
     Over [$11,000] $22,000 but
        not over [$12,000] $24,000      [$53] $115
     Over [$12,000] $24,000 but
        not over [$13,000] $26,000      [$51] $110
     Over [$13,000] $26,000 but
        not over [$14,000] $28,000      [$49] $106
     Over [$14,000] $28,000 but
        not over [$15,000] $30,000      [$47] $102
     Over [$15,000] $30,000 but
        not over [$16,000] $32,000      [$45] $97
     Over [$16,000] $32,000 but
        not over [$17,000] $34,000      [$43] $93
     Over [$17,000] $34,000 but
        not over [$18,000] $36,000      [$41] $89
  (4)  If a qualified taxpayer occupies a residence for a period of less
than twelve months during the taxable year or occupies two or more resi-
dences during different periods in such taxable year, the credit allowed
pursuant to this subsection shall be computed in such manner as the [tax
commission] COMMISSIONER may, by regulation, prescribe in order to prop-
erly reflect the credit or portion thereof attributable  to  such  resi-
dence or residences and such period or periods.
  (5)    The [tax commission] COMMISSIONER may prescribe that the credit
under this subsection shall be determined in whole or in part by the use
of tables prescribed by such [commission]  COMMISSIONER.    Such  tables
shall set forth the credit to the nearest dollar.
  (6)  Only one credit per household and per qualified taxpayer shall be
allowed  per  taxable  year  under  this  subsection.   When two or more
members of a household are able to meet the qualifications for a  quali-
fied taxpayer, the credit shall be equally divided between or among such
individuals  unless  such  individuals  file  with  the [tax commission]
COMMISSIONER a written agreement among such individuals setting forth  a
different  division.   Where two or more members of a household are able
to meet the qualifications of a qualified taxpayer and one  of  them  is
sixty-five years of age or more OR HAS A PERMANENT AND TOTAL DISABILITY,
the credit which may be taken shall be the credit applicable to individ-
uals who have attained the age of sixty-five years.

S. 2277--A                          7                         A. 2394--A

  (A)  Provided, however, where a joint income tax return has been filed
pursuant to the provisions of section six hundred fifty-one by a  quali-
fied taxpayer and his OR HER spouse (or where both spouses are qualified
taxpayers  and have filed such joint return), the credit, or the portion
of  the  credit  if  divided, to which the husband and wife are entitled
shall be applied against the tax of both  spouses  and  any  overpayment
shall be made to both spouses.
 (B) Where any return required to be filed pursuant to the provisions of
section six hundred fifty-one is combined with any return of tax imposed
pursuant  to  the authority of this chapter or any other law if such tax
is administered by the [tax commission] COMMISSIONER, the credit or  the
portion  of the credit if divided, allowed to the qualified taxpayer may
be applied by the [tax commission] COMMISSIONER toward any liability for
the aforementioned taxes.
  (7)  No credit shall be granted under this subsection:
  (A) If household gross income for the taxable year exceeds  [eighteen]
THIRTY-SIX 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 FOR OVER TWO YEARS, the
full value of which exceeds [eighty-five thousand  dollars]  THE  MEDIAN
FULL VALUE OF RESIDENTIAL REAL PROPERTY SALES WITHIN THE COUNTY WHERE IT
IS  LOCATED, AS DETERMINED BY THE STATE BOARD OF REAL PROPERTY SERVICES,
OR THE MEDIAN FULL VALUE OF RESIDENTIAL REAL PROPERTY IN THE  STATE,  AS
DETERMINED  BY  THE  STATE BOARD OF REAL PROPERTY SERVICES, WHICHEVER IS
LESS.
  (D) To a tenant if the adjusted rent for the residence exceeds  [four]
EIGHT 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) With respect to a residence that  is  wholly  exempted  from  real
property taxation.
  (G) To an individual who is not a resident individual of the state for
the entire taxable year.
  (H)  WHERE  A  HOUSEHOLD  OR  QUALIFIED TAXPAYER HAS CLAIMED AN EARNED
INCOME TAX CREDIT PURSUANT TO THIS SECTION.
  (I) TO AN INDIVIDUAL WHOSE HOUSEHOLD GROSS INCOME IS MORE THAN  EIGHTY
PERCENT OF THE STATE MEDIAN FAMILY INCOME.
  (8)    The  right  to claim a credit or the portion of a credit, where
such credit has been divided under this subsection, shall be personal to
the qualified taxpayer and shall not survive his OR HER death, but  such
right may be exercised on behalf of a claimant by his OR HER legal guar-
dian or attorney in fact during his OR HER lifetime.
  (9)  Returns. If a qualified taxpayer is not required to file a return
pursuant  to  section six hundred fifty-one, a claim for a credit may be
taken on a return filed with the [tax  commission]  COMMISSIONER  within
three  years  from the time it would have been required that a return be
filed pursuant to such section had the qualified taxpayer had a  taxable
year ending on December thirty-first. Returns under this paragraph shall
be  in  such form as shall be prescribed by the [tax commission] COMMIS-
SIONER, which shall make  available  such  forms  and  instructions  for
filing such returns.

S. 2277--A                          8                         A. 2394--A

  (10)  Proof of claim.  The [tax commission] COMMISSIONER may require a
qualified  taxpayer  to  furnish the following information in support of
his claim for credit under this subsection:    household  gross  income,
rent  paid,  name and address of owner or managing agent of the property
rented, real property taxes levied or that would have been levied in the
absence  of an exemption from real property tax pursuant to section four
hundred sixty-seven of the real property tax law, the names  of  members
of the household and other qualifying taxpayers occupying the same resi-
dence  and  their identifying numbers including social security numbers,
household gross income, size and nature of property claimed as residence
and all other information which may be required by the [tax  commission]
COMMISSIONER to determine the credit.
  (11)   Administration.   The provisions of this article, including the
provisions of section six hundred fifty-three, six hundred  fifty-eight,
and  six hundred fifty-nine and the provisions of part six of this arti-
cle relating to procedure and  administration,  including  the  judicial
review  of the decisions of the [tax commission] COMMISSIONER, except so
much of section six hundred eighty-seven which permits a claim for cred-
it or refund to be filed after the period provided for in paragraph nine
of this subsection and except  sections  six  hundred  fifty-seven,  six
hundred  eighty-eight  and  six  hundred  ninety-six, shall apply to the
provisions of this subsection in the same manner and with the same force
and effect as if the language of those provisions had been  incorporated
in  full  into  this subsection and had expressly referred to the credit
allowed or returns filed under this subsection,  except  to  the  extent
that  any such provision is either inconsistent with a provision of this
subsection or is not relevant to this  subsection.    As  used  in  such
sections  and  such  part, the term "taxpayer" shall include a qualified
taxpayer under this subsection and, notwithstanding  the  provisions  of
subsection  (e)  of  section six hundred ninety-seven, where a qualified
taxpayer has protested the denial of  a  claim  for  credit  under  this
subsection  and  the  time  to  file a petition for redetermination of a
deficiency or for refund has not expired, he OR SHE  shall,  subject  to
such  conditions  as  may  be  set by the [tax commission] COMMISSIONER,
receive such information (A) which is  contained  in  any  return  filed
under  this  article by a member of his OR HER household for the taxable
year for which the credit is claimed, and (B) which the [tax commission]
COMMISSIONER finds is relevant and material to the issue of whether such
claim was properly denied.  The [tax commission] COMMISSIONER shall have
the authority to promulgate such rules and regulations as may be  neces-
sary  for  the  processing,  determination  and  granting of credits and
refunds under this subsection.
  (13)  Notwithstanding any other provision of this article, the  credit
allowed  under  this  subsection  shall be determined after the determi-
nation  and  application  of  any  other  credits  permitted  under  the
provisions of this article.
  (14)  The  commissioner  [of  taxation  and  finance]  shall prepare a
preliminary written report after July thirty-first and a  final  written
report  after  December  thirty-first of each calendar year, which shall
contain statistical information regarding  the  credits  granted  on  or
before  such  dates  under  this  subsection  during such calendar year.
Copies of these reports shall be submitted by such commissioner  to  the
governor,  the  temporary  president  of  the senate, the speaker of the
assembly, the chairman of the senate finance committee and the  chairman
of the assembly ways and means committee within sixty days of July thir-
ty-first  with  respect to the preliminary report, and within forty-five

S. 2277--A                          9                         A. 2394--A

days of December thirty-first with respect to  the  final  report.  Such
reports shall contain, but need not be limited to, the number of credits
and the average amount of such credits allowed; and of those, the number
of  credits  and the average amount of such credits allowed to qualified
taxpayers in each county; and of those, the number of  credits  and  the
average  amount  of  such  credits  allowed to qualified taxpayers whose
household gross income falls within each of the household  gross  income
ranges  set  forth  in paragraph three of this subsection; and of those,
the number of credits and the average amount of such credits allowed  to
qualified taxpayers whose credit amount falls within credit amount rang-
es set forth in twenty-five dollar increments.
  S  2.  Paragraph 3 of subsection (e) of section 606 of the tax law, as
amended by section one of this act, is amended to read as follows:
  (3)  Determination of credit.  (A) For qualified  taxpayers  who  have
attained the age of sixty-five years or a permanent and total disability
as defined in section twenty-two of the internal revenue code before the
beginning  of or during the taxable year the amount of the credit allow-
able under this subsection shall be fifty percent, or in the case  of  a
qualified  taxpayer  who  has  elected  to  include an additional amount
pursuant to subparagraph (E) of paragraph one of this subsection,  twen-
ty-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
     If household gross                 qualifying real property taxes
     income for the                     over the following percentage of
     taxable year is:                   household gross income:
     ___________________                __________________________________

     $6,000 or less                     3 1/2
     Over $6,000 but not
        over $10,000                    4
     Over $10,000 but not
        over $14,000                    4 1/2
     Over $14,000 but not
        over $18,000                    5
     Over $18,000 but not
        over $22,000                    5 1/2
     Over $22,000 but not
        over $28,000                    6
     Over $28,000 but not
        over $36,000                    6 1/2
  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                 The maximum
     income for the                     credit is:
     taxable year is:
     ___________________                __________________________________
     $2,000 or less                     [$463] $550
     Over $2,000 but
        not over $4,000                 [$442] $525
     Over $4,000 but
        not over $6,000                 [$421] $500
     Over $6,000 but

S. 2277--A                         10                         A. 2394--A

        not over $8,000                 [$400] $475
     Over $8,000 but
        not over $10,000                [$379] $450
     Over $10,000 but
        not over $12,000                [$358] $425
     Over $12,000 but
        not over $14,000                [$337] $400
     Over $14,000 but
        not over $16,000                [$316] $375
     Over $16,000 but
        not over $18,000                [$295] $350
     Over $18,000 but
        not over $20,000                [$274] $325
     Over $20,000 but
        not over $22,000                [$253] $300
     Over $22,000 but
        not over $24,000                [$232] $275
     Over $24,000 but
        not over $26,000                [$211] $250
     Over $26,000 but
        not over $28,000                [$190] $225
     Over $28,000 but
        not over $30,000                [$169] $200
     Over $30,000 but
        not over $32,000                [$148] $175
     Over $32,000 but
        not over $34,000                [$127] $150
     Over $34,000 but
        not over $36,000                [$106] $125
  (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
                                        equivalent or the excess of
     If household gross                 qualifying real property taxes
     income for the                     over the following percentage of
     taxable year is:                   household gross income:
     ___________________                __________________________________

     $6,000 or less                     3 1/2
     Over $6,000 but not
        over $10,000                    4
     Over  $10,000 but not
        over $14,000                    4 1/2
     Over  $14,000 but not
        over  $18,000                   5
     Over $18,000 but not
        over $22,000                    5 1/2
     Over $22,000 but not
        over  $28,000                   6
     Over $28,000 but not
        over $36,000                    6 1/2

S. 2277--A                         11                         A. 2394--A

  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                 The maximum
     income for the                     credit is:
     taxable year is:
     ___________________                __________________________________
     $2,000 or less                     [$163] $250
     Over $2,000 but
        not over $4,000                 [$158] $243
     Over $4,000 but
        not over $6,000                 [$154] $237
     Over $6,000 but
        not over $8,000                 [$149] $230
     Over $8,000 but
        not over $10,000                [$145] $223
     Over $10,000 but
        not over $12,000                [$140] $217
     Over $12,000 but
        not over $14,000                [$136] $210
     Over $14,000 but
        not over $16,000                [$132] $203
     Over $16,000 but
        not over $18,000                [$128] $197
     Over $18,000 but
        not over $20,000                [$123] $190
     Over $20,000 but
        not over $22,000                [$119] $183
     Over $22,000 but
        not over $24,000                [$115] $177
     Over $24,000 but
        not over $26,000                [$110] $170
     Over $26,000 but
        not over $28,000                [$106] $163
     Over $28,000 but
        not over $30,000                [$102] $157
     Over $30,000 but
        not over $32,000                [$97] $150
     Over $32,000 but
        not over $34,000                [$93] $143
     Over $34,000 but
        not over $36,000                [$89] $137
  S  3.  This act shall take effect immediately; provided, however, that
section two of this act shall take effect January 1, 2015.

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