senate Bill S7417

2013-2014 Legislative Session

Establishes the renters' and small homeowners' credit in a city with a population of a million or more

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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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May 14, 2014 referred to investigations and government operations

S7417 - Bill Details

See Assembly Version of this Bill:
A9052
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง606, Tax L

S7417 - Bill Texts

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Establishes the renters' and small homeowners' credit in a city with a population of a million or more.

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BILL NUMBER:S7417

TITLE OF BILL: An act to amend the tax law, in relation to establishing
a renters' and small homeowners' tax credit

PURPOSE OR GENERAL IDEA OF BILL: To provide a state tax credit to
renters and small homeowners in the city of New York.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 606 of the tax law by adding a new
subsection (b-1) that will provide a renters' and small homeowners' tax
credit in a city of a million or more. The bill defines a "qualified"
tax payer to be any one of the following individuals:

a. A resident individual who lives in a city with a population of a
million or more who has occupied and paid rent for his or her primary
residence in such city for six months or more of the taxable year, is
required or chooses to file a tax return and is one of the following:

* is 65 or older

* is filing a joint return with a spouse who is 65 or older

* is a head of household

* is a married individual filing a joint return with a spouse and has at
least 1 dependent

* is a married individual filing a separate return and has at least 1
dependent * is a surviving spouse and has at least one dependent

b. An owner of any dwelling with six units or less in a city of a
million or more who occupies such dwelling as his or her primary resi-
dence for six months or more of the taxable year and who is required or
chooses to file a tax return.

The bill also states that an individual who is listed as a dependent
allowable to another taxpayer for the taxable year or who pays rent for
his or her primary resident to a family member sharing the same primary
residence shall not be a "qualified taxpayer" for purposes of this
section.

(B) "Residence" means a dwelling in a city with a population of a
million or more and may consist of a part of a multi-dwelling or multi-
purpose building including a cooperative or condominium, one, two or
three family dwellings and rental units within a single dwelling which
are either owner-occupied or rented by a qualified taxpayer.

(2)(A) A qualified taxpayer shall be allowed a credit against the taxes
imposed by this article reduced by the credits permitted in this arti-
cle. If the credit exceeds the tax as so reduced for such year, the

excess shall be treated as an overpayment of tax to be credited or
refunded without interest.

(2)(B) If more than one qualified taxpayer pays rent for the same prima-
ry residence and has a federal adjusted gross income for which a credit
would be due, each such qualified taxpayer shall divide the base amount
of the credit allowed for his or her income level by the total number of
individuals or married couples filing a joint return who are paying the
rent, whether or not eligible for a credit, to determine the amount of
credit allowed to that qualified taxpayer.

(2) (C) A qualified taxpayer shall be allowed the credit under this
subsection or the credit under subsection (e) of this section (real
property tax circuit breaker credit), whichever is the higher amount.

(3)(A) Sets forth the tables to be used for determining the credits
allowed for a qualified taxpayer who is 65 or older with a filing status
of single.

(3)(B) Sets forth the tables to be used for determining the credits
allowed for any other qualified taxpayer, provided, however, that a
qualified taxpayer who is a married individual filing a separate New
York income tax return shall receive one-half of the base amount of the
credit plus any additional amount for which such taxpayer would be
eligible based on the income and number of exemptions claimed by such
taxpayer.

Section 2 sets an immediate effective date.

JUSTIFICATION: In January 2014, Governor Cuomo proposed the creation of
a Renters' Tax Credit in his 2014-2015 Budget in order to give renters a
much needed income tax credit to ease their tax burden. While it is
important to give renters this income tax credit, it is equally impor-
tant that small homeowners, including co-op and condominium owners in
the city of New York also be granted this same tax credit. In December
2011 a property tax cap was implemented throughout New York State but
explicitly exempted the city of New York. This much needed relief was
denied to small homeowners in the city of New York despite their equally
dire need for relief from their overall tax burden.

This bill Will rectify that inequity and provide much needed relief to
both renters and small homeowners who occupy these residences as their
primary residences. This includes owners of co-ops and condominiums who
are already being treated unfairly under the New York City property tax
laws.

PRIOR LEGISLATIVE HISTORY: New Bill

FISCAL IMPLICATIONS: To be Determined.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  7417

                            I N  S E N A T E

                              May 14, 2014
                               ___________

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

AN ACT to amend the tax law, in relation to establishing a renters'  and
  small homeowners' 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 (b-1) to read as follows:
  (B-1)  RENTERS'  AND  SMALL  HOMEOWNERS' CREDIT IN A CITY WITH A POPU-
LATION OF ONE MILLION OR MORE.
  (1) FOR THE PURPOSES OF THIS SUBSECTION:
  (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL WHO  LIVES  IN  A
CITY  WITH A POPULATION OF ONE MILLION OR MORE WHO HAS OCCUPIED AND PAID
RENT FOR HIS OR HER PRIMARY RESIDENCE IN SUCH CITY  FOR  SIX  MONTHS  OR
MORE  OF THE TAXABLE YEAR, IS REQUIRED OR CHOOSES TO FILE A RETURN UNDER
THIS ARTICLE, AND (I) IS SIXTY-FIVE YEARS  OF  AGE  OR  OLDER,  (II)  IS
FILING  A  JOINT  RETURN WITH A SPOUSE WHO IS SIXTY-FIVE YEARS OF AGE OR
OLDER, (III) IS A HEAD OF HOUSEHOLD, (IV) IS A MARRIED INDIVIDUAL FILING
A JOINT RETURN WITH A SPOUSE AND HAS AT LEAST ONE DEPENDENT,  (V)  IS  A
MARRIED INDIVIDUAL FILING A SEPARATE RETURN AND HAS AT LEAST ONE DEPEND-
ENT,  OR (VI) IS A SURVIVING SPOUSE AND HAS AT LEAST ONE DEPENDENT.  FOR
PURPOSES OF THIS SUBSECTION "QUALIFIED TAXPAYER" SHALL ALSO INCLUDE  THE
OWNER OF ANY DWELLING WITH SIX UNITS OR LESS IN A CITY WITH A POPULATION
OF  ONE MILLION OR MORE WHO OCCUPIES SUCH DWELLING AS HIS OR HER PRIMARY
RESIDENCE FOR SIX MONTHS OR MORE OF THE TAXABLE YEAR AND WHO IS REQUIRED
OR CHOOSES TO FILE A RETURN UNDER THIS ARTICLE.  AN INDIVIDUAL CANNOT BE
A QUALIFIED TAXPAYER IF HE OR SHE IS AN INDIVIDUAL WITH RESPECT TO  WHOM
A  DEDUCTION UNDER SUBSECTION (C) OF SECTION 151 OF THE INTERNAL REVENUE
CODE IS ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR OR PAYS  RENT
FOR  HIS  OR  HER  PRIMARY RESIDENCE TO A FAMILY MEMBER SHARING THE SAME
PRIMARY RESIDENCE.  A FAMILY MEMBER OF AN INDIVIDUAL IS THE INDIVIDUAL'S
SPOUSE, BROTHER, SISTER, PARENT, GRANDPARENT, CHILD, GRANDCHILD,  UNCLE,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13765-02-4

S. 7417                             2

AUNT,  NEPHEW, OR NIECE, RELATED TO THE INDIVIDUAL BY BLOOD, MARRIAGE OR
ADOPTION.
  (B)  "RESIDENCE"  MEANS  A DWELLING IN A CITY WITH A POPULATION OF ONE
MILLION OR MORE AND MAY CONSIST OF A PART OF A MULTI-DWELLING OR  MULTI-
PURPOSE  BUILDING  INCLUDING  A  COOPERATIVE OR CONDOMINIUM, ONE, TWO OR
THREE FAMILY DWELLINGS AND RENTAL UNITS WITHIN A SINGLE  DWELLING  WHICH
ARE  EITHER  OWNER-OCCUPIED OR RENTED BY A QUALIFIED TAXPAYER. RESIDENCE
INCLUDES A TRAILER OR MOBILE  HOME,  USED  EXCLUSIVELY  FOR  RESIDENTIAL
PURPOSES  AND  DEFINED  AS  REAL  PROPERTY  PURSUANT TO PARAGRAPH (G) OF
SUBDIVISION TWELVE OF SECTION ONE HUNDRED TWO OF THE REAL  PROPERTY  TAX
LAW.
  (2)  (A) A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED IN
THIS SUBSECTION 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 EXCESS SHALL BE TREATED AS
AN  OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE,  PROVIDED,
HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. IF A QUALIFIED TAXPAYER
IS  NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-
ONE OF THIS ARTICLE BUT OTHERWISE QUALIFIES  FOR  A  CREDIT  UNDER  THIS
SUBSECTION, A CLAIM FOR A CREDIT MAY BE TAKEN ON A RETURN FILED WITH THE
COMMISSIONER  WITHIN  THREE YEARS FROM THE TIME THAT A RETURN WOULD HAVE
BEEN REQUIRED TO BE FILED PURSUANT TO SUCH SECTION  HAD  SUCH  QUALIFIED
TAXPAYER  HAD  A  TAXABLE  YEAR ENDING ON DECEMBER THIRTY-FIRST. RETURNS
SHALL BE IN SUCH FORM AS PRESCRIBED BY  THE  COMMISSIONER.  A  QUALIFIED
TAXPAYER  MUST  PROVIDE ANY INFORMATION THE COMMISSIONER DEEMS NECESSARY
TO DETERMINE THE CREDIT ALLOWED.
  (B) IF MORE THAN ONE QUALIFIED TAXPAYER PAYS RENT FOR THE SAME PRIMARY
RESIDENCE AND HAS A FEDERAL ADJUSTED GROSS INCOME  FOR  WHICH  A  CREDIT
WOULD  OTHERWISE  BE  DUE, EACH SUCH QUALIFIED TAXPAYER SHALL DIVIDE THE
BASE AMOUNT OF THE CREDIT ALLOWED FOR HIS OR HER  INCOME  LEVEL  BY  THE
TOTAL NUMBER OF INDIVIDUALS OR MARRIED COUPLES FILING A JOINT RETURN WHO
ARE  PAYING THE RENT, WHETHER OR NOT ELIGIBLE FOR A CREDIT, TO DETERMINE
THE AMOUNT OF CREDIT ALLOWED TO THAT QUALIFIED TAXPAYER. ANY  ADDITIONAL
AMOUNT OF CREDIT DETERMINED BASED ON THE NUMBER OF EXEMPTIONS CLAIMED BY
SUCH TAXPAYER SHALL NOT BE SO DIVIDED.
  (C)  A  QUALIFIED  TAXPAYER  SHALL  BE  ALLOWED  THE CREDIT UNDER THIS
SUBSECTION OR THE CREDIT UNDER SUBSECTION (E) OF THIS SECTION, WHICHEVER
IS THE HIGHER AMOUNT.
  (3) (A) FOR ANY QUALIFIED TAXPAYER WHO IS SIXTY-FIVE YEARS OF  AGE  OR
OLDER  WITH  A FILING STATUS OF SINGLE, THE AMOUNT OF THE CREDIT ALLOWED
PURSUANT TO THIS PARAGRAPH SHALL BE DETERMINED IN  ACCORDANCE  WITH  THE
FOLLOWING TABLES:

FOR TAXABLE YEARS BEGINNING IN 2014,
IF FEDERAL ADJUSTED GROSS INCOME IS:        THE CREDIT SHALL BE:
$25,000 OR LESS                                     $110
OVER $25,000 BUT NOT OVER $40,000                    $90
OVER $40,000 BUT NOT OVER $50,000                    $70

FOR TAXABLE YEARS BEGINNING IN OR
AFTER 2015, IF FEDERAL ADJUSTED GROSS
INCOME IS:                                  THE CREDIT SHALL BE:
$25,000 OR LESS                                     $220
OVER $25,000 BUT NOT OVER $40,000                   $180
OVER $40,000 BUT NOT OVER $50,000                   $140

S. 7417                             3

  (B) FOR ANY OTHER QUALIFIED TAXPAYER, THE AMOUNT OF THE CREDIT ALLOWED
PURSUANT  TO  THIS  PARAGRAPH SHALL BE DETERMINED IN ACCORDANCE WITH THE
FOLLOWING TABLES; PROVIDED, HOWEVER, THAT A QUALIFIED TAXPAYER WHO IS  A
MARRIED  INDIVIDUAL  FILING  A SEPARATE NEW YORK INCOME TAX RETURN SHALL
RECEIVE  ONE-HALF  OF  THE BASE AMOUNT OF THE CREDIT PLUS ANY ADDITIONAL
AMOUNT FOR WHICH SUCH TAXPAYER WOULD BE ELIGIBLE BASED ON THE INCOME AND
NUMBER OF EXEMPTIONS CLAIMED BY SUCH TAXPAYER:

FOR TAXABLE YEARS BEGINNING IN 2014,
IF FEDERAL ADJUSTED GROSS INCOME IS:         THE CREDIT SHALL BE:
$25,000 OR LESS                              $80 PLUS AN AMOUNT
                                             EQUAL TO $35
                                             MULTIPLIED BY A
                                             NUMBER WHICH IS ONE
                                             LESS THAN THE NUMBER
                                             OF EXEMPTIONS FOR
                                             WHICH THE TAXPAYER
                                             (OR IN THE CASE
                                             OF A MARRIED COUPLE
                                             FILING A JOINT RETURN,
                                             TAXPAYERS) IS ENTITLED
                                             TO A DEDUCTION FOR THE
                                             TAXABLE YEAR FOR FEDERAL
                                             INCOME TAX PURPOSES
                                             UNDER SUBSECTIONS (B)
                                             AND (C) OF SECTION 151
                                             OF THE INTERNAL REVENUE CODE

OVER $25,000 BUT NOT OVER $45,000            $65 PLUS AN AMOUNT
                                             EQUAL TO $24
                                             MULTIPLIED BY A NUMBER
                                             WHICH IS ONE LESS THAN
                                             THE NUMBER OF EXEMPTIONS
                                             FOR WHICH THE TAXPAYER
                                             (OR IN THE CASE OF
                                             A MARRIED COUPLE FILING A
                                             JOINT RETURN, TAXPAYERS)
                                             IS ENTITLED TO A
                                             DEDUCTION FOR THE TAXABLE
                                             YEAR FOR FEDERAL INCOME
                                             TAX PURPOSES UNDER
                                             SUBSECTIONS (B) AND (C)
                                             OF SECTION 151 OF THE
                                             INTERNAL REVENUE CODE

OVER $45,000 BUT NOT OVER $65,000            $55 PLUS AN AMOUNT
                                             EQUAL TO $12 MULTIPLIED
                                             BY A NUMBER WHICH IS ONE
                                             LESS THAN THE NUMBER
                                             OF EXEMPTIONS FOR
                                             WHICH THE TAXPAYER (OR
                                             IN THE CASE OF A MARRIED
                                             COUPLE FILING A JOINT RETURN,
                                             TAXPAYERS) IS ENTITLED
                                             TO A DEDUCTION FOR THE
                                             TAXABLE YEAR FOR FEDERAL

S. 7417                             4

                                             INCOME TAX PURPOSES UNDER
                                             SUBSECTIONS (B) AND (C)
                                             OF SECTION 151 OF THE
                                             INTERNAL REVENUE CODE

OVER $65,000 BUT NOT OVER $100,000           $45 PLUS AN AMOUNT
                                             EQUAL TO $12 MULTIPLIED
                                             BY A NUMBER WHICH IS ONE
                                             LESS THAN THE NUMBER
                                             OF EXEMPTIONS FOR WHICH
                                             THE TAXPAYER (OR IN THE
                                             CASE OF A MARRIED COUPLE
                                             FILING A JOINT RETURN,
                                             TAXPAYERS) IS ENTITLED TO
                                             A DEDUCTION FOR THE TAXABLE
                                             YEAR FOR FEDERAL INCOME TAX
                                             PURPOSES UNDER SUBSECTIONS
                                             (B) AND (C) OF SECTION 151
                                             OF THE INTERNAL REVENUE CODE

FOR TAXABLE YEARS BEGINNING IN OR
AFTER 2015, IF FEDERAL ADJUSTED GROSS
INCOME IS:                                   THE CREDIT SHALL BE:
$25,000 OR LESS                              $160 PLUS AN
                                             AMOUNT EQUAL TO $70
                                             MULTIPLIED BY A NUMBER WHICH
                                             IS ONE LESS THAN THE
                                             NUMBER OF EXEMPTIONS
                                             FOR WHICH THE TAXPAYER
                                             (OR IN THE CASE OF A
                                             MARRIED COUPLE FILING A
                                             JOINT RETURN, TAXPAYERS)
                                             IS ENTITLED TO A DEDUCTION
                                             FOR THE TAXABLE YEAR FOR
                                             FEDERAL INCOME TAX PURPOSES
                                             UNDER SUBSECTIONS (B) AND
                                             (C) OF SECTION 151 OF THE
                                             INTERNAL REVENUE CODE

OVER $25,000 BUT NOT OVER $45,000            $130 PLUS AN AMOUNT
                                             EQUAL TO $48
                                             MULTIPLIED BY A NUMBER
                                             WHICH IS ONE LESS THAN
                                             THE NUMBER OF EXEMPTIONS
                                             FOR WHICH THE TAXPAYER
                                             (OR IN THE CASE OF
                                             A MARRIED COUPLE FILING
                                             A JOINT RETURN, TAXPAYERS)
                                             IS ENTITLED TO A DEDUCTION
                                             FOR THE TAXABLE YEAR FOR
                                             FEDERAL INCOME TAX PURPOSES
                                             UNDER SUBSECTIONS (B)
                                             AND (C) OF SECTION 151
                                             OF THE INTERNAL REVENUE CODE

OVER $45,000 BUT NOT OVER $65,000            $110 PLUS AN AMOUNT

S. 7417                             5

                                             EQUAL TO $24 MULTIPLIED
                                             BY A NUMBER WHICH IS ONE
                                             LESS THAN THE NUMBER
                                             OF EXEMPTIONS FOR
                                             WHICH THE TAXPAYER (OR
                                             IN THE CASE OF A MARRIED
                                             COUPLE FILING A JOINT RETURN,
                                             TAXPAYERS) IS ENTITLED TO A
                                             DEDUCTION FOR THE TAXABLE
                                             YEAR FOR FEDERAL INCOME TAX
                                             PURPOSES UNDER SUBSECTIONS
                                             (B) AND (C) OF SECTION 151
                                             OF THE INTERNAL  REVENUE CODE

OVER $65,000 BUT NOT OVER $100,000           $90 PLUS AN AMOUNT
                                             EQUAL TO $24 MULTIPLIED
                                             BY A NUMBER WHICH IS ONE
                                             LESS THAN THE NUMBER
                                             OF EXEMPTIONS FOR
                                             WHICH THE TAXPAYER (OR
                                             IN THE CASE OF A MARRIED
                                             COUPLE FILING A JOINT RETURN,
                                             TAXPAYERS) IS
                                             ENTITLED TO A DEDUCTION
                                             FOR THE TAXABLE YEAR FOR
                                             FEDERAL INCOME TAX PURPOSES
                                             UNDER SUBSECTIONS (B) AND
                                             (C) OF SECTION 151 OF THE
                                             INTERNAL REVENUE CODE
  S 2. This act shall take effect immediately.

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