Assembly Bill A7248A

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

                                 7248--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             April 29, 2015
                               ___________

Introduced by M. of A. SKOUFIS, SALADINO, RAIA, SKARTADOS -- Multi-Spon-
  sored  by  -- M.  of A. CROUCH, RIVERA, SIMON, THIELE -- read once and
  referred to the Committee on Aging -- recommitted to the Committee  on
  Aging  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 real property tax  law,  in  relation  to  excluding
  annuity roll-over transfers from taxable income for seniors

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (a) of subdivision 3 of section 467 of  the  real
property  tax  law,  as  amended  by chapter 259 of the laws of 2009, is
amended to read as follows:
  (a) if the income of the owner or the combined income of the owners of
the property for the income tax year immediately preceding the  date  of
making  application  for  exemption  exceeds  the  sum of three thousand
dollars, or such other sum not less than three thousand dollars nor more
than twenty-six thousand dollars beginning July first, two thousand six,
twenty-seven thousand dollars beginning July first, two thousand  seven,
twenty-eight  thousand dollars beginning July first, two thousand eight,
and twenty-nine thousand dollars  beginning  July  first,  two  thousand
nine,  as  may  be  provided  by  the local law, ordinance or resolution
adopted pursuant to this section. Income tax year shall mean the  twelve
month  period  for  which  the  owner or owners filed a federal personal
income tax return, or if no such return is  filed,  the  calendar  year.
Where  title is vested in either the husband or the wife, their combined
income may not exceed such sum, except where the  husband  or  wife,  or
ex-husband or ex-wife is absent from the property as provided in subpar-
agraph  (ii)  of paragraph (d) of this subdivision, then only the income
of the spouse or ex-spouse residing on the property shall be  considered
and  may  not exceed such sum. Such income shall include social security

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04847-07-6
              

A. 7248--A                          2

and retirement benefits, interest, dividends, total gain from  the  sale
or  exchange  of  a capital asset which may be offset by a loss from the
sale or exchange of a capital asset in the same  income  tax  year,  net
rental  income, salary or earnings, and net income from self-employment,
but shall not include a return of capital, gifts, inheritances, payments
made to individuals because of their status as victims  of  Nazi  perse-
cution,  as  defined in P.L. 103-286 or monies earned through employment
in the federal foster grandparent program and any such income  shall  be
offset by all medical and prescription drug expenses actually paid which
were  not reimbursed or paid for by insurance, if the governing board of
a municipality, after a public hearing, adopts a local law, ordinance or
resolution providing therefor. IN ADDITION, AN EXCHANGE  OF  AN  ANNUITY
FOR  AN  ANNUITY CONTRACT, WHICH RESULTED IN NON-TAXABLE GAIN, AS DETER-
MINED IN SECTION ONE THOUSAND THIRTY-FIVE OF THE INTERNAL REVENUE  CODE,
SHALL  BE  EXCLUDED FROM SUCH INCOME. PROVIDED THAT SUCH EXCLUSION SHALL
BE BASED ON SATISFACTORY PROOF THAT  SUCH  AN  EXCHANGE  WAS  SOLELY  AN
EXCHANGE  OF  AN  ANNUITY  FOR  AN  ANNUITY  CONTRACT THAT RESULTED IN A
NON-TAXABLE TRANSFER DETERMINED BY SUCH SECTION OF THE INTERNAL  REVENUE
CODE.  Furthermore,  such  income  shall  not  include the proceeds of a
reverse mortgage, as authorized by section six-h of the banking law, and
sections two hundred eighty and two hundred eighty-a of the real proper-
ty law; provided, however, that monies used to repay a reverse  mortgage
may  not  be  deducted  from  income, and provided additionally that any
interest or dividends realized from the investment of  reverse  mortgage
proceeds  shall  be  considered income. The provisions of this paragraph
notwithstanding, such  income  shall  not  include  veterans  disability
compensation,  as defined in Title 38 of the United States Code provided
the governing board of such municipality, after public hearing, adopts a
local law, ordinance or resolution providing therefor.  In computing net
rental income  and  net  income  from  self-employment  no  depreciation
deduction  shall be allowed for the exhaustion, wear and tear of real or
personal property held for the production of income;
  S 2. This act shall take effect immediately.