S T A T E O F N E W Y O R K
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9698
I N A S S E M B L Y
April 5, 2016
___________
Introduced by M. of A. KAMINSKY -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a residential
real property 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 (ccc) to read as follows:
(CCC) RESIDENTIAL REAL PROPERTY TAX CREDIT. (1) DEFINITIONS. FOR THE
PURPOSES OF THIS SUBSECTION:
(A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO
OWNS THE RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE RESIDES.
(B) "HOUSEHOLD" MEANS THE TAXPAYER OR TAXPAYERS AND ALL OTHER PERSONS,
NOT NECESSARILY RELATED, WHO ALL RESIDE IN THE RESIDENTIAL REAL PROPERTY
OWNED BY THE TAXPAYER OR TAXPAYERS, AND SHARE ITS FURNISHINGS, FACILI-
TIES AND ACCOMMODATIONS; PROVIDED THAT NO PERSON MAY BE A MEMBER OF MORE
THAN ONE HOUSEHOLD AT ONE TIME.
(C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
OF ALL MEMBERS OF THE HOUSEHOLD FOR THE TAXABLE YEAR AS REPORTED FOR
FEDERAL INCOME TAX PURPOSES, OR WHICH WOULD BE REPORTED AS ADJUSTED
GROSS INCOME IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED,
WITH THE MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX HUNDRED TWELVE
OF THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF SUCH
SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
ERTY OTHERWISE EXCLUDED FROM SUCH AMOUNT; EARNED INCOME FROM SOURCES
WITHOUT THE UNITED STATES EXCLUDABLE FROM FEDERAL GROSS INCOME BY
SECTION NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT MONEY
NOT INCLUDED IN ADJUSTED GROSS INCOME; NONTAXABLE STRIKE BENEFITS;
SUPPLEMENTAL SECURITY INCOME PAYMENTS; THE GROSS AMOUNT OF ANY PENSION
OR ANNUITY BENEFITS TO THE EXTENT NOT INCLUDED IN SUCH ADJUSTED GROSS
INCOME (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS AND
ALL PAYMENTS RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT AND VETER-
ANS' DISABILITY PENSIONS); NONTAXABLE INTEREST RECEIVED FROM THE STATE
OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES, PUBLIC CORPORATIONS, OR
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14843-02-6
A. 9698 2
POLITICAL SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT
TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS' COMPEN-
SATION; THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT OF
CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
NEEDY, PAID TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER OR MEMBERS
OF HIS OR HER HOUSEHOLD. PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME
SHALL ONLY INCLUDE ALL SUCH INCOME RECEIVED BY ALL MEMBERS OF THE HOUSE-
HOLD WHILE MEMBERS OF SUCH HOUSEHOLD.
(D) "NET REAL PROPERTY TAX" MEANS THE REAL PROPERTY TAXES ASSESSED ON
THE RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED BY THE TAXPAYER OR
TAXPAYERS AFTER ANY EXEMPTION OR ABATEMENT RECEIVED PURSUANT TO THE REAL
PROPERTY TAX LAW.
(2) CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE
TAXES IMPOSED BY THIS ARTICLE, EQUAL TO FIFTY PERCENT OF THE AMOUNT
WHICH THE TAXPAYER'S NET REAL PROPERTY TAX EXCEEDS THE TAXPAYER'S MAXI-
MUM REAL PROPERTY TAX, AS DETERMINED BY PARAGRAPH THREE OF THIS
SUBSECTION, PROVIDED, HOWEVER, SUCH CREDIT SHALL NOT EXCEED TWO THOUSAND
FIVE HUNDRED DOLLARS. IF SUCH CREDIT EXCEEDS THE TAX FOR SUCH TAXABLE
YEAR, AS REDUCED BY THE OTHER CREDITS PERMITTED BY THIS ARTICLE, THE
QUALIFIED TAXPAYER MAY RECEIVE, AND THE COMPTROLLER, SUBJECT TO A
CERTIFICATE OF THE DEPARTMENT, SHALL PAY AS AN OVERPAYMENT, WITHOUT
INTEREST, ANY EXCESS BETWEEN SUCH TAX AS SO REDUCED AND THE AMOUNT OF
THE CREDIT. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN
PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A QUALIFIED
TAXPAYER MAY NEVERTHELESS RECEIVE AND THE COMPTROLLER, SUBJECT TO A
CERTIFICATE OF THE DEPARTMENT, SHALL PAY AS AN OVERPAYMENT THE FULL
AMOUNT OF THE CREDIT, WITHOUT INTEREST.
(3) RESIDENTIAL REAL PROPERTY TAX CREDIT. (A) A QUALIFIED TAXPAYER'S
RESIDENTIAL REAL PROPERTY TAX CREDIT SHALL BE DETERMINED AS FOLLOWS:
IN ALL COUNTIES IN THE STATE:
HOUSEHOLD GROSS MAXIMUM REAL
INCOME PROPERTY TAX
ONE HUNDRED THOUSAND SIX PERCENT OF THE
DOLLARS OR LESS HOUSEHOLD GROSS INCOME
MORE THAN ONE HUNDRED SEVEN PERCENT OF
THOUSAND DOLLARS, BUT THE HOUSEHOLD
LESS THAN OR EQUAL TO GROSS INCOME
ONE HUNDRED SEVENTY-FIVE
THOUSAND DOLLARS
MORE THAN ONE HUNDRED EIGHT PERCENT OF
SEVENTY-FIVE THOUSAND DOLLARS, THE HOUSEHOLD
BUT LESS THAN OR EQUAL GROSS INCOME
TO TWO HUNDRED FIFTY THOUSAND
DOLLARS
MORE THAN TWO HUNDRED FIFTY NOT ELIGIBLE TO
THOUSAND DOLLARS RECEIVE TAX CREDIT
(B) ANY HOUSEHOLD THAT HAS A GROSS INCOME OF TWO HUNDRED FIFTY THOU-
SAND DOLLARS OR LESS AND PAYS TEN PERCENT OR MORE OF THEIR HOUSEHOLD
INCOME IN PROPERTY TAX MAY ALSO CLAIM A REAL PROPERTY TAX FREEZE CREDIT
PURSUANT TO SUBSECTION (BBB) OF THIS SECTION IN ADDITION TO A RESIDEN-
TIAL REAL PROPERTY TAX CREDIT.
A. 9698 3
(C) THE THRESHOLDS OF HOUSEHOLD GROSS INCOME FOR ELIGIBILITY FOR THE
RESIDENTIAL REAL PROPERTY TAX CREDIT, ESTABLISHED BY SUBPARAGRAPH (A) OF
THIS PARAGRAPH, SHALL BE INDEXED FOR INFLATION.
(4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS
SUBSECTION IF THE QUALIFIED TAXPAYER CLAIMS THE REAL PROPERTY TAX
CIRCUIT BREAKER CREDIT, PURSUANT TO SUBSECTION (E) OF THIS SECTION,
DURING THE TAXABLE YEAR, UNLESS THE HOUSEHOLD HAS A GROSS INCOME OF TWO
HUNDRED FIFTY THOUSAND DOLLARS OR LESS AND PAYS TEN PERCENT OR MORE OF
THEIR HOUSEHOLD INCOME IN PROPERTY TAX.
S 2. The opening paragraph of paragraph 2 of subsection (bbb) of
section 606 of the tax law, as added by section 1 of part FF of chapter
59 of the laws of 2014, is amended to read as follows:
An individual taxpayer who meets the eligibility standards set forth
in paragraph three of this subsection and whose primary residence is
located in a taxing jurisdiction that has a freeze-compliant budget for
the fiscal year starting in two thousand fourteen, two thousand fifteen
[or], two thousand sixteen OR TWO THOUSAND SEVENTEEN, whichever is
applicable, shall be allowed a credit against the taxes imposed by this
article. Subject to the provisions of paragraph six of this subsection,
such credit shall be determined as follows:
S 3. Paragraph 2 of subsection (bbb) of section 606 of the tax law is
amended by adding two new subparagraphs (H) and (I) to read as follows:
(H) IF A TAXING JURISDICTION, OTHER THAN A SCHOOL DISTRICT OR A CITY
WITH A DEPENDENT SCHOOL DISTRICT, HAS A FREEZE-COMPLIANT BUDGET FOR ITS
FISCAL YEAR STARTING IN TWO THOUSAND SEVENTEEN:
(I) IF THE TAXING JURISDICTION'S BUDGET FOR THE FISCAL YEAR STARTING
IN TWO THOUSAND SIXTEEN WAS A FREEZE-COMPLIANT BUDGET, A CREDIT SHALL BE
ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO THOUSAND SEVENTEEN TAXABLE YEAR
IN THE AMOUNT OF THE CREDIT FOR THE TAXES IMPOSED BY OR ON BEHALF OF
SUCH TAXING JURISDICTION ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO THOU-
SAND SIXTEEN TAXABLE YEAR; TOGETHER WITH THE AMOUNT THAT IS THE GREATER
OF (I) THE AMOUNT BY WHICH THE REAL PROPERTY TAXES IMPOSED UPON SUCH
RESIDENCE BY OR ON BEHALF OF SUCH TAXING JURISDICTION FOR THE FISCAL
YEAR STARTING IN TWO THOUSAND SEVENTEEN EXCEEDS THE REAL PROPERTY TAXES
IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF THAT TAXING JURISDICTION
FOR THE FISCAL YEAR STARTING IN TWO THOUSAND SIXTEEN, OR (II) THE PROD-
UCT OF THE REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON
BEHALF OF SUCH TAXING JURISDICTION FOR THE FISCAL YEAR STARTING IN TWO
THOUSAND SIXTEEN MULTIPLIED BY THE LEVY CREDIT FACTOR FOR SUCH TAXING
JURISDICTION FOR THE FISCAL YEAR STARTING IN TWO THOUSAND SEVENTEEN.
(II) IF THE TAXING JURISDICTION'S BUDGET FOR THE FISCAL YEAR STARTING
IN TWO THOUSAND SIXTEEN WAS NOT A FREEZE-COMPLIANT BUDGET, A CREDIT
SHALL BE ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO THOUSAND SEVENTEEN
TAXABLE YEAR IN THE AMOUNT THAT IS THE GREATER OF (I) THE AMOUNT BY
WHICH THE REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON
BEHALF OF SUCH TAXING JURISDICTION FOR THE FISCAL YEAR STARTING IN TWO
THOUSAND SEVENTEEN EXCEEDS THE REAL PROPERTY TAXES SO IMPOSED FOR THE
FISCAL YEAR STARTING IN TWO THOUSAND SIXTEEN, OR (II) THE PRODUCT OF THE
REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF SUCH
TAXING JURISDICTION FOR THE FISCAL YEAR STARTING IN TWO THOUSAND SIXTEEN
MULTIPLIED BY THE LEVY CREDIT FACTOR FOR SUCH TAXING JURISDICTION FOR
THE FISCAL YEAR STARTING IN TWO THOUSAND SEVENTEEN.
(I) IF A CITY WITH A DEPENDENT SCHOOL DISTRICT HAS A FREEZE-COMPLIANT
BUDGET FOR ITS FISCAL YEAR STARTING IN TWO THOUSAND SIXTEEN:
(I) IF THE CITY'S BUDGET FOR THE FISCAL YEAR STARTING IN TWO THOUSAND
FIFTEEN WAS A FREEZE-COMPLIANT BUDGET, A CREDIT SHALL BE ALLOWED FOR THE
A. 9698 4
ELIGIBLE TAXPAYER'S TWO THOUSAND SIXTEEN TAXABLE YEAR IN AN AMOUNT
EQUIVALENT TO THIRTY-THREE PERCENT OF THE AMOUNT THAT IS THE GREATER OF
THE AMOUNT BY WHICH THE REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE
BY THAT CITY FOR THE FISCAL YEAR STARTING IN TWO THOUSAND FIFTEEN
EXCEEDS THE REAL PROPERTY TAXES SO IMPOSED FOR THE FISCAL YEAR STARTING
IN TWO THOUSAND FOURTEEN, OR THE PRODUCT OF THE REAL PROPERTY TAXES
IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF SUCH CITY FOR THE FISCAL
YEAR STARTING IN TWO THOUSAND FOURTEEN MULTIPLIED BY THE LEVY CREDIT
FACTOR FOR SUCH CITY FOR THE FISCAL YEAR STARTING IN TWO THOUSAND
FIFTEEN; TOGETHER WITH THE AMOUNT OF THE CREDIT FOR THE TAXES IMPOSED BY
OR ON BEHALF OF SUCH CITY ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO THOU-
SAND FIFTEEN TAXABLE YEAR; AND TOGETHER WITH AN AMOUNT EQUIVALENT TO
SIXTY-SEVEN PERCENT OF THE AMOUNT THAT IS THE GREATER OF THE AMOUNT BY
WHICH THE REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY THAT CITY
FOR THE FISCAL YEAR STARTING IN TWO THOUSAND SIXTEEN EXCEEDS THE REAL
PROPERTY TAXES SO IMPOSED FOR THE FISCAL YEAR STARTING IN TWO THOUSAND
FIFTEEN; OR THE PRODUCT OF THE REAL PROPERTY TAXES IMPOSED UPON SUCH
RESIDENCE BY OR ON BEHALF OF SUCH CITY FOR THE FISCAL YEAR STARTING IN
TWO THOUSAND FIFTEEN MULTIPLIED BY THE LEVY CREDIT FACTOR FOR SUCH CITY
FOR THE FISCAL YEAR STARTING IN TWO THOUSAND SIXTEEN; AND A CREDIT SHALL
BE ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO THOUSAND SEVENTEEN TAXABLE
YEAR IN AN AMOUNT EQUIVALENT TO THIRTY-THREE PERCENT OF THE AMOUNT THAT
IS THE GREATER OF THE AMOUNT BY WHICH THE REAL PROPERTY TAXES IMPOSED
UPON SUCH RESIDENCE BY THAT CITY FOR THE FISCAL YEAR STARTING IN TWO
THOUSAND SIXTEEN EXCEEDS THE REAL PROPERTY TAXES SO IMPOSED FOR THE
FISCAL YEAR STARTING IN TWO THOUSAND FIFTEEN, OR THE PRODUCT OF THE REAL
PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF SUCH CITY
FOR THE FISCAL YEAR STARTING IN TWO THOUSAND FIFTEEN MULTIPLIED BY THE
LEVY CREDIT FACTOR FOR SUCH CITY FOR THE FISCAL YEAR STARTING IN TWO
THOUSAND SIXTEEN; TOGETHER WITH AN AMOUNT EQUIVALENT TO 49.25 PERCENT OF
THE AMOUNT OF THE CREDIT FOR THE TAXES IMPOSED BY OR ON BEHALF OF SUCH
CITY ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO THOUSAND FIFTEEN TAXABLE
YEAR.
(II) IF THE CITY'S BUDGET FOR THE FISCAL YEAR STARTING IN TWO THOUSAND
FIFTEEN WAS NOT A FREEZE-COMPLIANT BUDGET, A CREDIT SHALL BE ALLOWED FOR
THE ELIGIBLE TAXPAYER'S TWO THOUSAND SIXTEEN TAXABLE YEAR IN AN AMOUNT
EQUIVALENT TO SIXTY-SEVEN PERCENT OF THE AMOUNT THAT IS THE GREATER OF
THE AMOUNT BY WHICH THE REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE
BY THAT CITY FOR THE FISCAL YEAR STARTING IN TWO THOUSAND SIXTEEN
EXCEEDS THE REAL PROPERTY TAXES SO IMPOSED FOR THE FISCAL YEAR STARTING
IN TWO THOUSAND FIFTEEN OR THE PRODUCT OF THE REAL PROPERTY TAXES
IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF SUCH CITY FOR THE FISCAL
YEAR STARTING IN TWO THOUSAND FIFTEEN MULTIPLIED BY THE LEVY CREDIT
FACTOR FOR SUCH CITY FOR THE FISCAL YEAR STARTING IN TWO THOUSAND
SIXTEEN; AND A CREDIT SHALL BE ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO
THOUSAND SEVENTEEN TAXABLE YEAR IN AN AMOUNT EQUIVALENT TO THIRTY-THREE
PERCENT OF THE AMOUNT THAT IS THE GREATER OF THE AMOUNT BY WHICH THE
REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY THAT CITY FOR THE
FISCAL YEAR STARTING IN TWO THOUSAND SIXTEEN EXCEEDS THE REAL PROPERTY
TAXES SO IMPOSED FOR THE FISCAL YEAR STARTING IN TWO THOUSAND FIFTEEN OR
THE PRODUCT OF THE REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR
ON BEHALF OF SUCH CITY FOR THE FISCAL YEAR STARTING IN TWO THOUSAND
FIFTEEN MULTIPLIED BY THE LEVY CREDIT FACTOR FOR SUCH CITY FOR THE
FISCAL YEAR STARTING IN TWO THOUSAND SIXTEEN.
S 4. Paragraph 3 of subsection (bbb) of section 606 of the tax law is
amended by adding a new subparagraph (D) to read as follows:
A. 9698 5
(D) FOR THE TWO THOUSAND SEVENTEEN TAXABLE YEAR, THE TAXPAYER'S PRIMA-
RY RESIDENCE MUST HAVE QUALIFIED FOR THE STAR EXEMPTION FOR THE TWO
THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR, OR WOULD HAVE SO
QUALIFIED IF AN APPLICATION FOR SUCH EXEMPTION HAD BEEN SUBMITTED IN A
TIMELY MANNER.
S 5. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law and shall apply to
taxable years commencing on or after such date.