S T A T E O F N E W Y O R K
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10635--A
I N A S S E M B L Y
June 9, 2016
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Introduced by COMMITTEE ON RULES -- (at request of M. of A. Abinanti) --
read once and referred to the Committee on Ways and Means -- 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 increasing the
amount of income property owners may earn for the purpose of eligibil-
ity for the property tax exemption for persons sixty-five years of age
or over and for persons with disabilities and limited income
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, PROVIDED THAT A TOWN WITH A POPULATION
OF NOT LESS THAN EIGHTY-FIVE THOUSAND AND NOT MORE THAN NINETY-FIVE
THOUSAND LOCATED WITHIN A COUNTY OF NOT LESS THAN NINE HUNDRED THIRTY
THOUSAND AND NOT MORE THAN ONE MILLION TWO HUNDRED THOUSAND, DETERMINED
IN ACCORDANCE WITH THE LATEST FEDERAL DECENNIAL CENSUS, AND ANY VILLAGE
OR SCHOOL DISTRICT ALL OR PART OF WHICH IS LOCATED WITHIN SUCH TOWN, MAY
ADOPT A LOCAL LAW, ORDINANCE OR RESOLUTION PROVIDING THAT SUCH INCOME
SHALL NOT EXCEED FIFTY THOUSAND DOLLARS, OR SUCH LESSER AMOUNT AS MAY BE
PROVIDED BY SUCH LOCAL LAW, ORDINANCE OR RESOLUTION. 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,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15820-02-6
A. 10635--A 2
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 subparagraph (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 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 persecution, 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. 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. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
erty tax law, as separately amended by chapters 187 and 252 of the laws
of 2006, 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 or resolution adopted pursuant
to this section, PROVIDED THAT A TOWN WITH A POPULATION OF NOT LESS THAN
EIGHTY-FIVE THOUSAND AND NOT MORE THAN NINETY-FIVE THOUSAND LOCATED
WITHIN A COUNTY OF NOT LESS THAN NINE HUNDRED THIRTY THOUSAND AND NOT
MORE THAN ONE MILLION TWO HUNDRED THOUSAND, DETERMINED IN ACCORDANCE
WITH THE LATEST FEDERAL DECENNIAL CENSUS, AND ANY VILLAGE OR SCHOOL
DISTRICT ALL OR PART OF WHICH IS LOCATED WITHIN SUCH TOWN, MAY ADOPT A
LOCAL LAW, ORDINANCE OR RESOLUTION PROVIDING THAT SUCH INCOME SHALL NOT
EXCEED FIFTY THOUSAND DOLLARS, OR SUCH LESSER AMOUNT AS MAY BE PROVIDED
BY SUCH LOCAL LAW, ORDINANCE OR RESOLUTION. 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
A. 10635--A 3
wife, or ex-husband or ex-wife is absent from the property due to
divorce, legal separation or abandonment, 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 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 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 insur-
ance, if the governing board of a municipality, after a public hearing,
adopts a local law 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 3. This act shall take effect immediately.