S T A T E O F N E W Y O R K
________________________________________________________________________
396
2015-2016 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 7, 2015
___________
Introduced by M. of A. ROSENTHAL, BROOK-KRASNY, ORTIZ, WRIGHT, WEPRIN --
Multi-Sponsored by -- M. of A. ABBATE, BENEDETTO, BRENNAN, COLTON,
COOK, GLICK, HIKIND, MARKEY, PERRY, TITONE, WEINSTEIN -- read once and
referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to the provision of a credit
against state personal income tax for tax relief for certain school
taxpayer renters
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1310 of the tax law is amended by adding a new
subsection (g) to read as follows:
(G) STATE SCHOOL TAX REDUCTION CREDIT FOR CERTAIN LOW INCOME RENTERS.
(1) FOR PURPOSES OF THIS SUBSECTION THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
(A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO
HAS OCCUPIED THE SAME QUALIFIED RESIDENCE FOR SIX MONTHS OR MORE OF THE
TAXABLE YEAR WITH HIS OR HER CHILD OR CHILDREN AT LEAST ONE OF WHOM IS
UNDER THE AGE OF EIGHTEEN, WHO IS REQUIRED OR CHOOSES TO FILE A RETURN
UNDER THIS ARTICLE AND WHOSE HOUSEHOLD GROSS INCOME DOES NOT EXCEED
SIXTY THOUSAND DOLLARS FOR THE YEAR IN WHICH THE CREDIT IS CLAIMED.
(B) "HOUSEHOLD" OR "MEMBERS OF THE HOUSEHOLD" MEANS A QUALIFIED
TAXPAYER AND ALL OTHER PERSONS, NOT NECESSARILY RELATED, WHO HAVE THE
SAME QUALIFIED 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) "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 FOR FEDERAL
INCOME TAX PURPOSES IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE
FILED, WITH THE MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX HUNDRED
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04072-01-5
A. 396 2
TWELVE OF THIS CHAPTER, BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C)
OF SUCH SECTION, PLUS ANY PORTION FROM 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); NON-TAXABLE INTEREST RECEIVED FROM THE
STATE OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES, PUBLIC CORPORATIONS
OR POLITICAL SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED PURSU-
ANT 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 ASSIST-
ANCE FOR THE NEEDY, PAID TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER
OR MEMBERS OF HIS HOUSEHOLD. 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 HOUSEHOLD.
(D) "QUALIFIED RESIDENCE" MEANS A RESIDENTIAL RENTAL UNIT.
(E) "ADJUSTED RENT" MEANS ANNUAL RENTAL PAID FOR THE RIGHT OF OCCUPAN-
CY OF A QUALIFIED RESIDENCE, EXCLUDING CHARGES FOR HEAT, GAS, ELECTRIC-
ITY, FURNISHINGS AND BOARD. WHERE CHARGES FOR HEAT, GAS, ELECTRICITY,
FURNISHINGS 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 OR 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 DEPARTMENT OF TAXATION AND FINANCE DETERMINES THAT THE ADJUSTED
RENT SHOWN ON THE RETURN IS EXCESSIVE, THE 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) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TEN, A QUALIFIED
TAXPAYER SHALL BE ALLOWED AN ADDITIONAL STATE SCHOOL TAX REDUCTION CRED-
IT AGAINST THE TAXES AUTHORIZED BY THIS ARTICLE REDUCED BY THE CREDITS
PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX AS SO REDUCED,
THE TAXPAYER MAY RECEIVE, AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE
OF THE TAX COMMISSION, SHALL PAY AS AN OVERPAYMENT, WITHOUT INTEREST,
THE AMOUNT OF SUCH EXCESS.
(3) FOR QUALIFIED TAXPAYERS THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION SHALL BE THREE PERCENT OF THE ADJUSTED RENT PAID FOR
SUCH QUALIFIED RESIDENCE.
(4) IF A QUALIFIED TAXPAYER OCCUPIES A QUALIFIED RESIDENCE FOR A PERI-
OD OF LESS THAN TWELVE MONTHS DURING THE TAXABLE YEAR OR OCCUPIES TWO OR
MORE QUALIFIED RESIDENCES DURING DIFFERENT PERIODS IN SUCH TAXABLE YEAR,
THE CREDIT ALLOWED PURSUANT TO THIS SUBSECTION SHALL BE COMPUTED IN SUCH
A. 396 3
MANNER AS THE DEPARTMENT OF TAXATION AND FINANCE MAY, BY REGULATION
PRESCRIBE, IN ORDER TO PROPERLY REFLECT THE CREDIT OR PORTION THEREOF
ATTRIBUTABLE TO SUCH QUALIFIED RESIDENCE OR RESIDENCES AND SUCH PERIOD
OR PERIODS.
(5) 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 QUALIFIED
TAXPAYER, THE CREDIT SHALL BE EQUALLY DIVIDED BETWEEN OR AMONG SUCH
INDIVIDUALS UNLESS SUCH INDIVIDUALS FILE WITH THE DEPARTMENT OF TAXATION
AND FINANCE A WRITTEN AGREEMENT AMONG SUCH INDIVIDUALS SETTING FORTH A
DIFFERENT DIVISION.
(A) PROVIDED, HOWEVER, WHERE A JOINT INCOME TAX RETURN HAS BEEN FILED
PURSUANT TO THE PROVISIONS OF SECTION THIRTEEN HUNDRED SIX OF THIS ARTI-
CLE BY A QUALIFIED 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 THIRTEEN HUNDRED SIX OF THIS ARTICLE 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 DEPARTMENT OF TAXATION AND
FINANCE, THE CREDIT OR THE PORTION OF THE CREDIT IF DIVIDED, ALLOWED TO
THE QUALIFIED TAXPAYER MAY BE APPLIED BY THE DEPARTMENT TOWARD ANY
LIABILITY FOR THE AFOREMENTIONED TAXES.
(6) NO CREDIT SHALL BE GRANTED UNDER THIS SUBSECTION:
(A) IF HOUSEHOLD GROSS INCOME FOR THE TAXABLE YEAR EXCEEDS SIXTY THOU-
SAND DOLLARS;
(B) 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; OR
(C) TO AN INDIVIDUAL WHO IS NOT A RESIDENT INDIVIDUAL OF THE STATE FOR
THE ENTIRE TAXABLE YEAR.
(7) 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 DEATH, BUT SUCH RIGHT MAY
BE EXERCISED ON BEHALF OF A CLAIMANT BY HIS LEGAL GUARDIAN OR ATTORNEY
IN FACT DURING HIS LIFETIME.
(8) RETURNS UNDER THIS SECTION SHALL BE IN SUCH FORM AS SHALL BE
PRESCRIBED BY THE DEPARTMENT OF TAXATION AND FINANCE, WHICH SHALL MAKE
AVAILABLE SUCH FORMS AND INSTRUCTION FOR FILING SUCH RETURNS.
(9) THE DEPARTMENT MAY REQUIRE A QUALIFIED TAXPAYER TO FURNISH THE
FOLLOWING INFORMATION IN SUPPORT OF HIS CLAIM FOR CREDIT UNDER THE
SUBSECTION: HOUSEHOLD GROSS INCOME, RENT PAID, NAME AND ADDRESS OF OWNER
OR MANAGING AGENT OF THE PROPERTY RENTED, THE NAMES OF MEMBERS OF THE
HOUSEHOLD AND OTHER QUALIFYING TAXPAYERS OCCUPYING THE RESIDENCE 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 DEPARTMENT TO DETERMINE
THE CREDIT.
(10) 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 SECTION.
S 2. This act shall take effect immediately.