Assembly Bill A6027

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

                                  6027

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             March 11, 2015
                               ___________

Introduced by M. of A. KAVANAGH -- read once and referred to the Commit-
  tee on Aging

AN  ACT  to amend the real property tax law, in relation to senior citi-
  zens' homeowners' exemptions and disabled homeowners' exemptions;  and
  providing for the repeal of such provisions upon the expiration there-
  of

  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,  AND  FIFTY  THOUSAND  DOLLARS  BEGINNING JULY FIRST, TWO THOUSAND
FIFTEEN, 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
and  retirement  benefits, interest, dividends, total gain from the sale

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03461-02-5
              

A. 6027                             2

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.  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  property  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, AND FIFTY THOUSAND DOLLARS  BEGINNING  JULY  FIRST,  TWO  THOUSAND
FIFTEEN,  as  may  be  provided  by  the local law 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 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 insurance, if the governing board of a munici-
pality, after a public hearing, adopts a local law or resolution provid-

A. 6027                             3

ing  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 and shall expire and be
deemed repealed on July 1, 2016.