Senate Bill S6868

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

    S. 6868                                                  A. 9408

                      S E N A T E - A S S E M B L Y

                              March 2, 2016
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Aging

IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
  to the Committee on Aging

AN ACT to amend the  real  property  tax  law,  in  relation  to  income
  requirements  for  the  real  property school tax exemption granted to
  persons sixty-five years of age or over in  high-appreciation  munici-
  palities

  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
SIXTEEN IN A COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT WHICH  IS  A
"HIGH-APPRECIATION  MUNICIPALITY",  as may be provided by the local law,
ordinance or resolution adopted pursuant to this section.  FOR  PURPOSES
OF  THIS  SUBPARAGRAPH,  A "HIGH-APPRECIATION MUNICIPALITY" MEANS: (A) A
SPECIAL ASSESSING UNIT THAT IS A  CITY,  (B)  A  COUNTY  FOR  WHICH  THE
COMMISSIONER  HAS  ESTABLISHED  A  SALES  PRICE  DIFFERENTIAL FACTOR FOR
PURPOSES OF THE STAR EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED  TWEN-
TY-FIVE  OF THIS TITLE IN THREE CONSECUTIVE YEARS, AND (C) A CITY, TOWN,
VILLAGE OR SCHOOL DISTRICT WHICH IS WHOLLY OR PARTLY LOCATED WITHIN SUCH
A COUNTY. 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

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

                                                           LBD14190-01-6

S. 6868                             2                            A. 9408

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 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 capi-
tal  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 property law; provided, however, that monies used  to  repay  a
reverse  mortgage  may  not  be deducted from income, and provided addi-
tionally 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.