S T A T E   O F   N E W   Y O R K
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                                  7542

                            I N  S E N A T E

                               May 9, 2016
                               ___________

Introduced  by Sen. KAMINSKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

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

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

                                                           LBD14843-02-6

S. 7542                             2

OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES,  PUBLIC  CORPORATIONS,  OR
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.

S. 7542                             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

S. 7542                             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:

S. 7542                             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.