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

                                  7859

                            I N  S E N A T E

                              May 18, 2016
                               ___________

Introduced  by  Sen.  STEWART-COUSINS -- read twice and ordered printed,
  and when printed to be committed to the Committee on Aging

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, AND FIFTY THOUSAND DOLLARS  BEGINNING  JULY  FIRST,  TWO  THOUSAND
SIXTEEN,  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
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
              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15202-02-6

S. 7859                             2

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
SIXTEEN,  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-
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.