NY State Senate Bill 2017-S571

Senate Bill S571

2017-2018 Legislative Session

Allows for increases in the amount of income certain property owners may earn for purposes of qualification for certain tax exemptions

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Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to local government
Jan 04, 2017	referred to local government

co-Sponsors

2017-S571 (ACTIVE) - Details

See Assembly Version of this Bill:: A2735
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §459-c, RPT L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S3369, A9798
2019-2020: S1489

2017-S571 (ACTIVE) - Summary

Allows for increases in the amount of income certain property owners may earn for purposes of qualification for certain tax exemptions.

2017-S571 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S571

 TITLE OF BILL :

An act to amend the real property tax law, in relation to allowable
increases in property income for persons with disabilities and limited
incomes for purposes of qualification for certain tax exemptions

 PURPOSE OR GENERAL IDEA OF BILL :

The bill increases the maximum income eligibility limit for the
Disabled Homeowners' Exemption (DHE) Program from $29,000 to $50,000
starting July 1, 2017. Future increases to the income eligibility
limit will automatically take effect every two years starting July 1,
2018, by the average annual percentage change in the U.S. Department
of Labor's Consumer Price Index for all urban consumers (CPI-U).

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 amends paragraph a of subdivision 5 of section 459-c of the
real property tax law to increase the maximum income eligibility limit
for the Disabled Homeowners' Exemption and establish automatic
biennial increases to the maximum income eligibility limit.

Section 2 states that the bill will take effect immediately.

 JUSTIFICATION :

Section 459-c of the Real Property Tax Law authorizes local
governments to provide a partial property tax exemption to disabled
homeowners. The exemptions are based on income, and provided on a
sliding scale from 5%-50% exemption. The current maximum income for
the 50% exemption is $29,000, and was last increased in 2009.

According to the U.S. Department of Labor, $29,000 in 2009 dollars
equals $31,600 in 2014 dollars, due to inflation. Many disabled
homeowners who previously qualified for the DHE exemption may no
longer qualify due to cost-of-living adjustments to their fixed
sources of income. This bill would raise the maximum income to $50,000
starting on July 1, 2017, and tie future increases of the eligibility
limit to the Consumer Price Index. Doing so will ensure that disabled
homeowners aren't "priced out" of the exemption due to nominal
increases in their fixed incomes, and remove the need for the state
legislature to revisit the income eligibility every few years.

A similar increase in income eligibility was made to the Disability
Rent Increase Exemption in the enacted 2014-2015 budget.

 PRIOR LEGISLATIVE HISTORY :

S.3369-A of 2015-2016 (Hoylman): Died in Local Government
A.9798 of 2016 (Gottfried): Died in Real Property Taxation

 FISCAL IMPLICATIONS :

None to the state.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S571 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    571
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the real property tax  law,  in  relation  to  allowable
   increases in property income for persons with disabilities and limited
   incomes for purposes of qualification for certain tax exemptions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 5 of section 459-c of the real
 property 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], FIFTY thousand dollars  beginning  July  first,
 two  thousand  [nine]  SEVENTEEN, as may be provided by the local law or
 resolution adopted pursuant to this section; PROVIDED,  HOWEVER,  BEGIN-
 NING  JULY  FIRST, TWO THOUSAND NINETEEN AND EVERY TWO YEARS THEREAFTER,
 THE MAXIMUM ALLOWABLE INCOME SHALL INCREASE BY THE PRODUCT OF THE  AVER-
 AGE  ANNUAL PERCENTAGE CHANGES IN THE CONSUMER PRICE INDEX FOR ALL URBAN
 CONSUMERS (CPI-U) AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF  LABOR
 BUREAU  OF LABOR STATISTICS FOR THE TWO YEAR PERIOD ROUNDED TO THE NEAR-
 EST ONE THOUSAND DOLLARS.  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD02693-01-7

 S. 571                              2
 
 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;
   § 2. This act shall take effect immediately.

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Senate Bill S571

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Sponsored By

Brad Hoylman-Sigal