The New York State Senate

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

                                 7069--A

                            I N  S E N A T E

                               (PREFILED)

                             January 3, 2018
                               ___________

Introduced by Sens. KAVANAGH, SERRANO -- read twice and ordered printed,
  and  when printed to be committed to the Committee on Aging -- commit-
  tee discharged, bill amended, ordered reprinted as amended and  recom-
  mitted to said committee

AN ACT to amend the real property tax law, in relation to increasing the
  combined  household  income limit for eligibility for a senior citizen
  rent increase exemption (SCRIE), disability  rent  increase  exemption
  (DRIE),  senior  citizen  homeowners'  exemption  (SCHE), and disabled
  homeowners' exemption (DHE) on the basis of the consumer price index

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraphs a and b of subdivision 3 of section 467-b of the
real  property tax law, paragraph a as amended by section 1 of part U of
chapter 55 of the laws of 2014 and paragraph b as amended by chapter 129
of the laws of 2014, are amended to read as follows:
  a. for a dwelling unit where the head of the  household  is  a  person
sixty-two  years  of  age or older, no tax abatement shall be granted if
the combined income of all members of the household for the  income  tax
year  immediately  preceding the date of making application exceeds four
thousand dollars, or such other sum not more than  twenty-five  thousand
dollars  beginning  July  first,  two thousand five, 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,  twenty-nine  thousand
dollars  beginning  July  first,  two  thousand nine, and fifty thousand
dollars beginning July first, two thousand fourteen, as may be  provided
by  the  local  law,  ordinance  or  resolution adopted pursuant to this
section, provided that when the head of the household retires before the
commencement of such income tax year and the date of filing the applica-
tion, the income for such year may be adjusted by  excluding  salary  or
earnings  and  projecting  his  or her retirement income over the entire
period of such year.  THE MAXIMUM INCOME THRESHOLD PROVIDED  FOR  HEREIN
SHALL BE INCREASED BY ORDER OF THE COMMISSIONER OF THE STATE DIVISION OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08285-02-8

S. 7069--A                          2

HOUSING  AND COMMUNITY RENEWAL  ON JANUARY FIRST OF EACH YEAR TO REFLECT
ANY INCREASE  IN  THE  REGIONAL  CONSUMER  PRICE  INDEX  FOR  THE  N.Y.,
N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON THE INDEX FOR ALL URBAN CONSUM-
ERS (CPI-U) DURING THE PRECEDING TWELVE MONTH PERIOD.
  b.  for a dwelling unit where the head of the household qualifies as a
person with a disability pursuant to subdivision five of  this  section,
no tax abatement shall be granted if the combined income for all members
of  the household for the current income tax year exceeds fifty thousand
dollars beginning July first, two thousand fourteen, as may be  provided
by  the  local  law,  ordinance  or  resolution adopted pursuant to this
section.   THE MAXIMUM INCOME THRESHOLD PROVIDED  FOR  HEREIN  SHALL  BE
INCREASED  BY ORDER OF THE COMMISSIONER OF THE STATE DIVISION OF HOUSING
AND COMMUNITY RENEWAL ON JANUARY FIRST  OF  EACH  YEAR  TO  REFLECT  ANY
INCREASE   IN   THE   REGIONAL   CONSUMER  PRICE  INDEX  FOR  THE  N.Y.,
N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON THE INDEX FOR ALL URBAN CONSUM-
ERS (CPI-U) DURING THE PRECEDING TWELVE MONTH PERIOD.
  § 2. Paragraphs d and m of subdivision 1 of section 467-c of the  real
property  tax law, paragraph d as separately amended by chapters 188 and
205 of the laws of 2005, subparagraph 1 of paragraph  d  as  amended  by
section 2 of part U of chapter 55 of the laws of 2014 and paragraph m as
amended  by  chapter  129  of  the  laws of 2014, are amended to read as
follows:
  d. "Eligible head of the household" means (1) a person or his  or  her
spouse  who  is  sixty-two  years of age or older and is entitled to the
possession or to the use and occupancy of  a  dwelling  unit,  provided,
however,  with  respect  to  a  dwelling which was subject to a mortgage
insured or initially insured  by  the  federal  government  pursuant  to
section  two  hundred  thirteen  of the National Housing Act, as amended
"eligible head of the household" shall be limited to that person or  his
or her spouse who was entitled to possession or the use and occupancy of
such  dwelling  unit  at  the  time of termination of such mortgage, and
whose income when combined with the income of all other members  of  the
household,  does  not  exceed  six thousand five hundred dollars for the
taxable period, or such other  sum  not  less  than  sixty-five  hundred
dollars nor more than twenty-five thousand dollars beginning July first,
two thousand five, 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,  twenty-nine thousand dollars beginning July first, two
thousand nine, and fifty thousand  dollars  beginning  July  first,  two
thousand fourteen, as may be provided by local law; or (2) a person with
a disability as defined in this subdivision.  THE MAXIMUM INCOME THRESH-
OLD  PROVIDED FOR HEREIN SHALL BE INCREASED BY ORDER OF THE COMMISSIONER
OF THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL  ON JANUARY FIRST
OF EACH YEAR TO REFLECT ANY INCREASE  IN  THE  REGIONAL  CONSUMER  PRICE
INDEX  FOR  THE N.Y., N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON THE INDEX
FOR ALL URBAN CONSUMERS (CPI-U) DURING THE PRECEDING TWELVE MONTH  PERI-
OD.
  m.  "Person  with  a  disability" means an individual who is currently
receiving social security disability insurance  (SSDI)  or  supplemental
security  income (SSI) benefits under the federal social security act or
disability pension or disability compensation benefits provided  by  the
United  States department of veterans affairs or those previously eligi-
ble by virtue of receiving disability benefits  under  the  supplemental
security  income  program  or the social security disability program and
currently receiving medical assistance benefits based  on  determination

S. 7069--A                          3

of  disability  as  provided  in  section three hundred sixty-six of the
social services law and whose income for the current  income  tax  year,
together  with the income of all members of such individual's household,
does  not  exceed fifty thousand dollars beginning July first, two thou-
sand fourteen, as may be provided by local  law.    THE  MAXIMUM  INCOME
THRESHOLD PROVIDED FOR HEREIN SHALL BE INCREASED BY ORDER OF THE COMMIS-
SIONER OF THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL ON JANUARY
FIRST  OF  EACH  YEAR  TO  REFLECT ANY INCREASE IN THE REGIONAL CONSUMER
PRICE INDEX FOR THE N.Y., N.Y.-NORTHEASTERN, N.J.  AREA, BASED UPON  THE
INDEX  FOR ALL URBAN CONSUMERS (CPI-U) DURING THE PRECEDING TWELVE MONTH
PERIOD.
  § 3. Paragraph (a) of subdivision 3 of section 467 of the real proper-
ty tax law, as separately amended by chapters 131 and 279 of the laws of
2017, 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,
twenty-nine thousand dollars beginning July first,  two  thousand  nine,
and  in  a  city with a population of one million or more fifty thousand
dollars beginning July first, two thousand seventeen, as may be provided
by the local law, ordinance  or  resolution  adopted  pursuant  to  this
section.  THE  MAXIMUM  INCOME  THRESHOLD  PROVIDED  FOR HEREIN SHALL BE
INCREASED BY ORDER OF THE COMMISSIONER ON JANUARY FIRST OF EACH YEAR  TO
REFLECT  ANY INCREASE IN THE REGIONAL CONSUMER PRICE INDEX FOR THE N.Y.,
N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON THE INDEX FOR ALL URBAN CONSUM-
ERS (CPI-U) DURING THE PRECEDING TWELVE MONTH PERIOD.  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 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 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 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. In  addition,  an  exchange  of  an  annuity  for  an  annuity
contract,  which  resulted in non-taxable gain, as determined in section
one thousand thirty-five of the internal revenue code, shall be excluded
from such income. Provided that such exclusion shall be based on  satis-
factory proof that such an exchange was solely an exchange of an annuity
for  an  annuity contract that resulted in a non-taxable transfer deter-

S. 7069--A                          4

mined by such section of the internal revenue  code.  Furthermore,  such
income  shall not include the proceeds of a reverse mortgage, as author-
ized 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 notwith-
standing, such income shall  not  include  veterans  disability  compen-
sation,  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;
  § 4. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
erty tax law, as amended by chapter 131 of the laws of 2017, 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,
twenty-nine  thousand  dollars  beginning July first, two thousand nine,
and in a city with a population of one million or  more  fifty  thousand
dollars beginning July first, two thousand seventeen, as may be provided
by  the  local  law or resolution adopted pursuant to this section.  THE
MAXIMUM INCOME THRESHOLD PROVIDED FOR HEREIN SHALL BE INCREASED BY ORDER
OF THE COMMISSIONER ON  JANUARY  FIRST  OF  EACH  YEAR  TO  REFLECT  ANY
INCREASE   IN   THE   REGIONAL   CONSUMER  PRICE  INDEX  FOR  THE  N.Y.,
N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON THE INDEX FOR ALL URBAN CONSUM-
ERS (CPI-U) DURING THE PRECEDING TWELVE MONTH PERIOD.  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  insur-
ance,  if the governing board of a municipality, after a public hearing,
adopts a local law 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;
  § 5. This act shall take effect immediately; provided that:

S. 7069--A                          5

  (a) the amendments to paragraph a of subdivision 3 of section 467-b of
the  real  property  tax  law  made by section one of this act shall not
affect the expiration of such paragraph pursuant to section 4 of part  U
of chapter 55 of the laws of 2014, as amended, or the expiration of such
section  pursuant  to  section 17 of chapter 576 of the laws of 1974, as
amended, and shall be deemed to expire therewith;
  (b) the amendments to paragraph b of subdivision 3 of section 467-b of
the real property tax law made by section one  of  this  act  shall  not
affect  the expiration of such section pursuant to section 17 of chapter
576 of the laws of 1974 and section 4 of chapter  129  of  the  laws  of
2014, as amended, and shall be deemed to expire therewith;
  (c)  the  amendments to subparagraph 1 of paragraph d of subdivision 1
of section 467-c of the real property tax law, made by  section  two  of
this  act  shall not affect the expiration of such subparagraph pursuant
to section 4 of part U of chapter 55 of the laws of  2014,  as  amended,
and shall be deemed expired therewith; and
  (d) the amendments to paragraph m of subdivision 1 of section 467-c of
the  real  property  tax  law, made by section two of this act shall not
affect the expiration of such paragraph pursuant to section 4 of chapter
129 of the laws of 2014, as amended, and shall be deemed expired  there-
with.