Senate Bill S7069

                            
 
                     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.