S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9866--A
 
                           I N  A S S E M B L Y
 
                             February 15, 2018
                                ___________
 
 Introduced  by M. of A. GALEF, ENGLEBRIGHT, D'URSO, PAULIN, JEAN-PIERRE,
   McDONOUGH, MONTESANO, LAVINE, RAIA, MURRAY, HOOPER, PALUMBO --  Multi-
   Sponsored  by  -- M. of A. CURRAN, THIELE -- read once and referred to
   the Committee on Aging -- committee discharged, bill amended,  ordered
   reprinted as amended and recommitted to said committee

 AN  ACT  to  amend  the  real property tax law, in relation to municipal
   corporations within counties having  a  population  of  between  three
   hundred  ten  thousand  and three hundred thirteen thousand, or with a
   population of nine hundred forty-five thousand or more
 
   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 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, AND IN A MUNICIPAL
 CORPORATION  WITHIN A COUNTY WITH A POPULATION BETWEEN THREE HUNDRED TEN
 THOUSAND AND THREE HUNDRED THIRTEEN THOUSAND, OR WITH  A  POPULATION  OF
 NINE HUNDRED FORTY-FIVE THOUSAND OR MORE, ACCORDING TO THE LAST DECENNI-
 AL  CENSUS,  FIFTY  THOUSAND  DOLLARS BEGINNING JULY FIRST, TWO THOUSAND
 EIGHTEEN, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14443-02-8

 A. 9866--A                          2
 
 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
 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 deter-
 mined 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 satisfactory proof that  such  an  exchange  was  solely  an
 exchange  of  an annuity for an annuity contract that resulted in a non-
 taxable transfer determined by such  section  of  the  internal  revenue
 code.  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 proper-
 ty 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;
   § 2. This act shall take effect immediately.