NY State Senate Bill 2017-S6836A

Senate Bill S6836A

2017-2018 Legislative Session

Relates to increasing allowable maximum income of certain persons otherwise eligible for tax abatement

download bill text pdf

Archive: Last Bill Status - In Senate Committee Aging 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 aging
Oct 06, 2017	print number 6836a
Oct 06, 2017	amend and recommit to rules
Jul 19, 2017	referred to rules

Bill Amendments

Original

A (Active)

2017-S6836 - Details

Current Committee:: Senate Aging
Law Section:: Real Property Tax Law
Laws Affected:: Amd §§467 & 459-c, RPT L

2017-S6836 - Summary

Relates to increasing allowable maximum income of certain persons otherwise eligible for tax abatement.

2017-S6836 - Sponsor Memo

                                 BILL NUMBER:  S6836

 TITLE OF BILL :

An act to amend the real property tax law, in relation to increasing
the allowable maximum income of certain persons otherwise eligible for
tax abatement in certain cases

 PURPOSE :

To enhance the SCHE and DHE programs and provide parity with the SCRIE
and DRIE Program, by increasing the eligibility level.

 SUMMARY OF PROVISIONS :

Section 1 of the bill amends section 467 (3)(a) of the real property
tax law - for the SCHE program. This bill permits any municipality to
grant a fifty percent property-tax assessment reduction to senior
property owners whose income, or the combined income of all owners of
the property, does not exceed fifty thousand dollars.

Section 2 of the bill amends section 459-c (5) (a) of the real
property tax law - for the DHE program. This bill permits any
municipality to grant a fifty percent property-tax assessment
reduction to disabled property owners receiving enumerated disability
benefits whose income, or the combined income of all owners of the

property, does not exceed fifty thousand dollars.

 EXISTING LAW :

The Senior Citizen Homeowners' Exemption (SCHE), and the Disabled
Homeowners' Exemption (DHE) are statewide programs that help seniors
and disabled individuals to remain in their homes/communities by
providing tax exemptions.

SCHE provides a property tax exemption of up to 50 percent of the
assessed property value for senior residents who own one-, two-, or
three-family homes, condos, or co-op apartments who will be at least
65 years of age in the year they apply. DHE provides this exemption to
households where at least one owner has a documented physical or
mental disability not due to alcohol/drug use. SCHE/DHE have a
combined income limit of $29,000 for owners of households. The
"sliding scale" option permits localities to extend smaller assessed
value reductions to owners with a combined income above $29,000 but
less than $37,400. EX: An eligible senior or disabled homeowner with a
combined income of $36,500 may receive a 5% reduction in the assessed
value of their home for property tax purposes.

 JUSTIFICATION :

This legislation will allow any municipality across New York State to
provide a fifty percent exemption of the value of real property if the
owner's income is $50,000 or less under the Senior Citizen Housing
Exemption Program and the Disabled Homeowners Exemption Program.

 LEGISLATIVE HISTORY :

New Bill.

 FISCAL IMPLICATIONS :

None to the State.

 EFFECTIVE DATE :
Immediately

2017-S6836 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6836
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               July 19, 2017
                                ___________
 
 Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the real property tax law, in relation to increasing the
   allowable maximum income of certain persons otherwise eligible for tax
   abatement in certain cases

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

                                                            LBD13325-01-7

 S. 6836                             2
 
 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.    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;
   § 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
 SEVENTEEN,  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-

 S. 6836                             3
 
 employment  no  depreciation  deduction  shall  be   allowed   for   the
 exhaustion,  wear  and  tear  of  real or personal property held for the
 production of income;
   §  3. This act shall take effect immediately and shall apply to appli-
 cations made for an exemption pursuant to this act for the  fiscal  year
 commencing  in  2018  and  all  fiscal  years  thereafter.  Applications
 received for the fiscal year commencing  in  2018  shall  be  considered
 timely  if  they  are  filed  on or before the one hundred twentieth day
 following  the  effective  date  of  the  local  law  implementing   the
 provisions of this act.

2017-S6836A (ACTIVE) - Details

Current Committee:: Senate Aging
Law Section:: Real Property Tax Law
Laws Affected:: Amd §§467 & 459-c, RPT L

2017-S6836A (ACTIVE) - Summary

Relates to increasing allowable maximum income of certain persons otherwise eligible for tax abatement.

2017-S6836A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6836A

SPONSOR: CARLUCCI
 
TITLE OF BILL:  An act to amend the real property tax law, in relation
to increasing the allowable maximum income of certain persons otherwise
eligible for tax abatement in certain cases

 
PURPOSE:

To enhance the SCHE and DHE programs statewide and provide parity with
the SCRIE and DRIE Program, by increasing the eligibility level.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 467 (3)(a) of the real property tax
law - for the SCHE program. This bill permits any municipality in the
State o New York to grant a fifty percent property-tax assessment
reduction to senior property owners whose income, or the combined income
of all owners of the property, does not exceed fifty thousand dollars.

Section 2 of the bill amends section 459-c (5) (a) of the real property

tax law - for the DHE program. This bill permits any municipality to
grant a fifty percent property-tax assessment reduction to disabled
property owners receiving enumerated disability benefits whose income,
or the combined income of all owners of the property, does not exceed
fifty thousand dollars.

 
JUSTIFICATION:

The Senior Citizen Homeowners' Exemption (SCHE), and the Disabled Home-
owners' Exemption (DHE) are statewide programs that help seniors and
disabled individuals to remain in their homes/communities by providing
tax exemptions.

SCHE provides a property tax exemption of up to 50 percent of the
assessed property value for senior residents who own one-, two-, or
three-family homes, condos, or co-op apartments who will be at least 65
years of age in the year they apply. DHE provides this exemption to
households where at least one owner has a documented physical or mental
disability not due to alcohol/drug use. SCHE/DHE have a combined income
limit of $29,000 for owners of households. The "sliding scale" option
permits localities to extend smaller assessed value reductions to owners
with a combined income above $29,000 but less than $37,400. EX: An
eligible senior or disabled homeowner with a combined income of $36,500
may receive a 5% reduction in the assessed value of their home for prop-
erty tax purposes.

Presently, a higher combined income limit of above $50,000 but less than
$58,399 is available in the City of New York only. This bill will allow
any local government in New York State to enact SCHE and DHE at the same
level as the City of New York, should the local government choose to do
so.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
Immediately

2017-S6836A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6836--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               July 19, 2017
                                ___________
 
 Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Rules  --  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 increasing the
   allowable maximum income of certain persons otherwise eligible for tax
   abatement in certain cases
 
   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, 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 subparagraph (ii) of paragraph  (d)  of
 this subdivision, then only the income of the spouse or ex-spouse resid-
 ing  on  the  property  shall be considered and may not exceed such sum.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13325-02-7

 S. 6836--A                          2
 
 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 capi-
 tal  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 annui-
 ty 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 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  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;
   § 2. 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.  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 proper-
 ty 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

 S. 6836--A                          3
 
 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;
   § 3. This act shall take effect immediately and shall apply to  appli-
 cations  made  for an exemption pursuant to this act for the fiscal year
 commencing  in  2018  and  all  fiscal  years  thereafter.  Applications
 received  for  the  fiscal  year  commencing in 2018 shall be considered
 timely if they are filed on or before  the  one  hundred  twentieth  day
 following   the  effective  date  of  the  local  law  implementing  the
 provisions of this act.

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