NY State Senate Bill 2017-S6970

Senate Bill S6970

2017-2018 Legislative Session

Increases income thresholds for and the amounts of the real property tax circuit breaker personal income tax credit

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations 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 investigations and government operations
Dec 13, 2017	referred to rules

2017-S6970 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L

2017-S6970 (ACTIVE) - Summary

Increases the income thresholds for and the amounts of the real property tax circuit breaker personal income tax credit.

2017-S6970 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6970

SPONSOR: PERALTA
 
TITLE OF BILL:  An act to amend the tax law, in relation to the real
property tax circuit breaker personal income tax credit

 
PURPOSE:

This bill would increase the eligibility levels of the existing real
property tax circuit breaker by raising the maximum allowable income,
increasing the maximum allowable credit, and increasing the maximum
allowable property value.

 
SUMMARY OF PROVISIONS:

Section 1 amends paragraphs 3 and 7 of subsection (e) of section 606 of
the tax law to change the following eligibility levels of the real prop-
erty tax circuit breaker personal income tax credit as follows:

-Increase the max household income from $18,000 to $75,000
-Increase the max property value from $85,000 to $200,000

-Increase the max allowable credit to $800 (for age 65+) and to $400
(for 65 and younger) raised from $375 and $75, respectively.

Section 2 is the implementation date.

 
JUSTIFICATION:

This legislation would update the antiquated tax relief structure put
into place to help renters and homeowners afford their housing. The real
property tax circuit breaker credit is a rebate meant to cover the
portion of a homeowner's tax bill that exceeds a reasonable share of
their household income. Renters who pay taxes indirectly through the
landlord also qualify.

New York is the third most expensive state to live in, behind the remote
states of Alaska and Hawaii. As the cost of living and the rate of
inflation increase, we owe it to all New Yorkers to ensure that the tax
relief measures we already have in place will keep pace.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
commencing on or after the calendar year in which it shall have become a
law.

2017-S6970 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6970
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             December 13, 2017
                                ___________
 
 Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the tax law,  in  relation  to  the  real  property  tax
   circuit breaker personal income tax credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraphs 3 and 7 of subsection (e) of section 606 of  the
 tax  law,  as  amended by chapter 28 of the laws of 1987, are amended to
 read as follows:
   (3) Determination of credit. (A)  For  qualified  taxpayers  who  have
 attained  the  age of sixty-five years before the beginning of or during
 the  taxable  year  the  amount  of  the  credit  allowable  under  this
 subsection shall be fifty percent, or in the case of a qualified taxpay-
 er  who has elected to include an additional amount pursuant to subpara-
 graph (E) of paragraph one of this subsection, twenty-five  percent,  of
 the  excess  of  real  property taxes or the excess of real property tax
 equivalent determined as follows:
 
                                      Excess real property taxes are the
                                      excess of real property tax equiv-
                                      alent or the excess of qualifying
                                      real property taxes over  the  fo-
 If household gross income for the    llowing percentage of household
 taxable year is:                     gross income:
 -----------------------------------  -----------------------------------
 [$3,000] $10,000 or less                            3 1/2
 OVER $10,000 BUT NOT OVER $15,000                   3
 Over [$3,000] $15,000 but not over
 [$5,000] $25,000                                    4
 Over [$5,000] $25,000 but not over
 [$7,000] $35,000                                    4 1/2

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

                                                            LBD13933-01-7

 S. 6970                             2
 
 Over [$7,000] $35,000 but not over
 [$9,000] $45,000                                    5
 Over [$9,000] $45,000 but not over
 [$11,000] $50,000                                   5 1/2
 Over [$11,000] $50,000 but not over
 [$14,000] $60,000                                   6
 Over [$14,000] $60,000 but not over
 [$18,000] $75,000                                   6 1/2

   Notwithstanding  the  foregoing  provisions, the maximum credit deter-
 mined under this subparagraph may not exceed the  amount  determined  in
 accordance with the following table:
 
 If household gross income for the
 taxable year is:                     The maximum credit is:
 -----------------------------------  -----------------------------------
 [$1,000] $10,000 or less                            [$375] $700
 Over [$1,000] $10,000 but not over
 [$2,000] $15,000                                    [$358] $650
 Over [$2,000] $15,000 but not over
 [$3,000] $20,000                                    [$341] $600
 Over [$3,000] $20,000 but not over
 [$4,000] $25,000                                    [$324] $550
 Over [$4,000] $25,000 but not over
 [$5,000] $30,000                                    [$307] $500
 Over [$5,000] $30,000 but not over
 [$6,000] $35,000                                    [$290] $450
 Over [$6,000] $35,000 but not over
 [$7,000] $40,000                                    [$273] $400
 Over [$7,000] $40,000 but not over
 [$8,000] $45,000                                    [$256] $350
 Over [$8,000] $45,000 but not over
 [$9,000] $50,000                                    [$239] $300
 Over [$9,000] $50,000 but not over
 [$10,000] $60,000                                   [$222] $250
 Over [$10,000] $60,000 but not over
 [$11,000                                            $205
 Over $11,000 but not over $12,000                   $188
 Over $12,000 but not over $13,000                   $171
 Over $13,000 but not over $14,000                   $154
 Over $14,000 but not over $15,000                   $137
 Over $15,000 but not over $16,000                   $120
 Over $16,000 but not over $17,000                   $103
 Over $17,000 but not over $18,000]
 $75,000                                             [$ 86] $200
 
   (B)  For all other qualified taxpayers the amount of the credit allow-
 able under this subsection shall be fifty percent of excess real proper-
 ty taxes or the excess of the real property tax equivalent determined as
 follows:
 
                                      Excess real property taxes are the
                                      excess of real property tax equiv-
                                      alent or the excess of qualifying
                                      real property taxes over the
 If household gross income for the    following percentage of household

 S. 6970                             3
 
 taxable year is:                     gross income:
 -----------------------------------  -----------------------------------
 [$3,000] $10,000 or less                            3 1/2
 OVER $10,000 BUT NOT OVER $15,000                   3
 Over [$3,000] $15,000 but not over
 [$5,000] $25,000                                    4
 Over [$5,000] $25,000 but not over
 [$7,000] $35,000                                    4 1/2
 Over [$7,000] $35,000 but not over
 [$9,000] $45,000                                    5
 Over [$9,000] $45,000 but not over
 [$11,000] $50,000                                   5 1/2
 Over [$11,000] $50,000 but not over
 [$14,000] $60,000                                   6
 Over [$14,000] $60,000 but not over
 [$18,000] $75,000                                   6 1/2
 
   Notwithstanding  the  foregoing  provisions, the maximum credit deter-
 mined under this subparagraph may not exceed the  amount  determined  in
 accordance with the following table:
 
 If household gross income for the
 taxable year is:                     The maximum credit is:
 -----------------------------------  -----------------------------------
 [$1,000] $10,000 or less                            [$75] $400
 Over [$1,000] $10,000 but not over
 [$2,000] $15,000                                    [$73] $350
 Over [$2,000] $15,000 but not over
 [$3,000] $20,000                                    [$71] $325
 Over [$3,000] $20,000 but not over
 [$4,000] $25,000                                    [$69] $300
 Over [$4,000] $25,000 but not over
 [$5,000] $30,000                                    [$67] $275
 Over [$5,000] $30,000 but not over
 [$6,000] $35,000                                    [$65] $250
 Over [$6,000] $35,000 but not over
 [$7,000] $40,000                                    [$63] $225
 Over [$7,000] $40,000 but not over
 [$8,000] $45,000                                    [$61] $200
 Over [$8,000] $45,000 but not over
 [$9,000] $50,000                                    [$59] $175
 Over [$9,000] $50,000 but not over
 [$10,000] $60,000                                   [$57] $150
 Over [$10,000] $60,000 but not over
 [$11,000                                            $55
 Over $11,000 but not over $12,000                   $53
 Over $12,000 but not over $13,000                   $51
 Over $13,000 but not over $14,000                   $49
 Over $14,000 but not over $15,000                   $47
 Over $15,000 but not over $16,000                   $45
 Over $16,000 but not over $17,000                   $43
 Over $17,000 but not over $18,000]
 $75,000                                             [$41] $125
 
   (7) No credit shall be granted under this subsection:

 S. 6970                             4
 
   (A)  If household gross income for the taxable year exceeds [eighteen]
 SEVENTY-FIVE thousand dollars.
   (B)  To a property owner unless: (i) the property is used for residen-
 tial purposes, (ii) not more than twenty percent of the  rental  income,
 if any, from the property is from rental for nonresidential purposes and
 (iii) the property is occupied as a residence in whole or in part by one
 or more of the owners of the property.
   (C)  To  a  property  owner  who owns real property, the full value of
 which exceeds [eighty-five] TWO HUNDRED thousand dollars.
   (D) To a tenant if the adjusted rent for the residence  exceeds  [four
 hundred fifty] ONE THOUSAND dollars per month on average.
   (E) To an individual with respect to whom a deduction under subsection
 (c)  of  section  one  hundred fifty-one of the internal revenue code is
 allowable to another taxpayer for the taxable year.
   (F) With respect to a residence that  is  wholly  exempted  from  real
 property taxation.
   (G) To an individual who is not a resident individual of the state for
 the entire taxable year.
   § 2. This act shall take effect immediately and shall apply to taxable
 years  commencing  on  or after the calendar year in which it shall have
 become a law.

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