S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 3609                                                  A. 5335
 
                        2019-2020 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                             February 11, 2019
                                ___________
 
 IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
   ed, and when printed to be committed to the Committee on Aging
 
 IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
   to the Committee on Aging
 
 AN ACT to amend the  real  property  tax  law,  in  relation  to  income
   requirements  for  the  real  property school tax exemption granted to
   persons sixty-five years of age or over in  high-appreciation  munici-
   palities
 
   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 FIFTY THOUSAND
 DOLLARS BEGINNING JULY FIRST, TWO THOUSAND NINETEEN IN A  COUNTY,  CITY,
 TOWN,  VILLAGE  OR SCHOOL DISTRICT WHICH IS A "HIGH-APPRECIATION MUNICI-
 PALITY", as may be provided by the local law,  ordinance  or  resolution
 adopted  pursuant  to  this section.   FOR PURPOSES OF THIS PARAGRAPH, A
 "HIGH-APPRECIATION MUNICIPALITY" MEANS: (I)  A  SPECIAL  ASSESSING  UNIT
 THAT IS A CITY, (II) A COUNTY FOR WHICH THE COMMISSIONER HAS ESTABLISHED
 A  SALES  PRICE  DIFFERENTIAL  FACTOR FOR PURPOSES OF THE STAR EXEMPTION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03208-01-9

 S. 3609                             2                            A. 5335
 
 AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THIS  TITLE  IN  THREE
 CONSECUTIVE  YEARS,  AND  (III) A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT
 WHICH IS WHOLLY OR PARTLY LOCATED WITHIN SUCH A COUNTY. 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-
 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;
   § 2. This act shall take effect immediately.