S T A T E O F N E W Y O R K
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8685
2019-2020 Regular Sessions
I N A S S E M B L Y
October 23, 2019
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Introduced by M. of A. RA -- read once and referred to the Committee on
Ways and Means
AN ACT to amend the tax law, in relation to creating a reassessment
relief tax credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 606 of the tax law is amended by adding a new
subsection (kkk) to read as follows:
(KKK) REASSESSMENT RELIEF CREDIT. (1) DEFINITIONS. FOR THE PURPOSES OF
THIS SUBSECTION:
(A) "ELIGIBLE PROPERTY" MEANS A PARCEL OF LAND CLASSIFIED AS CLASS ONE
RESIDENTIAL REAL PROPERTY LOCATED IN A SPECIAL ASSESSING UNIT THAT IS
NOT A CITY.
(B) "OWNER" MEANS AN INDIVIDUAL WHO OWNS A CLASS ONE RESIDENTIAL REAL
PROPERTY IN FEE SIMPLE OR AS A JOINT TENANT, IN WHICH THE INDIVIDUAL IS
STILL LIABLE FOR PAYING PROPERTY TAXES RELATED TO A PROPERTY.
(C) "QUALIFIED TAXPAYER" MEANS AN INDIVIDUAL WHOSE PRIMARY RESIDENCE
IS LOCATED IN THE STATE OF NEW YORK AND WHO, ON OR BEFORE DECEMBER THIR-
TY-FIRST, TWO THOUSAND EIGHTEEN, WAS THE OWNER OF AN ELIGIBLE PROPERTY
IN A SPECIAL ASSESSING UNIT THAT IS NOT A CITY, PROVIDED, HOWEVER, SUCH
INDIVIDUAL STILL OWNS THE SAME PROPERTY ON THE TAXABLE STATUS DATE OF
ANY APPLICABLE SUBSEQUENT TAX YEAR.
(D) "AFFILIATED INCOME" SHALL MEAN THE ADJUSTED GROSS INCOME FOR
FEDERAL INCOME TAX PURPOSES AS REPORTED ON THE APPLICANT'S FEDERAL OR
STATE INCOME TAX RETURN FOR THE APPLICABLE INCOME TAX YEAR, SUBJECT TO
ANY SUBSEQUENT AMENDMENTS OR REVISIONS AND REDUCED BY DISTRIBUTIONS
RECEIVED FROM AN INDIVIDUAL RETIREMENT ACCOUNT AND AN INDIVIDUAL RETIRE-
MENT ANNUITY TO THE EXTENT SUCH DISTRIBUTIONS ARE INCLUDED IN THE FEDER-
AL ADJUSTED GROSS INCOME, PROVIDED THAT IF NO SUCH RETURN WAS FILED FOR
THE APPLICABLE INCOME TAX YEAR, AFFILIATED INCOME SHALL MEAN THE
ADJUSTED GROSS INCOME THAT WOULD HAVE BEEN REPORTED IF SUCH RETURN HAD
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13876-01-9
A. 8685 2
BEEN FILED. PROVIDED FURTHER, WHERE AN INCOME-ELIGIBILITY DETERMINATION
IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR MORE INDIVIDUALS WHO
DID NOT FILE A RETURN FOR THE APPLICABLE INCOME TAX YEAR, IN ORDER FOR
AN APPLICATION TO BE CONSIDERED COMPLETE, EACH SUCH INDIVIDUAL SHALL
FILE A STATEMENT WITH THE DEPARTMENT SHOWING THE SOURCE OR SOURCES OF
HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE AMOUNT OR AMOUNTS
THAT WOULD HAVE BEEN REPORTED ON SUCH RETURN IF ONE HAD BEEN FILED.
SUCH STATEMENT SHALL BE FILED AT SUCH TIME, AND IN SUCH FORM AND MANNER
AS MAY BE PRESCRIBED BY THE DEPARTMENT, AND SHALL BE SUBJECT TO THE
SECRECY PROVISIONS OF THIS CHAPTER TO THE SAME EXTENT THAT A PERSONAL
INCOME TAX RETURN WOULD BE. THE DEPARTMENT SHALL MAKE SUCH FORMS AND
INSTRUCTIONS AVAILABLE FOR THE FILING OF SUCH STATEMENTS. THE LOCAL
ASSESSOR SHALL, UPON THE REQUEST OF A TAXPAYER, ASSIST SUCH TAXPAYER IN
THE FILING OF THE STATEMENT WITH THE DEPARTMENT.
(2) ALLOWANCE OF CREDIT. (A) SUBJECT TO THE ADHERENCE OF THE REQUIRE-
MENTS AND QUALIFICATIONS OF THIS SUBSECTION, A QUALIFIED TAXPAYER SHALL
BE ALLOWED A CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICLE BEGINNING
WITH THE FIRST TAXABLE YEAR FOLLOWING THE MOST RECENT COUNTY-WIDE PROP-
ERTY REASSESSMENT.
(B) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION, IF ANY,
SHALL EXCEED THE QUALIFIED TAXPAYER'S TAX FOR THE TAXABLE YEAR, THE
EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHT-
Y-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID
THEREON.
(C) IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT
TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, SUCH QUALIFIED TAXPAY-
ER MAY NEVERTHELESS RECEIVE THE FULL AMOUNT OF THE CREDIT TO BE CREDITED
OR REPAID AS AN OVERPAYMENT, WITHOUT INTEREST.
(3) DETERMINATION OF CREDIT. (A) BEGINNING WITH THE FIRST TAXABLE YEAR
FOLLOWING A COUNTY-WIDE REASSESSMENT AND IMPLEMENTATION OF A PHASE-IN
PROGRAM AUTHORIZED BY SECTION FOUR HUNDRED EIGHTY-FIVE-U OF THE REAL
PROPERTY TAX LAW, THE REASSESSMENT RELIEF CREDIT PROVIDED BY THIS
SUBSECTION SHALL BE AVAILABLE TO QUALIFIED TAXPAYERS, PROVIDED THE
AFFILIATED INCOME OF THE PARCEL THAT SERVES AS THE TAXPAYER'S PRIMARY
RESIDENCE IS LESS THAN OR EQUAL TO FIVE HUNDRED THOUSAND DOLLARS.
(B) THE COMMISSIONER, IN CONJUNCTION WITH THE LOCAL ASSESSOR OF A
SPECIAL ASSESSING UNIT THAT IS NOT A CITY, SHALL DETERMINE THE AMOUNT OF
THE REASSESSMENT RELIEF CREDIT.
(C) THE AMOUNT OF ANY CREDIT UNDER THIS SUBSECTION SHALL BE EQUAL TO
THE AMOUNT A QUALIFIED TAXPAYER PAID IN PROPERTY TAXES DURING A TAXABLE
YEAR THAT EXCEEDS THE AMOUNT SUCH QUALIFIED TAXPAYER WOULD HAVE PAID IF
THE CHANGES IN PROPERTY ASSESSMENTS RESULTING FROM THE MOST RECENT COUN-
TY-WIDE REASSESSMENT WERE NOT BEING PHASED-IN PURSUANT TO SECTION FOUR
HUNDRED EIGHTY-FIVE-U OF THE REAL PROPERTY TAX LAW.
(4) APPLICATION FOR REASSESSMENT RELIEF CREDIT. (A) IN ORDER TO
RECEIVE A REASSESSMENT RELIEF CREDIT UNDER THIS SUBSECTION, A QUALIFIED
TAXPAYER SHALL SUBMIT AN ANNUAL APPLICATION FOR SUCH CREDIT TO THE
COMMISSIONER BY OR ON THE DATE AND IN THE MANNER SPECIFIED BY THE
COMMISSIONER.
(B) IF AN ELIGIBLE PROPERTY IS OWNED BY MULTIPLE QUALIFIED TAXPAYERS,
A JOINT APPLICATION SHALL BE REQUIRED FOR SUCH ELIGIBLE PROPERTY AND THE
CREDIT PROVIDED UNDER THIS SUBSECTION SHALL BE DIVIDED EQUALLY AMONGST
THE QUALIFIED TAXPAYERS THAT OWN THE PROPERTY.
(5) SPECIAL CASES. A MARRIED COUPLE SHALL NOT RECEIVE A CREDIT PURSU-
ANT TO THIS SUBSECTION ON MORE THAN ONE ELIGIBLE PROPERTY DURING A GIVEN
A. 8685 3
TAXABLE YEAR, UNLESS SUCH COUPLE IS LIVING APART DUE TO LEGAL SEPA-
RATION.
(6) LIMITATIONS. (A) NO QUALIFIED TAXPAYER SHALL BE ELIGIBLE TO
RECEIVE MORE THAN A SINGLE CREDIT ANNUALLY UNDER THIS SUBSECTION, NOR
SHALL THE COMMISSIONER BE REQUIRED TO MAKE ADVANCE PAYMENT OF ANY CREDIT
DUE.
(B) NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, NO PROPERTY OWNER
OR OWNERS THAT ARE RECEIVING A BENEFIT UNDER SECTION FOUR HUNDRED EIGHT-
Y-FIVE-U OF THE REAL PROPERTY TAX LAW, IN WHICH A PROPERTY HE OR SHE
OWNS IS HAVING ITS REASSESSED VALUE PHASED-IN, SHALL BE ELIGIBLE TO
RECEIVE A CREDIT UNDER THIS SUBSECTION.
(7) DISQUALIFICATION. A QUALIFIED TAXPAYER SHALL NOT BE ELIGIBLE TO
APPLY OR RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION IF HE OR SHE CEAS-
ES TO OWN PROPERTY THAT IS THE BASIS FOR AN APPLICATION FOR CREDIT, OR
IF SUCH QUALIFIED TAXPAYER HAS ANY OUTSTANDING OR DELINQUENT PROPERTY
TAXES DUE.
(8) PROOF OF CLAIM. THE COMMISSIONER SHALL BE RESPONSIBLE FOR DETER-
MINING A TAXPAYER'S ELIGIBILITY FOR THE CREDIT PROVIDED BY THIS
SUBSECTION, AND MAY REQUIRE SUCH TAXPAYER OR TAXPAYERS TO FURNISH INFOR-
MATION TO SUPPORT HIS, HER OR THEIR APPLICATION AND ELIGIBILITY FOR SUCH
CREDIT. SUCH INFORMATION MAY INCLUDE, BUT IS NOT LIMITED TO:
(A) PROOF OF OWNERSHIP OF PROPERTY;
(B) PROOF NECESSARY TO ESTABLISH PRIMARY RESIDENCY IN THE STATE OF NEW
YORK;
(C) PROOF OF AFFILIATED INCOME OF PROPERTY OWNERS; AND
(D) PROOF THAT A QUALIFIED TAXPAYER DOES NOT HAVE UNPAID REAL PROPERTY
TAXES.
(9) DISCLOSURE OF INFORMATION. (A) WHERE THE COMMISSIONER HAS DENIED A
TAXPAYER'S APPLICATION FOR THE CREDIT AUTHORIZED BY THIS SUBSECTION, THE
COMMISSIONER SHALL, UPON REQUEST OF THE TAXPAYER, HAVE THE AUTHORITY TO
PROVIDE TO SUCH TAXPAYER THE RATIONALE AND INFORMATION UPON WHICH SUCH
DETERMINATION WAS MADE.
(B) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE NAMES
AND ADDRESSES OF INDIVIDUALS WHO HAVE APPLIED FOR OR ARE RECEIVING THE
CREDIT AUTHORIZED BY THIS SUBSECTION MAY BE DISCLOSED TO ASSESSORS,
COUNTY DIRECTORS OF REAL PROPERTY TAX SERVICES, AND MUNICIPAL TAX
COLLECTING OFFICERS. IN ADDITION, WHERE AN AGREEMENT IS IN PLACE BETWEEN
THE COMMISSIONER AND THE HEAD OF THE TAX DEPARTMENT OF ANOTHER STATE,
SUCH INFORMATION MAY BE DISCLOSED TO SUCH OFFICIAL OR HIS OR HER DESIG-
NEES. SUCH INFORMATION SHALL BE CONSIDERED CONFIDENTIAL AND SHALL NOT BE
SUBJECT TO FURTHER DISCLOSURE PURSUANT TO THE FREEDOM OF INFORMATION LAW
OR OTHERWISE.
(10) DURATION OF CREDIT. NO REASSESSMENT RELIEF CREDIT AS PROVIDED BY
THIS SUBSECTION SHALL BE GRANTED FOLLOWING THE COMPLETION OF THE REAS-
SESSMENT PHASE-IN AS AUTHORIZED BY SECTION FOUR HUNDRED EIGHTY-FIVE-U OF
THE REAL PROPERTY TAX LAW.
(11) ADMINISTRATION. (A) THE DEPARTMENT SHALL BE RESPONSIBLE FOR THE
ADMINISTRATION AND OVERSIGHT OF THE REASSESSMENT RELIEF CREDIT PROVIDED
BY THIS SUBSECTION, AND THE COMMISSIONER SHALL PROMULGATE ANY RULES AND
REGULATIONS NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SUBSECTION.
(B) THE GOVERNING BODY OF A SPECIAL ASSESSING UNIT THAT IS NOT A CITY
SHALL, UPON REQUEST, ASSIST THE COMMISSIONER IN PROVIDING ANY AND ALL
INFORMATION DEEMED NECESSARY TO FACILITATE THE CREDIT ESTABLISHED BY
THIS SUBSECTION.
(12) CALCULATION. WHEN THE CALCULATION OF ANY OTHER PERSONAL INCOME
TAX CREDIT IS BASED IN WHOLE OR IN PART UPON THE REAL PROPERTY TAXES
A. 8685 4
PAID BY THE TAXPAYER, THE AMOUNT OF REAL PROPERTY TAXES SO PAID SHALL BE
REDUCED BY THE CREDIT AUTHORIZED BY THIS SUBSECTION, IF APPLICABLE, IN
THE COURSE OF PERFORMING SUCH CALCULATION. WHEN THE CALCULATION OF ANY
OTHER PERSONAL INCOME TAX CREDIT IS BASED IN WHOLE OR IN PART UPON AN
INDIVIDUAL'S STATE TAX LIABILITY, THE CREDIT AUTHORIZED BY THIS
SUBSECTION SHALL NOT BE TAKEN INTO ACCOUNT IN THE CALCULATION OF SUCH
STATE TAX LIABILITY. WHEN THE CALCULATION OF A CITY TAX SURCHARGE IS
BASED IN WHOLE OR IN PART UPON THE NET STATE TAX OF AN INDIVIDUAL, THE
CREDIT AUTHORIZED BY THIS SUBSECTION SHALL NOT BE TAKEN INTO ACCOUNT IN
THE CALCULATION OF SUCH NET STATE TAX.
(13) ERROR. IF THE COMMISSIONER DETERMINES AFTER ISSUING A CREDIT THAT
IT WAS ISSUED IN AN EXCESSIVE AMOUNT OR TO AN INELIGIBLE OR INCORRECT
PARTY, THE COMMISSIONER SHALL BE EMPOWERED TO UTILIZE ANY OF THE PROCE-
DURES FOR COLLECTION, LEVY AND LIEN OF PERSONAL INCOME TAX SET FORTH IN
THIS ARTICLE, ANY OTHER RELEVANT PROCEDURES REFERENCED WITHIN THE
PROVISIONS OF THIS ARTICLE, AND ANY OTHER LAW AS MAY BE APPLICABLE, TO
RECOUP THE IMPROPERLY ISSUED AMOUNT.
§ 2. This act shall take effect immediately.