Senate Bill S1451

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1451
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2019
                                ___________
 
 Introduced by Sens. HOYLMAN, CARLUCCI -- read twice and ordered printed,
   and when printed to be committed to the Committee on Aging
 
 AN  ACT  to amend the real property tax law, in relation to allowing for
   increases in the  amount  of  income  property  owners  may  earn  for
   purposes of qualification for certain tax exemptions

   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],  FIFTY  thousand dollars beginning July first, two
 thousand [nine] NINETEEN, and in a city with a population of one million
 or more fifty thousand dollars beginning July first, two thousand seven-
 teen, as may be provided by  the  local  law,  ordinance  or  resolution
 adopted  pursuant  to  this  section;  PROVIDED, HOWEVER, BEGINNING JULY
 FIRST, TWO THOUSAND TWENTY-ONE AND EVERY TWO YEARS THEREAFTER, THE MAXI-
 MUM ALLOWABLE INCOME SHALL INCREASE BY THE PRODUCT OF THE AVERAGE ANNUAL
 PERCENTAGE CHANGES IN THE CONSUMER PRICE INDEX FOR ALL  URBAN  CONSUMERS
 (CPI-U)  AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR BUREAU OF
 LABOR STATISTICS FOR THE TWO YEAR PERIOD  ROUNDED  TO  THE  NEAREST  ONE
 THOUSAND  DOLLARS.    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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07446-01-9

 S. 1451                             2
 
 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  retire-
 ment 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.