NY State Senate Bill 2019-S7009

Archive: Last Bill Status - In Senate Committee Local Government 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to local government

2019-S7009 (ACTIVE) - Details

See Assembly Version of this Bill:: A8850
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §467, RPT L
Versions Introduced in 2021-2022 Legislative Session:: S4432, A3034

2019-S7009 (ACTIVE) - Summary

Provides that where the taxable status date is on or before April fourteenth, income tax year shall mean the twelve month period for which the owner or owners filed a federal personal income tax return for the year before the income tax year immediately preceding the date of application and where the taxable status date is on or after April fifteenth income tax year shall mean the twelve month period for which owner or owners filed a federal personal income tax return for the income tax year immediately preceding the date of application.

2019-S7009 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7009

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to the taxable
status date

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill provides a technical correction to the real property tax law
regarding the New York Senior Citizen Program Exemption process. The
legislation does not change the program but clarifies the process for
participants.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: amends Real Property Tax Law section 467 (3)(a) to clarify
the meaning of "income tax year" to be the twelve month period for which
the applicant filed a federal personal income tax return for the year
for the income tax year immediately preceding the application.

Section 2: establishes an immediate effective date.

 
JUSTIFICATION:

When the program was first enacted, the date for applying for this bene-
fit, known in the law as the "taxable status date", was May 1st.  Real
Property Tax Law 467(3)(a) requires that with the application the senior
provide a copy of their income tax year immediately preceding the appli-
cation. In other words, an application submitted for the 2019 assessment
roll would require a copy of the applicant's 2018 income tax record.
Back when the taxable status date was May 1, this posed no problem since
tax returns are due by April 15. However, in 1986 the legislature
changed the taxable status date for most of New York State from May 1 to
March 1. No change was made to 467(3)(a). 467(3)(a) defines income tax
year as "...Income tax year shall mean the twelve-month period for which
the owner or owners filed a federal personal income_tax return...." This
creates confusion since an applicant cannot use the previous year tax
return because it is not considered legally filed until April 15 (even
if a return is filed earlier(1)).

This legislation seeks to clarify the law and to cover any future chang-
es in the taxable status date. If the taxable status is changed in the
future to be on or after April 15, and applicant can use the previous
tax year return.

The 1997 Department of Taxation of Opinion of Counsel (10-47) touches on
this issue and the opinion states that " 
It seems to us that the most
reasonable interpretation of this statutory language is that an appli-
cant should provide a copy of his or her income tax return for the
"immediately preceding year" if it is available when the application is
filed. If that return is not yet available, the applicant should be
permitted to provide the return for the year before the "immediately
preceding year." In other words, if a senior citizen applies for the
senior citizens exemption for 1998 and the applicant's 1997 income tax
return is available at that time, a copy should be furnished with the
application. If not, the applicant's eligibility should be based upon

his or her 1996 income, and a copy of the 1996 tax return, assuming one
was filed, (4) should be accepted as proof of such income."

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
Immediately
(1) Internal Revenue Code Section 6501(b)(1); NYS Tax Law Section
687(h).

2019-S7009 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7009
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2020
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the real property tax law, in relation  to  the  taxable
   status date
 
   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 THE TAXABLE STATUS  DATE
 IS ON OR BEFORE APRIL FOURTEENTH, INCOME TAX YEAR SHALL MEAN THE TWELVE-
 MONTH  PERIOD  FOR  WHICH  THE  OWNER OR OWNERS FILED A FEDERAL PERSONAL
 INCOME TAX RETURN FOR THE YEAR BEFORE THE INCOME  TAX  YEAR  IMMEDIATELY
 PRECEDING  THE  DATE OF APPLICATION AND WHERE THE TAXABLE STATUS DATE IS
 ON OR AFTER APRIL FIFTEENTH, INCOME TAX YEAR SHALL MEAN THE TWELVE-MONTH
 PERIOD FOR WHICH THE OWNER OR OWNERS FILED A FEDERAL PERSONAL INCOME TAX
 RETURN FOR THE INCOME TAX YEAR IMMEDIATELY PRECEDING THE DATE OF  APPLI-
 CATION.  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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14123-01-9

 S. 7009                             2
 
 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, inheri-
 tances, 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  govern-
 ing 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 reven-
 ue  code,  shall be excluded from such income. Provided that such exclu-
 sion 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  mort-
 gage  proceeds  shall be considered income. The provisions of this para-
 graph 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.

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Senate Bill S7009

Sponsored By

Archive: Last Bill Status - In Senate Committee Local Government Committee

Actions

2019-S7009 (ACTIVE) - Details

2019-S7009 (ACTIVE) - Summary

2019-S7009 (ACTIVE) - Sponsor Memo

2019-S7009 (ACTIVE) - Bill Text download pdf

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Sponsored By

Rachel May

Archive: Last Bill Status - In Senate Committee Local Government Committee

Actions

2019-S7009 (ACTIVE) - Details

2019-S7009 (ACTIVE) - Summary

2019-S7009 (ACTIVE) - Sponsor Memo

2019-S7009 (ACTIVE) - Bill Text download pdf

Comments