The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3149--A

                       2019-2020 Regular Sessions

                          I N  A S S E M B L Y

                            January 28, 2019
                               ___________

Introduced by M. of A. ABINANTI -- read once and referred to the Commit-
  tee  on  Aging  -- recommitted to the Committee on Aging in accordance
  with Assembly Rule 3, sec. 2 -- committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the real property tax law, in relation to increasing the
  amount of income property owners may earn for the purpose of eligibil-
  ity for the property tax exemption for persons sixty-five years of age
  or over and for persons with disabilities and limited income

  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,
FIFTY THOUSAND DOLLARS BEGINNING JULY FIRST, TWO THOUSAND TWENTY, 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 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

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

                                                           LBD05065-03-0

A. 3149--A                          2

this subdivision, then only the income of the spouse or ex-spouse resid-
ing 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 capi-
tal 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 annui-
ty  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 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  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. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
erty tax law, as amended by chapter 131 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 FIFTY THOUSAND DOLLARS BEGINNING JULY FIRST,  TWO  THOUSAND  TWENTY,
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 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 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 proper-
ty due to divorce, legal separation or abandonment, then only the income

A. 3149--A                          3

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 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  insur-
ance,  if the governing board of a municipality, after a public hearing,
adopts a local law 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;
  § 3. This act shall take effect immediately.