S T A T E O F N E W Y O R K
________________________________________________________________________
3085
2021-2022 Regular Sessions
I N A S S E M B L Y
January 22, 2021
___________
Introduced by M. of A. GUNTHER -- read once and referred to the Commit-
tee on Aging
AN ACT to amend the real property tax law, in relation to qualifying
income for a property tax exemption for persons sixty-five years of
age or over
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] THIRTY-FIVE THOUSAND DOLLARS BEGINNING JULY FIRST, TWO THOUSAND
TWENTY-TWO, 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 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,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02921-01-1
A. 3085 2
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. This act shall take effect immediately.