S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2864
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2021
                                ___________
 
 Introduced  by Sen. KAVANAGH -- 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 increasing the
   combined household income limit for eligibility for a  senior  citizen
   rent  increase  exemption  (SCRIE), disability rent increase exemption
   (DRIE), senior citizen  homeowners'  exemption  (SCHE),  and  disabled
   homeowners'  exemption (DHE) on the basis of the consumer price index;
   and in relation to local laws, ordinances or resolutions providing for
   the abatement of taxes in a city with a population of one  million  or
   more persons
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph a of subdivision 1 and  paragraphs  a  and  b  of
 subdivision 3 of section 467-b of the real property tax law, paragraph a
 of  subdivision  1  as amended by chapter 576 of the laws of 1974, para-
 graph a of subdivision 3 as amended by section 1 of part U of chapter 55
 of the laws of 2014 and paragraph b  of  subdivision  3  as  amended  by
 section  1  of  chapter  129 of the laws of 2014, are amended to read as
 follows:
   a. "Dwelling unit" means that part of a dwelling in which  a  head  of
 the household resides and which is subject to either the emergency hous-
 ing  rent  control law or to the rent and rehabilitation law of the city
 of New York enacted pursuant to the local emergency housing rent control
 law, or to the emergency tenant protection act of nineteen  seventy-four
 OR  IS  A DWELLING UNIT CONTAINED IN REAL PROPERTY DESCRIBED IN SUBDIVI-
 SION FOURTEEN OF THIS SECTION;
   a. for a dwelling unit where the head of the  household  is  a  person
 sixty-two  years  of  age or older, no tax abatement shall be granted if
 the combined income of all members of the household for the  income  tax
 year  immediately  preceding the date of making application exceeds four
 thousand dollars, or such other sum not more than  twenty-five  thousand

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

                                                            LBD06352-01-1

 S. 2864                             2
 
 dollars  beginning  July  first,  two thousand five, 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 fourteen, as may be provided
 by the local law, ordinance  or  resolution  adopted  pursuant  to  this
 section, provided that when the head of the household retires before the
 commencement of such income tax year and the date of filing the applica-
 tion,  the  income  for such year may be adjusted by excluding salary or
 earnings and projecting his or her retirement  income  over  the  entire
 period  of  such year.  THE MAXIMUM INCOME THRESHOLD PROVIDED FOR HEREIN
 SHALL BE INCREASED BY ORDER OF THE COMMISSIONER OF THE STATE DIVISION OF
 HOUSING AND COMMUNITY RENEWAL  ON JANUARY FIRST OF EACH YEAR TO  REFLECT
 ANY  INCREASE  IN  THE  REGIONAL  CONSUMER  PRICE  INDEX  FOR  THE N.Y.,
 N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON THE INDEX FOR ALL URBAN CONSUM-
 ERS (CPI-U) DURING THE PRECEDING TWELVE MONTH PERIOD.
   b. for a dwelling unit where the head of the household qualifies as  a
 person  with  a disability pursuant to subdivision five of this section,
 no tax abatement shall be granted if the combined income for all members
 of the household for the current income tax year exceeds fifty  thousand
 dollars  beginning July first, two thousand fourteen, as may be provided
 by the local law, ordinance  or  resolution  adopted  pursuant  to  this
 section.    THE  MAXIMUM  INCOME  THRESHOLD PROVIDED FOR HEREIN SHALL BE
 INCREASED BY ORDER OF THE COMMISSIONER OF THE STATE DIVISION OF  HOUSING
 AND  COMMUNITY  RENEWAL  ON  JANUARY  FIRST  OF EACH YEAR TO REFLECT ANY
 INCREASE  IN  THE  REGIONAL  CONSUMER  PRICE   INDEX   FOR   THE   N.Y.,
 N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON THE INDEX FOR ALL URBAN CONSUM-
 ERS (CPI-U) DURING THE PRECEDING TWELVE MONTH PERIOD.
   § 1-a. Section 467-b of the real property tax law is amended by adding
 a new subdivision 14 to read as follows:
   14. IN A CITY WITH A POPULATION OF ONE MILLION OR MORE, ANY SUCH LOCAL
 LAW,  ORDINANCE  OR RESOLUTION MAY PROVIDE FOR THE ABATEMENT OF TAXES OF
 SUCH CITY IMPOSED ON:
   (A) REAL PROPERTY ORIGINALLY ORGANIZED PURSUANT TO ARTICLE TWO OF  THE
 PRIVATE HOUSING FINANCE LAW CONTAINING DWELLING UNITS IN WHICH THE QUAL-
 IFYING HEAD OF HOUSEHOLD OR THEIR QUALIFYING SUCCESSOR IN INTEREST:  (I)
 HAS  A  SIGNED AGREEMENT WITH THE LANDLORD TO LIMIT INCREASES IN MAXIMUM
 RENT TO AN AMOUNT BASED ON WHAT IS ORDERED BY THE RENT GUIDELINES  BOARD
 FOR  THE  LIFETIME  OF THE TENANCY, WHICH AMOUNT MAY BE LESS THAN, EQUAL
 TO, OR GREATER THAN THE AMOUNT SO ORDERED BY THE RENT GUIDELINES  BOARD,
 AND  (II)  IS  OTHERWISE ELIGIBLE FOR THE TAX ABATEMENT PROVIDED IN THIS
 SECTION, REGARDLESS OF WHETHER SUCH REAL PROPERTY IS  STILL  SUBJECT  TO
 THE REGULATIONS OF SAID ARTICLE; OR
   (B)  REAL  PROPERTY  CONTAINING DWELLING UNITS IN WHICH THE QUALIFYING
 HEAD OF HOUSEHOLD OR THEIR QUALIFYING SUCCESSOR IN INTEREST: (I)  HAS  A
 SIGNED  AGREEMENT   WITH THE LANDLORD TO LIMIT INCREASES IN MAXIMUM RENT
 TO AN AMOUNT EQUAL TO OR LESS THAN THOSE ORDERED BY THE RENT  GUIDELINES
 BOARD  FOR  THE  LIFETIME OF THE TENANCY, AND (II) IS OTHERWISE ELIGIBLE
 FOR THE TAX ABATEMENT PROVIDED IN THIS SECTION;
   (C) PROVIDED, HOWEVER, THAT THE APPLICATION FOR ANY ABATEMENT PURSUANT
 TO THIS SUBDIVISION SHALL BE SUBJECT TO THE APPROVAL  OF  THE  NEW  YORK
 CITY DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT, IN SUCH DEPART-
 MENT'S DISCRETION.
   §  2.  Paragraphs  b, d and m of subdivision 1 of section 467-c of the
 real property tax law, paragraph b as amended by chapter 420 of the laws

 S. 2864                             3
 
 of 1991, paragraph d as separately amended by chapters 188  and  205  of
 the  laws of 2005, subparagraph 1 of paragraph d as amended by section 2
 of part U of chapter 55 of the laws of 2014 and paragraph m  as  amended
 by chapter 129 of the laws of 2014, are amended to read as follows:
   b.  "Dwelling unit" means that part of a dwelling in which an eligible
 head of the household resides and which is subject to the provisions  of
 either  Article  II, IV, V, or XI of the private housing finance law; or
 that part of a dwelling which was or continues to be subject to a  mort-
 gage  insured or initially insured by the federal government pursuant to
 section two hundred thirteen of the National Housing Act, as amended, in
 which an eligible head of the household resides OR IS A UNIT IN A  HOUS-
 ING DEVELOPMENT DESCRIBED IN SUBDIVISION THIRTEEN OF THIS SECTION.
   d.  "Eligible  head of the household" means (1) a person or his or her
 spouse who is sixty-two years of age or older and  is  entitled  to  the
 possession  or  to  the  use and occupancy of a dwelling unit, provided,
 however, with respect to a dwelling which  was  subject  to  a  mortgage
 insured  or  initially  insured  by  the  federal government pursuant to
 section two hundred thirteen of the National  Housing  Act,  as  amended
 "eligible  head of the household" shall be limited to that person or his
 or her spouse who was entitled to possession or the use and occupancy of
 such dwelling unit at the time of  termination  of  such  mortgage,  and
 whose  income  when combined with the income of all other members of the
 household, does not exceed six thousand five  hundred  dollars  for  the
 taxable  period,  or  such  other  sum  not less than sixty-five hundred
 dollars nor more than twenty-five thousand dollars beginning July first,
 two thousand five, 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 fourteen, as may be provided by local law; or (2) a person with
 a disability as defined in this subdivision.  THE MAXIMUM INCOME THRESH-
 OLD PROVIDED FOR HEREIN SHALL BE INCREASED BY ORDER OF THE  COMMISSIONER
 OF THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL  ON JANUARY FIRST
 OF  EACH  YEAR  TO  REFLECT  ANY INCREASE IN THE REGIONAL CONSUMER PRICE
 INDEX FOR THE N.Y., N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON  THE  INDEX
 FOR  ALL URBAN CONSUMERS (CPI-U) DURING THE PRECEDING TWELVE MONTH PERI-
 OD.
   m. "Person with a disability" means an  individual  who  is  currently
 receiving  social  security  disability insurance (SSDI) or supplemental
 security income (SSI) benefits under the federal social security act  or
 disability  pension  or disability compensation benefits provided by the
 United States department of veterans affairs or those previously  eligi-
 ble  by  virtue  of receiving disability benefits under the supplemental
 security income program or the social security  disability  program  and
 currently  receiving  medical assistance benefits based on determination
 of disability as provided in section  three  hundred  sixty-six  of  the
 social  services  law  and whose income for the current income tax year,
 together with the income of all members of such individual's  household,
 does  not  exceed fifty thousand dollars beginning July first, two thou-
 sand fourteen, as may be provided by local  law.    THE  MAXIMUM  INCOME
 THRESHOLD PROVIDED FOR HEREIN SHALL BE INCREASED BY ORDER OF THE COMMIS-
 SIONER OF THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL ON JANUARY
 FIRST  OF  EACH  YEAR  TO  REFLECT ANY INCREASE IN THE REGIONAL CONSUMER
 PRICE INDEX FOR THE N.Y., N.Y.-NORTHEASTERN, N.J.  AREA, BASED UPON  THE

 S. 2864                             4
 
 INDEX  FOR ALL URBAN CONSUMERS (CPI-U) DURING THE PRECEDING TWELVE MONTH
 PERIOD.
   § 2-a. Section 467-c of the real property tax law is amended by adding
 a new subdivision 13 to read as follows:
   13. IN A CITY WITH A POPULATION OF ONE MILLION OR MORE, ANY SUCH LOCAL
 LAW,  ORDINANCE  OR RESOLUTION MAY PROVIDE FOR THE ABATEMENT OF TAXES OF
 SUCH CITY IMPOSED ON:
   (A) REAL PROPERTY ORIGINALLY ORGANIZED PURSUANT TO ARTICLE TWO OF  THE
 PRIVATE HOUSING FINANCE LAW CONTAINING DWELLING UNITS IN WHICH THE QUAL-
 IFYING HEAD OF HOUSEHOLD OR THEIR QUALIFYING SUCCESSOR IN INTEREST:  (I)
 HAS  A  SIGNED AGREEMENT WITH THE LANDLORD TO LIMIT INCREASES IN MAXIMUM
 RENT TO AN AMOUNT BASED ON WHAT IS ORDERED BY THE RENT GUIDELINES  BOARD
 FOR  THE  LIFETIME  OF THE TENANCY, WHICH AMOUNT MAY BE LESS THAN, EQUAL
 TO, OR GREATER THAN THE AMOUNT SO ORDERED BY THE RENT GUIDELINES  BOARD,
 AND  (II)  IS  OTHERWISE ELIGIBLE FOR THE TAX ABATEMENT PROVIDED IN THIS
 SECTION, REGARDLESS OF WHETHER SUCH REAL PROPERTY IS  STILL  SUBJECT  TO
 THE REGULATIONS OF SAID ARTICLE; OR
   (B)  REAL  PROPERTY  CONTAINING DWELLING UNITS IN WHICH THE QUALIFYING
 HEAD OF HOUSEHOLD OR THEIR QUALIFYING SUCCESSOR IN INTEREST: (I)  HAS  A
 SIGNED AGREEMENT WITH THE LANDLORD TO LIMIT INCREASES IN MAXIMUM RENT TO
 AN  AMOUNT  EQUAL  TO  OR LESS THEN THOSE ORDERED BY THE RENT GUIDELINES
 BOARD FOR THE LIFETIME OF THE TENANCY, AND (II)  IS  OTHERWISE  ELIGIBLE
 FOR THE TAX ABATEMENT PROVIDED IN THIS SECTION;
   (C) PROVIDED, HOWEVER, THAT THE APPLICATION FOR ANY ABATEMENT PURSUANT
 TO  THIS  SUBDIVISION  SHALL  BE SUBJECT TO THE APPROVAL OF THE NEW YORK
 CITY DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT, IN SUCH DEPART-
 MENT'S DISCRETION.
   § 3. Paragraph (a) of subdivision 3 of section 467 of the real proper-
 ty 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.  THE  MAXIMUM  INCOME  THRESHOLD  PROVIDED  FOR HEREIN SHALL BE
 INCREASED BY ORDER OF THE COMMISSIONER ON JANUARY FIRST OF EACH YEAR  TO
 REFLECT  ANY INCREASE IN THE REGIONAL CONSUMER PRICE INDEX FOR THE N.Y.,
 N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON THE INDEX FOR ALL URBAN CONSUM-
 ERS (CPI-U) DURING THE PRECEDING TWELVE MONTH PERIOD.  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, interest, dividends,
 total gain from the sale or exchange of a capital  asset  which  may  be

 S. 2864                             5
 
 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 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 annuity
 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 satis-
 factory proof that such an exchange was solely an exchange of an annuity
 for an annuity contract that resulted in a non-taxable  transfer  deter-
 mined  by  such  section of the internal revenue code. Furthermore, such
 income shall not include the proceeds of a reverse mortgage, as  author-
 ized  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;
   § 4. 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  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.    THE
 MAXIMUM INCOME THRESHOLD PROVIDED FOR HEREIN SHALL BE INCREASED BY ORDER
 OF  THE  COMMISSIONER  ON  JANUARY  FIRST  OF  EACH  YEAR TO REFLECT ANY
 INCREASE  IN  THE  REGIONAL  CONSUMER  PRICE   INDEX   FOR   THE   N.Y.,
 N.Y.-NORTHEASTERN, N.J. AREA, BASED UPON THE INDEX FOR ALL URBAN CONSUM-
 ERS  (CPI-U)  DURING  THE PRECEDING TWELVE MONTH PERIOD. 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 due to
 divorce, legal separation or abandonment, then only the  income  of  the

 S. 2864                             6

 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;
   § 5. This act shall take effect immediately; provided that:
   (a) the amendments to paragraph a of subdivision 3 of section 467-b of
 the real property tax law made by section one  of  this  act  shall  not
 affect  the expiration of such paragraph pursuant to section 4 of part U
 of chapter 55 of the laws of 2014, as amended, and shall  be  deemed  to
 expire therewith;
   (b) the amendments to paragraph b of subdivision 3 of section 467-b of
 the  real  property  tax  law  made by section one of this act shall not
 affect the expiration of such paragraph pursuant to section 4 of chapter
 129 of the laws of 2014, as amended, and shall be deemed to expire ther-
 ewith;
   (c) the amendments to subparagraph 1 of paragraph d of  subdivision  1
 of  section  467-c  of  the real property tax law made by section two of
 this act shall not affect the expiration of such  subparagraph  pursuant
 to  section  4  of part U of chapter 55 of the laws of 2014, as amended,
 and shall be deemed expired therewith; and
   (d) the amendments to paragraph m of subdivision 1 of section 467-c of
 the real property tax law made by section two  of  this  act  shall  not
 affect the expiration of such paragraph pursuant to section 4 of chapter
 129  of the laws of 2014, as amended, and shall be deemed expired there-
 with.