S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4432
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 4, 2021
                                ___________
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01901-01-1

 S. 4432                             2
 
 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 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.