NY State Senate Bill 2021-S7624

Archive: Last Bill Status - In Senate Committee Budget And Revenue 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 05, 2022	referred to budget and revenue
Dec 22, 2021	referred to rules

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2021-S7624 (ACTIVE) - Details

See Assembly Version of this Bill:: A8688
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2023-2024: A3402
2025-2026: A4672

2021-S7624 (ACTIVE) - Summary

Increases the excess real property tax credit for certain qualified taxpayers.

2021-S7624 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7624             Revised 1/13/2022

SPONSOR: GAUGHRAN
 
TITLE OF BILL:

An act to amend the tax law, in relation to improving the real property
tax relief credit

 
PURPOSE:

To improve the real property tax relief credit by (a) increasing maximum
income eligibility from $250,000 of qualified gross income to $350,000,
(b) decreasing the percentage of real property taxes over qualified
gross income from 6% to 5% to determine excess property taxes, (c)
increasing the amount of the credit, including the maximum credit from
$350 to $1,500, and making the credit permanent.

 
SUMMARY OF PROVISIONS:

Section 1. Amends Subparagraph (E)of paragraph 1, paragraph 2, subpara-
graphs (A),(B), and (C) of paragraph 3, paragraph 4, and subparagraph
(A) of paragraph 6 of subsection (e-2) of section 606 of the tax law by

(a) increasing maximum income eligibility from $250,000 of qualified
gross income to $350,000, (b) decreasing the percentage of real property
taxes over qualified gross income from 6% to 5% to determine excess
property taxes, (c) increasing the amount of the credit, including the
maximum credit from $350 to $1,500, and making the credit permanent.

Section 2. Effective date.

 
JUSTIFICATION:

One of the largest contributors to housing insecurity and loss of
affordable housing in New York State is high real property taxes. In
addition, high property taxes adversely impact the economic competitive-
ness of New York State.

The impact of high real property taxes has been exacerbated by the COVID
pandemic. The pandemic has accelerated adverse existing trends of
increasing housing costs and housing insecurity. It is imperative that
those trends be reversed in order to increase housing affordability and
security across the state. This goal can be aided by reducing the impact
of high real property taxes for families across the state.

In 2021, the State Legislature enacted Section 1 of Part III of chapter
59 providing for a real property tax relief credit. However, the income
requirements, the cap on the credit, the three (3) year sunset
provision, and other limitations of the credit, preclude many middle
class and working class families across New York State from benefitting
from the credit. Further, the size of the credit and the cap at $350,
provides only minimal relief for many from the often crushing burden of
property taxes.

By (a) increasing maximum income eligibility for the credit from
$250,000 of qualified gross income to $350,000, (b) decreasing the
percentage of real property taxes over qualified gross income from 6% to
5% to determine excess property taxes, (c) increasing the amount of the
credit, including the maximum credit from $350 to $1,500, and making the
credit permanent, more New Yorkers will be eligible for the credit and
the level of the credit will be greater, providing real property tax
relief to working families on a permanent basis.

The impact of this legislation will be to make housing more affordable
and New York State more economically competitive.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately, and shall apply to taxable years
beginning on or after January 1, 2022.

2021-S7624 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7624
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             December 22, 2021
                                ___________
 
 Introduced  by Sen. GAUGHRAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the tax law, in relation to improving the real  property
   tax relief credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subparagraph (E) of paragraph 1, paragraph 2, subparagraphs
 (A), (B) and (C) of paragraph 3, paragraph 4  and  subparagraph  (A)  of
 paragraph  6 of subsection (e-2) of section 606 of the tax law, as added
 by section 1 of part III of chapter 59 of the laws of 2021, are  amended
 to read as follows:
   (E)  "Excess  real  property  tax" means the excess of qualifying real
 property taxes over [six] FIVE percent of qualified gross income.
   (2) For tax years beginning on or after January  first,  two  thousand
 [twenty-one  and before January first, two thousand twenty-four] TWENTY-
 TWO, a qualified taxpayer shall be allowed a credit as provided in para-
 graph three of this subsection against the taxes imposed by  this  arti-
 cle. If the credit exceeds the tax for such year under this article, the
 excess  shall  be treated as an overpayment, to be credited or refunded,
 without interest.
   (A) For qualified taxpayers whose qualified gross income  is  seventy-
 five thousand dollars or less, the applicable percentage shall be [four-
 teen] TWENTY percent.
   (B)  For  qualified  taxpayers whose qualified gross income is greater
 than seventy-five thousand dollars but less than or equal to one hundred
 fifty thousand dollars, the applicable percentage shall be  the  differ-
 ence  between (i) [fourteen] TWENTY percent and (ii) five percent multi-
 plied by a fraction, the numerator of which is  the  difference  between
 the  qualified  taxpayer's  qualified  gross  income  as defined by this
 subsection and seventy-five thousand dollars,  and  the  denominator  of
 which is seventy-five thousand dollars.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13833-01-1

 S. 7624                             2
 
   (C)  For  qualified  taxpayers whose qualified gross income is greater
 than one hundred fifty thousand dollars but less than or equal to  [two]
 THREE hundred fifty thousand dollars, the applicable percentage shall be
 the  difference  between (i) [nine] FIFTEEN percent and (ii) six percent
 multiplied  by  a  fraction,  the  numerator  of which is the difference
 between the qualified taxpayer's qualified gross income and one  hundred
 fifty  thousand  dollars,  and  the  denominator  of  which is [one] TWO
 hundred thousand dollars.
   (4) [No credit shall be allowed under this subsection  if  the  amount
 determined  pursuant  to  paragraph three is less than two hundred fifty
 dollars, provided further that if] IF the amount determined pursuant  to
 paragraph  three is in excess of [three] FIFTEEN hundred [fifty] dollars
 the taxpayer shall be  allowed  a  credit  of  [three]  FIFTEEN  hundred
 [fifty] dollars.
   (A) To a property owner if qualified gross income for the taxable year
 exceeds [two] THREE hundred fifty thousand dollars.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2022.

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Senate Bill S7624

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

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co-Sponsors

2021-S7624 (ACTIVE) - Details

2021-S7624 (ACTIVE) - Summary

2021-S7624 (ACTIVE) - Sponsor Memo

2021-S7624 (ACTIVE) - Bill Text download pdf

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Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Actions

co-Sponsors

2021-S7624 (ACTIVE) - Details

2021-S7624 (ACTIVE) - Summary

2021-S7624 (ACTIVE) - Sponsor Memo

2021-S7624 (ACTIVE) - Bill Text download pdf

Comments