Assembly Bill A3442

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3442
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2023
                                ___________
 
 Introduced  by M. of A. STERN -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law,  in  relation  to  the  real  property  tax
   circuit breaker 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 and paragraphs 3 and  7  of
 subsection  (e)  of section 606 of the tax law, as amended by chapter 28
 of the laws of 1987 and subparagraph (E) of paragraph 1  as  amended  by
 chapter 105 of the laws of 2006, are amended to read as follows:
   (E)  "Qualifying  real  property taxes" means all real property taxes,
 special ad valorem levies and special assessments, exclusive  of  penal-
 ties  and  interest, levied on the residence of a qualified taxpayer and
 paid during the taxable year less the credit claimed  under  THE  FORMER
 subsection (n-1) of this section. [In addition, for taxable years begin-
 ning after December thirty-first, nineteen hundred eighty-four, a quali-
 fied taxpayer may elect to include any additional amount that would have
 been  levied  in the absence of an exemption from real property taxation
 pursuant to section four hundred sixty-seven of the  real  property  tax
 law.]  If  tenant-stockholders in a cooperative housing corporation have
 met the requirements of section two  hundred  sixteen  of  the  internal
 revenue  code  by  which  they  are  allowed a deduction for real estate
 taxes, the amount of taxes so allowable, or which would be allowable  if
 the taxpayer had filed returns on a cash basis, shall be qualifying real
 property  taxes.  If  a residence is owned by two or more individuals as
 joint tenants or tenants in common, and one or more than one  individual
 is not a member of the household, qualifying real property taxes is that
 part  of  such  taxes  on  the  residence  which  reflects the ownership
 percentage of the qualified taxpayer and members of his household. If  a
 residence is an integral part of a larger unit, qualifying real property
 taxes  shall  be  limited  to  that  amount of such taxes paid as may be
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02547-01-3
              

 A. 3442                             2
 
 reasonably apportioned to such residence. If a household owns and  occu-
 pies two or more residences during different periods in the same taxable
 year,  qualifying  real  property taxes shall be the sum of the prorated
 qualifying  real property taxes attributable to the household during the
 periods such household occupies each of such residences. If  the  house-
 hold  owns  and  occupies  a  residence for part of the taxable year and
 rents a residence for part of the same taxable year, it may include both
 the proration of qualifying real property taxes on the  residence  owned
 and  the  real  property  tax  equivalent with respect to the months the
 residence is rented. Provided,  however,  for  purposes  of  the  credit
 allowed  under  this  subsection,  qualifying real property taxes may be
 included by a qualified taxpayer only to the extent that  such  taxpayer
 or  the  spouse of such taxpayer occupying such residence for six months
 or more of the taxable year owns or has owned  the  residence  and  paid
 such  taxes.  PROVIDED  FURTHER, HOWEVER, QUALIFYING REAL PROPERTY TAXES
 SHALL NOT INCLUDE ANY PORTION OF A  REAL  PROPERTY  TAX  PAID  THAT  WAS
 SUBSEQUENTLY  RETURNED TO THE TAXPAYER BY A TAX CREDIT OR ANY OTHER REAL
 PROPERTY TAX REBATE INCLUDING, BUT NOT LIMITED TO, THE SCHOOL TAX RELIEF
 CREDIT UNDER SUBSECTION (EEE) OF THIS SECTION.
   (3) Determination of credit. (A)  For  qualified  taxpayers  who  have
 attained  the  age of sixty-five years before the beginning of or during
 the  taxable  year  the  amount  of  the  credit  allowable  under  this
 subsection shall be fifty percent, or in the case of a qualified taxpay-
 er  who has elected to include an additional amount pursuant to subpara-
 graph (E) of paragraph one of this subsection, twenty-five  percent,  of
 the  excess  of  real  property taxes or the excess of real property tax
 equivalent determined as follows:
 
                                      Excess real property taxes are the
                                      excess of real property tax equiv-
                                      alent or the excess of qualifying
                                      real property taxes over  the  fo-
 If household gross income for the    llowing percentage of household
 taxable year is:                     gross income:
 -----------------------------------  -----------------------------------
 [$3,000] $20,000 or less                            3 1/2
 Over [$3,000] $20,000 but not over                  4
 [$5,000] $30,000
 Over [$5,000] $30,000 but not over                  4 1/2
 [$7,000] $45,000
 Over [$7,000] $45,000 but not over                  5
 [$9,000] $65,000
 Over [$9,000] $65,000 but not over                  5 1/2
 [$11,000] $75,000
 Over [$11,000] $75,000 but not over                 6
 [$14,000] $85,000
 Over [$14,000] $85,000 but not over                 6 1/2
 [$18,000] $100,000
 
   Notwithstanding the foregoing provisions, the  maximum  credit  deter-
 mined  under  this  subparagraph may not exceed the amount determined in
 accordance with the following table:
 
 If household gross income for the
 taxable year is:                     The maximum credit is:
 -----------------------------------  -----------------------------------
 A. 3442                             3

 [$1,000] $5,000 or less                             $375
 Over [$1,000] $5,000 but not over                   $358
 [$2,000] $10,000
 Over [$2,000] $10,000 but not over                  $341
 [$3,000] $15,000
 Over [$3,000] $15,000 but not over                  $324
 [$4,000] $20,000
 Over [$4,000] $20,000 but not over                  $307
 [$5,000] $25,000
 Over [$5,000] $25,000 but not over                  $290
 [$6,000] $30,000
 Over [$6,000] $30,000 but not over                  $273
 [$7,000] $35,000
 Over [$7,000] $35,000 but not over                  $256
 [$8,000] $40,000
 Over [$8,000] $40,000 but not over                  $239
 [$9,000] $45,000
 Over [$9,000] $45,000 but not over                  $222
 [$10,000] $50,000
 Over [$10,000] $50,000 but not over                 $205
 [$11,000] $55,000
 Over [$11,000] $55,000 but not over                 $188
 [$12,000] $60,000
 Over [$12,000] $60,000 but not over                 $171
 [$13,000] $65,000
 Over [$13,000] $65,000 but not over                 $154
 [$14,000] $70,000
 Over [$14,000] $70,000 but not over                 $137
 [$15,000] $75,000
 Over [$15,000] $75,000 but not over                 $120
 [$16,000] $80,000
 Over [$16,000] $80,000 but not over                 $103
 [$17,000] $86,000
 Over [$17,000] $86,000 but not over                 $ 86
 [$18,000] $100,000
 
   (B)  For all other qualified taxpayers the amount of the credit allow-
 able under this subsection shall be fifty percent of excess real proper-
 ty taxes or the excess of the real property tax equivalent determined as
 follows:
 
                                      Excess real property taxes are the
                                      excess of real property tax equiv-
                                      alent or the excess of qualifying
                                      real property taxes over the
 If household gross income for the    following percentage of household
 taxable year is:                     gross income:
 -----------------------------------  -----------------------------------
 [$3,000] $20,000 or less                            3 1/2
 Over [$3,000] $20,000 but not over                  4
 [$5,000] $30,000
 Over [$5,000] $30,000 but not over                  4 1/2
 [$7,000] $45,000
 Over [$7,000] $45,000 but not over                  5
 [$9,000] $65,000
 A. 3442                             4
 
 Over [$9,000] $65,000 but not over                  5 1/2
 [$11,000] $75,000
 Over [$11,000] $75,000 but not over                 6
 [$14,000] $85,000
 Over [$14,000] $85,000 but not over                 6 1/2
 [$18,000] $100,000
 
   Notwithstanding  the  foregoing  provisions, the maximum credit deter-
 mined under this subparagraph may not exceed the  amount  determined  in
 accordance with the following table:
 
 If household gross income for the
 taxable year is:                     The maximum credit is:
 -----------------------------------  -----------------------------------
 [$1,000] $5,000 or less                             $75
 Over [$1,000] $5,000 but not over                   $73
 [$2,000] $10,000
 Over [$2,000] $10,000 but not over                  $71
 [$3,000] $15,000
 Over [$3,000] $15,000 but not over                  $69
 [$4,000] $20,000
 Over [$4,000] $20,000 but not over                  $67
 [$5,000] $25,000
 Over [$5,000] $25,000 but not over                  $65
 [$6,000] $30,000
 Over [$6,000] $30,000 but not over                  $63
 [$7,000] $35,000
 Over [$7,000] $35,000 but not over                  $61
 [$8,000] $40,000
 Over [$8,000] $40,000 but not over                  $59
 [$9,000] $45,000
 Over [$9,000] $45,000 but not over                  $57
 [$10,000] $50,000
 Over [$10,000] $50,000 but not over                 $55
 [$11,000] $55,000
 Over [$11,000] $55,000 but not over                 $53
 [$12,000] $60,000
 Over [$12,000] $60,000 but not over                 $51
 [$13,000] $65,000
 Over [$13,000] $65,000 but not over                 $49
 [$14,000] $70,000
 Over [$14,000] $70,000 but not over                 $47
 [$15,000] $75,000
 Over [$15,000] $75,000 but not over                 $45
 [$16,000] $80,000
 Over [$16,000] $80,000 but not over
 [$17,000] $86,000                                   $43
 Over [$17,000] $86,000 but not over                 $41
 [$18,000] $100,000
 
   (7) No credit shall be granted under this subsection:
   (A)  If household gross income for the taxable year exceeds [eighteen]
 ONE HUNDRED thousand dollars.
   (B) To a property owner unless: (i) the property is used for  residen-
 tial  purposes,  (ii) not more than twenty percent of the rental income,
 if any, from the property is from rental for nonresidential purposes and
 A. 3442                             5
 
 (iii) the property is occupied as a residence in whole or in part by one
 or more of the owners of the property.
   (C)  To  a  property  owner  who owns real property, the full value of
 which exceeds [eighty-five] ONE HUNDRED FIFTY thousand dollars.
   (D) To a tenant if the adjusted rent for the residence  exceeds  [four
 hundred fifty] ONE THOUSAND dollars per month on average.
   (E) To an individual with respect to whom a deduction under subsection
 (c)  of  section  one  hundred fifty-one of the internal revenue code is
 allowable to another taxpayer for the taxable year.
   (F) With respect to a residence that  is  wholly  exempted  from  real
 property taxation.
   (G) To an individual who is not a resident individual of the state for
 the entire taxable year.
   § 2. This act shall take effect immediately.