Senate Bill S10318

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10318
 
                             I N  S E N A T E
 
                               May 13, 2026
                                ___________
 
 Introduced  by Sen. BOTTCHER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to establishing  a  tax  credit
   for  same-sex  couples  re-recording their property deeds to reflect a
   change in status from tenants in common or joint tenants with right of
   survivorship to tenancy by the entirety; and providing for the  repeal
   of such provisions upon expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as  the  "Marriage
 Equality Deed Correction Tax Credit Act".
   §  2. Section 606 of the tax law is amended by adding a new subsection
 (uuu) to read as follows:
   (UUU) REAL PROPERTY RE-RECORDING CREDIT.  (1)  FOR  PURPOSES  OF  THIS
 SUBSECTION:
   (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO:
   (I) IS CURRENTLY A SPOUSE IN A SAME-SEX MARRIAGE;
   (II)  PRIOR  TO JUNE TWENTY-FOURTH, TWO THOUSAND ELEVEN, PURCHASED AND
 HAS CONTINUALLY OCCUPIED A RESIDENCE WITH THE PERSON WHO IS THE  TAXPAY-
 ER'S CURRENT SPOUSE;
   (III) RECORDED THE DEED TO SUCH RESIDENCE IN THE NAMES OF THE TAXPAYER
 AND THE TAXPAYER'S NOW-SPOUSE AS TENANTS IN COMMON OR JOINT TENANTS WITH
 RIGHT OF SURVIVORSHIP;
   (IV)  DURING  THE  CURRENT TAX YEAR, STILL OWNS AND OCCUPIES THE RESI-
 DENCE WITH THE PERSON WHO IS THE TAXPAYER'S CURRENT SPOUSE; AND
   (V) DURING THE CURRENT TAX YEAR, RECORDS A NEW DEED TO  THE  RESIDENCE
 IN THE NAMES OF THE TAXPAYER AND THE TAXPAYER'S NOW-SPOUSE AS TENANTS BY
 THE ENTIRETY.
   (B)  "ALLOWABLE  RECORDING  FEE" MEANS THE FEES AND COSTS CHARGED BY A
 CITY, TOWN OR COUNTY CLERK FOR THE RECORDING OF A QUALIFYING DEED.
   (C) "QUALIFYING DEED" MEANS A DEED  TO  REAL  PROPERTY  OWNED  BY  THE
 TAXPAYER AND THE TAXPAYER'S CURRENT SPOUSE THAT IS RECORDED FOR THE SOLE
 PURPOSE OF CHANGING THE STATUS OF THE TAXPAYER AND THE TAXPAYER'S SPOUSE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15165-02-6
              

 S. 10318                            2
 
 FROM  TENANTS  IN  COMMON OR JOINT TENANTS WITH RIGHT OF SURVIVORSHIP TO
 TENANTS BY THE ENTIRETY.
   (D) "RESIDENCE" MEANS A DWELLING IN THIS STATE OWNED BY A TAXPAYER AND
 THE  TAXPAYER'S  SPOUSE  AND  USED  BY  SUCH TAXPAYER AND THE TAXPAYER'S
 SPOUSE AS THEIR PRIMARY RESIDENCE, AND SO MUCH OF THE LAND  ABUTTING  IT
 AS  IS  REASONABLY  NECESSARY FOR USE OF THE DWELLING AS A HOME, AND MAY
 CONSIST OF A PART OF A MULTI-DWELLING OR MULTI-PURPOSE BUILDING  INCLUD-
 ING  A  COOPERATIVE  OR  CONDOMINIUM.  "RESIDENCE" INCLUDES A TRAILER OR
 MOBILE HOME, USED EXCLUSIVELY FOR RESIDENTIAL PURPOSES  AND  DEFINED  AS
 REAL PROPERTY PURSUANT TO PARAGRAPH (G) OF SUBDIVISION TWELVE OF SECTION
 ONE HUNDRED TWO OF THE REAL PROPERTY TAX LAW.
   (2) A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED IN THIS
 SUBSECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF CREDIT
 SHALL  BE  THE LESSER OF FIVE HUNDRED DOLLARS OR THE ALLOWABLE RECORDING
 FEE IMPOSED BY A TOWN CLERK OR COUNTY CLERK AND PAID BY THE TAXPAYER  TO
 RECORD A QUALIFYING DEED TO REAL PROPERTY.
   (3)  (A)  A  TAXPAYER MAY CLAIM THE CREDIT PROVIDED BY THIS SUBSECTION
 ONLY ONE TIME AND AS TO ONLY ONE RESIDENCE. IF A  TAXPAYER  HAS  CLAIMED
 THE  CREDIT ALLOWED UNDER THIS SUBSECTION, THE TAXPAYER'S SPOUSE MAY NOT
 CLAIM THE CREDIT AN ADDITIONAL TIME OR AS TO AN ADDITIONAL RESIDENCE.
   (B) ANY CREDIT CLAIMED UNDER THIS SUBSECTION SHALL  BE  DEDUCTED  FROM
 THE  COST  BASIS  OF  THE PROPERTY FOR PURPOSES OF CALCULATING GAIN UPON
 SALE OF THE PROPERTY.
   (4) NO CREDIT SHALL BE GRANTED UNDER THIS SUBSECTION:
   (A) TO A TAXPAYER IF THE COMBINED GROSS INCOME OF THE TAXPAYER AND THE
 TAXPAYER'S SPOUSE FOR THE TAXABLE YEAR EXCEEDS  THREE  HUNDRED  THOUSAND
 DOLLARS.
   (B) TO ANY COMMERCIAL PROPERTY.
   (C)  TO  A  TAXPAYER  UNLESS  THE  RESIDENCE IS USED AS THE TAXPAYER'S
 PRIMARY RESIDENCE.
   (D) 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.
   (E)  WITH  RESPECT  TO  A  RESIDENCE THAT IS WHOLLY EXEMPTED FROM REAL
 PROPERTY TAXATION.
   (F) TO AN INDIVIDUAL WHO IS NOT A RESIDENT INDIVIDUAL OF THE STATE FOR
 THE ENTIRE TAXABLE YEAR.
   (5) IN NO EVENT SHALL THE AMOUNT OF THE CREDIT HEREIN PROVIDED FOR  BE
 ALLOWED  IN EXCESS OF THE TAXPAYER'S TAX FOR SUCH YEAR, PROVIDED, HOWEV-
 ER, THAT IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY
 TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH  YEAR,  ANY  AMOUNT  OF
 CREDIT  NOT  DEDUCTIBLE  IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE
 FOLLOWING THREE YEARS AND MAY BE DEDUCTED FROM THE  TAXPAYER'S  TAX  FOR
 SUCH YEAR OR YEARS.
   §  3.  This  act shall take effect immediately, shall apply to taxable
 years beginning on or after January 1, 2027  and  shall  expire  and  be
 deemed repealed January 1, 2029; provided that the expiration and repeal
 of this act shall not affect the claiming of a tax credit as provided in
 section  two  of  this  act when filing income taxes for any year during
 which this act was in effect.