S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   877

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  M.  of A. GALEF, PAULIN, CAHILL, SPANO, GUNTHER, JAFFEE,
  LIFTON, J. RIVERA, P. RIVERA,  ZEBROWSKI,  SCHROEDER,  SCHIMEL,  KOLB,
  SAYWARD, BURLING, FINCH, GIGLIO, McDONOUGH -- Multi-Sponsored by -- M.
  of  A.  AMEDORE,  BARCLAY,  CALHOUN, CASTELLI, CONTE, CORWIN, DESTITO,
  DUPREY, GABRYSZAK, HAWLEY, HAYES, JORDAN, J. MILLER,  MOLINARO,  PHEF-
  FER,  RABBITT,  RAIA,  REILLY, SALADINO, SCARBOROUGH, SWEENEY, THIELE,
  TOBACCO -- read once and referred to the Committee on Ways and Means

AN ACT to amend the tax law, in relation to the school district property
  tax credit and establishing the  maximum  residential  real  property,
  personal income tax 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  of  subsection  (e)  of
section  606  of  the  tax law, as amended by chapter 105 of the laws of
2006, is 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 subsection
(n-1) of this section]. In addition, for taxable years  beginning  after
December thirty-first, nineteen hundred eighty-four, a qualified taxpay-
er  may  elect  to  include  any  additional amount that would have been
levied in the absence of an exemption from real property taxation pursu-
ant 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

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

                                                           LBD00142-01-1

A. 877                              2

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 reasonably appor-
tioned to such residence. If a household owns and occupies 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 household 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 prop-
erty 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  quali-
fied  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.
  S  2. Section 606 of the tax law is amended by adding a new subsection
(ss) to read as follows:
  (SS) MAXIMUM RESIDENTIAL REAL PROPERTY TAX  CREDIT.  (1)  DEFINITIONS.
FOR THE PURPOSES OF THIS SUBSECTION:
  (A)  "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO
OWNS THE RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE RESIDES,  AND  HAS
RESIDED IN SUCH RESIDENTIAL REAL PROPERTY FOR NOT LESS THAN FIVE YEARS.
  (B) "HOUSEHOLD" MEANS THE TAXPAYER OR TAXPAYERS AND ALL OTHER PERSONS,
NOT NECESSARILY RELATED, WHO ALL RESIDE IN THE RESIDENTIAL REAL PROPERTY
OWNED  BY  THE TAXPAYER OR TAXPAYERS, AND SHARE ITS FURNISHINGS, FACILI-
TIES AND ACCOMMODATIONS; PROVIDED THAT NO PERSON MAY BE A MEMBER OF MORE
THAN ONE HOUSEHOLD AT ONE TIME.
  (C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
OF ALL MEMBERS OF THE HOUSEHOLD FOR THE TAXABLE  YEAR  AS  REPORTED  FOR
FEDERAL  INCOME  TAX  PURPOSES,  OR  WHICH WOULD BE REPORTED AS ADJUSTED
GROSS INCOME IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO  BE  FILED,
WITH  THE  MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX HUNDRED TWELVE
OF THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF  SUCH
SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
ERTY  OTHERWISE  EXCLUDED  FROM  SUCH AMOUNT; EARNED INCOME FROM SOURCES
WITHOUT THE UNITED  STATES  EXCLUDABLE  FROM  FEDERAL  GROSS  INCOME  BY
SECTION  NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT MONEY
NOT INCLUDED IN  ADJUSTED  GROSS  INCOME;  NONTAXABLE  STRIKE  BENEFITS;
SUPPLEMENTAL  SECURITY  INCOME PAYMENTS; THE GROSS AMOUNT OF ANY PENSION
OR ANNUITY BENEFITS TO THE EXTENT NOT INCLUDED IN  SUCH  ADJUSTED  GROSS
INCOME  (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS AND
ALL PAYMENTS RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT  AND  VETER-
ANS'  DISABILITY  PENSIONS); NONTAXABLE INTEREST RECEIVED FROM THE STATE
OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES,  PUBLIC  CORPORATIONS,  OR
POLITICAL  SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT
TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS'  COMPEN-
SATION;  THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT OF
CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
NEEDY, PAID TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER  OR  MEMBERS
OF  HIS  OR  HER  HOUSEHOLD.  HOUSEHOLD  GROSS  INCOME SHALL NOT INCLUDE
SURPLUS FOODS OR OTHER RELIEF IN KIND OR PAYMENTS  MADE  TO  INDIVIDUALS

A. 877                              3

BECAUSE  OF  THEIR  STATUS  AS VICTIMS OF NAZI PERSECUTION AS DEFINED IN
PUBLIC LAW 103-286. PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME SHALL ONLY
INCLUDE ALL SUCH INCOME RECEIVED BY ALL MEMBERS OF THE  HOUSEHOLD  WHILE
MEMBERS OF SUCH HOUSEHOLD.
  (D)  "NET REAL PROPERTY TAX" MEANS THE REAL PROPERTY TAXES ASSESSED ON
THE RESIDENTIAL REAL PROPERTY OWNED AND  OCCUPIED  BY  THE  TAXPAYER  OR
TAXPAYERS AFTER ANY EXEMPTION OR ABATEMENT RECEIVED PURSUANT TO THE REAL
PROPERTY TAX LAW.
  (2) CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE
TAXES  IMPOSED  BY  THIS ARTICLE, EQUAL TO SEVENTY PERCENT OF THE AMOUNT
WHICH THE TAXPAYER'S NET REAL PROPERTY TAX EXCEEDS THE TAXPAYER'S  MAXI-
MUM  REAL  PROPERTY  TAX,  AS  DETERMINED  BY  PARAGRAPH  THREE  OF THIS
SUBSECTION, PROVIDED, HOWEVER, SUCH CREDIT SHALL NOT EXCEED  FIVE  THOU-
SAND  DOLLARS.  IF SUCH CREDIT EXCEEDS THE TAX FOR SUCH TAXABLE YEAR, AS
REDUCED BY THE OTHER CREDITS PERMITTED BY THIS  ARTICLE,  THE  QUALIFIED
TAXPAYER  MAY  RECEIVE, AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE OF
THE DEPARTMENT, SHALL PAY  AS  AN  OVERPAYMENT,  WITHOUT  INTEREST,  ANY
EXCESS BETWEEN SUCH TAX AS SO REDUCED AND THE AMOUNT OF THE CREDIT. IF A
QUALIFIED  TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION
SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A QUALIFIED TAXPAYER  MAY  NEVER-
THELESS  RECEIVE  AND  THE  COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE
DEPARTMENT, SHALL PAY AS AN OVERPAYMENT THE FULL AMOUNT OF  THE  CREDIT,
WITHOUT INTEREST.
  (3) MAXIMUM REAL PROPERTY TAX. (A) A QUALIFIED TAXPAYER'S MAXIMUM REAL
PROPERTY TAX SHALL BE DETERMINED AS FOLLOWS:
  (I)  IN  THE  CITY  OF  NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:

       HOUSEHOLD GROSS INCOME                   MAXIMUM REAL PROPERTY TAX

       ONE HUNDRED TWENTY THOUSAND              SIX PERCENT OF THE
       DOLLARS OR LESS                          HOUSEHOLD GROSS INCOME

       MORE THAN ONE HUNDRED                    SEVEN PERCENT OF
       TWENTY THOUSAND                          THE HOUSEHOLD
       DOLLARS, BUT                             GROSS INCOME
       LESS THAN OR EQUAL TO
       ONE HUNDRED SEVENTY-FIVE
       THOUSAND DOLLARS

       MORE THAN ONE HUNDRED                    EIGHT PERCENT OF
       SEVENTY-FIVE THOUSAND                    THE HOUSEHOLD
       DOLLARS, BUT LESS THAN                   GROSS INCOME
       OR EQUAL TO TWO HUNDRED
       FIFTY THOUSAND DOLLARS

       MORE THAN TWO HUNDRED                    NO LIMITATION.
       FIFTY THOUSAND
       DOLLARS
  (II) IN ALL OTHER COUNTIES IN THE STATE:

       HOUSEHOLD GROSS                          MAXIMUM REAL
       INCOME                                   PROPERTY TAX

       NINETY THOUSAND                          SIX PERCENT OF THE
       DOLLARS OR LESS                          HOUSEHOLD GROSS INCOME

A. 877                              4

       MORE THAN NINETY                         SEVEN PERCENT OF
       THOUSAND DOLLARS, BUT                    THE HOUSEHOLD
       LESS THAN OR EQUAL TO                    GROSS INCOME
       ONE HUNDRED FIFTY
       THOUSAND DOLLARS

       MORE THAN ONE HUNDRED                    EIGHT PERCENT OF
       FIFTY THOUSAND DOLLARS,                  THE HOUSEHOLD
       BUT LESS THAN OR EQUAL                   GROSS INCOME
       TO TWO HUNDRED FIFTY THOUSAND
       DOLLARS

       MORE THAN TWO HUNDRED FIFTY              NO LIMITATION.
       THOUSAND DOLLARS
  (B)  THE  THRESHOLDS OF HOUSEHOLD GROSS INCOME FOR ELIGIBILITY FOR THE
MAXIMUM REAL PROPERTY TAX CREDIT, ESTABLISHED  BY  SUBPARAGRAPH  (A)  OF
THIS PARAGRAPH, SHALL BE INDEXED FOR INFLATION.
  (4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS
SUBSECTION  IF  THE  QUALIFIED  TAXPAYER  CLAIMS  THE  REAL PROPERTY TAX
CIRCUIT BREAKER CREDIT, PURSUANT TO  SUBSECTION  (E)  OF  THIS  SECTION,
DURING THE TAXABLE YEAR.
  S  3. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law,  and  shall  apply  to
taxable years commencing on or after such date.