Establishes a personal income tax credit for a portion of a taxpayer's residential real property taxes which exceeds a certain percentage of the taxpayer's household gross income; provides that the taxpayer shall have resided in such residential real property for not less than 10 years; provides that such credit shall not apply to taxpayers whose household gross income exceeds $250,000 or who have received the school tax relief exemption on such real property.
Law Section: Tax Law
Law: Amd S606, Tax L
Co-sponsor(s): HASSELL-THOMPSONCommittee: INVESTIGATIONS AND GOVERNMENT OPERATIONS
Law Section: Tax Law
Law: Amd S606, Tax L
- Jan 9, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
BILL NUMBER:S1421 TITLE OF BILL: An act to amend the tax law, in relation to establishing the maximum residential real property, personal income tax credit PURPOSE: To place a limit on the real property tax for certain property owners and provide a personal income tax credit for certain property taxpayers. SUMMARY OF PROVISIONS: Section 1 - adds a new subsection to section 606 to the tax law to provide for a maximum real property tax credit for the following household gross incomes: $25,000 or less, four percent of the household gross income; more than $25,000, but less than or equal to $50,000, five percent of the household gross income; more than $50,000 but less than or equal to 100,000, six percent of the household gross income; more than $100,000 but less than or equal to $150,000, seven percent of the household gross income; more than $150,000, but less than or equal to $200,000 eight percent of the household gross income; and more than $200,000, but less than or equal to $250,000, nine percent of the household gross income. To qualify, the taxpayer must have resided in the home for not less than ten years and must forfeit any benefit from the STAR program. The credit will equal seventy percent of the taxes paid over the allowed percentage cap as provided in the bill. Section 2 - contains the effective. date. JUSTIFICATION: With the increased reliance on the property tax for local government revenue, some homeowners are facing skyrocketing property tax bills and the prospect of selling their homes. This legislation seeks to establish a cap on the maximum real property tax paid for New Yorkers who have an household adjusted gross income of $250,000 or less. This proposal is a immediate solution to the serious problem of high property taxes. LEGISLATIVE HISTORY: First introduced in 2007. 2011-2012; S.1796 - Died in Committee FISCAL IMPLICATIONS: To be determined. EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date on which it shall have become a law, and shall apply to taxable years commencing on or after such date.
S T A T E O F N E W Y O R K ________________________________________________________________________ 1421 2013-2014 Regular Sessions I N SENATE (PREFILED) January 9, 2013 ___________ Introduced by Sens. MONTGOMERY, HASSELL-THOMPSON -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law, in relation to 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. Section 606 of the tax law is amended by adding a new subsection (vv) to read as follows:
(VV) 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 TEN 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; PROVIDED THAT SUCH TERM 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- EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04018-01-3 S. 1421 2 MUM REAL PROPERTY TAX, AS DETERMINED BY PARAGRAPH THREE OF THIS SUBSECTION. 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 QUALIFIED TAXPAYER'S MAXIMUM REAL PROPERTY TAX SHALL BE DETERMINED AS FOLLOWS:
HOUSEHOLD GROSS INCOME MAXIMUM REAL PROPERTY TAX LESS THAN TWENTY-FIVE FOUR PERCENT OF THE THOUSAND DOLLARS HOUSEHOLD GROSS INCOME MORE THAN TWENTY-FIVE FIVE PERCENT OF THE THOUSAND DOLLARS, BUT HOUSEHOLD GROSS INCOME LESS THAN OR EQUAL TO FIFTY THOUSAND DOLLARS MORE THAN FIFTY THOUSAND SIX PERCENT OF THE DOLLARS, BUT LESS THAN OR HOUSEHOLD GROSS INCOME EQUAL TO ONE HUNDRED THOUSAND DOLLARS MORE THAN ONE HUNDRED 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 THOUSAND DOLLARS MORE THAN TWO HUNDRED NINE PERCENT THOUSAND DOLLARS, BUT OF THE HOUSE- LESS THAN OR EQUAL TO HOLD GROSS TWO HUNDRED FIFTY INCOME THOUSAND DOLLARS MORE THAN TWO HUNDRED NO LIMITATION FIFTY THOUSAND DOLLARS (4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS SUBSECTION:
(A) IF THE QUALIFIED TAXPAYER'S HOUSEHOLD GROSS INCOME EXCEEDS TWO HUNDRED FIFTY THOUSAND DOLLARS; OR S. 1421 3 (B) THE QUALIFIED TAXPAYER RECEIVED THE SCHOOL TAX RELIEF EXEMPTION, PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW, DURING THE TAXABLE YEAR. S 2. 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.