S T A T E   O F   N E W   Y O R K
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                                  1529

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 2, 2009
                               ___________

Introduced  by  Sen. MORAHAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Aging

AN ACT to amend the real property tax law, in  relation  to  granting  a
  total  exemption  from  real property taxation for school tax purposes
  for certain persons seventy-five years of age or over

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  real  property  tax  law  is amended by adding a new
section 467-g to read as follows:
  S 467-G. PERSONS SEVENTY-FIVE YEARS OF AGE OR OVER. 1.   NOTWITHSTAND-
ING  ANY  INCONSISTENT  PROVISION OF SECTION FOUR HUNDRED SIXTY-SEVEN OF
THIS TITLE OR ANY OTHER PROVISION OF LAW, REAL PROPERTY OWNED BY ONE  OR
MORE  PERSONS EACH OF WHOM IS SEVENTY-FIVE YEARS OF AGE OR OVER, OR REAL
PROPERTY OWNED BY HUSBAND AND WIFE OR SIBLINGS, ONE OF WHOM IS  SEVENTY-
FIVE  YEARS OF AGE OR OVER AND THE YOUNGEST OWNER IS AT LEAST SIXTY-FIVE
YEARS OF AGE; SUCH PERSONS HAVE RESIDED IN THE SCHOOL  DISTRICT  FOR  AT
LEAST  THIRTY YEARS AND DO NOT HAVE ANY CHILDREN ENROLLED IN SUCH SCHOOL
DISTRICT SHALL BE EXEMPT FROM TAXATION BY ANY MUNICIPAL CORPORATION  FOR
SCHOOL  PURPOSES,  IN WHICH LOCATED, TO THE TOTAL EXTENT OF THE ASSESSED
VALUATION THEREOF PROVIDED THE GOVERNING  BOARD  OF  SUCH  MUNICIPALITY,
AFTER  PUBLIC  HEARING,  ADOPTS  A  LOCAL  LAW,  ORDINANCE OR RESOLUTION
PROVIDING THEREFOR.
  2. ALL OF THE PROVISIONS OF SECTION FOUR HUNDRED SIXTY-SEVEN  OF  THIS
TITLE  APPLICABLE  TO  THE  GRANTING  OF EXEMPTIONS FOR GENERAL, COUNTY,
CITY, TOWN, VILLAGE, OR SCHOOL PURPOSES INSOFAR AS SUCH  PROVISIONS  ARE
NOT INCONSISTENT WITH THE PROVISIONS OF THIS SECTION SHALL BE APPLICABLE
TO THE EFFECTUATING OF THE EXEMPTION PROVIDED IN THIS SECTION.
  3. (A) TO QUALIFY FOR EXEMPTION PURSUANT TO THIS SECTION, THE PROPERTY
MUST  BE  A ONE, TWO OR THREE FAMILY RESIDENCE, A FARM DWELLING OR RESI-
DENTIAL PROPERTY HELD IN CONDOMINIUM OR COOPERATIVE FORM  OF  OWNERSHIP.
IF  THE  PROPERTY  IS NOT AN ELIGIBLE TYPE OF PROPERTY, BUT A PORTION OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05340-01-9
              

S. 1529                             2

THE PROPERTY IS PARTIALLY USED BY THE OWNER AS A PRIMARY RESIDENCE, THAT
PORTION WHICH IS SO USED SHALL BE ENTITLED TO THE EXEMPTION PROVIDED  BY
THIS  SECTION;  PROVIDED THAT IN NO EVENT SHALL THE EXEMPTION EXCEED THE
ASSESSED VALUE ATTRIBUTABLE TO THAT PORTION.
  (B)  PRIMARY  RESIDENCE.  THE PROPERTY MUST SERVE AS THE PRIMARY RESI-
DENCE OF ONE OR MORE OF THE OWNERS THEREOF.
  (C) TRUSTS. IF LEGAL TITLE TO THE PROPERTY IS  HELD  BY  ONE  OR  MORE
TRUSTEES,  THE  BENEFICIAL  OWNER  OR  OWNERS SHALL BE DEEMED TO OWN THE
PROPERTY FOR PURPOSES OF THIS SUBDIVISION.
  (D) FARM DWELLINGS NOT OWNED BY THE RESIDENT. (I) IF  LEGAL  TITLE  TO
THE FARM DWELLING IS HELD BY AN S-CORPORATION OR BY A C-CORPORATION, THE
EXEMPTION  SHALL  BE GRANTED IF THE PROPERTY SERVES AS THE PRIMARY RESI-
DENCE OF A SHAREHOLDER OF SUCH CORPORATION.
  (II) IF THE LEGAL TITLE TO THE FARM DWELLING IS HELD BY A PARTNERSHIP,
THE EXEMPTION SHALL BE GRANTED IF THE PROPERTY  SERVES  AS  THE  PRIMARY
RESIDENCE OF ONE OR MORE OF THE PARTNERS.
  (III)  ANY  INFORMATION  DEEMED  NECESSARY TO ESTABLISH SHAREHOLDER OR
PARTNER STATUS FOR ELIGIBILITY PURPOSES SHALL BE CONSIDERED CONFIDENTIAL
AND EXEMPT FROM THE FREEDOM OF INFORMATION LAW.
  4. (A) THE COMBINED INCOME OF ALL OF THE OWNERS, AND  OF  ANY  OWNERS'
SPOUSES  RESIDING  ON THE PREMISES, MAY NOT EXCEED THE APPLICABLE INCOME
STANDARD SPECIFIED HEREIN.
  (I) FOR FINAL ASSESSMENT ROLLS TO BE COMPLETED PRIOR TO  TWO  THOUSAND
SIX,  ELIGIBILITY  FOR  THE EXEMPTION SHALL BE BASED UPON INCOME FOR THE
INCOME TAX YEAR IMMEDIATELY PRECEDING THE DATE OF MAKING APPLICATION FOR
THE EXEMPTION, AND THE INCOME STANDARD SHALL BE SIXTY THOUSAND DOLLARS.
  (II) FOR FINAL ASSESSMENT ROLLS TO BE COMPLETED IN TWO  THOUSAND  SIX,
ELIGIBILITY  FOR THE EXEMPTION SHALL BE BASED UPON INCOME FOR THE INCOME
TAX YEAR ENDING IN TWO THOUSAND FOUR, AND THE INCOME STANDARD  SHALL  BE
THE  PREVIOUSLY-APPLICABLE  INCOME  STANDARD  OF  SIXTY THOUSAND DOLLARS
INCREASED BY THE COST-OF-LIVING-ADJUSTMENT PERCENTAGE FOR  TWO  THOUSAND
FOUR.  FOR  PURPOSES  OF THIS COMPUTATION, THE COST-OF-LIVING-ADJUSTMENT
PERCENTAGE FOR TWO THOUSAND FOUR  SHALL  BE  EQUAL  TO  THE  "APPLICABLE
INCREASE  PERCENTAGE"  USED  BY THE UNITED STATES COMMISSIONER OF SOCIAL
SECURITY TO DETERMINE MONTHLY SOCIAL SECURITY BENEFITS  PAYABLE  IN  TWO
THOUSAND  FOUR  TO INDIVIDUALS, AS PROVIDED BY SUBSECTION (I) OF SECTION
FOUR HUNDRED FIFTEEN OF TITLE FORTY-TWO OF THE UNITED STATES CODE.
  (III) FOR FINAL ASSESSMENT ROLLS TO BE COMPLETED IN EACH ENSUING YEAR,
THE APPLICABLE INCOME TAX YEAR, COST-OF-LIVING-ADJUSTMENT PERCENTAGE AND
APPLICABLE INCREASE PERCENTAGE SHALL ALL BE ADVANCED BY  ONE  YEAR,  AND
THE  INCOME  STANDARD SHALL BE THE PREVIOUSLY-APPLICABLE INCOME STANDARD
INCREASED BY THE  NEW  COST-OF-LIVING-ADJUSTMENT  PERCENTAGE.  IF  THERE
SHOULD  BE  A  YEAR FOR WHICH THERE IS NO APPLICABLE INCREASE PERCENTAGE
DUE TO A GENERAL BENEFIT INCREASE AS DEFINED  BY  SUBDIVISION  THREE  OF
SUBSECTION (I) OF SECTION FOUR HUNDRED FIFTEEN OF TITLE FORTY-TWO OF THE
UNITED  STATES  CODE, THE APPLICABLE INCREASE PERCENTAGE FOR PURPOSES OF
THIS COMPUTATION SHALL BE DEEMED TO BE THE PERCENTAGE WHICH  WOULD  HAVE
YIELDED THAT GENERAL BENEFIT INCREASE.
  (IV) IN NO CASE SHALL AN INCOME STANDARD BE DECREASED FROM ONE ASSESS-
MENT ROLL TO THE NEXT.
  (V)  IF  THE INCOME STANDARD INITIALLY COMPUTED FOR AN ASSESSMENT ROLL
IS NOT EXACTLY EQUAL TO A MULTIPLE OF FIFTY DOLLARS, IT SHALL BE ROUNDED
UP TO THE NEXT HIGHER MULTIPLE OF FIFTY DOLLARS.
  (VI) IT SHALL BE THE RESPONSIBILITY OF THE  STATE  BOARD  TO  ANNUALLY
DETERMINE  ALL  INCOME  STANDARDS PURSUANT TO THIS SUBDIVISION BEGINNING
WITH FINAL ASSESSMENT ROLLS TO BE COMPLETED  IN  TWO  THOUSAND  SIX,  TO

S. 1529                             3

CAUSE  NOTICE  THEREOF TO BE PUBLISHED IN THE STATE REGISTER, TO DISSEM-
INATE NOTICE THEREOF TO ASSESSORS, COUNTY DIRECTORS OF REAL PROPERTY TAX
SERVICES, AND SUCH OTHER PARTIES AS IT MAY DEEM APPROPRIATE, AND TO POST
NOTICE THEREOF ON ITS WEBSITE.
  (B) THE TERM "INCOME" AS USED IN THIS SECTION SHALL MEAN THE "ADJUSTED
GROSS  INCOME" FOR FEDERAL INCOME TAX PURPOSES AS REPORTED ON THE APPLI-
CANT'S FEDERAL OR STATE INCOME TAX RETURN FOR THE APPLICABLE INCOME  TAX
YEAR,  SUBJECT  TO  ANY  SUBSEQUENT  AMENDMENTS OR REVISIONS, REDUCED BY
DISTRIBUTIONS, TO THE EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS  INCOME,
RECEIVED FROM AN INDIVIDUAL RETIREMENT ACCOUNT AND AN INDIVIDUAL RETIRE-
MENT ANNUITY; PROVIDED THAT IF NO SUCH RETURN WAS FILED FOR THE APPLICA-
BLE  INCOME TAX YEAR, "INCOME" SHALL MEAN THE ADJUSTED GROSS INCOME THAT
WOULD HAVE BEEN SO REPORTED IF SUCH A RETURN HAD BEEN FILED.
  (C) ANY INFORMATION OR DOCUMENTATION SUBMITTED  BY  THE  APPLICANT  IN
CONNECTION  WITH APPLICATIONS FOR OR RENEWAL OF THE EXEMPTION AUTHORIZED
UNDER THIS SECTION TO VERIFY INCOME, SHALL BE DEEMED  CONFIDENTIAL,  AND
THE ASSESSOR, ANY MUNICIPAL OFFICER OR MUNICIPAL EMPLOYEES ARE PROHIBIT-
ED  FROM  DISCLOSING  ANY  SUCH  INFORMATION,  EXCEPT FOR ANY DISCLOSURE
NECESSARY IN THE PERFORMANCE OF THEIR OFFICIAL  DUTIES,  AND  EXCEPT  AS
AUTHORIZED  BY  PARAGRAPH  (E)  OF  THIS  SUBDIVISION.  ANY UNAUTHORIZED
DISCLOSURE OF SUCH INFORMATION SHALL BE DEEMED A  VIOLATION  OF  SECTION
EIGHT HUNDRED FIVE-A OF THE GENERAL MUNICIPAL LAW.
  (D)  EFFECTIVE  WITH  APPLICATIONS FOR THE ENHANCED EXEMPTION ON FINAL
ASSESSMENT ROLLS TO BE COMPLETED IN TWO THOUSAND FOUR,  THE  APPLICATION
FORM  SHALL  INDICATE  THAT  THE  OWNERS OF THE PROPERTY AND ANY OWNERS'
SPOUSES RESIDING ON THE PREMISES MAY  AUTHORIZE  THE  ASSESSOR  TO  HAVE
THEIR  INCOME  ELIGIBILITY  VERIFIED  ANNUALLY  THEREAFTER  BY THE STATE
DEPARTMENT OF TAXATION AND FINANCE, IN LIEU OF FURNISHING COPIES OF  THE
APPLICABLE  INCOME  TAX  RETURN  OR RETURNS WITH THE APPLICATION. IF THE
OWNERS OF THE PROPERTY AND ANY OWNERS' SPOUSES RESIDING ON THE  PREMISES
ELECT  TO  PARTICIPATE IN THIS PROGRAM, WHICH SHALL BE KNOWN AS THE STAR
INCOME VERIFICATION PROGRAM, THEY MUST FURNISH THEIR TAXPAYER  IDENTIFI-
CATION  NUMBERS  IN  ORDER  TO  FACILITATE  MATCHING WITH RECORDS OF THE
DEPARTMENT OF TAXATION AND FINANCE. THEREAFTER, THEIR INCOME ELIGIBILITY
SHALL BE VERIFIED ANNUALLY BY  THE  STATE  DEPARTMENT  OF  TAXATION  AND
FINANCE  AND  THE  ASSESSOR  SHALL NOT REQUEST INCOME DOCUMENTATION FROM
THEM, UNLESS SUCH DEPARTMENT ADVISES  THE  ASSESSOR  THROUGH  THE  STATE
BOARD  THAT  THEY  DO  NOT  SATISFY  THE  APPLICABLE  INCOME ELIGIBILITY
REQUIREMENTS, OR THAT IT IS UNABLE TO  DETERMINE  WHETHER  THEY  SATISFY
THOSE REQUIREMENTS.
  (E)  THE  ASSESSOR  SHALL  FORWARD TO THE STATE BOARD, IN THE TIME AND
MANNER REQUIRED BY THE STATE BOARD, INFORMATION IDENTIFYING THE  PERSONS
WHO HAVE ELECTED TO PARTICIPATE IN THE STAR INCOME VERIFICATION PROGRAM.
THE  STATE  BOARD  SHALL  FORWARD  SUCH INFORMATION TO THE DEPARTMENT OF
TAXATION AND FINANCE IN THE MANNER PROVIDED BY  THE  AGREEMENT  EXECUTED
PURSUANT  TO SECTION ONE HUNDRED SEVENTY-ONE-K OF THE TAX LAW, AND SHALL
NOTIFY THE ASSESSOR OF THE RESPONSE OR RESPONSES IT RECEIVES  FROM  SUCH
DEPARTMENT  PURSUANT TO SUCH AGREEMENT. AFTER RECEIVING SUCH RESPONSE OR
RESPONSES, THE ASSESSING AUTHORITY SHALL CAUSE NOTICES TO BE  MAILED  TO
PARTICIPANTS.  INFORMATION  OBTAINED BY THE STATE BOARD IDENTIFYING SUCH
PERSONS, AND RESPONSES OBTAINED FROM SUCH DEPARTMENT SHALL BE  CONFIDEN-
TIAL  AND  SHALL  NOT  BE SUBJECT TO DISCLOSURE UNDER ARTICLE SIX OF THE
PUBLIC OFFICERS LAW.
  (F) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS (D) AND (E)  OF  THIS
SUBDIVISION,  WHICH ESTABLISH A STAR INCOME VERIFICATION PROGRAM, INCOME

S. 1529                             4

DOCUMENTATION MUST BE SUBMITTED TO THE ASSESSOR IN CONNECTION WITH  EACH
OF THE FOLLOWING:
  (I) INITIAL APPLICATIONS FOR THE ENHANCED STAR EXEMPTION;
  (II)  RENEWAL  APPLICATIONS  SUBMITTED BY A PERSON OR PERSONS WHO HAVE
NOT ELECTED TO PARTICIPATE IN THE STAR INCOME VERIFICATION PROGRAM;
  (III) APPLICATIONS THAT WOULD ALLOW AN ENHANCED  EXEMPTION  TO  RESUME
AFTER HAVING BEEN DISCONTINUED;
  (IV)  APPLICATIONS SUBMITTED BY A PERSON OR PERSONS WHO HAD PREVIOUSLY
QUALIFIED FOR THE ENHANCED EXEMPTION BUT NOT IN THE  ASSESSING  UNIT  IN
QUESTION; AND
  (V)  APPLICATIONS WITH RESPECT TO WHICH THE DEPARTMENT OF TAXATION AND
FINANCE HAS ADVISED THE ASSESSOR THROUGH THE  STATE  BOARD  THAT  IT  IS
UNABLE  TO  DETERMINE  WHETHER A PARTICIPANT OR PARTICIPANTS IN THE STAR
INCOME VERIFICATION PROGRAM SATISFY THE INCOME ELIGIBILITY REQUIREMENTS.
  S 2. This act shall take effect immediately and shall apply to assess-
ment rolls prepared on the basis of taxable status dates occurring on or
after the first of January next succeeding the date on  which  this  act
shall have become a law.