Authorizes localities to provide for an additional real property tax exemption for senior citizens who meet the income eligibility limits and other criteria to the extent of sixty percent of the assessed valuation of such real property.
TITLE OF BILL: An act to amend the real property tax law, in relation to providing an additional real property tax exemption for certain senior citizens
PURPOSE: The purpose of this bill is to provide relief from the burden of increasing real property taxes (RPT) for certain income eligible elderly individuals.
SUMMARY OF PROVISIONS: This bill would offer local governments the option to provide older New Yorkers who are homeowners with low-incomes a greater level of RPT relief than can presently be offered through the existing structure of the Senior Citizen RPT Exemption Program. Local governments would be granted the option to offer senior citizens with incomes of $22,000 or less a sixty percent RPT exemption. In addition, local governments would also be authorized to expand the sliding scale portion of the program by offering seniors citizens who have incomes of $23,000 an exemption of fifty-five percent.
Currently, local governments can only exempt eligible senior citizens who have incomes of $24,000 or less from paying fifty-percent of their RPTs. Also, presently the largest exemption available through the sliding scale portion of the program is forty-five percent and is available to senior citizens with an income of $25,000. This bill would not impact the income eligibility limits for exemptions currently available.
EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER: This bill would amend section 467 of the real property tax law.
JUSTIFICATION: Senior citizens living on fixed incomes across the State are shouldering an increasing amount of the real property tax burden each year. Since 1966, the maximum percentage of exemption local governments have been able to offer senior citizens has remained at 50%. In an attempt to provide older New Yorkers some additional relief from the burden of RPTs, the Legislature has permitted local governments the option to grant periodic increases in the maximum income eligibility limit for the 50% senior citizen RPT exemption. Currently, the income eligibility limit for this level of benefit is $24,000.
This proposal would authorize localities the option to offer a sixty and fifty-five percent RPT exemption to seniors with incomes below $22,000. Elderly homeowners with incomes less than the current maximum income eligibility limit are most at risk of premature dislocation from their homes as a result of increasing RPT rates and require the expansion of benefits as proposed in this bill.
LEGISLATIVE HISTORY: 2012: S.4365 - Referred to Aging. 2011: S.4365 Died on third reading. 2010: A.7934 - Referred to Real Property Taxation.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None to State.
EFFECTIVE DATE: Immediately; would apply to taxable years beginning on and after January 1, 2015.
STATE OF NEW YORK ________________________________________________________________________ 3595 2013-2014 Regular Sessions IN SENATE February 7, 2013 ___________Introduced by Sen. LANZA -- 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 providing an additional real property tax exemption for certain senior citizens THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 467 of the real property tax law is amended by adding a new subdivision 1-a to read as follows: 1-A. (A) ANY LOCAL LAW, ORDINANCE OR RESOLUTION ADOPTED PURSUANT TO PARAGRAPH (A) OF SUBDIVISION ONE OF THIS SECTION MAY BE AMENDED, OR A LOCAL LAW, ORDINANCE OR RESOLUTION MAY BE ADOPTED, TO PROVIDE AN EXEMPTION TO THE EXTENT OF SIXTY PERCENT OF THE ASSESSED VALUATION OF REAL PROPERTY IF THE INCOME OF THE OWNER OR THE COMBINED INCOME OF THE OWNERS OF THE PROPERTY FOR THE INCOME TAX YEAR IMMEDIATELY PRECEDING THE DATE OF MAKING APPLICATION FOR AN EXEMPTION EXCEEDS THE SUM OF THREE THOUSAND DOLLARS, OR SUCH OTHER SUM NOT LESS THAN THREE THOUSAND DOLLARS BUT NOT MORE THAN TWENTY-TWO THOUSAND DOLLARS, WHILE SATISFYING ALL OTHER ELIGIBILITY CRITERIA ESTABLISHED PURSUANT TO THIS SECTION. NO OWNER OR OWNERS OF PROPERTY ELIGIBLE FOR A REDUCTION IN THE ASSESSED VALUATION PURSUANT TO THIS SUBDIVISION SHALL BE ELIGIBLE FOR A FURTHER EXEMPTION PURSUANT TO THIS SECTION. (B) ANY LOCAL LAW, ORDINANCE OR RESOLUTION ADOPTED PURSUANT TO PARA- GRAPH (A) OF THIS SUBDIVISION MAY BE AMENDED, OR A LOCAL LAW, ORDINANCE OR RESOLUTION MAY BE ADOPTED, TO PROVIDE AN EXEMPTION SO AS TO INCREASE THE MAXIMUM INCOME ELIGIBILITY LEVEL OF SUCH MUNICIPAL CORPORATION AS PROVIDED IN THIS SUBDIVISION (REPRESENTED IN THE HEREINBELOW SCHEDULE AS M) TO THE EXTENT PROVIDED IN THE FOLLOWING SCHEDULE: ANNUAL INCOME PERCENTAGE OF ASSESSED VALUATION EXEMPT FROM TAXATIONEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03807-01-3 S. 3595 2
MORE THAN (M) BUT LESS THAN (M+ $1,000) 55% MORE THAN (M) BUT LESS THAN (M+ $2,000) 50% S 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2015.