Exempts veteran disability payments from inclusion as income of persons sixty-five years of age or over to determine eligibility for a real property tax exemption.
BILL NUMBER:S362 REVISED 3/6/13
TITLE OF BILL: An act to amend the real property tax law, in relation to the senior citizen exemption and veteran disability compensation
PURPOSE OR GENERAL IDEA OF BILL: This bill deducts veterans' disability compensation used to calculate senior citizen real property tax exemptions.
SUMMARY OF SPECIFIC PROVISIONS: Paragraph (a) of subdivision 3 of section 467 of the Real Property Tax Law would be amended to eliminate veterans' disability compensation for purposes of determining income eligibility for the senior citizen exemption. Section one of the bill is a technical amendment incorporating a prior amendment to the paragraph.
JUSTIFICATION: Disabled United States armed forces members cannot deduct compensation payments for injuries received in war from their income when applying for the senior citizen exemption, even though such deductions are available to other applicants. This bill attempts to create equity within the system to all classes of applicants for the senior citizen tax exemption.
PRIOR LEGISLATIVE HISTORY: 2011: A.2277 Referred to Veterans Affairs 2012: S.6976 Died in Rules/A.2277 Referred to Veterans Affairs
FISCAL IMPLICATIONS: None to the state.
EFFECTIVE DATE: Immediately upon enactment and applies to assessment rolls commencing after the following January 1st; the technical amendment contained in section one of the bill shall be deemed to have been in effect since September 9, 2003.
STATE OF NEW YORK ________________________________________________________________________ 362 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. KENNEDY -- 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 the senior citizen exemption and veteran disability compensation THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (a) of subdivision 3 of section 467 of the real property tax law, as amended by chapter 259 of the laws of 2009, is amended to read as follows: (a) 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 exemption exceeds the sum of three thousand dollars, or such other sum not less than three thousand dollars nor more than twenty-six thousand dollars beginning July first, two thousand six, twenty-seven thousand dollars beginning July first, two thousand seven, twenty-eight thousand dollars beginning July first, two thousand eight, and twenty-nine thousand dollars beginning July first, two thousand nine, as may be provided by the local law, ordinance or resolution adopted pursuant to this section. Income tax year shall mean the twelve month period for which the owner or owners filed a federal personal income tax return, or if no such return is filed, the calendar year. Where title is vested in either the husband or the wife, their combined income may not exceed such sum, except where the husband or wife, or ex-husband or ex-wife is absent from the property as provided in subpar- agraph (ii) of paragraph (d) of this subdivision, then only the income of the spouse or ex-spouse residing on the property shall be considered and may not exceed such sum. Such income shall include social security and retirement benefits, interest, dividends, total gain from the sale or exchange of a capital asset which may be offset by a loss from the sale or exchange of a capital asset in the same income tax year, netEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00185-01-3 S. 362 2
rental income, salary or earnings, and net income from self-employment, but shall not include a return of capital, gifts, inheritances, VETERAN DISABILITY COMPENSATION, AS DEFINED IN TITLE 38 OF THE UNITED STATES CODE, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103-286 or monies earned through employment in the federal foster grandparent program and any such income shall be offset by all medical and prescription drug expenses actually paid which were not reimbursed or paid for by insurance, if the govern- ing board of a municipality, after a public hearing, adopts a local law, ordinance or resolution providing therefor. Furthermore, such income shall not include the proceeds of a reverse mortgage, as authorized by section six-h of the banking law, and sections two hundred eighty and two hundred eighty-a of the real property law; provided, however, that monies used to repay a reverse mortgage may not be deducted from income, and provided additionally that any interest or dividends realized from the investment of reverse mortgage proceeds shall be considered income. The provisions of this paragraph notwithstanding, such income shall not include veterans disability compensation, as defined in Title 38 of the United States Code provided the governing board of such municipality, after public hearing, adopts a local law, ordinance or resolution providing therefor. In computing net rental income and net income from self-employment no depreciation deduction shall be allowed for the exhaustion, wear and tear of real or personal property held for the production of income; S 2. This act shall take effect immediately and shall apply to those assessment rolls having a taxable status date on or after January first of the year next succeeding the year in which it shall have become a law.