Excludes social security income in computing eligibility for the tax exemption granted to persons 65 years of age or older.
TITLE OF BILL: An act to amend the real property tax law, in relation to excluding social security income from computing tax exemptions for persons sixty-five years of age or over
PURPOSE OR GENERAL IDEA OF BILL: This bill would exclude social security benefits when determining the gross income figure to be used in applications for exemption from real property taxes.
SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends section 467 of the real Property tax law by removing social security payments from the list currently considered income when determining eligibility for the real property tax exemption.
JUSTIFICATION: The receipt of social security benefits represents to many senior citizens a return of monies they contributed to the program during their working years. New York should not penalize seniors receiving those benefits by factoring their existence into the formula used to determine exemption eligibility. This legislation addresses this inequity by removing social security benefits from the income calculation formula.
PRIOR LEGISLATIVE HISTORY: 2009-10: A. 7279-B, Referred to Aging Committee 2007-08: A. 6882, Held for Consideration in Aging Committee 2005-06: A. 3378, Held for Consideration in Aging Committee 2003-04: A. 6650, Held for Consideration in Aging Committee 2001-02: A. 5456, Held for Consideration in Aging Committee 1999-00: A. 6729, Held for Consideration in Aging Committee 1997-98: A. 4990, Held for Consideration in Aging Committee
FISCAL IMPLICATIONS: None at the state level. Local governments would experience a slight increase in the number of exemptions as a result of lowered specification for gross income.
EFFECTIVE DATE: This act shall take effect on the second of January next succeeding the date on which it has become law, and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on and after such effective date.
STATE OF NEW YORK ________________________________________________________________________ 4346 2013-2014 Regular Sessions IN SENATE March 21, 2013 ___________Introduced by Sen. BOYLE -- 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 excluding social security income from computing tax exemptions for persons sixty-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. 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. LBD09579-01-3 S. 4346 2
rental income, salary or earnings, and net income from self-employment, but shall not include SOCIAL SECURITY, a return of capital, gifts, inheritances, 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 insur- ance, if the governing 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 proper- ty 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 on the second of January next succeed- ing the date on which it shall have become a law, and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on and after such effective date.