Allows municipalities to pass local laws granting a real property tax deferment to seniors.
TITLE OF BILL: An act to amend the real property tax law, in relation to allowing municipalities to pass a local law granting a tax deferment for persons sixty-five years of age or older
PURPOSE: To allow municipalities the ability to grant real property tax deferment for seniors.
SUMMARY OF PROVISIONS:
Section 1 adds a new section 467-g to the real property tax law to allow a county, city, town, or village to adopt a local law granting tax deferment to persons 65 years or older, after holding a public hearing. Provisions of the tax deferment are as follows:
* establishes the criteria for the tax deferment eligibility. It is available for property owners who are each 65 years of age or older, or siblings and spouses, in which one party is at least 65 years of age. Should the of-age spouse pass away, the deferment will not be rescinded if the surviving spouse is as least 62 years of age.
* Applicants for tax deferment must reapply annually, and not exceed a gross income of $70,000 per year
* The deferment must equal 75% of the applicant's tax obligation
* The amount of taxes deferred will accrue 3% interest rate, and will constitute a lien on the property; the applicant can cancel the deferment at any time
Section 2 establishes an effective date.
JUSTIFICATION: Seniors on fixed incomes often face the difficult task of paying for their necessities, and must sometimes choose between paying for food, medications, or their property taxes. With the changing and rising costs of real property tax, some seniors may be unable to immediately pay, and risk losing their homes, This poses a serious problem for not only seniors, but also neighbors and municipalities, who may face declining property values due to an increase in foreclosed homes in the area.
This legislation allows municipalities the option of deferring tax payments for seniors who are on a fixed income, allowing seniors to remain in their homes, and keeping communities stable and intact.
LEGISLATIVE HISTORY: None.
FISCAL & LOCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect on the one hundred eightieth day after it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 5409 2013-2014 Regular Sessions IN SENATE May 16, 2013 ___________Introduced by Sen. GIPSON -- 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 allowing muni- cipalities to pass a local law granting a tax deferment for persons sixty-five years of age or older 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. DEFERRAL OF REAL PROPERTY TAX FOR PERSONS SIXTY-FIVE YEARS OF AGE OR OLDER. 1. (A) AFTER A PUBLIC HEARING, THE GOVERNING BODY OF A COUNTY, CITY, TOWN OR VILLAGE MAY ADOPT A LOCAL LAW, GRANTING A TAX DEFERMENT FOR REAL PROPERTY OWNED AND OCCUPIED BY ONE OR MORE PERSONS, EACH OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OLDER, OR REAL PROPERTY OWNED AND OCCUPIED BY SPOUSES OR BY SIBLINGS, ONE OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OLDER. FOR PURPOSES OF THIS SECTION, "SIBLING" SHALL MEAN A BROTHER OR A SISTER, WHETHER RELATED THROUGH HALF BLOOD, WHOLE BLOOD OR ADOPTION. (B) APPLICATION FOR SUCH DEFERMENT SHALL BE MADE ANNUALLY BY THE OWNER OR OWNERS OF SUCH REAL PROPERTY. NO APPLICATION FOR SUCH DEFERMENT SHALL BE GRANTED TO ANY OWNER WITH A TOTAL INCOME EXCEEDING SEVENTY THOUSAND DOLLARS. FOR PURPOSES OF THIS SECTION, "INCOME" SHALL MEAN THE GROSS INCOME OF THE OWNER OR OWNERS OF SUCH PROPERTY FOR THE INCOME TAX YEAR IMMEDIATELY PRECEDING THE DATE OF APPLICATION FOR SUCH DEFERMENT AND SHALL INCLUDE SOCIAL SECURITY AND RETIREMENT BENEFITS, INTEREST, DIVI- DENDS, 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, NET RENTAL INCOME, EARNED INCOME FROM SALARY OR EARNINGS AND NET INCOME FROM SELF-EMPLOYMENT, BUT SHALL NOT INCLUDE A RETURN OF CAPITAL, GIFTS OR INHERITANCES. THE AGE OF EACH OWNER OF SUCH PROPERTY SHALL BE THE AGE OF SUCH PERSON AT THE COMMENCEMENT OF THEEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11000-02-3 S. 5409 2
MUNICIPALITY'S FISCAL YEAR FOR WHICH AN APPLICATION FOR TAX DEFERMENT IS MADE. 2. SUCH DEFERMENT SHALL EQUAL SEVENTY-FIVE PER CENTUM OF THE APPLI- CANT'S TAX OBLIGATION. 3. THE AMOUNT OF TAXES DEFERRED SHALL ACCRUE AGAINST SUCH PERSON, WITH A THREE PER CENTUM INTEREST RATE, AND SHALL, ON THE DATE SUCH DEFERMENT IS GRANTED, CONSTITUTE A LIEN AGAINST SUCH PROPERTY IN FAVOR OF THE APPROPRIATE MUNICIPAL CORPORATION. THE OWNER OR OWNERS OF SUCH PROPERTY, HAVING RECEIVED SUCH DEFERMENT PURSUANT TO THIS SECTION, MAY, AT ANY TIME, TERMINATE THE DEFERMENT AND REMOVE THE RESULTANT LIEN ON SAID PROPERTY BY PAYING IN FULL THE CUMULATIVE AMOUNT OF SUCH LIEN. 4. A TAX DEFERMENT GRANTED TO SPOUSES PURSUANT TO THIS SECTION, ONCE GRANTED, SHALL NOT BE RESCINDED SOLELY BECAUSE OF THE DEATH OF THE OLDER SPOUSE SO LONG AS THE SURVIVING SPOUSE IS AT LEAST SIXTY-TWO YEARS OF AGE. IN THE EVENT THAT THE SURVIVING SPOUSE IS LESS THAN SIXTY-TWO YEARS OF AGE, SUCH SURVIVING SPOUSE SHALL BE ELIGIBLE FOR THE TAX DEFERMENT UPON REACHING SIXTY-TWO YEARS OF AGE PROVIDED ALL OTHER ELIGIBILITY REQUIREMENTS ARE MET. 5. ANY PERSON WHO HAS ALREADY ATTAINED THE AGE OF SIXTY-FIVE YEARS OR OLDER IS ELIGIBLE FOR SUCH DEFERRAL AND SHALL BE ENTITLED TO A TAX DEFERMENT BASED ON THE TAX YEAR IMMEDIATELY PRECEDING THE EFFECTIVE DATE OF THIS SECTION. S 2. This act shall take effect on the one hundred eightieth day after it shall have become a law.