Relates to the definition of income.
TITLE OF BILL: An act to amend the private housing finance law, in relation to the definition of income
SUMMARY OF PROVISIONS: This bill would amend subdivision 29 of Section 2 of the Private Housing Finance Law to specifically provide that an individual's first $20,000 worth of Social Security and retirement benefits will not be included in the definition of "income".
JUSTIFICATION: The Federal Social Security Act amendments of 1983 provide that, for many retirees, a substantial portion of their social security benefits will be subject to federal income taxation for years beginning with 1984. These benefits have historically not been considered as "income", for purposes of the Private Housing Finance Law and should not be so treated now. This bill would ensure that these benefits will not be included in the computation of "annual income", which is used for determining eligibility and surcharges for Mitchell-Lama residents.
LEGISLATIVE HISTORY: 2012: S.2039 (Kruger)
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect on the thirteenth day after it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 6408 IN SENATE February 6, 2012 ___________Introduced by Sen. RIVERA -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT to amend the private housing finance law, in relation to the definition of income THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 29 of section 2 of the private housing finance law, as amended by chapter 280 of the laws of 1987, is amended to read as follows: 29. "Annual income" or "income". The total income as reported in the New York state income tax return, less such personal exemptions and deductions for medical expenses as are actually taken by the taxpayer AND LESS SOCIAL SECURITY AND RETIREMENT BENEFITS RECEIVED AND INCLUDED IN TAXABLE INCOME BUT NOT IN EXCESS OF TWENTY THOUSAND DOLLARS. Provided, however, that federal old age, survivors, and disability insurance benefits shall not be deemed income in articles two, four and eleven of this chapter. This definition shall be employed in articles two, four, eight and eleven of this chapter in the computation of "prob- able aggregate annual income" as therein defined. S 2. This act shall take effect on the thirtieth day after it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14409-01-2