Establishes the "caregiver's assistance act"; allows a personal income tax credit equal to twenty percent of qualified care expenses in an amount equal to or less than two thousand four hundred dollars for the taxable year that are paid by the taxpayer for the care of a qualifying senior family member; authorizes a basic or an enhanced (STAR) exemption on a pro-rated basis to property where a senior citizen residing with a taxpayer would otherwise meet the eligibility requirements, except for ownership requirements, and where, in the case of an enhanced exemption, the income of the senior and the spouse of the senior considered separately from the remainder of the household would meet the applicable income requirements; provides that such basic or an enhanced exemption shall be on a pro-rated basis.
TITLE OF BILL: An act to amend the tax law and the real property tax law, in relation to establishing the Caregiver's Assistance Act
PURPOSE OR GENERAL IDEA OF THE BILL: To provide tax credits and exemptions to aid those who provide informal, unpaid care of their elderly relatives.
SUMMARY OF PROVISIONS: The bill makes the following changes in State tax law:
Section 1. Short Title: Caregiver's Assistance Act.
Section 2. Adds a new subsection (gg) to section 606 of the tax law, to provide a refundable credit to qualified taxpayers who provide informal, unpaid care to senior family members. The credit amount is 20% of the first $2,400 spent by the taxpayer on behalf of a senior relative, plus $75 for any amount spent in excess of $240. The maximum credit is thus $555. A senior family member is a person who is 60 years old or older, who is related within the third degree of consanguinity and who resides in the taxpayer's home and whose New York adjusted gross income is $13,000 or less for a single person, or $20,000 or less for a married couple. The credit is not applicable to taxpayers whose adjusted gross income is $45,000 for a single taxpayer, or $60,000 for married taxpayers.
Section 3. Adds a new paragraph (d) to subdivision 4-a of section 425 of the real property tax law, to allow a pro-rated basic or enhanced STAR exemption that would apply if the senior owned the home to a residence in which a senior lives with taxpayer. The exemption would apply to that portion of the home used by the senior for living and the provision of care. Thus, in a 2,000 square foot house, if the senior member occupied one 1Ox12 room (120 square feet), and there was a second room used for the provision of care of equal size, the amount of the STAR exemption would be 12% of the total basic or enhanced exemption.
JUSTIFICATION: The largest amount of care provided to seniors in New York is provided by family. In the most reliable and recent study, "Informal, Unpaid, Care Giving To New York State Elders: A Telephone Survey, 2001," Center For Aging Policy Research, State University Of New York At Stonybrook, the number of caregivers is estimated at 734,000, or roughly 9.6% of the 7,650,000 households in New York, providing an average of 22 hours of care per week. The study estimates the value of this care at $11.2 billion annually. These are charges and costs which the State does not now bear.
The purpose of this legislation is to provide not only a recognition of what has been termed the "love-equity" provided by these care givers for their senior relatives, but also to provide an incentive for more families
to provide the care, and to encourage families currently providing the care to continue to do so for longer periods.
LEGISLATIVE HISTORY: S.6004 of 2004 - Reported to Finance, then passed as part of larger Senate Tax Package S.1194 of 2005/06 - Aging, Finance S.459 - 2007-08 - Finance S.1574 - 2009-10 - Finance
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: January 1, after it becomes law.
STATE OF NEW YORK ________________________________________________________________________ 884 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________Introduced by Sens. GOLDEN, FUSCHILLO, LARKIN, MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law and the real property tax law, in relation to establishing the Caregiver's Assistance Act THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Short title. This act shall be known and may be cited as the "Caregiver's Assistance Act". S 2. Section 606 of the tax law is amended by adding a new subsection (ss) to read as follows: (SS) ELDER CARE CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED UNDER SECTION SIX HUNDRED ONE OF THIS PART EQUAL TO TWENTY PERCENT OF QUALIFIED CARE EXPENSES IN AN AMOUNT EQUAL TO OR LESS THAN TWO THOUSAND FOUR HUNDRED DOLLARS FOR THE TAXABLE YEAR THAT ARE PAID BY THE TAXPAYER FOR THE CARE OF A QUALIFYING SENIOR FAMILY MEMBER. A TAXPAYER WITH QUALIFIED CARE EXPENSES PURSUANT TO THE PRECED- ING SENTENCE WHICH ARE EQUAL TO OR IN EXCESS OF TWO HUNDRED FORTY DOLLARS FOR ANY TAXABLE YEAR SHALL RECEIVE AN ADDITIONAL SEVENTY-FIVE DOLLAR CREDIT AGAINST THE TAX IMPOSED UNDER SECTION SIX HUNDRED ONE OF THIS PART. IF THE CREDIT OR CREDITS PROVIDED PURSUANT TO THIS SECTION EXCEED THE TAX FOR SUCH TAXABLE YEAR, THE TAXPAYER MAY RECEIVE, AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE COMMISSIONER, SHALL PAY AS AN OVERPAYMENT, WITHOUT INTEREST, ANY EXCESS BETWEEN SUCH TAX AS SO REDUCED AND THE AMOUNT OF THE CREDITOR CREDITS. IF A TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED ONE OF THIS PART, A TAXPAYER MAY NEVERTHELESS RECEIVE AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE COMMISSIONER, SHALL PAY AS AN OVERPAYMENT THE FULL AMOUNT OF THE CREDIT OR CREDITS, WITHOUT INTEREST. NO CREDIT SHALL BE GRANTED UNDER THIS SUBSECTION IF NEW YORK ADJUSTED GROSS INCOME ISEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04415-01-1 S. 884 2
GREATER THAN FORTY-FIVE THOUSAND DOLLARS FOR A SINGLE TAXPAYER OR SIXTY THOUSAND DOLLARS FOR MARRIED TAXPAYERS, OR IF THE TAXPAYER HAS TAKEN THE CREDIT FOR CERTAIN HOUSEHOLD AND DEPENDENT CARE SERVICES AUTHORIZED IN THIS SECTION. (2) AS USED IN THIS SUBSECTION: (A) "TAXPAYER" IS A RESIDENT INDIVIDUAL OF THIS STATE WHO IS REQUIRED OR CHOOSES TO FILE A RETURN UNDER THIS ARTICLE, BUT THE TERM DOES NOT INCLUDE A NONRESIDENT TAXPAYER OR A PART-YEAR RESIDENT TAXPAYER. (B) "QUALIFYING SENIOR FAMILY MEMBER" IS A RELATIVE OF THE TAXPAYER WITHIN THE THIRD DEGREE OF CONSANGUINITY WHO RESIDES WITH THE TAXPAYER AND WHO IS SIXTY YEARS OR OLDER AND WHOSE NEW YORK ADJUSTED GROSS INCOME IS THIRTEEN THOUSAND DOLLARS OR LESS FOR A SINGLE FAMILY MEMBER OR TWEN- TY THOUSAND OR LESS FOR MARRIED FAMILY MEMBERS. A QUALIFYING SENIOR FAMILY MEMBER INCLUDES A PERSON WHO OTHERWISE MEETS THE QUALIFICATIONS SPECIFIED IN THE PRECEDING SENTENCE BUT WHO OCCUPIES A SEPARATE ROOM OR ROOMS IN OR AT THE RESIDENCE OF THE TAXPAYER, SUCH AS THOSE COMMONLY REFERRED TO AS MOTHER-IN-LAW APARTMENTS, BUT SHALL NOT INCLUDE A TENANT, SUBTENANT, ROOMER OR BOARDER WHO PAYS A LEASE OR RENTAL FEE TO THE TAXPAYER FOR THE SPACE. (C) "QUALIFIED CARE EXPENSES" ARE PAYMENTS MADE BY THE TAXPAYER FOR GOODS AND SERVICES NECESSARY TO ALLOW THE QUALIFYING SENIOR FAMILY MEMBER TO BE MAINTAINED IN THE TAXPAYER'S RESIDENCE WHICH GOODS AND SERVICES ARE: (I) PROVIDED TO OR FOR THE BENEFIT OF THE QUALIFYING SENIOR FAMILY MEMBER OR TO ASSIST THE TAXPAYER IN CARING FOR THE QUALI- FYING SENIOR FAMILY MEMBER; OR PROVIDED BY AN ORGANIZATION OR AN INDI- VIDUAL NOT RELATED TO THE TAXPAYER OR THE QUALIFYING SENIOR FAMILY MEMBER; AND (II) NOT COMPENSATED FOR BY INSURANCE OR FEDERAL OR STATE PROGRAMS. SUCH EXPENSES INCLUDE, BUT ARE NOT LIMITED TO, HOME HEALTH AGENCY SERVICES, ADULT DAY CARE, COMPANIONSHIP SERVICES, PERSONAL CARE ATTENDANT SERVICES, HOMEMAKER SERVICES, RESPITE CARE, HEALTH CARE EQUIP- MENT AND SUPPLIES, HOME MODIFICATION, OR ANY SERVICES NECESSARY TO PROVIDE HELP IN TWO OR MORE ACTIVITIES IN DAILY LIVING, OR FOR THE PROVISION OF ASSISTIVE DEVICES. (3) WHEN TWO OR MORE MEMBERS OF A HOUSEHOLD MEET THE QUALIFICATIONS FOR A CREDIT OR CREDITS PURSUANT TO THIS SUBSECTION, THE CREDIT OR CRED- ITS SHALL BE EQUALLY DIVIDED BETWEEN OR AMONG SUCH INDIVIDUALS UNLESS SUCH INDIVIDUALS FILE WITH THE COMMISSIONER A WRITTEN AGREEMENT SETTING FORTH A DIFFERENT DIVISION. WHERE A JOINT INCOME TAX RETURN HAS BEEN FILED PURSUANT TO THIS CHAPTER BY A TAXPAYER AND HIS OR HER SPOUSE (OR WHERE BOTH SPOUSES ARE TAXPAYERS AND HAVE FILED SUCH JOINT RETURN), WHO QUALIFY FOR SUCH CREDIT OR CREDITS, THE CREDIT OR CREDITS, OR THE PORTION THEREOF IF DIVIDED, TO WHICH THE HUSBAND AND WIFE ARE ENTITLED SHALL BE APPLIED AGAINST THE TAX OF BOTH SPOUSES AND ANY OVERPAYMENT SHALL BE MADE TO BOTH SPOUSES. WHERE ANY RETURN REQUIRED TO BE FILED PURSUANT TO THIS CHAPTER IS COMBINED WITH ANY RETURN OF TAX IMPOSED PURSUANT TO THE AUTHORITY OF THIS CHAPTER OR ANY OTHER LAW IF SUCH TAX IS ADMINISTERED BY THE COMMISSIONER, THE CREDIT OR CREDITS OR THE PORTION OF THEREOF IF DIVIDED, ALLOWED TO THE TAXPAYER MAY BE APPLIED BY THE COMMISSIONER TOWARD ANY LIABILITY FOR THE AFOREMENTIONED TAXES. (4) NO CREDIT OR CREDITS OR PORTION THEREOF SHALL BE GRANTED UNDER THIS SUBSECTION WITH RESPECT TO CARE PROVIDED IN A RESIDENCE THAT IS WHOLLY EXEMPTED FROM REAL PROPERTY TAXATION OR TO AN INDIVIDUAL WHO IS NOT A RESIDENT INDIVIDUAL OF THE STATE FOR THE ENTIRE TAXABLE YEAR. THE RIGHT TO CLAIM A CREDIT OR CREDITS OR A PORTION THEREOF, WHERE SUCH CREDIT OR CREDITS HAVE BEEN DIVIDED UNDER THIS SUBSECTION, SHALL BE PERSONAL TO THE QUALIFIED TAXPAYER AND SHALL NOT SURVIVE HIS OR HERS. 884 3
DEATH, BUT SUCH RIGHT MAY BE EXERCISED ON BEHALF OF A CLAIMANT BY HIS OR HER LEGAL GUARDIAN OR ATTORNEY IN FACT DURING HIS OR HER LIFETIME. (5) THE COMMISSIONER MAY REQUIRE A TAXPAYER TO FURNISH AS SUPPORT OF HIS OR HER CLAIM FOR CREDIT UNDER THIS SUBSECTION RECEIPTS FOR QUALIFIED CARE EXPENSES OR OTHER SUCH PROOFS OF PAYMENT AS SHALL SATISFY THE COMMISSIONER. S 3. Subdivision 4-a of section 425 of the real property tax law is amended by adding a new paragraph (d) to read as follows: (D) A BASIC OR AN ENHANCED EXEMPTION SHALL BE PROVIDED ON A PRO-RATED BASIS TO PROPERTY WHERE A SENIOR CITIZEN RESIDING WITH A TAXPAYER WOULD OTHERWISE MEET THE ELIGIBILITY REQUIREMENTS SET FORTH IN SUBDIVISIONS THREE AND/OR FOUR OF THIS SECTION, EXCEPT FOR OWNERSHIP REQUIREMENTS, AND WHERE, IN THE CASE OF AN ENHANCED EXEMPTION, THE INCOME OF THE SENIOR AND THE SPOUSE OF THE SENIOR CONSIDERED SEPARATELY FROM THE REMAINDER OF THE HOUSEHOLD WOULD MEET THE INCOME REQUIREMENTS SET FORTH IN SUBDIVISION FOUR OF THIS SECTION. SUCH BASIC OR AN ENHANCED EXEMPTION SHALL BE PROVIDED ON A PRO-RATED BASIS TO THE PROPERTY AS FOLLOWS: MULTIPLY THE EXEMPTION THAT WOULD BE GRANTED TO THE PROPERTY AS A WHOLE IF THE PROPERTY WERE ELIGIBLE FOR THE BASIC OR THE ENHANCED EXEMPTION, AS APPLICABLE, BY A FRACTION, THE NUMERATOR OF WHICH IS THE SQUARE FOOTAGE OF THE ROOM OR ROOMS USED BY SUCH SENIOR FAMILY MEMBER FOR LIVING SPACE, AND THE DENOMINATOR OF WHICH IS THE TOTAL SQUARE FOOTAGE OF THE RESIDENCE. EXCEPT AS PROVIDED IN THIS PARAGRAPH, OR AS INCONSIST- ENT WITH THE PURPOSES OF THIS PARAGRAPH, ALL OTHER REQUIREMENTS OF THIS SECTION SHALL BE APPLICABLE TO SUCH PRO-RATES BASIC OR ENHANCED EXEMPTION. S 4. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law.