S T A T E   O F   N E W   Y O R K
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                                  1418

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced by M. of A. WRIGHT, GORDON, MILLMAN, EDDINGTON -- Multi-Spon-
  sored by -- M. of A.  BOYLAND, CLARK, HEASTIE, HYER-SPENCER, V. LOPEZ,
  PEOPLES,  PHEFFER,  TOWNS, WEISENBERG -- read once and referred to the
  Committee on Ways and Means

AN ACT to amend the tax law, in relation  to  benefits  and  eligibility
  under the real property tax circuit breaker credit

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraphs 1, 3 and 7 of subsection (e) of section  606  of
the  tax law, as amended by chapter 28 of the laws of 1987, subparagraph
(C) of paragraph 1 as amended by chapter 713 of the  laws  of  1996  and
subparagraph (E) of paragraph 1 as amended by chapter 105 of the laws of
2006, are amended to read as follows:
  (1) For purposes of this subsection:
  (A)  "Qualified taxpayer" means a resident individual of the state who
has occupied the same residence for six months or more  of  the  taxable
year, and is required or chooses to file a return under this article.
  (B)  "Household"  or  "members  of  the  household"  means a qualified
taxpayer and all other persons, not necessarily related,  who  have  the
same residence and share its furnishings, facilities and accommodations.
Such  terms shall not include a tenant, subtenant, roomer or boarder who
is not related to the qualified taxpayer  in  any  degree  specified  in
paragraphs  one  through  eight of subsection (a) of section one hundred
fifty-two of the internal revenue code. Provided, however, no person may
be a member of more than one household at one time.
  [(c)] (C) "Household gross income" means the aggregate adjusted  gross
income  of  all  ADULT  members of the household for the taxable year as
reported for federal income tax purposes, or which would be reported  as
adjusted gross income if a federal income tax return were required to be
filed,  with  the modifications in subsection (b) of section six hundred

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD00445-01-9

A. 1418                             2

twelve OF THIS ARTICLE but without the modifications in  subsection  (c)
of  such section, plus any portion of the gain from the sale or exchange
of property otherwise excluded from  such  amount;  earned  income  from
sources  without  the United States excludable from federal gross income
by section nine hundred eleven of the  internal  revenue  code;  support
money not included in adjusted gross income; nontaxable strike benefits;
supplemental  security  income payments; the gross amount of any pension
or annuity benefits to the extent not included in  such  adjusted  gross
income  (including, but not limited to, railroad retirement benefits and
all payments received under the federal social security act  and  veter-
ans'  disability  pensions); nontaxable interest received from the state
of New York, its agencies, instrumentalities,  public  corporations,  or
political  subdivisions (including a public corporation created pursuant
to agreement or compact with another state or Canada); workers'  compen-
sation;  the gross amount of "loss-of-time" insurance; and the amount of
cash public assistance and relief, other than medical assistance for the
needy, paid to or for the benefit of the qualified taxpayer  or  members
of his household. Household gross income shall not include surplus foods
or other relief in kind or payments made to individuals because of their
status  as  victims  of  Nazi  persecution  as  defined in P.L. 103-286.
Provided, further, household gross income shall only  include  all  such
income  received  by  all members of the household while members of such
household.  PROVIDED, FURTHER, THAT HOUSEHOLD  GROSS  INCOME  SHALL  NOT
INCLUDE  INCOME  OF HOUSEHOLD MEMBERS WHO ARE UNDER THE AGE OF EIGHTEEN,
OR INCOME OF HOUSEHOLD MEMBERS UNDER THE AGE OF TWENTY-ONE IF SUCH INDI-
VIDUALS ATTEND AN ACCREDITED COLLEGE OR UNIVERSITY AT LEAST PART-TIME.
  (D) "Residence" means a dwelling in this state, whether owned or rent-
ed, and so much of the land abutting it, not exceeding one acre,  as  is
reasonably  necessary for use of the dwelling as a home, and may consist
of a part of a multi-dwelling  or  multi-purpose  building  including  a
cooperative  or  condominium, and rental units within a single dwelling.
Residence includes a trailer or mobile home, used exclusively for  resi-
dential  purposes and defined as real property pursuant to paragraph (g)
of subdivision twelve of section one hundred two of  the  real  property
tax law.
  (E)  "Qualifying  real  property taxes" means all real property taxes,
special ad valorem levies and special assessments, exclusive  of  penal-
ties  and  interest, levied on the residence of a qualified taxpayer and
paid during the taxable year [less the credit claimed  under  subsection
(n-1)  of  this section]. In addition, for taxable years beginning after
December thirty-first, nineteen hundred eighty-four, a qualified taxpay-
er may elect to include any  additional  amount  that  would  have  been
levied in the absence of an exemption from real property taxation pursu-
ant to section four hundred sixty-seven of the real property tax law. If
tenant-stockholders  in  a  cooperative housing corporation have met the
requirements of section two hundred sixteen of the internal revenue code
by which they are allowed a deduction for real estate taxes, the  amount
of  taxes  so allowable, or which would be allowable if the taxpayer had
filed returns on a cash basis, shall be qualifying real property  taxes.
If  a  residence is owned by two or more individuals as joint tenants or
tenants in common, and one or more than one individual is not  a  member
of  the  household,  qualifying real property taxes is that part of such
taxes on the residence which reflects the ownership  percentage  of  the
qualified  taxpayer  and  members of his household. If a residence is an
integral part of a larger unit, qualifying real property taxes shall  be
limited  to  that  amount of such taxes paid as may be reasonably appor-

A. 1418                             3

tioned to such residence. If a household owns and occupies two  or  more
residences during different periods in the same taxable year, qualifying
real  property  taxes  shall  be the sum of the prorated qualifying real
property  taxes  attributable  to  the household during the periods such
household occupies each of such residences. If the  household  owns  and
occupies  a residence for part of the taxable year and rents a residence
for part of the same taxable year, it may include both the proration  of
qualifying real property taxes on the residence owned and the real prop-
erty  tax equivalent with respect to the months the residence is rented.
Provided, however,  for  purposes  of  the  credit  allowed  under  this
subsection,  qualifying  real property taxes may be included by a quali-
fied taxpayer only to the extent that such taxpayer  or  the  spouse  of
such  taxpayer  occupying  such  residence for six months or more of the
taxable year owns or has owned the residence and paid such taxes.
  (F) "Real property tax equivalent" means twenty-five  percent  of  the
adjusted  rent  actually  paid in the taxable year by a household solely
for the right of occupancy of its New York  residence  for  the  taxable
year.  If (i) a residence is rented to two or more individuals as coten-
ants, or such individuals share in the payment of a single rent for  the
right  of occupancy of such residence, and (ii) each of such individuals
is a member of a different household, one or more of  which  individuals
shares  such  residence, real property tax equivalent is that portion of
twenty-five percent of the adjusted rent paid in the taxable year  which
reflects that portion of the rent attributable to the qualified taxpayer
and the members of his household.
  (G)  "Adjusted rent" means rental paid for the right of occupancy of a
residence, excluding charges for heat, gas, electricity, furnishings and
board. Where charges for heat, gas, electricity, furnishing or board are
included in rental but where such charges and the amount thereof are not
separately set forth in a written  rental  agreement,  for  purposes  of
determining  adjusted  rent  the  qualified taxpayer shall reduce rental
paid as follows:
  (i) For heat, or heat and gas, deduct fifteen percent of rental paid.
  (ii) For heat, gas and electricity, deduct twenty  percent  of  rental
paid.
  (iii)  For  heat, gas, electricity and furnishings, deduct twenty-five
percent of rental paid.
  (iv) For heat, gas, electricity, furnishings and board,  deduct  fifty
percent of rental paid.
If  the  tax  commission  determines that the adjusted rent shown on the
return is excessive, the  tax  commission  may  reduce  such  rent,  for
purposes  of  the  computation of the credit, to an amount substantially
equivalent to rent for a comparable accommodation.
  (3) Determination of credit. (A)  For  qualified  taxpayers  who  have
attained  the  age of sixty-five years before the beginning of or during
the  taxable  year  the  amount  of  the  credit  allowable  under  this
subsection shall be fifty percent, or in the case of a qualified taxpay-
er  who has elected to include an additional amount pursuant to subpara-
graph (E) of paragraph one of this subsection, twenty-five  percent,  of
the  excess  of  real  property taxes or the excess of real property tax
equivalent determined as follows:

                                     Excess real property taxes are  the
                                     excess  of real property tax equiv-
                                     alent or the excess  of  qualifying
                                     real property taxes over  the  fol-

A. 1418                             4

If household gross income for the    lowing   percentage   of  household
taxable year is:                     gross income:
-----------------------------------  -----------------------------------
$3,000 or less                                      3 1/2
Over $3,000 but not over $5,000                     4
Over $5,000 but not over $7,000                     4 1/2
Over $7,000 but not over $9,000                     5
Over $9,000 but not over $11,000                    5 1/2
Over $11,000 but not over $14,000                   6
Over $14,000 [but not over $18,000]                 6 1/2

  Notwithstanding  the  foregoing  provisions, the maximum credit deter-
mined under this subparagraph may not exceed the  amount  determined  in
accordance with the following table:

If household gross income for the
taxable year is:                     The maximum credit is:
-----------------------------------  -----------------------------------
$1,000 or less                                      $375
Over $1,000 but not over $2,000                     $358
Over $2,000 but not over $3,000                     $341
Over $3,000 but not over $4,000                     $324
Over $4,000 but not over $5,000                     $307
Over $5,000 but not over $6,000                     $290
Over $6,000 but not over $7,000                     $273
Over $7,000 but not over $8,000                     $256
Over $8,000 but not over $9,000                     $239
Over $9,000 but not over $10,000                    $222
Over $10,000 but not over $11,000                   $205
Over $11,000 but not over $12,000                   $188
Over $12,000 but not over $13,000                   $171
Over $13,000 but not over $14,000                   $154
Over $14,000 but not over $15,000                   $137
Over $15,000 but not over $16,000                   $120
Over $16,000 but not over $17,000                   $103
Over $17,000 [but not over $18,000]                 $ 86

  (B)  For all other qualified taxpayers the amount of the credit allow-
able under this subsection shall be fifty percent of excess real proper-
ty taxes or the excess of the real property tax equivalent determined as
follows:

                                     Excess real property taxes are  the
                                     excess  of real property tax equiv-
                                     alent or the excess  of  qualifying
                                     real property taxes over  the  fol-
If household gross income for the    lowing   percentage   of  household
taxable year is:                     gross income:
-----------------------------------  -----------------------------------
$3,000 or less                                      3 1/2
Over $3,000 but not over $5,000                     4
Over $5,000 but not over $7,000                     4 1/2
Over $7,000 but not over $9,000                     5
Over $9,000 but not over $11,000                    5 1/2
Over $11,000 but not over $14,000                   6
Over $14,000 [but not over $18,000]                 6 1/2

A. 1418                             5

  Notwithstanding  the  foregoing  provisions, the maximum credit deter-
mined under this subparagraph may not exceed the  amount  determined  in
accordance with the following table:

If household gross income for the
taxable year is:                     The maximum credit is:
-----------------------------------  -----------------------------------
$1,000 or less                                      $75
Over $1,000 but not over $2,000                     $73
Over $2,000 but not over $3,000                     $71
Over $3,000 but not over $4,000                     $69
Over $4,000 but not over $5,000                     $67
Over $5,000 but not over $6,000                     $65
Over $6,000 but not over $7,000                     $63
Over $7,000 but not over $8,000                     $61
Over $8,000 but not over $9,000                     $59
Over $9,000 but not over $10,000                    $57
Over $10,000 but not over $11,000                   $55
Over $11,000 but not over $12,000                   $53
Over $12,000 but not over $13,000                   $51
Over $13,000 but not over $14,000                   $49
Over $14,000 but not over $15,000                   $47
Over $15,000 but not over $16,000                   $45
Over $16,000 but not over $17,000                   $43
Over $17,000 [but not over $18,000]                 $41

  (7) No credit shall be granted under this subsection:
  (A)  If  household gross income for the taxable year exceeds [eighteen
thousand dollars] TWO HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL.
  (B) To a property owner unless: (i) the property is used for  residen-
tial  purposes,  (ii) not more than twenty percent of the rental income,
if any, from the property is from rental for nonresidential purposes and
(iii) the property is occupied as a residence in whole or in part by one
or more of the owners of the property.
  (C) To a property owner who owns real  property,  the  full  value  of
which exceeds [eighty-five] TWO HUNDRED thousand dollars.
  (D)  [To] (I) IN A CITY WITH A POPULATION OF TWO MILLION OR MORE, TO a
tenant if the adjusted rent  for  the  residence  exceeds  [four]  EIGHT
hundred [fifty] dollars per month on average; OR (II) IN ALL OTHER AREAS
OF  THE STATE TO A TENANT IF THE ADJUSTED RENT FOR THE RESIDENCE EXCEEDS
SIX HUNDRED DOLLARS PER MONTH ON AVERAGE.
  (E) To an individual with respect to whom a deduction under subsection
(c) of section one hundred fifty-one of the  internal  revenue  code  is
allowable to another taxpayer for the taxable year.
  (F)  With  respect  to  a  residence that is wholly exempted from real
property taxation.
  (G) To an individual who is not a resident individual of the state for
the entire taxable year.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2009.