S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4642
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2019
                                ___________
 
 Introduced  by  M. of A. WRIGHT, ENGLEBRIGHT, ABBATE, BENEDETTO, CAHILL,
   COLTON, DINOWITZ, GUNTHER, LUPARDO,  M. G. MILLER  --  read  once  and
   referred to the Committee on Veterans' Affairs
 
 AN  ACT  to  amend  the real property tax law, in relation to the senior
   citizen exemption and veteran disability compensation

   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 separately amended by chapters 131 and 279  of  the
 laws of 2017, 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,
 twenty-nine  thousand  dollars  beginning July first, two thousand nine,
 and in a city with a population of one million or  more  fifty  thousand
 dollars beginning July first, two thousand seventeen, 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 subparagraph (ii) of paragraph (d) of
 this subdivision, then only the income of the spouse or ex-spouse resid-
 ing 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00593-02-9

 A. 4642                             2
 
 asset which may be offset by a loss from the sale or exchange of a capi-
 tal  asset  in  the  same  income tax year, net rental income, salary or
 earnings, and net income from self-employment, but shall not  include  a
 return of capital, gifts, inheritances, VETERAN DISABILITY COMPENSATION,
 AS DEFINED IN TITLE 38 OF THE UNITED STATES CODE, payments made to indi-
 viduals  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 insurance, if the governing board of a
 municipality, after a public hearing, adopts a local law,  ordinance  or
 resolution  providing  therefor.  In addition, an exchange of an annuity
 for an annuity contract, which resulted in non-taxable gain,  as  deter-
 mined  in section one thousand thirty-five of the internal revenue code,
 shall be excluded from such income. Provided that such  exclusion  shall
 be  based  on  satisfactory  proof  that  such an exchange was solely an
 exchange of an annuity for an annuity contract that resulted in  a  non-
 taxable  transfer  determined  by  such  section of the internal revenue
 code. 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;
   § 2. This act shall take effect immediately and shall apply  to  those
 assessment  rolls having a taxable status date on or after January first
 of the year next succeeding the year in which it  shall  have  become  a
 law.