Prohibits rescinding certain real property tax exemptions on real property owned by siblings

3 Co-sponsors

• Martin J. Golden
• Betty Little
• Thomas P. Morahan

Title of bill

An act to amend the real property tax law, in relation to not rescinding certain tax exemptions for real property owned by siblings

Purpose

To allow siblings who co-own property and are eligible for the enhanced School Tax Relief (STAR) Exemption and/or Senior Citizen Real Property Tax Exemption to continue to receive such exemption in the case of the death of one of the older sibling co-owners, so long as the surviving sibling is at least sixty-two years of age.

Summary of provisions

Amends sections 425(4)(a)(iii) and 467(1)(d) of the real property tax law to allow siblings who co-own property to continue to receive the exemptions provided under these sections in the event of the death of an older sibling co-owner, so long as the surviving sibling is at least sixty-two years of age.

Justification

Under existing law, a husband and wife who jointly own property and are eligible for the enhanced STAR Exemption and/or Senior Citizen Real Property Tax Exemption can continue to receive the exemption(s) in the event the older spouse dies and the surviving spouse is at least sixty-two years old. Although the law allows sibling co-owners of property to qualify for the enhanced STAR Exemption and Senior Citizen Real Property Tax Exemption as long as at least one of the siblings is age sixty-five or over and the income criteria is met, the existing law does not extend the benefit in regard to the death of an older spouse to a sibling. This is an inequitable situation. A surviving younger sibling co-owner should realize the same protection as a surviving spouse in the event of an older sibling. The death of a sibling is traumatic enough, without the added worry of additional financial strain and the prospect of not being able to maintain one's home due to property tax burdens. This bill seeks to address this unfair situation by extending the same protection to sibling co-owners as is provided to spouses.

Legislative history

S.515/A.819 of 2007/2008; Referred to Senate Aging Committee/Passed Assembly S.695 of 2005; Referred to Aging S.1517 of 2003/2004; Ordered to Third Reading in 2004 S.2116 of 2001/2002 S.7735 of 2000

Fiscal implications

This legislation, if enacted, would have no fiscal impact since it would allow certain older persons already receiving the exemptions provided under sections 425 and 467 of the real property tax law to continue to do so.

Effective date

Immediately.