Increases income eligibility standard for the age 65 and over exemption and excludes increases in certain pensions from calculation of income

9 Co-sponsors

• John A. DeFrancisco
• Martin J. Golden
• Joseph A. Griffo
• Owen H. Johnson
• Tom Libous
• Thomas P. Morahan
• Stephen M. Saland
• James L. Seward
• Dale M. Volker

Title of bill

An act to amend the real property tax law, in relation to eligibility for the exemption for persons aged sixty-five and over

Purpose

This bill allows localities to raise the income eligibility limits for the Senior Citizens Housing Exemption (SCHE) program to 50,500 and to allow seniors to be eligible for the SCHE program for those otherwise eligible under current law but for increases in Social Security benefits or cost-of-living adjustments in public or private pensions.

Summary of provisions

Section one amends paragraph (a) of section 3 of subdivision 467 of the Real Property Tax Law (RPTL) to increase the income eligibility limits under SCHE program for owners of property that may be authorized by local governments to $50,500 from the current 24,000. Section one also amends the definition of income in the SCHE program to exclude increases in Social Security benefits and increases in public and private pensions that do not exceed the increases in the Consumer Price Index (CPI) for a given year. Section two is the effective date which is immediate.

Existing law

The income eligibility limits under the SCHE program for owners of property that may be authorized by local governments are increased to $50,500 from the current $24,000. Increases in Social Security benefits and public or private pensions are not currently excluded from the SCHE definition of income although Social Security increases have been excluded from the Senior Citizen Rent Increase Exemption (SCRIW) definition of income since 1988.

Justification

The Senior Citizen Housing Exemption is a vital program that allows many seniors to stay in their homes by keeping their real property taxes affordable. Raising the Income limits that local governments can authorize will give localities greater flexibility in addressing the needs of their senior citizens. It is unfair to exclude seniors from eligibility simply due to cost-of-living adjustment in their Social Security and pension benefits.

Legislative history

S.814, 2007-08; S.1854, 2005-06; S.2026, 2003-04; S.6241, 2001-02.

Fiscal implications

None for the State; fiscal implications for local governments dependent on their elections and increases in the program.

Effective date

This act shall take effect immediately provided that section one of this act shall be deemed to have been in full force and effect on and after September 9, 2011.