Establishes a personal income tax credit for portion of residential real property taxes which exceeds a certain percentage of the household gross income

1 Co-sponsor

• Ruth Hassell-Thompson

BILL NUMBER:S1796

Title of bill

An act to amend the tax law, in relation to establishing the maximum residential real property, personal income tax credit

Purpose

To place a limit on the real property tax for certain property owners and provide a personal income tax credit for certain property taxpayers.

Summary of provisions

Section 1 - adds a new subsection to section 606 to the tax law to provide for a maximum real property tax credit for the following household gross incomes: $25,000 or less, four percent of the household gross income; more than $25,000, but less than or equal to $50,000, five percent of the household gross income; more than $50,000 but less than or equal to 100,000, six percent of the household gross income; more than $100,000 but less than or equal to $150,000, seven percent of the household gross income; more than $150,000, but less than or equal to $200,000 eight percent of the household gross income; and more than $200,000, but less than or equal to $250,000, nine percent of the household gross income. To qualify, the taxpayer must have resided in the home for not less than ten years and must forfeit any benefit from the STAR program. The credit will equal seventy percent of the taxes paid over the allowed percentage cap as provided in the bill.

Section 2 - contains the effective. date.

Justification

With the increased reliance on the property tax for local government revenue, some homeowners are facing skyrocketing property tax bills and the prospect of selling their homes. This legislation seeks to establish a cap on the maximum real property tax paid for New Yorkers who have an household adjusted gross income of $250,000 or less. This proposal is a immediate solution to the serious problem of high property taxes.

Legislative history

First introduced in 2007.

Fiscal implications

To be determined.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become a law, and shall apply to taxable years commencing on or after such date.