Relates to exemptions from real property taxes for senior citizens

BILL NUMBER:S3595A

Title of bill

An act to amend the real property tax law, in relation to providing an additional real property tax exemption for certain senior citizens PURPOSE:

The purpose of this bill is to provide relief from the burden of increasing seal property taxes (RPT) for certain income eligible elderly individuals.

Summary of provisions

This bill would offer local governments the option to provide older New Yorkers who are homeowners with low-incomes a greater level of RPT relief than can presently be offered through the existing structure of the Senior Citizen RPT Exemption Program. Local governments would be granted the option to offer senior citizens with incomes of $22,000 or less a sixty percent RPT exemption. In addition, local governments would also be authorized to expand the sliding scale portion of the program by offering seniors citizens who have incomes of $23,000 an exemption of fifty-five percent.

Currently, local governments can only exempt eligible senior citizens who have incomes of $24,000 or less from paying fifty-percent of their RPTs. Also, presently the largest exemption available through the sliding scale portion of the program is forty-five percent and is available to senior citizens with an income of $25,000. This bill would not impact the income eligibility limits for exemptions currently available.

Effects of present law which this bill would alter

This bill would amend section 467 of the real property tax law.

Justification

Senior citizens living on fixed incomes across the State are shouldering an increasing amount of the real property tax burden each year. Since 1966, the maximum percentage of exemption local governments have been able to offer senior citizens has remained at 50%. In an attempt to provide older New Yorkers some additional relief from the burden of RPTs, the Legislature has permitted local governments the option to grant periodic increases in the maximum income eligibility limit for the 50% senior citizen RPT exemption. Currently, the income eligibility limit for this level of benefit is $24,000.

This proposal would authorize localities the option to offer a sixty and fifty-five percent RPT exemption to seniors with incomes below $22,000. Elderly homeowners with incomes less than the current maximum income eligibility limit are most at risk of premature dislocation from their homes as a result of increasing RPT rates and require the expansion of benefits as proposed in this bill.

Legislative history

2013: referred to Aging/ A807 referred to Real Property Taxation.

2012: S.4365 - Referred to Aging. 2011: S.4365- Died on third reading. 2010: A.7934 - Referred to Real Property Taxation.

Fiscal implications for state and local governments

None to State.

Effective date

Immediately; would apply to taxable years beginning on and after January 1, 2016.