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History
- Print number 767a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Provides personal income tax credit for real property taxes paid by certain veterans and their spouses; repeals real property tax law veterans' tax exemptions
In Assembly Committee · Ways And Means · Sponsor Joseph Lentol
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the tax law, the real property tax law and the general municipal law, in relation to providing personal income tax credit for real property taxes paid by honorably discharged veterans or the unremarried surviving spouses of such veterans and to repeal sections 458 and 458-a of the real property tax law and sections 11-245.45, 11-245.5, 11-245.6 and 11-245.7 of the administrative code of the city of New York relating thereto
Purpose or general idea of bill
To replace the current system of veterans' real property tax exemptions with a veterans' real property tax credit on the state level.
Summary of provisions
Section 606 of the tax law is amended by adding a new subsection (ccc). The credit would be equal to the following:
Read the full memo (750 words)
(1) Veterans with a 100% service connected disability would receive a credit equal to 60% of the real property taxes paid on their principal residence (or 60% of adjusted rent on their principal residence) up to maximum credit of $1,000.
(2) Veterans with a greater than 50% service connected disability would receive a credit equal to 45% of the real property taxes paid on their principal residence (or 45% of adjusted rent on their principal residence) up to a maximum credit of $750.
(3) Veterans with a less than 50% service connected disability would receive a credit equal to 30% of the real property taxes paid on their principal residence (or 30% of adjusted rent on their principal residence up to a maximum credit of $500).
(4) Combat veterans would receive an additional 10% exemption.
(5) All other veterans will receive a credit of 15% of the real property taxes paid on their principal residence (or 15% of adjusted rent on their principal residence) up to a maximum credit of $250.
Adjusted rent represents the amount of rent which is attributable to real property taxes as is currently used in the existing Real Property Tax Credit.
Veterans who received real property tax exemptions pursuant to the provisions of section 458 of the real property tax law, for any real property taxable between 1981 and 1990 shall receive either the credits provided for in this subsection or a credit in the amount of real property tax savings in this subsection resulting from such exemptions for anyone of such real property taxable years, whichever is greater.
Further, veterans of World War I, World War II, the Korean Conflict, or the Vietnam Conflict who have received assistance from the Federal Government towards the acquisition of a suitable housing unit with special fixtures or movable facilities made necessary by a veteran's disability will receive a credit equal to 100% of the real property taxes paid on the residence or the rent attributable to real property taxes. The credit will be used to reduce the veteran's personal income tax, or, if no tax is due, there will be a direct payment from the State.
Justification
The current system for granting veterans real property tax exemptions is both inconsistent and inequitable. Once again, it must be stressed that tax credits be granted on a qualifying basis ("qualifying real property"). Each assessing unit in the State has different assessing practices which result in wide disparities in equalization rates which, in turn, affect the value of veterans exemptions. In addition, provisions of the existing law (58-a RPTL) have allowed municipal and county governments to opt out of the program entirely shutting many veterans out of this program. This bill replaces the current system which grants exemptions funded by local governments to a system funded by the State, since this is a State mandated program. It provides benefits based upon the service rendered by an individual in the Armed Forces calculated upon real property taxes paid, or adjusted rent. Under the provisions of this act, no veteran will lose an exemption even if he or she pays no state income tax. Replacing the current system with a state income tax exemption will treat all veterans equitably.
Prior legislative history
2011-12: S.3079 Referred to Investigations & Government Operations/ A.559 Held for Consideration in Ways & Means 2013-14: S.823 Referred to Investigations & Government Operations/ A.3487 Referred to Ways and Means
Fiscal implications for state and local governments
TBD
Effective date
Immediately and shall apply to personal income taxable years beginning on and after January 1, 2017, provided, however, that section four of this act shall take effect January 1, 2017.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.