What's happening
This bill amends the definition of "income" for the School Tax Relief (STAR) exemption to exclude 401(k), 403(b), and SEP distributions.
Why it matters
Redefines income for STAR eligibility. By excluding 401(k), 403(b), and SEP distributions from the income calculation, this change could make more retirees and working individuals eligible for the School Tax Relief (STAR) property tax exemption, or allow them to qualify for greater benefits.
Targets fairness for retirees. Many New Yorkers rely on these retirement savings vehicles, and including their distributions as “income” can unfairly penalize individuals who have saved for retirement. This amendment aims to better align the definition of income with individuals’ actual financial circumstances.
Potential impact on local property tax rolls. Expanding STAR eligibility could reduce property tax revenues for localities unless offset by state support, which may have budget implications and affect funding for schools or other local services.
Addresses evolving retirement landscape. The change recognizes that modern retirement savings often occur outside traditional IRAs, reflecting a shift in how people save for retirement and ensuring tax policy keeps pace with these trends.
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Who cares
Headline styles
Change School Tax Income Rules
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Print number 9575a
- Amend (t) and recommit to real property taxation
- Referred to real property taxation
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.
Broaden School Tax Income Definition
In Senate Committee · Rules · Sponsor Pamela Helming
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
9575--A
IN ASSEMBLY
January 23, 2018
Introduced by M. of A. ENGLEBRIGHT, MORELLE -- read once and referred to the Committee on Real Property Taxation -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the real property tax law, in relation to the term "income" for purposes of the school tax relief exemption
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph (ii) of paragraph (b) of subdivision 4 of section 425 of the real property tax law, as amended by section 3 of part E of chapter 83 of the laws of 2002, is amended to read as follows:
(ii) The term "income" as used herein shall mean the "adjusted gross income" for federal income tax purposes as reported on the applicant's federal or state income tax return for the applicable income tax year, subject to any subsequent amendments or revisions, reduced by distributions, to the extent included in federal adjusted gross income, received from an individual retirement account [and], an individual retirement annuity, a distribution from an account established under section 401(k) or 403(b) of the United States internal revenue code of 1986 as amended, or a simplified employee pension plan (SEP) established pursuant to the United States internal revenue code of 1986 as amended; provided that if no such return was filed for the applicable income tax year, "income" shall mean the adjusted gross income that would have been so reported if such a return had been filed.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08229-03-8
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.