What's happening
This bill raises the income limit for property tax exemptions for people with disabilities to $50,000, with biennial increases tied to inflation.
Why it matters
Expanding eligibility for property tax exemptions could significantly ease financial burdens. for people with disabilities who are on limited incomes, possibly allowing more individuals to remain in their homes and maintain independence.
Indexing the income limit to inflation ensures the exemption stays relevant over time. , protecting recipients from losing this benefit simply due to cost-of-living increases—something that has eroded the value of many fixed-income protections in the past.
The bill could lead to a broader impact on municipal budgets and local tax bases. , as more people may become eligible for the exemption, potentially prompting local governments to adjust revenue strategies or services.
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Who cares
Headline styles
Raise Property Tax Income Limits
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to local government
- Referred to local government
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.
Raise Income Cap for Exemptions
In Assembly Committee · Real Property Taxation · Sponsor Richard Gottfried
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
571
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. HOYLMAN -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the real property tax law, in relation to allowable increases in property income for persons with disabilities and limited incomes for purposes of qualification for certain tax exemptions
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 5 of section 459-c of the real property tax law, as separately amended by chapters 187 and 252 of the laws of 2006, is amended to read as follows:
(a) if the income of the owner or the combined income of the owners of the property for the income tax year immediately preceding the date of making application for exemption exceeds the sum of three thousand dollars, or such other sum not less than three thousand dollars [nor more than twenty-six thousand dollars beginning July first, two thousand six, twenty-seven thousand dollars beginning July first, two thousand seven, twenty-eight thousand dollars beginning July first, two thousand eight, and twenty-nine], fifty thousand dollars beginning July first, two thousand [nine] seventeen, as may be provided by the local law or resolution adopted pursuant to this section; provided, however, beginning July first, two thousand nineteen and every two years thereafter, the maximum allowable income shall increase by the product of the average annual percentage changes in the consumer price index for all urban consumers (CPI-U) as published by the United States department of labor bureau of labor statistics for the two year period rounded to the nearest one thousand dollars. Income tax year shall mean the twelve month period for which the owner or owners filed a federal personal income tax return, or if no such return is filed, the calendar year. Where title is vested in either the husband or the wife, their combined income may not exceed such sum, except where the husband or wife, or ex-husband or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02693-01-7
S. 571 2
ex-wife is absent from the property due to divorce, legal separation or abandonment, then only the income of the spouse or ex-spouse residing on the property shall be considered and may not exceed such sum. Such income shall include social security and retirement benefits, interest, dividends, total gain from the sale or exchange of a capital asset which may be offset by a loss from the sale or exchange of a capital asset in the same income tax year, net rental income, salary or earnings, and net income from self-employment, but shall not include a return of capital, gifts, inheritances or monies earned through employment in the federal foster grandparent program and any such income shall be offset by all medical and prescription drug expenses actually paid which were not reimbursed or paid for by insurance, if the governing board of a municipality, after a public hearing, adopts a local law or resolution providing therefor. In computing net rental income and net income from selfemployment no depreciation deduction shall be allowed for the exhaustion, wear and tear of real or personal property held for the production of income;
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to allowable increases in property income for persons with disabilities and limited incomes for purposes of qualification for certain tax exemptions
Purpose or general idea of bill
The bill increases the maximum income eligibility limit for the Disabled Homeowners' Exemption (DHE) Program from $29,000 to $50,000 starting July 1, 2017. Future increases to the income eligibility limit will automatically take effect every two years starting July 1, 2018, by the average annual percentage change in the U.S. Department of Labor's Consumer Price Index for all urban consumers (CPI-U).
Summary of specific provisions
Section 1 amends paragraph a of subdivision 5 of section 459-c of the real property tax law to increase the maximum income eligibility limit for the Disabled Homeowners' Exemption and establish automatic biennial increases to the maximum income eligibility limit.
Section 2 states that the bill will take effect immediately.
Justification
Section 459-c of the Real Property Tax Law authorizes local governments to provide a partial property tax exemption to disabled homeowners. The exemptions are based on income, and provided on a sliding scale from 5%-50% exemption. The current maximum income for the 50% exemption is $29,000, and was last increased in 2009.
According to the U.S. Department of Labor, $29,000 in 2009 dollars equals $31,600 in 2014 dollars, due to inflation. Many disabled homeowners who previously qualified for the DHE exemption may no longer qualify due to cost-of-living adjustments to their fixed sources of income. This bill would raise the maximum income to $50,000 starting on July 1, 2017, and tie future increases of the eligibility limit to the Consumer Price Index. Doing so will ensure that disabled homeowners aren't "priced out" of the exemption due to nominal increases in their fixed incomes, and remove the need for the state legislature to revisit the income eligibility every few years.
A similar increase in income eligibility was made to the Disability Rent Increase Exemption in the enacted 2014-2015 budget.
Prior legislative history
S.3369-A of 2015-2016 (Hoylman): Died in Local Government A.9798 of 2016 (Gottfried): Died in Real Property Taxation
Fiscal implications
None to the state.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.