What's happening
This bill allows medical and prescription drug expenses to be deducted from income when determining senior citizens’ eligibility for certain rent tax abatements.
Why it matters
Could lower seniors’ reported income for rent relief eligibility. By allowing unreimbursed medical and prescription drug expenses to be subtracted from income, more seniors with significant health costs may qualify for rent abatements, or receive larger abatements, helping them better afford rent.
Targets seniors facing high health expenses. This change especially supports seniors whose medical or drug costs consume a large portion of their fixed income, recognizing that out-of-pocket medical spending can severely impact financial stability.
Implementation is local and discretionary. Municipalities must opt in by passing a local law or ordinance after a public hearing, so the impact will vary by locality and depend on local government decisions and advocacy.
May incentivize better record-keeping and engagement with local government. Seniors seeking these benefits will need to keep receipts and documentation of their medical and prescription expenses, and may have new reason to participate in discussions about local tax relief policies.
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Who cares
Headline styles
Exclude Unpaid Medical From Income
Plain English, a few words. Used as the page title.
Sponsors
2 Multi-sponsors
History
- Referred to aging
- Referred to aging
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3379
2019-2020 Regular Sessions
IN ASSEMBLY
January 29, 2019
Introduced by M. of A. DINOWITZ, ENGLEBRIGHT, ZEBROWSKI, RIVERA, JAFFEE -- Multi-Sponsored by -- M. of A. COLTON, GOTTFRIED -- read once and referred to the Committee on Aging
AN ACT to amend the real property tax law, in relation to excluding certain expenditures for medical care from the definition of "income" for the purpose of a tax abatement for rent-controlled and rent regulated property occupied by senior citizens
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph c of subdivision 1 of section 467-b of the real property tax law, as amended by chapter 500 of the laws of 2001, is amended to read as follows:
c. "Income" means income from all sources after deduction of all income and social security taxes and includes social security and retirement benefits, supplemental security income and additional state payments, public assistance benefits, interest, dividends, net rental income, salary or earnings, and net income from self-employment, but shall not include gifts or inheritances, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103-286, or increases in benefits accorded pursuant to the social security act or a public or private pension paid to any member of the household which increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year which take effect after the date of eligibility of head of the household receiving benefits hereunder whether received by the head of the household or any other member of the household 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, ordinance or resolution providing therefor;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00715-01-9
A. 3379 2
§ 2. Paragraph f of subdivision 1 of section 467-c of the real property tax law, as amended by chapter 500 of the laws of 2001, is amended to read as follows:
f. "Income" means income received by the eligible head of the household combined with the income of all other members of the household from all sources after deduction of all income and social security taxes and includes without limitation, social security and retirement benefits, supplemental security income and additional state payments, public assistance benefits, interest, dividends, net rental income, salary and earnings, and net income from self employment, but shall not include gifts or inheritances, payments made to individuals because of their status as victims of Nazi persecution as defined in P.L. 103-286, nor increases in benefits accorded pursuant to the social security act or a public or private pension paid to any member of the household which increase, in any given year, does not exceed the consumer price index (all items United States city average) for such year which take effect after the eligibility date of an eligible head of the household receiving benefits hereunder whether received by the eligible head of the household or any other member of the household 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, ordinance or resolution providing therefor. When the eligible head of the household has retired on or after the commencement of the taxable period and prior to the date of making an application for a rent increase exemption order/tax abatement certificate pursuant to this section, such person's income shall be adjusted by excluding salary or earnings and projecting such person's retirement income over the entire taxable period.
§ 3. This act shall take effect immediately, provided that the amendment to paragraph c of subdivision 1 of section 467-b of the real property tax law, made by section one of this act, shall not affect the expiration of such section and shall be deemed to expire therewith.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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