What's happening
This bill expands the definition of "income" for the school tax relief exemption to exclude certain retirement account distributions.
Why it matters
Expanding income exclusions for tax relief eligibility. The bill adds distributions from 401(k), 403(b), and Simplified Employee Pension (SEP) plans to the list of retirement accounts whose distributions can be excluded from "income" when determining eligibility for the school tax relief (STAR) exemption. This means more retirees could qualify or maintain eligibility for property tax relief.
Aligns state and federal tax treatment. By mirroring federal definitions and exclusions for adjusted gross income, the amendment simplifies the application process and reduces confusion for taxpayers navigating both state and federal tax rules.
Potential impact on property tax bills for seniors and retirees. The change specifically benefits seniors and retirees who rely on retirement account distributions, potentially lowering their property tax burden and allowing more fixed-income households to stay in their homes.
Administrative adjustments for non-filers. The bill maintains and clarifies the process for applicants who do not file tax returns, requiring them to submit a statement of income sources and amounts. This ensures that all applicants are treated consistently, regardless of filing status.
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Who cares
Headline styles
Clarify Income for Tax Relief
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred 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.
Update School Tax Income Rules
In Senate Committee · Aging · Sponsor Pamela Helming
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4087
2019-2020 Regular Sessions
IN ASSEMBLY
February 1, 2019
Introduced by M. of A. ENGLEBRIGHT -- read once and referred to the Committee on Real Property Taxation
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 1 of part B of chapter 59 of the laws of 2018, 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. Provided further, that effective with exemption applications for final assessment rolls to be completed in two thousand nineteen, where an income-eligibility determination is wholly or partly based upon the income of one or more individuals who did not file a return for the applicable income tax year, then in order for the application to be considered complete, each such individual must file a statement with the department showing the source or sources of his or her income for that income tax year, and the amount or amounts thereof, that would have been reported on such a return if one had been filed. Such statement shall be filed at such time, and in such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04842-01-9
A. 4087 2
form and manner, as may be prescribed by the department, and shall be subject to the secrecy provisions of the tax law to the same extent that a personal income tax return would be. The department shall make such forms and instructions available for the filing of such statements. The local assessor shall upon the request of a taxpayer assist such taxpayer in the filing of the statement with the department.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
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.