What's happening
This bill raises the income cap for property tax exemptions for people with disabilities to $50,000 and indexes it to inflation every two years.
Why it matters
Expanding access. By raising the income cap to $50,000, more people with disabilities—who may have previously been disqualified due to modest increases in income—will now be eligible for property tax exemptions, potentially reducing financial stress for a larger segment of this vulnerable population.
Protecting against inflation. Indexing the cap to inflation every two years ensures that the exemption keeps pace with the rising cost of living. This prevents the erosion of benefits over time and provides ongoing, meaningful support rather than a one-time adjustment.
Local government flexibility. The bill maintains local discretion, allowing municipalities to adopt these higher limits through local law or resolution. This respects local control while setting a higher baseline of support that localities can choose to implement.
Broader social impact. By easing property tax burdens, the bill helps people with disabilities on limited incomes remain in their homes and communities, promoting housing stability and reducing the risk of displacement or institutionalization.
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Who cares
Property owners with disabilities and limited incomes
The bill would raise the maximum locally authorized income limit for the property tax exemption from $29,000 to $50,000 beginning July 1, 2019, outside cities with at least one million residents.
New York City property owners with disabilities
The bill would provide inflation-based increases to the existing $50,000 maximum income limit beginning July 1, 2021, and every two years thereafter.
Local governments and property tax assessors
The bill would expand the income limits available through local laws or resolutions and require biennial adjustments tied to CPI-U, rounded to the nearest $1,000.
Headline styles
Raise Income Limit for Tax Exemptions
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Recommit, enacting clause stricken
- Referred to local government
- Referred to local government
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1489
2019-2020 Regular Sessions
IN SENATE
January 15, 2019
Introduced by Sens. HOYLMAN, SEPULVEDA -- 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 amended by chapter 131 of the laws of 2017, 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, twenty-nine] fifty thousand dollars beginning July first, two thousand [nine] nineteen and in a city with a population of one million or more fifty thousand dollars beginning July first, two thousand seventeen, as may be provided by the local law or resolution adopted pursuant to this section ; provided, however, beginning July first, two thousand twenty-one 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07385-01-9
S. 1489 2
or the wife, their combined income may not exceed such sum, except where the husband or wife, or ex-husband or 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 self-employment 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 homeown- ers 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 eligi- bility 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.571 of 2017-2018 (Hoylman): Died in Local Government
A.2735 of 2017-2018 (Gottfried): Died in Real Property Taxation
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.