What's happening
This bill amends the definition of "income" for the STAR property tax exemption to further exclude certain retirement plan distributions.
Why it matters
Broadens the types of retirement plan distributions excluded from "income". for STAR property tax exemption eligibility, now covering not only IRAs and annuities but also 401(k), 403(b), and SEP plan distributions, potentially allowing more retirees to qualify.
May increase STAR exemption accessibility for seniors and retirees. whose retirement income would otherwise push them over the income threshold, providing greater property tax relief for individuals relying on a variety of retirement savings plans.
Recognizes the changing landscape of retirement savings. by including additional types of tax-advantaged retirement accounts, reflecting how more New Yorkers save for retirement outside traditional IRAs and annuities.
Could have fiscal implications for local governments and school districts. by enlarging the pool of STAR-exempt households, which may shift the property tax burden or affect local revenues.
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Who cares
Headline styles
Update School Tax Income Rules
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to aging
- Referred to aging
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.
Clarify Income for Tax Relief
In Assembly Committee · Real Property Taxation · Sponsor Steven Englebright
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
270
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sens. HELMING, CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Aging
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04842-01-9
S. 270 2
had been filed. Such statement shall be filed at such time, and in such 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.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to the term "income" for purposes of the school tax relief exemption
Purpose
To expand the categories of retirement income which are not included in the income calculation for purposes of qualifying for the STAR exemption.
Summary of provisions
Section 1: Amends subparagraph 2 of paragraph b, subdivision 4 of section 425 of the real property tax law excluding from the income calculation 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 established pursuant to the United States Internal Revenue Code of 1986 as amended.
Section 2 establishes the effective date.
Justification
When the STAR real property tax relief law was introduced, the calcu- lation of adjusted gross income for qualification allowed an individual to exempt their distribution from an individual retirement account. However, distributions from other tax qualified accounts under the Internal Revenue Code were not excluded. Consequently, many individuals who have saved substantial amounts of money in individual retirement accounts are allowed to exclude distributions those while individuals who may have saved in plans established under section 401K, 403-8, etc., are required to include those distributions in their calculation of income. In some circumstances, this statutory scheme has an unfair impact on individuals who have saved under particular retirement accounts at the expense of those who saved under other types of retire- ment accounts.
Legislative history
2018: S.2568 - referred to Rules/A.9575-A referred to Real Property Taxation 2017: S.2568 passed Senate 62-0. 2015-16: S.4595 referred to Local Government 2014: S.7472 referred to Local Government
Fiscal implications
To be determined.
Effective date
This act shall take effect January 1, following the date upon which it becomes law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.