Expand Property Tax Relief

Section 1. Subsection (e) of section 606 of the tax law, as amended by chapter 28 of the laws of 1987, subparagraph (B) of paragraph 1 as amended by section 6 of part I of chapter 59 of the laws of 2015, subparagraph (c) of paragraph 1 as amended by chapter 713 of the laws of 1996, subparagraph (E) of paragraph 1 as amended by chapter 105 of the laws of 2006, and paragraph 14 as amended by chapter 23 of the laws of 1990, is amended to read as follows:

(e) Real property tax circuit breaker credit. (1) For purposes of this subsection:

(A) "Qualified taxpayer" means a resident individual of the state who has occupied the same residence for six months or more of the taxable year, and is required or chooses to file a return under this article.

(B) "Household" or "members of the household" means a qualified taxpayer and all other persons, not necessarily related, who have the same residence and share its furnishings, facilities and accommodations. Such terms shall not include a tenant, subtenant, roomer or boarder who is not related to the qualified taxpayer in any degree specified in [subparagraphs (A)] paragraphs one through [(G)] eight of [paragraph two of] subsection [(d)] (a) of section one hundred fifty-two of the internal revenue code. Provided, however, no person may be a member of more than one household at one time.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD03164-01-9

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[(c)] (C) "Household gross income" means the aggregate adjusted gross income of all members of the household for the taxable year as reported for federal income tax purposes, or which would be reported as adjusted gross income if a federal income tax return were required to be filed, with the modifications in subsection (b) of section six hundred twelve but without the modifications in subsection (c) of such section, plus any portion of the gain from the sale or exchange of property otherwise excluded from such amount; earned income from sources without the United States excludable from federal gross income by section nine hundred eleven of the internal revenue code; support money not included in adjusted gross income; nontaxable strike benefits; supplemental security income payments; the gross amount of any pension or annuity benefits to the extent not included in such adjusted gross income (including, but not limited to, railroad retirement benefits and all payments received under the federal social security act and veterans' disability pensions); nontaxable interest received from the state of New York, its agencies, instrumentalities, public corporations, or political subdivisions (including a public corporation created pursuant to agreement or compact with another state or Canada); workers' compensation; the gross amount of "loss-of-time" insurance; and the amount of cash public assistance and relief, other than medical assistance for the needy, paid to or for the benefit of the qualified taxpayer or members of his household. Household gross income shall not include surplus foods or other relief in kind or payments made to individuals because of their status as victims of Nazi persecution as defined in P.L. 103-286. Provided, further, household gross income shall only include all such income received by all members of the household while members of such household.

(D) "Residence" means a dwelling in this state, whether owned or rented, and so much of the land abutting it, not exceeding one acre, as is reasonably necessary for use of the dwelling as a home, and may consist of a part of a multi-dwelling or multi-purpose building including a cooperative or condominium, and rental units within a single dwelling. Residence includes a trailer or mobile home, used exclusively for residential purposes and defined as real property pursuant to paragraph (g) of subdivision twelve of section one hundred two of the real property tax law.

(E) "Qualifying real property taxes" means all real property taxes, special ad valorem levies and special assessments, exclusive of penalties and interest, levied on the residence of a qualified taxpayer and paid during the taxable year less the credit claimed under the former subsection (n-1) of this section. In addition, for taxable years beginning after December thirty-first, nineteen hundred eighty-four, a qualified taxpayer may elect to include any additional amount that would have been levied in the absence of an exemption from real property taxation pursuant to section four hundred sixty-seven of the real property tax law. If tenant-stockholders in a cooperative housing corporation have met the requirements of section two hundred sixteen of the internal revenue code by which they are allowed a deduction for real estate taxes, the amount of taxes so allowable, or which would be allowable if the taxpayer had filed returns on a cash basis, shall be qualifying real property taxes. If a residence is owned by two or more individuals as joint tenants or tenants in common, and one or more than one individual is not a member of the household, qualifying real property taxes is that part of such taxes on the residence which reflects the ownership percentage of the qualified taxpayer and members of his household. If a

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residence is an integral part of a larger unit, qualifying real property taxes shall be limited to that amount of such taxes paid as may be reasonably apportioned to such residence. If a household owns and occupies two or more residences during different periods in the same taxable year, qualifying real property taxes shall be the sum of the prorated qualifying real property taxes attributable to the household during the periods such household occupies each of such residences. If the household owns and occupies a residence for part of the taxable year and rents a residence for part of the same taxable year, it may include both the proration of qualifying real property taxes on the residence owned and the real property tax equivalent with respect to the months the residence is rented. Provided, however, for purposes of the credit allowed under this subsection, qualifying real property taxes may be included by a qualified taxpayer only to the extent that such taxpayer or the spouse of such taxpayer occupying such residence for six months or more of the taxable year owns or has owned the residence and paid such taxes.

(F) "Real property tax equivalent" means twenty-five percent of the adjusted rent actually paid in the taxable year by a household solely for the right of occupancy of its New York residence for the taxable year. If (i) a residence is rented to two or more individuals as cotenants, or such individuals share in the payment of a single rent for the right of occupancy of such residence, and (ii) each of such individuals is a member of a different household, one or more of which individuals shares such residence, real property tax equivalent is that portion of twenty-five percent of the adjusted rent paid in the taxable year which reflects that portion of the rent attributable to the qualified taxpayer and the members of his household.

(G) "Adjusted rent" means rental paid for the right of occupancy of a residence, excluding charges for heat, gas, electricity, furnishings and board. Where charges for heat, gas, electricity, furnishing or board are included in rental but where such charges and the amount thereof are not separately set forth in a written rental agreement, for purposes of determining adjusted rent the qualified taxpayer shall reduce rental paid as follows:

(i) For heat, or heat and gas, deduct fifteen percent of rental paid.

(ii) For heat, gas and electricity, deduct twenty percent of rental paid.

(iii) For heat, gas, electricity and furnishings, deduct twenty-five percent of rental paid.

(iv) For heat, gas, electricity, furnishings and board, deduct fifty percent of rental paid. If the [tax commission] commissioner determines that the adjusted rent shown on the return is excessive, the [tax commission] commissioner may reduce such rent, for purposes of the computation of the credit, to an amount substantially equivalent to rent for a comparable accommodation.

(2) A qualified taxpayer shall be allowed a credit as provided in paragraph three hereof against the taxes imposed by this article reduced by the credits permitted by this article. If the credit exceeds the tax as so reduced for such year under this article the qualified taxpayer may receive, and the comptroller, subject to a certificate of the [state tax commission] commissioner, shall pay as an overpayment, without interest, any excess between such tax as so reduced and the amount of the credit. If a qualified taxpayer is not required to file a return pursuant to section six hundred fifty-one of this article, a qualified taxpayer may nevertheless receive and the comptroller, subject to a

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certificate of the [state tax commission] commissioner, shall pay as an overpayment the full amount of the credit, without interest.

(3) Determination of credit. (A) For qualified taxpayers who have attained the age of sixty-five years or a permanent and total disability as defined in section twenty-two of the internal revenue code before the beginning of or during the taxable year the amount of the credit allowable under this subsection shall be fifty percent, or in the case of a qualified taxpayer who has elected to include an additional amount pursuant to subparagraph (E) of paragraph one of this subsection, twenty-five percent, of the excess of real property taxes or the excess of real property tax equivalent determined as follows:

Excess real property taxes are

the excess of real property tax

equivalent or the excess of

If household gross qualifying real property taxes

income for the over the following percentage of

taxable year is: household gross income:

___________________ __________________________________

[$3,000] $6,000 or less 3 1/2

Over [$3,000] $6,000 but not

over [$5,000] $10,000 4

Over [$5,000] $10,000 but not

over [$7,000] $14,000 4 1/2

Over [$7,000] $14,000 but not

over [$9,000] $18,000 5

Over [$9,000] $18,000 but not

over [$11,000] $22,000 5 1/2

Over [$11,000] $22,000 but not

over [$14,000] $28,000 6

Over [$14,000] $28,000 but not

over [$18,000] $36,000 6 1/2

Notwithstanding the foregoing provisions, the maximum credit determined under this subparagraph may not exceed the amount determined in accordance with the following table:

If household gross The maximum

income for the credit is:

taxable year is:

___________________ __________________________________

[$1,000] $2,000 or less [$375] $463

Over [$1,000] $2,000 but

not over [$2,000] $4,000 [$358] $442

Over [$2,000] $4,000 but

not over [$3,000] $6,000 [$341] $421

Over [$3,000] $6,000 but

not over [$4,000] $8,000 [$324] $400

Over [$4,000] $8,000 but

not over [$5,000] $10,000 [$307] $379

Over [$5,000] $10,000 but

not over [$6,000] $12,000 [$290] $358

Over [$6,000] $12,000 but

not over [$7,000] $14,000 [$273] $337

Over [$7,000] $14,000 but

not over [$8,000] $16,000 [$256] $316

Over [$8,000] $16,000 but

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not over [$9,000] $18,000 [$239] $295

Over [$9,000] $18,000 but

not over [$10,000] $20,000 [$222] $274

Over [$10,000] $20,000 but

not over [$11,000] $22,000 [$205] $253

Over [$11,000] $22,000 but

not over [$12,000] $24,000 [$188] $232

Over [$12,000] $24,000 but

not over [$13,000] $26,000 [$171] $211

Over [$13,000] $26,000 but

not over [$14,000] $28,000 [$154] $190

Over [$14,000] $28,000 but

not over [$15,000] $30,000 [$137] $169

Over [$15,000] $30,000 but

not over [$16,000] $32,000 [$120] $148

Over [$16,000] $32,000 but

not over [$17,000] $34,000 [$103] $127

Over [$17,000] $34,000 but

not over [$18,000] $36,000 [$86] $106