What's happening
This bill changes how income is calculated for property tax exemptions by aligning it with the timing of the federal tax return filing.
Why it matters
Aligns property tax exemption income calculations more closely with the timing of federal tax returns. , which can reduce confusion for applicants and tax assessors, especially given that tax filing deadlines and application dates for exemptions do not always match up.
May help applicants avoid using outdated or unavailable income information. , as it clarifies exactly which year’s federal tax return data should be used based on whether the application is before or after April 15th (the federal tax filing deadline), potentially making the exemption process fairer and more accurate.
Could lead to more consistent and equitable treatment of taxpayers. , since the timing mismatch in the old system could disadvantage some applicants or create administrative headaches for local governments. This amendment could streamline administration and reduce the risk of error or dispute.
Especially relevant for seniors and other vulnerable populations. who rely on these property tax exemptions and may have variable incomes or difficulties with documentation—this clarification may make it easier for them to apply successfully.
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Who cares
Headline styles
Change Tax Exemption Date Rules
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
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.
Change Taxable Status Date Rules
In Senate Committee · Rules · Sponsor John T. McDonald III
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7009
IN SENATE (Prefiled)
January 8, 2020
Introduced by Sen. MAY -- 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 the taxable status date
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 3 of section 467 of the real property tax law, as separately amended by chapters 131 and 279 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 thousand dollars beginning July first, two thousand nine, 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, ordinance or resolution adopted pursuant to this section. [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 the taxable status date is on or before April fourteenth, income tax year shall mean the twelvemonth period for which the owner or owners filed a federal personal income tax return for the year before the income tax year immediately preceding the date of application and where the taxable status date is on or after April fifteenth, income tax year shall mean the twelve-month period for which the owner or owners filed a federal personal income tax return for the income tax year immediately preceding the date of application. Where title is vested in either the husband 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 as provided
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14123-01-9
S. 7009 2
in subparagraph (ii) of paragraph (d) of this subdivision, 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 selfemployment, but shall not include a return of capital, gifts, inheritances, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103-286 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, ordinance or resolution providing therefor. In addition, an exchange of an annuity for an annuity contract, which resulted in non-taxable gain, as determined in section one thousand thirty-five of the internal revenue code, shall be excluded from such income. Provided that such exclusion shall be based on satisfactory proof that such an exchange was solely an exchange of an annuity for an annuity contract that resulted in a non-taxable transfer determined by such section of the internal revenue code. Furthermore, such income shall not include the proceeds of a reverse mortgage, as authorized by section six-h of the banking law, and sections two hundred eighty and two hundred eighty-a of the real property law; provided, however, that monies used to repay a reverse mortgage may not be deducted from income, and provided additionally that any interest or dividends realized from the investment of reverse mortgage proceeds shall be considered income. The provisions of this paragraph notwithstanding, such income shall not include veterans disability compensation, as defined in Title 38 of the United States Code provided the governing board of such municipality, after public hearing, adopts a local law, ordinance 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 the taxable status date
Purpose or general idea of bill
This bill provides a technical correction to the real property tax law regarding the New York Senior Citizen Program Exemption process. The legislation does not change the program but clarifies the process for participants.
Summary of specific provisions
Section 1: amends Real Property Tax Law section 467 (3)(a) to clarify the meaning of "income tax year" to be the twelve month period for which the applicant filed a federal personal income tax return for the year for the income tax year immediately preceding the application.
Section 2: establishes an immediate effective date.
Justification
When the program was first enacted, the date for applying for this bene- fit, known in the law as the "taxable status date", was May 1st. Real Property Tax Law 467(3)(a) requires that with the application the senior provide a copy of their income tax year immediately preceding the appli- cation. In other words, an application submitted for the 2019 assessment roll would require a copy of the applicant's 2018 income tax record. Back when the taxable status date was May 1, this posed no problem since tax returns are due by April 15. However, in 1986 the legislature changed the taxable status date for most of New York State from May 1 to March 1. No change was made to 467(3)(a). 467(3)(a) defines income tax year as "...Income tax year shall mean the twelve-month period for which the owner or owners filed a federal personal income_tax return...." This creates confusion since an applicant cannot use the previous year tax return because it is not considered legally filed until April 15 (even if a return is filed earlier(1)).
This legislation seeks to clarify the law and to cover any future chang- es in the taxable status date. If the taxable status is changed in the future to be on or after April 15, and applicant can use the previous tax year return.
The 1997 Department of Taxation of Opinion of Counsel (10-47) touches on this issue and the opinion states that " It seems to us that the most reasonable interpretation of this statutory language is that an appli- cant should provide a copy of his or her income tax return for the "immediately preceding year" if it is available when the application is filed. If that return is not yet available, the applicant should be permitted to provide the return for the year before the "immediately preceding year." In other words, if a senior citizen applies for the senior citizens exemption for 1998 and the applicant's 1997 income tax return is available at that time, a copy should be furnished with the application. If not, the applicant's eligibility should be based upon
his or her 1996 income, and a copy of the 1996 tax return, assuming one was filed, (4) should be accepted as proof of such income."
Legislative history
New bill
Fiscal implications
None
Effective date
Immediately (1) Internal Revenue Code Section 6501(b)(1); NYS Tax Law Section 687(h).
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.