Bill Text: NY A01418 | 2009-2010 | General Assembly | Introduced
Bill Title: An act to amend the tax law, in relation to benefits and eligibility under the real property tax circuit breaker credit
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Introduced - Dead) 2010-01-06 - referred to ways and means [A01418 Detail]
Download: New_York-2009-A01418-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
1418
2009-2010 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 7, 2009
___________
Introduced by M. of A. WRIGHT, GORDON, MILLMAN, EDDINGTON -- Multi-Spon-
sored by -- M. of A. BOYLAND, CLARK, HEASTIE, HYER-SPENCER, V. LOPEZ,
PEOPLES, PHEFFER, TOWNS, WEISENBERG -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to benefits and eligibility
under the real property tax circuit breaker credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Paragraphs 1, 3 and 7 of subsection (e) of section 606 of
2 the tax law, as amended by chapter 28 of the laws of 1987, subparagraph
3 (C) of paragraph 1 as amended by chapter 713 of the laws of 1996 and
4 subparagraph (E) of paragraph 1 as amended by chapter 105 of the laws of
5 2006, are amended to read as follows:
6 (1) For purposes of this subsection:
7 (A) "Qualified taxpayer" means a resident individual of the state who
8 has occupied the same residence for six months or more of the taxable
9 year, and is required or chooses to file a return under this article.
10 (B) "Household" or "members of the household" means a qualified
11 taxpayer and all other persons, not necessarily related, who have the
12 same residence and share its furnishings, facilities and accommodations.
13 Such terms shall not include a tenant, subtenant, roomer or boarder who
14 is not related to the qualified taxpayer in any degree specified in
15 paragraphs one through eight of subsection (a) of section one hundred
16 fifty-two of the internal revenue code. Provided, however, no person may
17 be a member of more than one household at one time.
18 [(c)] (C) "Household gross income" means the aggregate adjusted gross
19 income of all ADULT members of the household for the taxable year as
20 reported for federal income tax purposes, or which would be reported as
21 adjusted gross income if a federal income tax return were required to be
22 filed, with the modifications in subsection (b) of section six hundred
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00445-01-9
A. 1418 2
1 twelve OF THIS ARTICLE but without the modifications in subsection (c)
2 of such section, plus any portion of the gain from the sale or exchange
3 of property otherwise excluded from such amount; earned income from
4 sources without the United States excludable from federal gross income
5 by section nine hundred eleven of the internal revenue code; support
6 money not included in adjusted gross income; nontaxable strike benefits;
7 supplemental security income payments; the gross amount of any pension
8 or annuity benefits to the extent not included in such adjusted gross
9 income (including, but not limited to, railroad retirement benefits and
10 all payments received under the federal social security act and veter-
11 ans' disability pensions); nontaxable interest received from the state
12 of New York, its agencies, instrumentalities, public corporations, or
13 political subdivisions (including a public corporation created pursuant
14 to agreement or compact with another state or Canada); workers' compen-
15 sation; the gross amount of "loss-of-time" insurance; and the amount of
16 cash public assistance and relief, other than medical assistance for the
17 needy, paid to or for the benefit of the qualified taxpayer or members
18 of his household. Household gross income shall not include surplus foods
19 or other relief in kind or payments made to individuals because of their
20 status as victims of Nazi persecution as defined in P.L. 103-286.
21 Provided, further, household gross income shall only include all such
22 income received by all members of the household while members of such
23 household. PROVIDED, FURTHER, THAT HOUSEHOLD GROSS INCOME SHALL NOT
24 INCLUDE INCOME OF HOUSEHOLD MEMBERS WHO ARE UNDER THE AGE OF EIGHTEEN,
25 OR INCOME OF HOUSEHOLD MEMBERS UNDER THE AGE OF TWENTY-ONE IF SUCH INDI-
26 VIDUALS ATTEND AN ACCREDITED COLLEGE OR UNIVERSITY AT LEAST PART-TIME.
27 (D) "Residence" means a dwelling in this state, whether owned or rent-
28 ed, and so much of the land abutting it, not exceeding one acre, as is
29 reasonably necessary for use of the dwelling as a home, and may consist
30 of a part of a multi-dwelling or multi-purpose building including a
31 cooperative or condominium, and rental units within a single dwelling.
32 Residence includes a trailer or mobile home, used exclusively for resi-
33 dential purposes and defined as real property pursuant to paragraph (g)
34 of subdivision twelve of section one hundred two of the real property
35 tax law.
36 (E) "Qualifying real property taxes" means all real property taxes,
37 special ad valorem levies and special assessments, exclusive of penal-
38 ties and interest, levied on the residence of a qualified taxpayer and
39 paid during the taxable year [less the credit claimed under subsection
40 (n-1) of this section]. In addition, for taxable years beginning after
41 December thirty-first, nineteen hundred eighty-four, a qualified taxpay-
42 er may elect to include any additional amount that would have been
43 levied in the absence of an exemption from real property taxation pursu-
44 ant to section four hundred sixty-seven of the real property tax law. If
45 tenant-stockholders in a cooperative housing corporation have met the
46 requirements of section two hundred sixteen of the internal revenue code
47 by which they are allowed a deduction for real estate taxes, the amount
48 of taxes so allowable, or which would be allowable if the taxpayer had
49 filed returns on a cash basis, shall be qualifying real property taxes.
50 If a residence is owned by two or more individuals as joint tenants or
51 tenants in common, and one or more than one individual is not a member
52 of the household, qualifying real property taxes is that part of such
53 taxes on the residence which reflects the ownership percentage of the
54 qualified taxpayer and members of his household. If a residence is an
55 integral part of a larger unit, qualifying real property taxes shall be
56 limited to that amount of such taxes paid as may be reasonably appor-
A. 1418 3
1 tioned to such residence. If a household owns and occupies two or more
2 residences during different periods in the same taxable year, qualifying
3 real property taxes shall be the sum of the prorated qualifying real
4 property taxes attributable to the household during the periods such
5 household occupies each of such residences. If the household owns and
6 occupies a residence for part of the taxable year and rents a residence
7 for part of the same taxable year, it may include both the proration of
8 qualifying real property taxes on the residence owned and the real prop-
9 erty tax equivalent with respect to the months the residence is rented.
10 Provided, however, for purposes of the credit allowed under this
11 subsection, qualifying real property taxes may be included by a quali-
12 fied taxpayer only to the extent that such taxpayer or the spouse of
13 such taxpayer occupying such residence for six months or more of the
14 taxable year owns or has owned the residence and paid such taxes.
15 (F) "Real property tax equivalent" means twenty-five percent of the
16 adjusted rent actually paid in the taxable year by a household solely
17 for the right of occupancy of its New York residence for the taxable
18 year. If (i) a residence is rented to two or more individuals as coten-
19 ants, or such individuals share in the payment of a single rent for the
20 right of occupancy of such residence, and (ii) each of such individuals
21 is a member of a different household, one or more of which individuals
22 shares such residence, real property tax equivalent is that portion of
23 twenty-five percent of the adjusted rent paid in the taxable year which
24 reflects that portion of the rent attributable to the qualified taxpayer
25 and the members of his household.
26 (G) "Adjusted rent" means rental paid for the right of occupancy of a
27 residence, excluding charges for heat, gas, electricity, furnishings and
28 board. Where charges for heat, gas, electricity, furnishing or board are
29 included in rental but where such charges and the amount thereof are not
30 separately set forth in a written rental agreement, for purposes of
31 determining adjusted rent the qualified taxpayer shall reduce rental
32 paid as follows:
33 (i) For heat, or heat and gas, deduct fifteen percent of rental paid.
34 (ii) For heat, gas and electricity, deduct twenty percent of rental
35 paid.
36 (iii) For heat, gas, electricity and furnishings, deduct twenty-five
37 percent of rental paid.
38 (iv) For heat, gas, electricity, furnishings and board, deduct fifty
39 percent of rental paid.
40 If the tax commission determines that the adjusted rent shown on the
41 return is excessive, the tax commission may reduce such rent, for
42 purposes of the computation of the credit, to an amount substantially
43 equivalent to rent for a comparable accommodation.
44 (3) Determination of credit. (A) For qualified taxpayers who have
45 attained the age of sixty-five years before the beginning of or during
46 the taxable year the amount of the credit allowable under this
47 subsection shall be fifty percent, or in the case of a qualified taxpay-
48 er who has elected to include an additional amount pursuant to subpara-
49 graph (E) of paragraph one of this subsection, twenty-five percent, of
50 the excess of real property taxes or the excess of real property tax
51 equivalent determined as follows:
52 Excess real property taxes are the
53 excess of real property tax equiv-
54 alent or the excess of qualifying
55 real property taxes over the fol-
A. 1418 4
1 If household gross income for the lowing percentage of household
2 taxable year is: gross income:
3 ----------------------------------- -----------------------------------
4 $3,000 or less 3 1/2
5 Over $3,000 but not over $5,000 4
6 Over $5,000 but not over $7,000 4 1/2
7 Over $7,000 but not over $9,000 5
8 Over $9,000 but not over $11,000 5 1/2
9 Over $11,000 but not over $14,000 6
10 Over $14,000 [but not over $18,000] 6 1/2
11 Notwithstanding the foregoing provisions, the maximum credit deter-
12 mined under this subparagraph may not exceed the amount determined in
13 accordance with the following table:
14 If household gross income for the
15 taxable year is: The maximum credit is:
16 ----------------------------------- -----------------------------------
17 $1,000 or less $375
18 Over $1,000 but not over $2,000 $358
19 Over $2,000 but not over $3,000 $341
20 Over $3,000 but not over $4,000 $324
21 Over $4,000 but not over $5,000 $307
22 Over $5,000 but not over $6,000 $290
23 Over $6,000 but not over $7,000 $273
24 Over $7,000 but not over $8,000 $256
25 Over $8,000 but not over $9,000 $239
26 Over $9,000 but not over $10,000 $222
27 Over $10,000 but not over $11,000 $205
28 Over $11,000 but not over $12,000 $188
29 Over $12,000 but not over $13,000 $171
30 Over $13,000 but not over $14,000 $154
31 Over $14,000 but not over $15,000 $137
32 Over $15,000 but not over $16,000 $120
33 Over $16,000 but not over $17,000 $103
34 Over $17,000 [but not over $18,000] $ 86
35 (B) For all other qualified taxpayers the amount of the credit allow-
36 able under this subsection shall be fifty percent of excess real proper-
37 ty taxes or the excess of the real property tax equivalent determined as
38 follows:
39 Excess real property taxes are the
40 excess of real property tax equiv-
41 alent or the excess of qualifying
42 real property taxes over the fol-
43 If household gross income for the lowing percentage of household
44 taxable year is: gross income:
45 ----------------------------------- -----------------------------------
46 $3,000 or less 3 1/2
47 Over $3,000 but not over $5,000 4
48 Over $5,000 but not over $7,000 4 1/2
49 Over $7,000 but not over $9,000 5
50 Over $9,000 but not over $11,000 5 1/2
51 Over $11,000 but not over $14,000 6
52 Over $14,000 [but not over $18,000] 6 1/2
A. 1418 5
1 Notwithstanding the foregoing provisions, the maximum credit deter-
2 mined under this subparagraph may not exceed the amount determined in
3 accordance with the following table:
4 If household gross income for the
5 taxable year is: The maximum credit is:
6 ----------------------------------- -----------------------------------
7 $1,000 or less $75
8 Over $1,000 but not over $2,000 $73
9 Over $2,000 but not over $3,000 $71
10 Over $3,000 but not over $4,000 $69
11 Over $4,000 but not over $5,000 $67
12 Over $5,000 but not over $6,000 $65
13 Over $6,000 but not over $7,000 $63
14 Over $7,000 but not over $8,000 $61
15 Over $8,000 but not over $9,000 $59
16 Over $9,000 but not over $10,000 $57
17 Over $10,000 but not over $11,000 $55
18 Over $11,000 but not over $12,000 $53
19 Over $12,000 but not over $13,000 $51
20 Over $13,000 but not over $14,000 $49
21 Over $14,000 but not over $15,000 $47
22 Over $15,000 but not over $16,000 $45
23 Over $16,000 but not over $17,000 $43
24 Over $17,000 [but not over $18,000] $41
25 (7) No credit shall be granted under this subsection:
26 (A) If household gross income for the taxable year exceeds [eighteen
27 thousand dollars] TWO HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL.
28 (B) To a property owner unless: (i) the property is used for residen-
29 tial purposes, (ii) not more than twenty percent of the rental income,
30 if any, from the property is from rental for nonresidential purposes and
31 (iii) the property is occupied as a residence in whole or in part by one
32 or more of the owners of the property.
33 (C) To a property owner who owns real property, the full value of
34 which exceeds [eighty-five] TWO HUNDRED thousand dollars.
35 (D) [To] (I) IN A CITY WITH A POPULATION OF TWO MILLION OR MORE, TO a
36 tenant if the adjusted rent for the residence exceeds [four] EIGHT
37 hundred [fifty] dollars per month on average; OR (II) IN ALL OTHER AREAS
38 OF THE STATE TO A TENANT IF THE ADJUSTED RENT FOR THE RESIDENCE EXCEEDS
39 SIX HUNDRED DOLLARS PER MONTH ON AVERAGE.
40 (E) To an individual with respect to whom a deduction under subsection
41 (c) of section one hundred fifty-one of the internal revenue code is
42 allowable to another taxpayer for the taxable year.
43 (F) With respect to a residence that is wholly exempted from real
44 property taxation.
45 (G) To an individual who is not a resident individual of the state for
46 the entire taxable year.
47 S 2. This act shall take effect immediately and shall apply to taxable
48 years beginning on and after January 1, 2009.
