STATE OF NEW YORK
________________________________________________________________________
3442
2023-2024 Regular Sessions
IN ASSEMBLY
February 3, 2023
___________
Introduced by M. of A. STERN -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to 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. Subparagraph (E) of paragraph 1 and paragraphs 3 and 7 of
2 subsection (e) of section 606 of the tax law, as amended by chapter 28
3 of the laws of 1987 and subparagraph (E) of paragraph 1 as amended by
4 chapter 105 of the laws of 2006, are amended to read as follows:
5 (E) "Qualifying real property taxes" means all real property taxes,
6 special ad valorem levies and special assessments, exclusive of penal-
7 ties and interest, levied on the residence of a qualified taxpayer and
8 paid during the taxable year less the credit claimed under the former
9 subsection (n-1) of this section. [In addition, for taxable years begin-
10 ning after December thirty-first, nineteen hundred eighty-four, a quali-
11 fied taxpayer may elect to include any additional amount that would have
12 been levied in the absence of an exemption from real property taxation
13 pursuant to section four hundred sixty-seven of the real property tax
14 law.] If tenant-stockholders in a cooperative housing corporation have
15 met the requirements of section two hundred sixteen of the internal
16 revenue code by which they are allowed a deduction for real estate
17 taxes, the amount of taxes so allowable, or which would be allowable if
18 the taxpayer had filed returns on a cash basis, shall be qualifying real
19 property taxes. If a residence is owned by two or more individuals as
20 joint tenants or tenants in common, and one or more than one individual
21 is not a member of the household, qualifying real property taxes is that
22 part of such taxes on the residence which reflects the ownership
23 percentage of the qualified taxpayer and members of his household. If a
24 residence is an integral part of a larger unit, qualifying real property
25 taxes shall be limited to that amount of such taxes paid as may be
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02547-01-3
A. 3442 2
1 reasonably apportioned to such residence. If a household owns and occu-
2 pies two or more residences during different periods in the same taxable
3 year, qualifying real property taxes shall be the sum of the prorated
4 qualifying real property taxes attributable to the household during the
5 periods such household occupies each of such residences. If the house-
6 hold owns and occupies a residence for part of the taxable year and
7 rents a residence for part of the same taxable year, it may include both
8 the proration of qualifying real property taxes on the residence owned
9 and the real property tax equivalent with respect to the months the
10 residence is rented. Provided, however, for purposes of the credit
11 allowed under this subsection, qualifying real property taxes may be
12 included by a qualified taxpayer only to the extent that such taxpayer
13 or the spouse of such taxpayer occupying such residence for six months
14 or more of the taxable year owns or has owned the residence and paid
15 such taxes. Provided further, however, qualifying real property taxes
16 shall not include any portion of a real property tax paid that was
17 subsequently returned to the taxpayer by a tax credit or any other real
18 property tax rebate including, but not limited to, the school tax relief
19 credit under subsection (eee) of this section.
20 (3) Determination of credit. (A) For qualified taxpayers who have
21 attained the age of sixty-five years before the beginning of or during
22 the taxable year the amount of the credit allowable under this
23 subsection shall be fifty percent, or in the case of a qualified taxpay-
24 er who has elected to include an additional amount pursuant to subpara-
25 graph (E) of paragraph one of this subsection, twenty-five percent, of
26 the excess of real property taxes or the excess of real property tax
27 equivalent determined as follows:
28 Excess real property taxes are the
29 excess of real property tax equiv-
30 alent or the excess of qualifying
31 real property taxes over the fo-
32 If household gross income for the llowing percentage of household
33 taxable year is: gross income:
34 ----------------------------------- -----------------------------------
35 [$3,000] $20,000 or less 3 1/2
36 Over [$3,000] $20,000 but not over 4
37 [$5,000] $30,000
38 Over [$5,000] $30,000 but not over 4 1/2
39 [$7,000] $45,000
40 Over [$7,000] $45,000 but not over 5
41 [$9,000] $65,000
42 Over [$9,000] $65,000 but not over 5 1/2
43 [$11,000] $75,000
44 Over [$11,000] $75,000 but not over 6
45 [$14,000] $85,000
46 Over [$14,000] $85,000 but not over 6 1/2
47 [$18,000] $100,000
48 Notwithstanding the foregoing provisions, the maximum credit deter-
49 mined under this subparagraph may not exceed the amount determined in
50 accordance with the following table:
51 If household gross income for the
52 taxable year is: The maximum credit is:
53 ----------------------------------- -----------------------------------
A. 3442 3
1 [$1,000] $5,000 or less $375
2 Over [$1,000] $5,000 but not over $358
3 [$2,000] $10,000
4 Over [$2,000] $10,000 but not over $341
5 [$3,000] $15,000
6 Over [$3,000] $15,000 but not over $324
7 [$4,000] $20,000
8 Over [$4,000] $20,000 but not over $307
9 [$5,000] $25,000
10 Over [$5,000] $25,000 but not over $290
11 [$6,000] $30,000
12 Over [$6,000] $30,000 but not over $273
13 [$7,000] $35,000
14 Over [$7,000] $35,000 but not over $256
15 [$8,000] $40,000
16 Over [$8,000] $40,000 but not over $239
17 [$9,000] $45,000
18 Over [$9,000] $45,000 but not over $222
19 [$10,000] $50,000
20 Over [$10,000] $50,000 but not over $205
21 [$11,000] $55,000
22 Over [$11,000] $55,000 but not over $188
23 [$12,000] $60,000
24 Over [$12,000] $60,000 but not over $171
25 [$13,000] $65,000
26 Over [$13,000] $65,000 but not over $154
27 [$14,000] $70,000
28 Over [$14,000] $70,000 but not over $137
29 [$15,000] $75,000
30 Over [$15,000] $75,000 but not over $120
31 [$16,000] $80,000
32 Over [$16,000] $80,000 but not over $103
33 [$17,000] $86,000
34 Over [$17,000] $86,000 but not over $ 86
35 [$18,000] $100,000
36 (B) For all other qualified taxpayers the amount of the credit allow-
37 able under this subsection shall be fifty percent of excess real proper-
38 ty taxes or the excess of the real property tax equivalent determined as
39 follows:
40 Excess real property taxes are the
41 excess of real property tax equiv-
42 alent or the excess of qualifying
43 real property taxes over the
44 If household gross income for the following percentage of household
45 taxable year is: gross income:
46 ----------------------------------- -----------------------------------
47 [$3,000] $20,000 or less 3 1/2
48 Over [$3,000] $20,000 but not over 4
49 [$5,000] $30,000
50 Over [$5,000] $30,000 but not over 4 1/2
51 [$7,000] $45,000
52 Over [$7,000] $45,000 but not over 5
53 [$9,000] $65,000
A. 3442 4
1 Over [$9,000] $65,000 but not over 5 1/2
2 [$11,000] $75,000
3 Over [$11,000] $75,000 but not over 6
4 [$14,000] $85,000
5 Over [$14,000] $85,000 but not over 6 1/2
6 [$18,000] $100,000
7 Notwithstanding the foregoing provisions, the maximum credit deter-
8 mined under this subparagraph may not exceed the amount determined in
9 accordance with the following table:
10 If household gross income for the
11 taxable year is: The maximum credit is:
12 ----------------------------------- -----------------------------------
13 [$1,000] $5,000 or less $75
14 Over [$1,000] $5,000 but not over $73
15 [$2,000] $10,000
16 Over [$2,000] $10,000 but not over $71
17 [$3,000] $15,000
18 Over [$3,000] $15,000 but not over $69
19 [$4,000] $20,000
20 Over [$4,000] $20,000 but not over $67
21 [$5,000] $25,000
22 Over [$5,000] $25,000 but not over $65
23 [$6,000] $30,000
24 Over [$6,000] $30,000 but not over $63
25 [$7,000] $35,000
26 Over [$7,000] $35,000 but not over $61
27 [$8,000] $40,000
28 Over [$8,000] $40,000 but not over $59
29 [$9,000] $45,000
30 Over [$9,000] $45,000 but not over $57
31 [$10,000] $50,000
32 Over [$10,000] $50,000 but not over $55
33 [$11,000] $55,000
34 Over [$11,000] $55,000 but not over $53
35 [$12,000] $60,000
36 Over [$12,000] $60,000 but not over $51
37 [$13,000] $65,000
38 Over [$13,000] $65,000 but not over $49
39 [$14,000] $70,000
40 Over [$14,000] $70,000 but not over $47
41 [$15,000] $75,000
42 Over [$15,000] $75,000 but not over $45
43 [$16,000] $80,000
44 Over [$16,000] $80,000 but not over
45 [$17,000] $86,000 $43
46 Over [$17,000] $86,000 but not over $41
47 [$18,000] $100,000
48 (7) No credit shall be granted under this subsection:
49 (A) If household gross income for the taxable year exceeds [eighteen]
50 one hundred thousand dollars.
51 (B) To a property owner unless: (i) the property is used for residen-
52 tial purposes, (ii) not more than twenty percent of the rental income,
53 if any, from the property is from rental for nonresidential purposes and
A. 3442 5
1 (iii) the property is occupied as a residence in whole or in part by one
2 or more of the owners of the property.
3 (C) To a property owner who owns real property, the full value of
4 which exceeds [eighty-five] one hundred fifty thousand dollars.
5 (D) To a tenant if the adjusted rent for the residence exceeds [four
6 hundred fifty] one thousand dollars per month on average.
7 (E) To an individual with respect to whom a deduction under subsection
8 (c) of section one hundred fifty-one of the internal revenue code is
9 allowable to another taxpayer for the taxable year.
10 (F) With respect to a residence that is wholly exempted from real
11 property taxation.
12 (G) To an individual who is not a resident individual of the state for
13 the entire taxable year.
14 § 2. This act shall take effect immediately.