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File #: Int 1676-2017    Version: * Name: Increasing the maximum qualifying income for the senior citizen homeowner’s exemption and the disabled homeowner’s exemption.
Type: Introduction Status: Enacted
Committee: Committee on Finance
On agenda: 8/9/2017
Enactment date: 8/25/2017 Law number: 2017/140
Title: A Local Law to amend the administrative code of the city of New York, in relation to increasing the maximum qualifying income for the senior citizen homeowner's exemption and the disabled homeowner's exemption
Sponsors: Chaim M. Deutsch, Alan N. Maisel, Paul A. Vallone, Mark Treyger, Vincent J. Gentile, (in conjunction with the Mayor)
Council Member Sponsors: 5
Summary: New York City provides a real property tax exemption to low-income senior citizen homeowners called the Senior Citizen Homeowner Exemption (SCHE) and to low-income disabled homeowners called the Disabled Homeowner Exemption (DHE). The exemptions function by exempting a percentage of the assessed value (between five and 50 percent) of qualifying real property from taxation on a sliding scale based on income. Currently, in order to be eligible for either exemption, the combined income of the property owners must be less than $37,400. On July 25, 2017, the State enacted legislation authorizing the City to increase the eligible income threshold for both SCHE and DHE to $58,400.
Indexes: Oversight
Attachments: 1. Legislative History Report, 2. Summary of Int. No. 1676, 3. Int. No. 1676, 4. Committee Report 8/8/17, 5. Hearing Testimony 8/8/17, 6. Hearing Testimony 8/8/17 additional, 7. Hearing Transcript 8/8/17, 8. Committee Report 8/9/17, 9. Hearing Transcript 8/9/17, 10. August 9, 2017 - Stated Meeting Agenda with Links to Files, 11. Fiscal Impact Statement, 12. Hearing Transcript - Stated Meeting 8-9-17, 13. Int. No. 1676 - (FINAL), 14. Mayor's Letter, 15. Local Law 140, 16. Minutes of the Stated Meeting - August 9, 2017
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
8/25/2017*Chaim M. Deutsch City Council Recved from Mayor by Council  Action details Meeting details Not available
8/25/2017*Chaim M. Deutsch Mayor Signed Into Law by Mayor  Action details Meeting details Not available
8/25/2017*Chaim M. Deutsch Mayor Hearing Held by Mayor  Action details Meeting details Not available
8/9/2017*Chaim M. Deutsch City Council Sent to Mayor by Council  Action details Meeting details Not available
8/9/2017*Chaim M. Deutsch City Council Approved by CouncilPass Action details Meeting details Not available
8/9/2017*Chaim M. Deutsch City Council Referred to Comm by Council  Action details Meeting details Not available
8/9/2017*Chaim M. Deutsch City Council Introduced by Council  Action details Meeting details Not available
8/9/2017*Chaim M. Deutsch Committee on Finance Hearing on P-C Item by Comm  Action details Meeting details Not available
8/9/2017*Chaim M. Deutsch Committee on Finance P-C Item Approved by CommPass Action details Meeting details Not available
8/8/2017*Chaim M. Deutsch Committee on Finance Hearing on P-C Item by Comm  Action details Meeting details Not available
8/8/2017*Chaim M. Deutsch Committee on Finance P-C Item Laid Over by Comm  Action details Meeting details Not available

Preconsidered Int. No. 1676

 

By Council Members Deutsch, Maisel, Vallone, Treyger and Gentile (in conjunction with the Mayor)

 

A Local Law to amend the administrative code of the city of New York, in relation to increasing the maximum qualifying income for the senior citizen homeowner’s exemption and the disabled homeowner’s exemption

 

Be it enacted by the Council as follows:

Section 1.  Paragraph (a) of subdivision 3 of section 11-245.3 of the administrative code of the city of New York, as amended by local law number 42 for the year 2006, is amended to read as follows:

(a) if the income of the owner or the combined income of the owners of the property exceeds the sum of 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, [and] twenty-nine thousand dollars beginning July first, two thousand nine, and fifty thousand dollars beginning July first, two thousand seventeen for the income tax year immediately preceding the date of making application for exemption.  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 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 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 self-employment, but shall not include gifts, inheritances, a return of capital, payments made to individuals because of their status as victims of Nazi persecution as defined in P.L. 103-286, monies earned through employment in the federal foster grandparent program, and veterans disability compensation as defined in title 38 of the United States Code, 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.  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. Subdivision 7 of section 11-245.3 of the administrative code of the city of New York, as amended by local law number 42 for the year 2006, is amended to read as follows:

7. Notwithstanding the maximum income exemption eligibility level provided in subdivision three of this section, an exemption, subject to all other provisions of this section, shall be granted as indicated in the following schedule:

                                                                                                                                                     Percentage Assessed Valuation      

Annual Income as of July 1, 2006                                                                                         Exempt From Taxation                                                                                                                                                                         More than $26,000 but less than $27,000                                                                                    45 per centum

$27,000 or more but less than $28,000                                                                                    40 per centum

$28,000 or more but less than $29,000                                                                                    35 per centum

$29,000 or more but less than $29,900                                                                                    30 per centum

$29,900 or more but less than $30,800                                                                                    25 per centum

$30,800 or more but less than $31,700                                                                                    20 per centum

$31,700 or more but less than $32,600                                                                                    15 per centum

$32,600 or more but less than $33,500                                                                                    10 per centum

$33,500 or more but less than $34,400                                                                                      5 per centum

 

                                                                                                                                                        Percentage Assessed Valuation      

Annual Income as of July 1, 2007                                                                                    Exempt From Taxation                                                                                                                                                                                                                           

More than $27,000 but less than $28,000                                                               45 per centum

$28,000 or more but less than $29,000                                                               40 per centum

$29,000 or more but less than $30,000                                                               35 per centum

$30,000 or more but less than $30,900                                                               30 per centum

$30,900 or more but less than $31,800                                                               25 per centum

$31,800 or more but less than $32,700                                                               20 per centum

$32,700 or more but less than $33,600                                                               15 per centum

$33,600 or more but less than $34,500                                                               10 per centum

$34,500 or more but less than $35,400                                                                 5 per centum

 

                                                                                                                                                        Percentage Assessed Valuation

Annual Income as of July 1, 2008                                                                                    Exempt From Taxation                       

More than $28,000 but less than $29,000                                                               45 per centum

$29,000 or more but less than $30,000                                                               40 per centum

$30,000 or more but less than $31,000                                                               35 per centum

$31,000 or more but less than $31,900                                                               30 per centum

$31,900 or more but less than $32,800                                                               25 per centum

$32,800 or more but less than $33,700                                                               20 per centum

$33,700 or more but less than $34,600                                                               15 per centum

$34,600 or more but less than $35,500                                                               10 per centum

$35,500 or more but less than $36,400                                                                 5 per centum

 

                                                                                                                                                        Percentage Assessed Valuation     

Annual Income as of July 1, 2009                                                                                       Exempt From Taxation                       

More than $29,000 but less than $30,000                                                               45 per centum

$30,000 or more but less than $31,000                                                               40 per centum

$31,000 or more but less than $32,000                                                               35 per centum

$32,000 or more but less than $32,900                                                               30 per centum

$32,900 or more but less than $33,800                                                               25 per centum

$33,800 or more but less than $34,700                                                               20 per centum

$34,700 or more but less than $35,600                                                               15 per centum

$35,600 or more but less than $36,500                                                               10 per centum

$36,500 or more but less than $37,400                                                                 5 per centum

 

                                                                                                                                                        Percentage Assessed Valuation     

Annual Income as of July 1, 2017                                                                                       Exempt From Taxation                       

More than $50,000 but less than $51,000                                                               45 per centum

$51,000 or more but less than $52,000                                                               40 per centum

$52,000 or more but less than $53,000                                                               35 per centum

$53,000 or more but less than $53,900                                                               30 per centum

$53,900 or more but less than $54,800                                                               25 per centum

$54,800 or more but less than $55,700                                                               20 per centum

$55,700 or more but less than $56,600                                                               15 per centum

$56,600 or more but less than $57,500                                                               10 per centum

$57,500 or more but less than $58,400                                                                 5 per centum

§ 3. Paragraph (a) of subdivision 3 of section 11-245.4 of the administrative code of the city of New York, as amended by local law number 41 for the year 2006, 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 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, [and] twenty-nine thousand dollars beginning July first, two thousand nine, and fifty thousand dollars beginning July first, two thousand seventeen. 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 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 due to divorce, legal separation or abandonment, 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 self-employment, but shall not include a return of capital, gifts, inheritances 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. 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[.];

§ 4. Subdivision 6 of section 11-245.4 of the administrative code of the city of New York, as amended by local law number 41 for the year 2006, is amended to read as follows:

                                                                                                                                                     Percentage Assessed Valuation      

Annual Income as of July 1, 2006                                                                                         Exempt From Taxation

More than $26,000 but less than $27,000                                                               45 per centum

$27,000 or more but less than $28,000                                                               40 per centum

$28,000 or more but less than $29,000                                                               35 per centum

$29,000 or more but less than $29,900                                                               30 per centum

$29,900 or more but less than $30,800                                                               25 per centum

$30,800 or more but less than $31,700                                                               20 per centum

$31,700 or more but less than $32,600                                                               15 per centum

$32,600 or more but less than $33,500                                                               10 per centum

$33,500 or more but less than $34,400                                                                 5 per centum

 

                                                                                                                                                        Percentage Assessed Valuation      

Annual Income as of July 1, 2007                                                                                    Exempt From Taxation                       

More than $27,000 but less than $28,000                                                               45 per centum

$28,000 or more but less than $29,000                                                               40 per centum

$29,000 or more but less than $30,000                                                               35 per centum

$30,000 or more but less than $30,900                                                               30 per centum

$30,900 or more but less than $31,800                                                               25 per centum

$31,800 or more but less than $32,700                                                               20 per centum

$32,700 or more but less than $33,600                                                               15 per centum

$33,600 or more but less than $34,500                                                               10 per centum

$34,500 or more but less than $35,400                                                                 5 per centum

 

                                                                                                                                                        Percentage Assessed Valuation

Annual Income as of July 1, 2008                                                                                    Exempt From Taxation                       

More than $28,000 but less than $29,000                                                               45 per centum

$29,000 or more but less than $30,000                                                               40 per centum

$30,000 or more but less than $31,000                                                               35 per centum

$31,000 or more but less than $31,900                                                               30 per centum

$31,900 or more but less than $32,800                                                               25 per centum

$32,800 or more but less than $33,700                                                               20 per centum

$33,700 or more but less than $34,600                                                               15 per centum

$34,600 or more but less than $35,500                                                               10 per centum

$35,500 or more but less than $36,400                                                                 5 per centum

 

                                                                                                                                                        Percentage Assessed Valuation     

Annual Income as of July 1, 2009                                                                                       Exempt From Taxation                       

More than $29,000 but less than $30,000                                                               45 per centum

$30,000 or more but less than $31,000                                                               40 per centum

$31,000 or more but less than $32,000                                                               35 per centum

$32,000 or more but less than $32,900                                                               30 per centum

$32,900 or more but less than $33,800                                                               25 per centum

$33,800 or more but less than $34,700                                                               20 per centum

$34,700 or more but less than $35,600                                                               15 per centum

$35,600 or more but less than $36,500                                                               10 per centum

$36,500 or more but less than $37,400                                                                 5 per centum

 

                                                                                                                                                        Percentage Assessed Valuation     

Annual Income as of July 1, 2017                                                                                       Exempt From Taxation                       

More than $50,000 but less than $51,000                                                               45 per centum

$51,000 or more but less than $52,000                                                               40 per centum

$52,000 or more but less than $53,000                                                               35 per centum

$53,000 or more but less than $53,900                                                               30 per centum

$53,900 or more but less than $54,800                                                               25 per centum

$54,800 or more but less than $55,700                                                               20 per centum

$55,700 or more but less than $56,600                                                               15 per centum

$56,600 or more but less than $57,500                                                               10 per centum

$57,500 or more but less than $58,400                                                                 5 per centum

§ 5. This local law takes effect immediately and shall apply to applications made for an exemption pursuant to this local law for the fiscal year commencing in 2017 and all fiscal years thereafter. Applications received for the fiscal year commencing in 2017 shall be considered timely if they are filed on or before the one hundred twentieth day following the effective date of this local law.          

LS#10884, 8/1/17 5:19 PM