Res. No. 2220

Resolution calling upon the New York State Legislature to pass S.1574/A.2656, The Caregiver’s Assistance Act.

By Council Members Nelson, Brewer, Fidler, Gerson, Gonzalez, Sanders Jr., Stewart and James

                     Whereas, The New York State Legislature is considering S.1574/A.2656, an act to amend the tax law and the real property tax law in relation to establishing the Caregiver’s Assistance Act; and

                     Whereas, S.1574/A.2656 would provide a refundable credit to qualified taxpayers who provide informal, unpaid care to senior family members; and

                     Whereas, The credit amount would be 20% of the first $2,400 spent by the taxpayer on behalf of a senior relative, plus $75 for any amount spent in excess of $240, providing a maximum credit of $555; and

                     Whereas, S.1574/A.2656 would define a senior family member as a person who is 60 years old or older, who is within the third degree of relation, who resides in the taxpayer's home, and whose New York adjusted gross income is $13,000 or less for a single person or $20,000 or less for a married couple; and

                     Whereas, S.1574/A.2656 would also allow for a pro-rated basic or enhanced STAR exemption that would apply if the senior owned the home used as a residence in which he or she lives with a taxpayer; and

Whereas, STAR is New York State's School Tax Relief Program that includes a school property tax rebate program and a partial property tax exemption from school taxes and all New Yorkers who own and live in their home are eligible for the STAR exemption on their primary residence; and

                     Whereas, Basic STAR is available for owner-occupied, primary residences regardless of the owners' ages or incomes and works by exempting the first $30,000 of the full value of a home from school taxes; and

                     Whereas, Enhanced STAR is available for the primary residences of senior citizens (age 65 and older) with yearly household incomes not exceeding the statewide standard for the applicable income tax year and works by exempting the first $60,100 of the full value of their home from school property taxes; and

                     Whereas, The STAR exemption that would be available pursuant to S.1574/A.2656 would apply to the portion of the home used by the senior for living and the provision of care; and

                     Whereas, For example, in a 2,000 square foot house, if the senior member occupied one 10x12 room (120 square feet), and there was a second room used for the provision of care of equal size, the amount of the pro-rated STAR exemption would be 12% of the total basic or enhanced exemption; and

                     Whereas, Caregiving has become an essential element of our health and long-term care system and typically can last years or decades; and

                     Whereas, According to AARP, the economic value of the nation’s family and informal caregivers was estimated at $375 billion in 2007 and $25 billion in New York State for the same year; and

                     Whereas, According to United Hospital Fund reports, there are 1.9 million caregivers in New York State and in New York City, one in every five residents is a caregiver; and

                     Whereas, The Caregiver Assistance Act would provide some financial relief to family caregivers who dedicate significant time and financial resources to care for aging relatives; now, therefore, be it

                     Resolved, That the Council of the City of New York calls upon the New York State Legislature to pass S.1574/A.2656, The Caregiver’s Assistance Act.

LS# 7790

S.O.

10/5/09

5:11pm