§ 459-C — Persons with disabilities and limited incomes

New York § 459-C

• Jurisdiction: New York
• Law RPT: Real Property Tax
• Title 2: Private Property
• Art. 4: Exemptions

Text

§ 459-c. Persons with disabilities and limited incomes. 1. (a) Real\nproperty owned by one or more persons with disabilities, or real\nproperty owned by a married person or a married couple, or by siblings,\nat least one of whom has a disability, or a person with a disability who\nhas their primary residence in a special needs trust, or a property\nowner who has a tenant with a disability whose lease provides them with\na life interest in the property as long as the tenant remains in\nresidence, or real property owned by one or more persons, some of whom\nqualify under this section and the others of whom qualify under section\nfour hundred sixty-seven of this title, and whose income, as hereafter\ndefined, is limited by reason of such disability, shall be exempt from\npayments in lieu of taxes (PILOT) to the battery city park authority or\nfrom taxation by any municipal corporation in which located to the\nextent of fifty per centum of the assessed valuation thereof as\nhereinafter provided. After a public hearing, the governing board of a\ncounty, city, town or village may adopt a local law and a school\ndistrict, other than a school district subject to article fifty-two of\nthe education law, may adopt a resolution to grant the exemption\nauthorized pursuant to this section.\n (b) Any local law or resolution adopted pursuant to paragraph (a) of\nthis subdivision may be amended, or a local law or resolution may be\nadopted, to provide an exemption so as to increase the maximum income\neligibility level of such municipal corporation as provided in\nsubdivision five of this section (represented in the hereinbelow\nschedule as M), to the extent provided in the following schedule:\n ANNUAL INCOME PERCENTAGE ASSESSED VALUATION\n EXEMPT FROM TAXATION OR PILOT\nMore than (M) but\n less than (M+ $1,000) 45 per centum\n(M+ $1,000 or more) but\n less than (M+ $2,000) 40 per centum\n(M+ $2,000 or more) but\n less than (M+ $3,000) 35 per centum\n(M+ $3,000 or more) but\n less than (M+ $3,900) 30 per centum\n(M+ $3,900 or more) but\n less than (M+ $4,800) 25 per centum\n(M+ $4,800 or more) but\n less than (M+ $5,700) 20 per centum\n(M+ $5,700 or more) but\n less than (M+ $6,600) 15 per centum\n(M+ $6,600 or more) but\n less than (M+ $7,500) 10 per centum\n(M + $7,500 or more) but\n less than (M+ $8,400) 5 per centum\n 2. For purposes of this section: (a) the term "sibling" shall include\npersons whose relationship as siblings has been established through\neither half blood, whole blood or adoption.\n (b) a person with a disability is one who has a physical or mental\nimpairment, not due to current use of alcohol or illegal drug use, which\nsubstantially limits such person's ability to engage in one or more\nmajor life activities, such as caring for one's self, performing manual\ntasks, walking, seeing, hearing, speaking, breathing, learning and\nworking, and who (i) is certified to receive social security disability\ninsurance (SSDI) or supplemental security income (SSI) benefits under\nthe federal Social Security Act, or (ii) is certified to receive\nRailroad Retirement Disability benefits under the federal railroad\nRetirement Act, or (iii) has received a certificate from the state\ncommission for the blind stating that such person is legally blind, or\n(iv) is certified to receive a United States Postal Service disability\npension, or (v) is certified to receive a United States department of\nveterans affairs disability pension pursuant to 38 U.S.C. §1521, or (vi)\nhas received an order from the chair of the workers' compensation board\npursuant to article two of the workers' compensation law determining an\naward for compensation for (A) permanent total disability, as described\nin subdivision one of section fifteen of the workers' compensation law,\nor (B) permanent partial disability, as described in subdivision three\nof such section fifteen of the workers' compensation law, provided that\nthe governing board of a municipality, after a public hearing, may adopt\na local law or resolution establishing an adjustment percentage to be\napplied to the exemption percentage schedule established in paragraph\n(b) of subdivision one of this section, for exemptions based upon\npermanent partial disabilities. Such adjustment percentage shall not be\nless than fifty percent, and not more than one hundred percent.\n An award letter from the Social Security Administration or the\nRailroad Retirement Board, or a certificate from the state commission\nfor the blind, or an award letter from the United States Postal Service,\nor an award letter from the United States department of veterans\naffairs, or an order of determination of an award for compensation for\npermanent total disability or for permanent partial disability issued by\nthe workers' compensation board shall be submitted as proof of\ndisability.\n 3. Any exemption provided by this section shall be computed after all\nother partial exemptions allowed by law, excluding the school tax relief\n(STAR) exemption authorized by section four hundred twenty-five of this\ntitle, have been subtracted from the total amount assessed; provided,\nhowever, that no parcel may receive an exemption for the same PILOT or\nmunicipal tax purpose pursuant to both this section and section four\nhundred sixty-seven of this title.\n 4. Exemption from taxation for school purposes shall not be granted in\nthe case of real property where a child resides if such child attends a\npublic school of elementary or secondary education; unless the governing\nboard of the school district in which the property is located, after\npublic hearing, adopts a resolution providing for such exemption;\nprovided that any such resolution shall condition such exemption upon\nsatisfactory proof that the child was not brought into the residence in\nwhole or in substantial part for the purpose of attending a particular\nschool within the district. The procedure for such hearing and\nresolution must be conducted separately from the procedure for any\nhearing and local law, ordinance or resolution conducted pursuant to\nparagraph (a) of subdivision one of this section.\n 5. No exemption shall be granted:\n (a) (i) if the income of the owner or the combined income of the\nowners of the property for the applicable income tax year exceeds the\nsum of three thousand dollars, or such other sum not less than three\nthousand dollars nor more than fifty thousand dollars, as may be\nprovided by the local law or resolution adopted pursuant to this\nsection.\n (ii) Where the taxable status date is on or before April fourteenth,\nthe applicable income tax year shall be the second most recent calendar\nyear. Where the taxable status date is on or after April fifteenth, the\napplicable income tax year shall be the most recent calendar year.\nProvided, however, that for taxpayers whose income tax returns are filed\non the basis of a fiscal year rather than a calendar year, the\napplicable income tax year shall be the most recent fiscal year for\nwhich an income tax return has been filed.\n (iii) Where title is vested in a married person, the combined income\nof such person and such person's spouse may not exceed such sum, except\nwhere one spouse or ex-spouse is absent from the property due to\ndivorce, legal separation or abandonment, then only the income of the\nspouse or ex-spouse residing on the property shall be considered and may\nnot exceed such sum.\n (iv) The term "income" as used herein shall mean the "adjusted gross\nincome" for federal income tax purposes as reported on the applicant's\nfederal or state income tax return for the applicable income tax year,\nsubject to any subsequent amendments or revisions, plus any social\nsecurity benefits not included in such federal adjusted gross income;\nprovided that if no such return was filed for the applicable income tax\nyear, the applicant's income shall be determined based on the amounts\nthat would have so been reported if such a return had been filed; and\nprovided further, that when determining income for purposes of this\nsection, the following conditions shall be applicable:\n (1) the governing body of a municipal corporation, after a public\nhearing, may adopt a local law, ordinance or resolution providing that\nany social security benefits that were not included in the applicant's\nfederal adjusted gross income shall not be considered income;\n (2) distributions received from an individual retirement account or\nindividual retirement annuity that were included in the applicant's\nfederal adjusted gross income shall not be considered income unless the\ngoverning body of a municipal corporation, after a public hearing,\nadopts a local law, ordinance or resolution providing otherwise;\n (3) the applicant's income shall be offset by all medical and\nprescription drug expenses actually paid that were not reimbursed or\npaid for by insurance, if the governing body of a municipal corporation,\nafter a public hearing, adopts a local law, ordinance or resolution\nproviding therefor;\n (4) any tax-exempt interest or dividends that were excluded from the\napplicant's federal adjusted gross income shall be considered income;\nand\n (5) any losses that were applied to reduce the applicant's federal\nadjusted gross income shall be subject to the following limitations:\n (A) the net amount of loss reported on federal Schedule C, D, E, or F\nshall not exceed three thousand dollars per schedule,\n (B) the net amount of any other separate category of loss shall not\nexceed three thousand dollars, and\n (C) the aggregate amount of all losses shall not exceed fifteen\nthousand dollars;\n (v) Notwithstanding subparagraph (iv) of this paragraph, in a city\nhaving a population of one million persons or more:\n (1) except as provided in clause two of this subparagraph, the term\n"income" as used in this section shall mean the "adjusted gross income"\nfor federal income tax purposes as reported on the applicant's federal\nor state income tax return for the most recent income tax year or years\nfor which data is sufficiently available to determine the applicant's\neligibility for exemptions pursuant to this section, subject to any\nsubsequent amendments or revisions, minus any distributions, to the\nextent included in federal adjusted gross income, received from an\nindividual retirement account and an individual retirement annuity;\nprovided that if no such return was filed for such income tax year, the\napplicant's income shall be determined based on the amounts that would\nhave so been reported if such a return had been filed; and\n (2) if an owner who has received an exemption pursuant to this section\nfor a property on an assessment roll for a tax year ending on or before\nJune thirtieth, two thousand twenty-four, would receive a greater\nexemption for any tax year ending on or after June thirtieth, two\nthousand twenty-five, the term "income" shall include social security\nand retirement benefits, interest, dividends, total gain from the sale\nor exchange of a capital asset which may be offset by a loss from the\nsale or exchange of a capital asset in the same income tax year, net\nrental income, salary or earnings, and net income from self-employment,\nbut shall not include a return of capital, gifts, inheritances or monies\nearned through employment in the federal foster grandparent program and\nany such income shall be offset by all medical and prescription drug\nexpenses actually paid which were not reimbursed or paid for by\ninsurance, if the governing board of a municipality, after a public\nhearing, adopts a local law or resolution providing therefor. In\ncomputing net rental income and net income from self-employment for the\npurposes of this item, no depreciation deduction shall be allowed for\nthe exhaustion, wear and tear of real or personal property held for the\nproduction of income.\n (b) unless the property is used exclusively for residential purposes,\nprovided, however, that in the event any portion of such property is not\nso used exclusively for residential purposes but is used for other\npurposes, such portion shall be subject to taxation or PILOT and the\nremaining portion only shall be entitled to the exemption provided by\nthis section;\n (c) unless the real property is the legal residence of and is occupied\nin whole or in part by the disabled person; except where the disabled\nperson is absent from the residence while receiving health-related care\nas an inpatient of a residential health care facility, as defined in\nsection twenty-eight hundred one of the public health law, provided that\nany income accruing to that person shall be considered income for\npurposes of this section only to the extent that it exceeds the amount\npaid by such person or spouse or sibling of such person for care in the\nfacility.\n 6. (a) If so provided in the local law or resolution adopted pursuant\nto this section, title to that portion of real property owned by a\ncooperative apartment corporation in which a tenant-stockholder of such\ncorporation resides, and which is represented by the\ntenant-stockholder's share or shares of stock in such corporation as\ndetermined by its or their proportional relationship to the total\noutstanding stock of the corporation, including that owned by the\ncorporation, shall be deemed to be vested in such tenant-stockholder.\n (b) That proportion of the assessment of such real property owned by a\ncooperative apartment corporation determined by the relationship of such\nreal property vested in such tenant-stockholder to such entire parcel\nand the buildings thereon owned by such cooperative apartment\ncorporation in which such tenant-stockholder resides shall be subject to\nexemption from taxation or PILOT pursuant to this section and any\nexemption so granted shall be credited by the appropriate taxing\nauthority against the assessed valuation of such real property; the\nreduction in real property taxes or PILOT realized thereby shall be\ncredited by the cooperative apartment corporation against the amount of\nsuch taxes or PILOT otherwise payable by or chargeable to such\ntenant-stockholder.\n 7. Application for such exemption must be made annually by the owner,\nor all of the owners of the property, on forms prescribed by the\ncommissioner, and shall be filed in such assessor's office on or before\nthe appropriate taxable status date; provided, however, proof of a\npermanent disability need be submitted only in the year exemption\npursuant to this section is first sought or the disability is first\ndetermined to be permanent.\n 7-a. Notwithstanding the provisions of this section or any other\nprovision of law, in a city having a population of one million or more,\napplications for the exemption authorized pursuant to this section shall\nbe considered timely filed if they are filed on or before the fifteenth\nday of March of the appropriate year and in such city all references in\nthis section to taxable status date shall be deemed to refer to the\nfifteenth day of March of the appropriate year.\n 8. At least sixty days prior to the appropriate taxable status date,\nthe assessor shall mail to each person who was granted exemption\npursuant to this section on the latest completed assessment roll an\napplication form and a notice that such application must be filed on or\nbefore the taxable status date and be approved in order for the\nexemption to continue to be granted. Failure to mail such application\nform or the failure of such person to receive the same shall not prevent\nthe levy, collection and enforcement of the payment of the taxes or\nPILOT on property owned by such person.\n 9. Notwithstanding any other provision of law to the contrary, the\nprovisions of this section shall apply to real property held in trust\nsolely for the benefit of a person or persons who would otherwise be\neligible for a real property tax or PILOT exemption, pursuant to\nsubdivision one of this section, were such person or persons the owner\nor owners of such real property.\n