[HISTORY: Adopted by the Board of Trustees of the Village of Ocean Beach 9-19-1998 by L.L. No. 9-1998. Amendments noted where applicable.]
This chapter shall be known as the "Tax Exemption Local Law" and shall be designated as Chapter 43 of the Code of the Incorporated Village of Ocean Beach.
As used in this chapter, the following terms shall have the meanings indicated:
- ELIGIBLE PROPERTY
- Includes property that is owned by persons 65 years of age or older or by certain other persons described under § 43-4II, Ownership requirements, below, whose income does not exceed the maximum established by local option; is used exclusively for residential purposes; has been owned by at least one of its owners for a minimum of 12 consecutive months prior to application for exemption or for a period of time considered to be the equivalent of 12 consecutive months (see § 43-4L, Required construction start date or other time requirements, below); and is partially exempt from general municipal taxes and, if no child resides on the property who attends public elementary or secondary schools from school district taxes. This exemption may not be granted to property currently receiving an exemption pursuant to Real Property Tax Law § 467-c. No exemption is allowed from special ad valorem levies or special assessments.
The Board of Trustees of the Incorporated Village of Ocean Beach makes the following legislative findings in regard to the maximum income limit requirement relating to partial tax exemption for real property of senior citizens:
The Board of Trustees, on July 19, 1980, determined to provide for a fifty-percent exemption pursuant to § 467 of the Real Property Tax Law for a partial tax exemption for real property of senior citizens. In December of 1980, the maximum income limit was $9,200. That income limit has not been increased, by Board resolution or local law, since that time, and the Board of Trustees wishes to revise its laws and regulations in conformance with changes in state law and changes in circumstances to benefit the public health, safety and welfare.
The requirements to qualify for the partial real property exemption are as follows:
Property must be eligible property as defined in this chapter.
The property owner must be 65 years of age or older.
The property must be used exclusively for residential purposes.
The property must be occupied as the legal residence all the owners of the property.
The maximum annual income limit for property owners shall be no more than that which is the maximum that may be determined by local option, which is $18,500 or such lesser amount as may be determined from time to time by resolution of the Board of Trustees of the Incorporated Village of Ocean Beach.
The property and/or property owners who seek a tax exemption shall additionally meet and/or comply with any and all other requirements imposed and/or mandated by § 467 of the Real Property Tax Law of the laws of the State of New York and any other applicable provisions thereof or the applicable provisions of any state or federal law, statute, rule and/or regulation.
An application shall be filed by the person or persons seeking any exemption containing such information and within such time periods as the Village Clerk/Treasurer, if it shall be one person, or otherwise the Village Treasurer shall deem proper and necessary.
Ownership requirements. Property must be owned by one or more persons each of whom is 65 years of age or older, unless the property is owned by a husband and wife or by siblings, one of whom is 65 years of age or older, or the property was owned by a husband or wife, one of whom was 65 years of age or older, was exempt under Real Property Tax Law § 467 prior to the death of the older spouse and is now owned by the surviving spouse and that surviving spouse is at least 62 years of age. A "sibling" is defined as a brother or sister, whether related through whole blood, half blood or adoption. For purposes of this senior exemption, if the title to real property is held by a trustee or trustees, the property is eligible for a property tax exemption if all of the trustees or all of the trust beneficiaries are otherwise qualified. However, regardless of ownership, this exemption may not be granted to property currently receiving an exemption pursuant to New York State Real Property Tax Law § 467-c.
Qualifications. To qualify for the base exemption (50% of assessed value), the combined incomes of the owners for the income tax year (January through December unless a different twelve-month period is used for personal income tax filing purposes) immediately preceding the application for exemption must not be greater than the maximum income eligibility level specified by the Code or as established by a resolution of the Board of Trustees. If title to the property is solely in a husband's or wife's name, the incomes of both spouses must be combined to satisfy the income requirement, even if both do not reside on the property. In the case of separated spouses and where a husband or wife, or an ex-husband or ex-wife, is absent from the property as a result of divorce, legal separation or abandonment, only the income of the spouse or ex-spouse residing on the property is to be considered in determining eligibility for exemption.
Income. Income shall be deemed to include social security and retirement benefits, interest, dividends, net capital gains (capital gains can only be offset by capital losses incurred in the same tax year), net rental income, net income from self-employment, salaries and earnings, but excludes supplemental security income, welfare payments, income from employment in the federal foster grandparents program, returns of capital, gifts, inheritances, or payments made to individuals because of their status as victims of Nazi persecution. Income accruing to an owner confined in a residential healthcare facility is considered to be income only to the extent that it exceeds the amount paid by the confined owner, his spouse, or a co-owner for his care in the facility.
Property use requirements. Property must be used exclusively for residential purposes. If only a portion of the property is used exclusively for residential purposes, only that portion is entitled to exemption, and the remainder of the property is taxable. In addition, the property must be occupied as the legal residence of all the owners of the property; an owner who is absent from the property while receiving health-related care an an inpatient of a residential health-care facility (defined by New York State Public Health Law § 2501 as a nursing home or other facility providing health-related services) is considered to remain a legal resident and occupant of the property. A further exception will be made in the case of husbands and wives separated by divorce, legal separation or abandonment; an exemption may be granted even if only one of them lives on the property, provided that, if an exemption was granted when both resided on the property, the person remaining on the property is at least 62 years of age.
Required construction start date or other time requirements. Title to the property must have been vested in at least one of the owners for a minimum of 12 consecutive months prior to the application for exemption, unless:
The owner of the property held an exemption under New York State Real Property Tax Law § 467 for his or her previous residence;
The property was solely owned by a now-deceased spouse and is now owned by the surviving spouse, in which case the surviving spouse is considered to have owned the property continuously from the original ownership date of the deceased spouse;
The property was wholly or partially transferred between spouses, in which case the spouse to whom the property was transferred is considered to have owned the property continuously from the original ownership date of the transferring spouse;
The property was acquired to replace property taken by eminent domain or other voluntary proceeding (other than a tax sale), in which case the two periods of ownership are combined and considered to be consecutive;
The property was acquired to replace a previously sold residence within one year of such sale and both residences are within New York State, in which case the two periods of ownership are combined and considered to be consecutive;
The property was reacquired by the former owner(s) within nine months after its initial transfer and was receiving the senior citizens exemption as of the date of the initial transfer; or
The property was acquired, within nine months after the death of the former owner(s), solely by a person or persons who maintained the property as a primary residence at the time of death of the former owner(s), and the property was receiving the senior citizens exemption as of the former owner(s) death.
The Board of Trustees of the Incorporated Village of Ocean Beach may at any time decide to modify, amend, change and/or eliminate in whole or in part the amount of the maximum income exemption eligibility and determine whether or not to allow the base (50%) exemption.
Any such resolution must be adopted after a public hearing.
In the event that the Board of Trustees has chosen, by resolution after a public hearing, to allow the base exemption, the Board of Trustees may, by resolution after a public hearing which may be hold concurrently, choose to permit an increase and/or decrease in the maximum income exemption eligibility level and a corresponding decrease and/or increase in the percentage of exemption.
Additional authority of Board of Trustees to act by resolution.
The Board of Trustees, after authorizing or previously having authorized the base exemption to be amended by resolution, may allow for each increase of $1,000 in income, a reduced exemption ranging from 45% to 35% of assessed value and, for each further increase of $900 in income, a reduced exemption ranging from 30% to 20% of assessed value.
The Board of Trustees may, by resolution, extend the exemption to two higher nine-hundred-dollar increments in income, allowing corresponding exemptions of 15% and 10% of assessed value.
The Board of Trustees may, by resolution, extend the exemption to another nine-hundred-dollar increment in income for a corresponding exemption of 5% of assessed value.
The Board of Trustees may, by resolution, provide that the increased income levels be enacted to apply automatically to the sliding-scale provisions.
The Board of Trustees may, by resolution, if the Board of Trustees has elected to allow the exemption, additionally amend the resolution to exclude all medical and prescription expenses which are not reimbursed or paid by insurance from the computation of an applicant's income.
The Board of Trustees may, by resolution, enact a provision to allow that portion of a cooperative apartment corporation held by an otherwise eligible senior citizen tenant/stockholder to be eligible for an exemption from real property taxes. If allowed, the amount of the exemption must be determined by the Assessor, based upon the proportion of the outstanding stock hold by the eligible shareholder, and credited against the taxes charged to the corporation. Eligible stockholders would receive an adjustment to their monthly maintenance fees by the cooperative apartment corporation to reflect the benefit of the exemption. However, this exemption may not be granted to property currently receiving an exemption pursuant to New York State Real Property Tax Law § 467-c.
The Board of Trustees may, by resolution, eliminate the annual filing requirement for senior citizens who have received the exemption on five consecutive completed assessment rolls. For the purposes of this provision, "five consecutive assessment rolls" includes any years when the exemption was granted to a property owned by a husband and/or wife while both resided on the property.
The Board of Trustees may, by resolution, allow the exemption to otherwise eligible senior citizens who become 65 after the taxable status date but on or before December 31 of the calendar year.
The Board of Trustees may, by resolution, if the Board of Trustees allows the exemption, permit the filing of renewal applications after the taxable status date.
The Board of Trustees may, by resolution, if the Board of Trustees allows the exemption, exclude all medical and prescription expenses which are not reimbursed or paid by insurance, or veterans' disability compensation as defined in Title 38 of the United States Code, or both, from the computation of an applicant's income.
The Board of Trustees may, by resolution, if the Board of Trustees allows the exemption, increase or decrease the maximum income eligibility level in accordance with the sliding-scale provisions described above.