[Adopted 6-13-1979 by L.L. No. 19-1979 (Ch. 458, Art. II,
of the 1985 Code)]
This article implements § 467 of the Real Property
Tax Law by granting, upon conditions and limitations prescribed by
said section, an exemption from real property taxation of property
owned by persons 65 years of age and over.
[Amended 8-12-1980 by L.L. No. 21-1980; 7-29-1982 by L.L. No.
15-1982; 8-23-1983 by L.L. No. 15-1983; 8-12-1986 by L.L. No.
22-1986; 10-10-1989 by L.L. No. 45-1989; 8-14-1990 by L.L. No.
26-1990; 8-27-1991 by L.L. No. 23-1991; 2-23-1993 by L.L. No.
6-1993; 10-20-1994 by L.L. No. 22-1994; 10-18-1995 by L.L. No.
28-1995; 12-17-1996 by L.L. No. 3-1997; 6-10-1997 by L.L. No.
12-1997; 2-10-1998 by L.L. No. 3-1998; 12-15-1998 by L.L. No.
1-1999; 12-5-2000 by L.L. No. 33-2000; 11-19-2002 by L.L. No.
26-2002; 2-24-2004 by L.L. No. 4-2004; 12-5-2006 by L.L. No.
60-2006; 12-7-2010 by L.L. No. 6-2011; 12-20-2022 by L.L. No. 2-2023]
Such exemption shall include the real property owned by one
or more persons, each of whom is 65 years of age and over, which,
once granted for a husband or wife, shall not be rescinded solely
because of the death of the older spouse as long as the surviving
spouse is at least 62 years of age. Beginning July 1, 2006, $26,000,
beginning July 1, 2007, $27,000, beginning July 1, 2008, $28,000,
beginning July 1, 2009, $29,000, and beginning July 1, 2022, $50,000
shall constitute the maximum income exempt eligibility level (M) for
the purpose of this section. This exemption shall include all increases
in the maximum income exemption eligibility level calculated in accordance
with the following schedule:
|
Annual Income
|
Percentage of Assessed Valuation Exempt From Taxation
|
|---|---|
|
More than (M) but less than (M + $1,000)
|
45%
|
|
(M+ $1,000) or more but less than (M + $2,000)
|
40%
|
|
(M+ $2,000) or more but less than (M + $3,000)
|
35%
|
|
(M+ $3,000) or more but less than (M + $3,900)
|
30%
|
|
(M+ $3,900) or more but less than (M + $4,800)
|
25%
|
|
(M+ $4,800) or more but less than (M + $5,700)
|
20%
|
|
(M+ $5,700) or more but less than (M + $6,600)
|
15%
|
|
(M+ $6,600) or more but less than (M + $7,500)
|
10%
|
|
(M+ $7,500) or more but less than (M + $8,400)
|
5%
|
|
M = maximum income exemption eligibility level.
|
A.
For the purposes of this section, title to that portion of real property
built as a cooperative apartment and owned by a cooperative apartment
corporation in which a tenant-stockholder of such corporation resides
and which is represented by his share or shares of stock in such corporation
as determined by its or their proportional relationship to the total
outstanding stock of the corporation, including that owned by the
corporation, shall be deemed to be vested in such tenant-stockholder.
B.
That proportion of the assessment of such real property built as
a cooperative apartment and owned by such cooperative apartment corporation
determined by the relationship of such real property vested in such
tenant-stockholder to such entire parcel and the buildings thereon
owned by such cooperative apartment corporation in which such tenant-stockholder
resides shall be subject to exemption from taxation pursuant to this
section, and any exemption so granted shall be credited by the appropriate
taxing authority against the assessed valuation of such real property;
the reduction in real property taxes realized thereby shall be credited
by the cooperative apartment against the amount of such taxes otherwise
payable by or chargeable to such tenant-stockholder.
C.
No exemption shall be granted 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 $3,000, or such other sum not less than $3,000 nor more than
$26,000 beginning July 1, 2006, $27,000 beginning July 1, 2007, $28,000
beginning July 1, 2008, $29,000 beginning July 1, 2009, and $50,000
beginning July 1, 2022. Where the taxable status date is on or before
April 14, "income tax year" shall mean the twelve-month period for
which the owner or owners filed a federal personal income tax return
for the year before the income tax year immediately preceding the
date of application, and where the taxable status date is on or after
April 15, "income tax year" shall mean the twelve-month period for
which the owner or owners filed a federal personal income tax return
for the income tax year immediately preceding the date of application.
Where title is vested in either the husband or the wife, their combined
income may not exceed such sum, except that where the husband or wife,
or ex-husband or ex-wife, is absent from the property as provided
in Subparagraph (ii) of Paragraph 3(d) of § 467 of the RPTL,
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 payments made to individuals because
of their status as victims of Nazi persecution, as defined in P.L.
103-286,[1] 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 addition, an exchange of an annuity for
an annuity contract, which resulted in nontaxable gain, as determined
in § 1035 of the Internal Revenue Code, shall be excluded
from such income, provided that such exclusion shall be based on satisfactory
proof that such an exchange was solely an exchange of an annuity for
an annuity contract that resulted in a nontaxable transfer determined
by such section of the Internal Revenue Code. Furthermore, such income
shall not include the proceeds of a reverse mortgage, as authorized
by Banking Law § 6-h and Real Property Law §§ 280
and 280-a; provided, however, that monies used to repay a reverse
mortgage may not be deducted from income; and provided additionally
that any interest or dividends realized from the investment of reverse
mortgage proceeds shall be considered income. The provisions of this
subsection notwithstanding, such income shall not include veterans
disability compensation, as defined in Title 38 of the United States
Code. In computing net rental income and net income from self-employment,
no depreciation deduction shall be allowed for the exhaustion or wear
and tear of real or personal property held for the production of income
[1]
Editor's Note: See 42 U.S.C. § 1437a.
