STATE OF NEW YORK ________________________________________________________________________ 1805 2025-2026 Regular Sessions IN SENATE January 14, 2025 ___________ Introduced by Sens. FERNANDEZ, JACKSON, MAYER, RAMOS, SEPULVEDA -- read twice and ordered printed, and when printed to be committed to the Committee on Cities 1 AN ACT to amend the real property tax law, in relation to tax abatements for dwelling units occupied by certain persons residing in rent-cont- rolled or rent regulated properties; and providing state aid to cities affected by such tax abatements The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The section heading of section 467-b of the real property 2 tax law, as amended by chapter 188 of the laws of 2005, is amended to 3 read as follows: 4 Tax abatement for rent-controlled and rent regulated property occupied 5 by senior citizens or persons with disabilities or persons paying a 6 maximum rent or legal regulated rent which exceeds one-half of the 7 combined income of all members of their household. 8 § 2. Paragraph b of subdivision 1 of section 467-b of the real proper- 9 ty tax law, as amended by chapter 188 of the laws of 2005, is amended to 10 read as follows: 11 b. "Head of the household" means a person (i) who is sixty-two years 12 of age or older, [or] (ii) who qualifies as a person with a disability 13 pursuant to subdivision five of this section, or (iii) who pays a maxi- 14 mum rent or legal regulated rent which exceeds one-half of the combined 15 income of all members of their household, and is entitled to the 16 possession or to the use or occupancy of a dwelling unit; 17 § 3. Subdivision 2 of section 467-b of the real property tax law, as 18 amended by chapter 747 of the laws of 1985, paragraph (c) as added by 19 chapter 553 of the laws of 2015 and paragraph (d) as added by chapter 20 343 of the laws of 2016, is amended to read as follows: 21 2. The governing body of any municipal corporation is hereby author- 22 ized and empowered to adopt, after public hearing, in accordance with EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03910-01-5
S. 1805 2 1 the provisions of this section, a local law, ordinance or resolution 2 providing for the abatement of taxes of said municipal corporation 3 imposed on real property containing a dwelling unit as defined herein by 4 one of the following amounts: (a) where the head of the household does 5 not receive a monthly allowance for shelter pursuant to the social 6 services law, an amount not in excess of that portion of any increase in 7 maximum rent or legal regulated rent which causes such maximum rent or 8 legal regulated rent to exceed one-third of the combined income of all 9 members of the household; or 10 (b) where the head of the household qualifies as a person paying a 11 maximum rent or legal regulated rent which exceeds one-half of the 12 combined income of all members of the household and does not receive a 13 monthly allowance for shelter pursuant to the social services law, an 14 amount not in excess of that portion of any increase in maximum rent or 15 legal regulated rent which causes such maximum rent or legal regulated 16 rent to exceed one-half of the combined income of all members of the 17 household; or 18 (c) where the head of the household receives a monthly allowance for 19 shelter pursuant to the social services law, an amount not in excess of 20 that portion of any increase in maximum rent or legal regulated rent 21 which is not covered by the maximum allowance for shelter which such 22 person is entitled to receive pursuant to the social services law. 23 [(c)] Provided, however, that in a city of a population of one million 24 or more, where the head of household has been granted a rent increase 25 exemption order that is in effect as of January first, two thousand 26 fifteen or takes effect on or before July first, two thousand fifteen, 27 the amount determined by paragraph (a) of this subdivision shall be an 28 amount not in excess of the difference between the maximum rent or legal 29 regulated rent and the amount specified in such order, as adjusted by 30 any other provision of this section. 31 (d)(1) Provided, however, that in a city with a population of one 32 million or more, a head of the household who has received a rent 33 increase exemption order that has expired and who, upon renewal applica- 34 tion for the period commencing immediately after such expiration, is 35 determined to be ineligible for a rent increase exemption order because 36 the combined income of all members of the household exceeds the maximum 37 amount allowed by this section or the maximum rent or legal regulated 38 rent does not exceed one-third of the combined income of all members of 39 the household, may submit a new application during the following calen- 40 dar year, and if such head of the household receives a rent increase 41 exemption order that commences during such calendar year, the tax abate- 42 ment amount for such order shall be calculated as if such prior rent 43 increase exemption order had not expired. However, no tax abatement 44 benefits may be provided for the period of ineligibility. 45 (2) No head of the household may receive more than three rent increase 46 exemption orders calculated as if a prior rent increase exemption order 47 had not expired, as described in subparagraph one of this paragraph. 48 § 4. Paragraph a of subdivision 3 of section 467-b of the real proper- 49 ty tax law, as amended by section 1 of part U of chapter 55 of the laws 50 of 2014, is amended to read as follows: 51 a. for a dwelling unit where the head of the household is a person 52 sixty-two years of age or older or where the head of the household pays 53 a maximum rent or legal regulated rent which exceeds one-half of the 54 combined income of all members of the household, no tax abatement shall 55 be granted if the combined income of all members of the household for 56 the income tax year immediately preceding the date of making application
S. 1805 3 1 exceeds four thousand dollars, or such other sum not more than twenty- 2 five thousand dollars beginning July first, two thousand five, twenty- 3 six thousand dollars beginning July first, two thousand six, twenty-sev- 4 en thousand dollars beginning July first, two thousand seven, 5 twenty-eight thousand dollars beginning July first, two thousand eight, 6 twenty-nine thousand dollars beginning July first, two thousand nine, 7 and fifty thousand dollars beginning July first, two thousand fourteen, 8 as may be provided by the local law, ordinance or resolution adopted 9 pursuant to this section, provided that when the head of the household 10 retires before the commencement of such income tax year and the date of 11 filing the application, the income for such year may be adjusted by 12 excluding salary or earnings and projecting [his or her] the retirement 13 income of such head of household over the entire period of such year. 14 § 5. Paragraph a of subdivision 3 of section 467-b of the real proper- 15 ty tax law, as separately amended by chapter 188 and chapter 205 of the 16 laws of 2005, is amended to read as follows: 17 a. for a dwelling unit where the head of the household is a person 18 sixty-two years of age or older or where the head of the household pays 19 a maximum rent or legal regulated rent which exceeds one-half of the 20 combined income of all members of the household, no tax abatement shall 21 be granted if the combined income of all members of the household for 22 the income tax year immediately preceding the date of making application 23 exceeds four thousand dollars, or such other sum not more than twenty- 24 five thousand dollars beginning July first, two thousand five, twenty- 25 six thousand dollars beginning July first, two thousand six, twenty-sev- 26 en thousand dollars beginning July first, two thousand seven, 27 twenty-eight thousand dollars beginning July first, two thousand eight, 28 and twenty-nine thousand dollars beginning July first, two thousand 29 nine, as may be provided by the local law, ordinance or resolution 30 adopted pursuant to this section, provided that when the head of the 31 household retires before the commencement of such income tax year and 32 the date of filing the application, the income for such year may be 33 adjusted by excluding salary or earnings and projecting [his or her] the 34 retirement income of such head of household over the entire period of 35 such year. 36 § 6. Paragraph d of subdivision 1 of section 467-c of the real proper- 37 ty tax law, as separately amended by chapters 188 and 205 of the laws of 38 2005, and subparagraph 1 as amended by section 2 of part U of chapter 55 39 of the laws of 2014, is amended to read as follows: 40 d. "Eligible head of the household" means (1) a person or [his or her] 41 their spouse who is sixty-two years of age or older, or a person who 42 pays a maximum rent which exceeds one-half of the combined income of all 43 members of the household, and is entitled to the possession or to the 44 use and occupancy of a dwelling unit, provided, however, with respect to 45 a dwelling which was subject to a mortgage insured or initially insured 46 by the federal government pursuant to section two hundred thirteen of 47 the National Housing Act, as amended "eligible head of the household" 48 shall be limited to that person or [his or her] their spouse who was 49 entitled to possession or the use and occupancy of such dwelling unit at 50 the time of termination of such mortgage, and whose income when combined 51 with the income of all other members of the household, does not exceed 52 six thousand five hundred dollars for the taxable period, or such other 53 sum not less than sixty-five hundred dollars nor more than twenty-five 54 thousand dollars beginning July first, two thousand five, twenty-six 55 thousand dollars beginning July first, two thousand six, twenty-seven 56 thousand dollars beginning July first, two thousand seven, twenty-eight
S. 1805 4 1 thousand dollars beginning July first, two thousand eight, twenty-nine 2 thousand dollars beginning July first, two thousand nine, and fifty 3 thousand dollars beginning July first, two thousand fourteen, as may be 4 provided by local law; or (2) a person with a disability as defined in 5 this subdivision. 6 § 7. Subparagraph 1 of paragraph d of subdivision 1 of section 467-c 7 of the real property tax law, as separately amended by chapters 188 and 8 205 of the laws of 2005, is amended to read as follows: 9 (1) a person or [his or her] their spouse who is sixty-two years of 10 age or older, or a person who pays a maximum rent which exceeds one-half 11 of the combined income of all members of the household, and is entitled 12 to the possession or to the use and occupancy of a dwelling unit, 13 provided, however, with respect to a dwelling which was subject to a 14 mortgage insured or initially insured by the federal government pursuant 15 to section two hundred thirteen of the National Housing Act, as amended 16 "eligible head of the household" shall be limited to that person or [his 17 or her] their spouse who was entitled to possession or the use and occu- 18 pancy of such dwelling unit at the time of termination of such mortgage, 19 and whose income when combined with the income of all other members of 20 the household, does not exceed six thousand five hundred dollars for the 21 taxable period, or such other sum not less than sixty-five hundred 22 dollars nor more than twenty-five thousand dollars beginning July first, 23 two thousand five, twenty-six thousand dollars beginning July first, two 24 thousand six, twenty-seven thousand dollars beginning July first, two 25 thousand seven, twenty-eight thousand dollars beginning July first, two 26 thousand eight, and twenty-nine thousand dollars beginning July first, 27 two thousand nine, as may be provided by local law; or 28 § 8. Subparagraph 1 of paragraph a of subdivision 3 of section 467-c 29 of the real property tax law, as amended by chapter 747 of the laws of 30 1985, is amended to read as follows: 31 (1) where the eligible head of the household who is either sixty-two 32 years of age or older or is disabled does not receive a monthly allow- 33 ance for shelter pursuant to the social services law, the amount by 34 which increases in the maximum rent subsequent to such person's eligi- 35 bility date have resulted in the maximum rent exceeding one-third of the 36 combined income of all members of the household for the taxable period, 37 or where the eligible head of the household is a person who pays a maxi- 38 mum rent which exceeds one-half of the combined income of all members of 39 the household does not receive a monthly allowance for shelter pursuant 40 to the social services law, the amount by which increases in the maximum 41 rent subsequent to such person's date have resulted in the maximum rent 42 exceeding one-half of the combined income of all members of the house- 43 hold for the taxable period, except that in no event shall a rent 44 increase exemption order/tax abatement certificate become effective 45 prior to January first, nineteen hundred seventy-six; or 46 § 9. The state comptroller shall annually pay to each city providing 47 real property tax abatements pursuant to sections 467-b and 467-c of the 48 real property tax law an amount equal to 10 per centum of the real prop- 49 erty tax revenue lost during the city fiscal year due to the implementa- 50 tion of the provisions of this act. Each city eligible for state 51 payments pursuant to this section shall provide the state comptroller 52 with such information as they shall deem necessary. 53 § 10. This act shall take effect July 1, 2026; provided however, that: 54 a. the amendments to paragraph a of subdivision 3 of section 467-b of 55 the real property tax law, made by section four of this act shall be 56 subject to the expiration of such paragraph pursuant to section 4 of
S. 1805 5 1 part U of chapter 55 of the laws of 2014, as amended, and shall be 2 deemed to expire therewith, when upon such date section five of this act 3 shall take effect; and 4 b. the amendments to subparagraph (1) of paragraph d of subdivision 1 5 of section 467-c of the real property tax law, made by section six of 6 this act shall not affect the expiration of such subparagraph pursuant 7 to section 4 of part U of chapter 55 of the laws of 2014, as amended, 8 and shall expire and be deemed repealed therewith, when upon such date 9 section seven of this act shall take effect.