S 3303: Provides a real property tax relief credit and an enhanced real property tax circuit breaker credit for certain taxpayers who meet income requirements and other eligibility.

  
  STATE OF NEW YORK ________________________________________________________________________ 3303 2025-2026 Regular Sessions  IN SENATE January 24, 2025 ___________ Introduced by Sen. WEIK -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue AN ACT to amend the tax law, in relation to providing a property tax relief credit and an enhanced real property tax circuit breaker credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 606 of the tax law is amended by adding a new 2 subsection (n-3) to read as follows: 3 (n-3) Property tax relief credit. (1) An individual taxpayer who meets 4 the eligibility standards in paragraph two of this subsection shall be 5 allowed a credit against the taxes imposed by this article in the amount 6 specified in paragraph three of this subsection beginning in tax year 7 two thousand twenty-six. 8 (2) To be eligible for the credit, the taxpayer or taxpayers filing a 9 joint tax return for the taxable year two years prior, must have (i) 10 been a resident, (ii) owned and primarily resided in real property 11 receiving either the STAR exemption authorized by section four hundred 12 twenty-five of the real property tax law or the school tax relief credit 13 authorized by subsection (eee) of this section, and (iii) had qualified 14 gross income no greater than two hundred seventy-five thousand dollars. 15 Provided, however, that no credit shall be allowed if any of the follow- 16 ing apply: 17 (A) Such property is located in an independent school district that is 18 subject to the provisions of section two thousand twenty-three-a of the 19 education law and that has adopted a budget in excess of the tax levy 20 limit prescribed by that section. To render its taxpayers eligible for 21 the credit authorized by this subsection, the school district must 22 certify its compliance with such tax levy limit in the manner prescribed 23 by subdivision two of section two thousand twenty-three-b of the educa- 24 tion law. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05390-01-5 
 S. 3303 2 1 (B) Such property is located in a city with a dependent school 2 district that is subject to the provisions of section three-c of the 3 general municipal law and that has adopted a budget in excess of the tax 4 levy limit prescribed by that section. To render its taxpayers eligible 5 for the credit authorized by this subsection, the city must certify its 6 compliance with such tax levy limit in the manner prescribed by subdivi- 7 sion two of section three-c of the general municipal law. 8 (C) Such property is located in the city of New York. 9 (3) Amount of credit. (A) For the two thousand sixteen taxable year 10 (i) for a taxpayer residing in real property located within the metro- 11 politan commuter transportation district (MCTD) and outside the city of 12 New York, the amount of the credit shall be $130; (ii) for a taxpayer 13 residing in real property located outside the MCTD, the amount of the 14 credit shall be $185. 15 (B) For the two thousand twenty-six taxable year and beyond, for a 16 taxpayer who owned and primarily resided in real property receiving the 17 basic STAR exemption, the amount of the credit shall equal the STAR tax 18 savings associated with such basic STAR exemption, multiplied by the 19 following percentage: 20 Qualified Gross Income Percentage 21 Not over $75,000 85% 22 Over $75,000 but not over $150,000 60% 23 Over $150,000 but not over $200,000 35% 24 Over $200,000 but not over $275,000 10% 25 Over $275,000 No credit 26 (C) For a taxpayer who owned and primarily resided in real property 27 receiving the enhanced STAR exemption, the amount of the credit shall 28 equal the STAR tax savings associated with such enhanced STAR exemption, 29 multiplied by twenty-six percent. 30 (D) In no case may the amount of the credit allowed under this 31 subsection exceed the school district taxes due with respect to the 32 residence for that school year. 33 (4) For purposes of this subsection: 34 (A) "Qualified gross income" means the adjusted gross income of the 35 qualified taxpayer for the taxable year as reported for federal income 36 tax purposes, or which would be reported as adjusted gross income if a 37 federal income tax return were required to be filed. In computing quali- 38 fied gross income, the net amount of loss reported on Federal Schedule 39 C, D, E, or F shall not exceed three thousand dollars per schedule. In 40 addition, the net amount of any other separate category of loss shall 41 not exceed three thousand dollars. The aggregate amount of all losses 42 included in computing qualified gross income shall not exceed fifteen 43 thousand dollars. 44 (B) "STAR tax savings" means the tax savings attributable to the basic 45 or enhanced STAR exemption, whichever is applicable, within a portion of 46 a school district, as determined by the commissioner pursuant to subdi- 47 vision two of section thirteen hundred six-a of the real property tax 48 law. 49 (C) "Metropolitan commuter transportation district" or "MCTD" means 50 the metropolitan commuter transportation district as defined in section 51 twelve hundred sixty-two of the public authorities law. 52 (5) If the amount of the credit allowed under this subsection shall 53 exceed the taxpayer's tax for the taxable year, the excess shall be 54 treated as an overpayment of tax to be credited or refunded in accord- 55 ance with the provisions of section six hundred eighty-six of this arti- 56 cle, provided, however, that no interest shall be paid thereon. For 
 S. 3303 3 1 each year this credit is allowed, on or before October fifteenth of such 2 year, or as soon thereafter as is practicable, the commissioner shall 3 determine the taxpayer's eligibility for this credit utilizing the 4 information available to the commissioner on the taxpayer's personal 5 income tax return filed for the taxable year two years prior to the 6 taxable year in which the credit is allowed. For those taxpayers whom 7 the commissioner has determined eligible for this credit, the commis- 8 sioner shall advance a payment in the amount specified in paragraph 9 three of this subsection, which payment shall be issued, to the greatest 10 extent practicable, by October thirty-first of each year the credit is 11 allowed. A taxpayer who has failed to receive an advance payment that 12 such taxpayer believes was due to such taxpayer, or who has received an 13 advance payment that such taxpayer believes is less than the amount that 14 was due to such taxpayer, may request payment of the claimed deficiency 15 in a manner prescribed by the commissioner. 16 (6) A taxpayer shall not be eligible for the credit allowed under this 17 subsection if the school district taxes levied upon the residence during 18 the taxable year remain unpaid sixty days after the last date on which 19 they could have been paid without interest, or in the case of a school 20 district where such taxes are payable in installments, if such taxes 21 remain unpaid sixty days after the last date on which the final install- 22 ment could have been paid without interest. If the taxes remain unpaid 23 on such sixtieth day, the amount of credit claimed by the taxpayer under 24 this subsection or the amount of advance payment of credit received by 25 the taxpayer pursuant to paragraph five of this subsection shall be 26 added back as tax on the income tax return for the taxable year in which 27 such sixtieth day occurs. 28 (7) Only one credit per residence shall be allowed per taxable year 29 under this subsection. When two or more members of a residence are able 30 to meet the qualifications for a qualified taxpayer, the credit shall be 31 equally divided between or among such individuals. In the case of spous- 32 es who file a joint federal return but who are required to determine 33 their New York taxes separately, the credit allowed pursuant to this 34 subsection may be applied against the tax of either or divided between 35 them as they may elect. 36 § 2. Section 606 of the tax law is amended by adding a new subsection 37 (e-3) to read as follows: 38 (e-3) Enhanced real property tax circuit breaker credit. (1) For 39 purposes of this subsection: 40 (A) "Qualified taxpayer" means a resident individual of the state, who 41 (i) is a resident of a city with a population over one million, (ii) has 42 occupied the same residence for six months or more of the taxable year, 43 and (iii) is required or chooses to file a return under this article. 44 (B) "Household" or "members of the household" means a qualified 45 taxpayer and all other persons, not necessarily related, who have the 46 same residence and share its furnishings, facilities and accommodations. 47 Such terms shall not include a tenant, subtenant, roomer or boarder who 48 is not related to the qualified taxpayer in any degree specified in 49 paragraphs one through eight of subsection (a) of section one hundred 50 fifty-two of the internal revenue code. Provided, however, no person may 51 be a member of more than one household at one time. 52 (C) "Household gross income" means the aggregate adjusted gross income 53 of all members of the household for the taxable year as reported for 54 federal income tax purposes, or which would be reported as adjusted 55 gross income if a federal income tax return were required to be filed, 56 with the modifications in subsection (b) of section six hundred twelve 
 S. 3303 4 1 of this article but without the modifications in subsection (c) of such 2 section, plus any portion of the gain from the sale or exchange of prop- 3 erty otherwise excluded from such amount; earned income from sources 4 without the United States excludable from federal gross income by 5 section nine hundred eleven of the internal revenue code; support money 6 not included in adjusted gross income; nontaxable strike benefits; 7 supplemental security income payments; the gross amount of any pension 8 or annuity benefits to the extent not included in such adjusted gross 9 income (including, but not limited to, railroad retirement benefits and 10 all payments received under the federal social security act and veter- 11 ans' disability pensions); nontaxable interest received from the state 12 of New York, its agencies, instrumentalities, public corporations, or 13 political subdivisions (including a public corporation created pursuant 14 to agreement or compact with another state or Canada); workers' compen- 15 sation; the gross amount of "loss-of-time" insurance; and the amount of 16 cash public assistance and relief, other than medical assistance for the 17 needy, paid to or for the benefit of the qualified taxpayer or members 18 of such qualified taxpayer's household. Household gross income shall not 19 include surplus foods or other relief in kind or payments made to indi- 20 viduals because of their status as victims of Nazi persecution as 21 defined in P.L. 103-286. Provided, further, household gross income shall 22 only include all such income received by all members of the household 23 while they are members of such household. In computing household gross 24 income, the net amount of loss reported on Federal Schedule C, D, E, or 25 F shall not exceed three thousand dollars per schedule. In addition, the 26 net amount of any other separate category of loss shall not exceed three 27 thousand dollars. The aggregate amount of all losses included in comput- 28 ing household gross income shall not exceed fifteen thousand dollars. 29 (D) "Residence" means a dwelling in this state owned or rented by the 30 taxpayer, and so much of the land abutting it, not exceeding one acre, 31 as is reasonably necessary for use of the dwelling as a home, and may 32 consist of a part of a multi-dwelling or multi-purpose building includ- 33 ing a cooperative or condominium, and rental units within a single 34 dwelling. Residence includes a trailer or mobile home, used exclusively 35 for residential purposes and defined as real property pursuant to para- 36 graph (g) of subdivision twelve of section one hundred two of the real 37 property tax law. 38 (E) "Qualifying real property taxes" means all real property taxes, 39 special ad valorem levies and special assessments, exclusive of penal- 40 ties and interest, levied on the residence of a qualified taxpayer and 41 paid during the taxable year. A qualified taxpayer may elect to include 42 any additional amount that would have been levied in the absence of an 43 exemption from real property taxation pursuant to section four hundred 44 sixty-seven of the real property tax law. If tenant-stockholders in a 45 cooperative housing corporation have met the requirements of section two 46 hundred sixteen of the internal revenue code by which they are allowed a 47 deduction for real estate taxes, the amount of taxes so allowable, or 48 which would be allowable if the taxpayer had filed returns on a cash 49 basis, shall be qualifying real property taxes. If a residence is owned 50 by two or more individuals as joint tenants or tenants in common, and 51 one or more than one individual is not a member of the household, quali- 52 fying real property taxes is that part of such taxes on the residence 53 which reflects the ownership percentage of the qualified taxpayer and 54 members of such qualified taxpayer's household. If a residence is an 55 integral part of a larger unit, qualifying real property taxes shall be 56 limited to that amount of such taxes paid as may be reasonably appor- 
 S. 3303 5 1 tioned to such residence. If a household owns and occupies two or more 2 residences during different periods in the same taxable year, qualifying 3 real property taxes shall be the sum of the prorated qualifying real 4 property taxes attributable to the household during the periods such 5 household occupies each of such residences. If the household owns and 6 occupies a residence for part of the taxable year and rents a residence 7 for part of the same taxable year, it may include the proration of qual- 8 ifying real property taxes on the residence owned. Provided, however, 9 for purposes of the credit allowed under this subsection, qualifying 10 real property taxes may be included by a qualified taxpayer only to the 11 extent that such taxpayer or the spouse of such taxpayer, occupying such 12 residence for one hundred eighty-three days or more of the taxable year, 13 owns or has owned the residence and paid such taxes. 14 (F) "Real property tax equivalent" means fifteen and three-quarters 15 percent of the adjusted rent actually paid in the taxable year by a 16 household solely for the right of occupancy of its New York residence 17 for the taxable year. If (i) a residence is rented to two or more indi- 18 viduals as cotenants, or such individuals share in the payment of a 19 single rent for the right of occupancy of such residence, and (ii) each 20 of such individuals is a member of a different household, one or more of 21 which individuals shares such residence, real property tax equivalent is 22 that portion of fifteen and three-quarters percent of the adjusted rent 23 paid in the taxable year which reflects that portion of the rent attrib- 24 utable to the qualified taxpayer and the members of such qualified 25 taxpayer's household. 26 (G) "Adjusted rent" means rental paid for the right of occupancy of a 27 residence, excluding charges for heat, gas, electricity, furnishings and 28 board. Where charges for heat, gas, electricity, furnishings or board 29 are included in rental but where such charges and the amount thereof are 30 not separately set forth in a written rental agreement, for purposes of 31 determining adjusted rent the qualified taxpayer shall reduce rental 32 paid as follows: 33 (i) For heat, or heat and gas, deduct six percent of rental paid. 34 (ii) For heat, gas and electricity, deduct eight percent of rental 35 paid. 36 (iii) For heat, gas, electricity and furnishings, deduct ten percent 37 of rental paid. 38 (iv) For heat, gas, electricity, furnishings and board, deduct twenty 39 percent of rental paid. 40 If the commissioner determines that the adjusted rent shown on the 41 return is excessive, the commissioner may reduce such rent, for purposes 42 of the computation of the credit, to an amount substantially equivalent 43 to rent for a comparable accommodation. 44 (2) A qualified taxpayer shall be allowed a credit as provided in 45 paragraph three of this subsection against the taxes imposed by this 46 article reduced by the credits permitted by this article. If the credit 47 exceeds the tax as so reduced for such year under this article, the 48 excess shall be treated as an overpayment, to be credited or refunded, 49 without interest. If a qualified taxpayer is not required to file a 50 return pursuant to section six hundred fifty-one of this article, a 51 qualified taxpayer may nevertheless receive the full amount of the cred- 52 it to be credited or repaid as an overpayment, without interest. 53 (3) Determination of credit. For taxable years after two thousand 54 twenty-five, the amount of the credit allowable under this subsection 55 shall be determined as follows: 
 S. 3303 6 1 If household gross income Excess real property The credit amount is 2 for the taxable year is: taxes are the excess the following 3 of real property tax percentage of excess 4 equivalent or the property taxes: 5 excess of qualifying 6 real property taxes 7 over the following 8 percentage of 9 household gross 10 income: 11 Less than $100,000 4 4.5 12 $100,000 to less than 5 3.0 13 $150,000 14 $150,000 to less than 6 1.5 15 $200,000 16 Notwithstanding the foregoing provisions, the maximum credit deter- 17 mined under this paragraph may not exceed five hundred dollars. 18 (4) If a qualified taxpayer occupies a residence for a period of less 19 than twelve months during the taxable year or occupies two or more resi- 20 dences during different periods in such taxable year, the credit allowed 21 pursuant to this subsection shall be computed in such manner as the 22 commissioner may, by regulation, prescribe in order to properly reflect 23 the credit or portion thereof attributable to such residence or resi- 24 dences and such period or periods. 25 (5) The commissioner may prescribe that the credit under this 26 subsection shall be determined in whole or in part by the use of tables 27 prescribed by such commissioner. Such tables shall set forth the credit 28 to the nearest dollar. 29 (6) Only one credit per household and per qualified taxpayer shall be 30 allowed per taxable year under this subsection. When two or more members 31 of a household are able to meet the qualifications for a qualified 32 taxpayer, the credit shall be equally divided between or among such 33 individuals unless such individuals file with the commissioner a written 34 agreement among such individuals setting forth a different division. 35 (A) Provided, however, where a joint income tax return has been filed 36 pursuant to the provisions of section six hundred fifty-one of this 37 article by a qualified taxpayer and such qualified taxpayer's spouse (or 38 where both spouses are qualified taxpayers and have filed such joint 39 return), the credit, or the portion of the credit if divided, to which 40 the spouses are entitled shall be applied against the tax of both spous- 41 es and any overpayment shall be made to both spouses. 42 (B) Where any return required to be filed pursuant to the provisions 43 of section six hundred fifty-one of this article is combined with any 44 return of tax imposed pursuant to the authority of this chapter or any 45 other law if such tax is administered by the commissioner, the credit or 46 the portion of the credit if divided, allowed to the qualified taxpayer 47 may be applied by the commissioner toward any liability for the afore- 48 mentioned taxes. 49 (7) No credit shall be granted under this subsection: 50 (A) If household gross income for the taxable year equals or exceeds 51 two hundred thousand dollars. 52 (B) To a property owner unless: (i) the property is used for residen- 53 tial purposes, (ii) not more than twenty percent of the rental income, 54 if any, from the property is from rental for nonresidential purposes, 55 and (iii) the property is occupied as a residence in whole or in part by 56 one or more of the owners of the property. 
 S. 3303 7 1 (C) To an individual with respect to whom a deduction under subsection 2 (c) of section one hundred fifty-one of the internal revenue code is 3 allowable to another taxpayer for the taxable year. 4 (D) With respect to a residence that is wholly exempted from real 5 property taxation. 6 (E) To an individual who is not a resident individual of a city, with- 7 in the state, with a population over one million, for the entire taxable 8 year. 9 (8) The right to claim a credit or the portion of a credit, where such 10 credit has been divided under this subsection, shall be personal to the 11 qualified taxpayer and shall not survive such qualified taxpayer's 12 death, but such right may be exercised on behalf of a claimant by such 13 claimant's legal guardian or attorney in fact during such claimant's 14 lifetime. 15 (9) Returns. If a qualified taxpayer is not required to file a return 16 pursuant to section six hundred fifty-one of this article, a claim for a 17 credit may be taken on a return filed with the commissioner within three 18 years from the time it would have been required that a return be filed 19 pursuant to such section had the qualified taxpayer had a taxable year 20 ending on December thirty-first. Returns under this paragraph shall be 21 in such form as shall be prescribed by the commissioner, which shall 22 make available such forms and instructions for filing such returns. 23 (10) Proof of claim. The commissioner may require a qualified taxpayer 24 to furnish the following information in support of such qualified 25 taxpayer's claim for credit under this subsection: household gross 26 income, real property taxes levied or that would have been levied in the 27 absence of an exemption from real property tax pursuant to section four 28 hundred sixty-seven of the real property tax law, the names of members 29 of the household and other qualifying taxpayers occupying the same resi- 30 dence and their identifying numbers including social security numbers, 31 household gross income, size and nature of property claimed as residence 32 and all other information which may be required by the commissioner to 33 determine the credit. 34 (11) Administration. The provisions of this article, including the 35 provisions of sections six hundred fifty-three, six hundred fifty-eight, 36 and six hundred fifty-nine of this article and the provisions of part 37 six of this article relating to procedure and administration, including 38 the judicial review of the decisions of the commissioner, except so much 39 of section six hundred eighty-seven of this article which permits a 40 claim for credit or refund to be filed after the period provided for in 41 paragraph nine of this subsection and except sections six hundred 42 fifty-seven, six hundred eighty-eight and six hundred ninety-six of this 43 article, shall apply to the provisions of this subsection in the same 44 manner and with the same force and effect as if the language of those 45 provisions had been incorporated in full into this subsection and had 46 expressly referred to the credit allowed or returns filed under this 47 subsection, except to the extent that any such provision is either 48 inconsistent with a provision of this subsection or is not relevant to 49 this subsection. As used in such sections and such part, the term 50 "taxpayer" shall include a qualified taxpayer under this subsection and, 51 notwithstanding the provisions of subsection (e) of section six hundred 52 ninety-seven of this article, where a qualified taxpayer has protested 53 the denial of a claim for credit under this subsection and the time to 54 file a petition for redetermination of a deficiency or for refund has 55 not expired, such qualified taxpayer shall, subject to such conditions 56 as may be set by the commissioner, receive such information (A) which is 
 S. 3303 8 1 contained in any return filed under this article by a member of such 2 qualified taxpayer's household for the taxable year for which the credit 3 is claimed, and (B) which the commissioner finds is relevant and materi- 4 al to the issue of whether such claim was properly denied. 5 (12) Notwithstanding any other provision of this article, the credit 6 allowed under this subsection shall be determined after the determi- 7 nation and application of any other credits permitted under the 8 provisions of this article. 9 (13) The commissioner shall prepare a written report after December 10 thirty-first of each calendar year, which shall contain statistical 11 information regarding the credits granted on or before such dates under 12 this subsection during such calendar year. Copies of the report shall be 13 submitted by the commissioner to the governor, the temporary president 14 of the senate, the speaker of the assembly, the chair of the senate 15 finance committee and the chair of the assembly ways and means committee 16 within forty-five days of December thirty-first. Such report shall 17 contain, but need not be limited to, the number of credits and the aver- 18 age amount of such credits allowed; and of those, the number of credits 19 and the average amount of such credits allowed to qualified taxpayers in 20 each county; and of those, the number of credits and the average amount 21 of such credits allowed to qualified taxpayers whose household gross 22 income falls within each of the household gross income ranges set forth 23 in paragraph three of this subsection. 24 § 3. This act shall take effect immediately and shall apply to taxable 25 years beginning on or after January 1, 2026.