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New York Real Property Tax Law Section 467-b - Tax Abatement For Rent-controlled And Rent Regulated Property Occupied By Senior Citizens Or Persons With Disabilities.

Legal Research Home > New York Lawyer > Real Property Tax > New York Real Property Tax Law Section 467-b - Tax Abatement For Rent-controlled And Rent Regulated Property Occupied By Senior Citizens Or Persons With Disabilities.




    * § 467-b.  Tax  abatement  for  rent-controlled  and  rent regulated
  property occupied by senior citizens or persons  with  disabilities.  1.
  Definitions. As used in this section:
    a.  "Dwelling  unit"  means that part of a dwelling in which a head of
  the household resides and which  is  subject  to  either  the  emergency
  housing  rent  control  law or to the rent and rehabilitation law of the
  city of New York enacted pursuant to the local  emergency  housing  rent
  control  law,  or  to  the  emergency  tenant protection act of nineteen
  seventy-four;
    b. "Head of the household" means a person (i) who is  sixty-two  years
  of  age  or  older,  or (ii) who qualifies as a person with a disability
  pursuant to subdivision five of this section, and  is  entitled  to  the
  possession or to the use or occupancy of a dwelling unit;
    c.  "Income"  means  income  from  all  sources after deduction of all
  income and social  security  taxes  and  includes  social  security  and
  retirement  benefits,  supplemental security income and additional state
  payments, public assistance benefits, interest,  dividends,  net  rental
  income,  salary  or  earnings,  and net income from self-employment, but
  shall not include gifts or inheritances, payments  made  to  individuals
  because  of  their  status as victims of Nazi persecution, as defined in
  P.L. 103-286, or increases in benefits accorded pursuant to  the  social
  security  act  or  a public or private pension paid to any member of the
  household which increase,  in  any  given  year,  does  not  exceed  the
  consumer  price  index  (all  items United States city average) for such
  year which take effect after the date of  eligibility  of  head  of  the
  household  receiving  benefits hereunder whether received by the head of
  the household or any other member of the household;
    d. "Income tax year" means a twelve month period for which the head of
  the household filed a federal personal income tax return, or if no  such
  return is filed, the calendar year;
    e.  "Increase  in  maximum  rent  or  legal  regulated rent" means any
  increase in the maximum  rent  or  the  legal  regulated  rent  for  the
  dwelling unit in question pursuant to the applicable rent control law or
  to  the  emergency  tenant  protection  act  of  nineteen  seventy-four,
  respectively, or such classes of increase thereunder as may be specified
  in a local  law,  ordinance  or  resolution  enacted  pursuant  to  this
  section,  over  such base period rent as shall be provided therein or an
  exemption from the maximum rent or legal regulated rent as specified  in
  paragraph c or d of subdivision three of this section;
    f.  "Members of the household" means the head of the household and any
  person, other than a bona fide roomer, boarder or subtenant who  is  not
  related  to  the  head  of  the  household,  permanently residing in the
  dwelling unit.
    2.  The  governing  body  of  any  municipal  corporation  is   hereby
  authorized  and  empowered to adopt, after public hearing, in accordance
  with  the  provisions  of  this  section,  a  local  law,  ordinance  or
  resolution  providing  for  the  abatement  of  taxes  of said municipal
  corporation imposed on real  property  containing  a  dwelling  unit  as
  defined  herein  by  one of the following amounts: (a) where the head of
  the household does not receive a monthly allowance for shelter  pursuant
  to  the  social services law, an amount not in excess of that portion of
  any increase in maximum rent or legal regulated rent which  causes  such
  maximum rent or legal regulated rent to exceed one-third of the combined
  income of all members of the household; or
    (b)  where  the head of the household receives a monthly allowance for
  shelter pursuant to the social services law, an amount not in excess  of
  that  portion  of  any  increase in maximum rent or legal regulated rent
  which is not covered by the maximum allowance  for  shelter  which  such
  person is entitled to receive pursuant to the social services law.
    3. Any such local law, ordinance or resolution shall provide that:
    a.  for  a  dwelling  unit where the head of the household is a person
  sixty-two years of age or older, no tax abatement shall  be  granted  if
  the  combined  income of all members of the household for the income tax
  year immediately preceding the date of making application  exceeds  four
  thousand  dollars,  or such other sum not more than twenty-five thousand
  dollars beginning July first, two  thousand  five,  twenty-six  thousand
  dollars  beginning  July  first, two thousand six, twenty-seven thousand
  dollars beginning July first, two thousand seven, twenty-eight  thousand
  dollars  beginning  July  first,  two  thousand  eight,  and twenty-nine
  thousand dollars beginning July first, two  thousand  nine,  as  may  be
  provided  by  the local law, ordinance or resolution adopted pursuant to
  this section, provided that when  the  head  of  the  household  retires
  before  the  commencement of such income tax year and the date of filing
  the application, the income for such year may be adjusted  by  excluding
  salary  or earnings and projecting his or her retirement income over the
  entire period of such year.
    b. for a dwelling unit where the head of the household qualifies as  a
  person  with  a disability pursuant to subdivision five of this section,
  no tax abatement shall be granted if the combined income for all members
  of the household for the current income tax  year  exceeds  the  maximum
  income  above  which such head of the household would not be eligible to
  receive cash supplemental security income  benefits  under  federal  law
  during such tax year.
    c.  upon  issuance  of  a  tax  abatement  certificate  as provided in
  subdivision  four  of  this  section,  the  amount  set  forth  in  said
  certificate  shall  be  deducted  from  the  legal maximum rent or legal
  regulated rent  chargeable  for  a  dwelling  unit  of  a  head  of  the
  household.
    d.  notwithstanding  any  other  provision  of law, when a head of the
  household to whom a then current, valid tax  abatement  certificate  has
  been  issued  moves  his principal residence from one dwelling unit to a
  subsequent dwelling unit located within the same municipal  corporation,
  the  head  of  the  household  may apply for a tax abatement certificate
  relating to the subsequent  dwelling  unit,  and  such  certificate  may
  provide  that the head of the household shall be exempt from paying that
  portion of the maximum rent or legal regulated rent for  the  subsequent
  dwelling unit which is the least of the following:
    (1)  the  amount  by  which  the rent for the subsequent dwelling unit
  exceeds the last rent, as reduced, which the head of the  household  was
  required to actually pay in the original dwelling unit;
    (2)  the last amount deducted from the maximum rent or legal regulated
  rent pursuant to this section in the original dwelling unit; or
    (3) where the head  of  the  household  does  not  receive  a  monthly
  allowance for shelter pursuant to the social services law, the amount by
  which  the  maximum  rent  or  legal  regulated  rent  of the subsequent
  dwelling unit exceeds one-third of the combined income of all members of
  the household.
    e. notwithstanding any other provision of law,  when  a  head  of  the
  household  to  whom  a then current, valid tax abatement certificate has
  been issued moves his principal residence from one dwelling unit subject
  to the provisions of articles II, IV, V or XI  of  the  private  housing
  finance  law  to  a subsequent dwelling unit subject to either the local
  emergency housing rent control law or to the emergency tenant protection
  act of nineteen seventy-four which is located within the same  municipal
  corporation,  the  head  of  the household may apply for a tax abatement
  certificate  relating  to  the  subsequent  dwelling  unit,   and   such
  certificate  may  provide that the head of the household shall be exempt
  from paying that portion of the maximum rent or legal regulated rent for
  the subsequent dwelling unit which is the least of the following:
    (1)  the  amount  by  which  the rent for the subsequent dwelling unit
  exceeds the last rent, as so reduced, which the head  of  the  household
  was required to actually pay in the original dwelling unit;
    (2)  the most recent amount so deducted from the maximum rent or legal
  regulated rent in the original dwelling unit; or
    (3) where the head  of  the  household  does  not  receive  a  monthly
  allowance for shelter pursuant to the social services law, the amount by
  which  the  maximum  rent  or  legal  regulated  rent  of the subsequent
  dwelling unit exceeds one-third of the combined income of all members of
  the household.
    f. notwithstanding any other provision of law, when  a  dwelling  unit
  subject  to  regulation  under the New York city rent and rehabilitation
  law  or  the  rent  stabilization  law  of  the  city  of  New  York  is
  reclassified  by order of the city rent agency subject to the other law,
  a head of the household who held a valid senior citizen or person with a
  disability  rent  increase  exemption  order  at  the   time   of   such
  reclassification may be issued a rent increase exemption order under the
  appropriate law continuing the exemption he would have been eligible and
  entitled to, notwithstanding such reclassification of such dwelling unit
  and  the  tenant  shall  be  exempt from paying the rent increase to the
  extent to which he was otherwise eligible and entitled to be exempted at
  the time of the increase but for the fact of  such  reclassification  of
  the  dwelling  unit  including  exemption from the rent increase granted
  pursuant to subparagraph (m)  of  paragraph  one  of  subdivision  g  of
  section 26-405 of the administrative code of the city of New York to the
  extent  that  it is not predicated upon any improvement or addition in a
  category as provided for in subparagraph (d), (e), (f), (g), (h) or  (i)
  of such paragraph.
    (1) A head of the household who is otherwise eligible for exemption at
  the  time of the rent increase and resides in a dwelling unit subject to
  regulation under the emergency housing rent  control  law  or  the  rent
  stabilization  law  of  the city of New York which has been reclassified
  under the other law, may be issued a rent increase exemption order under
  the appropriate law exempting the tenant from paying the  rent  increase
  to  the  extent  to which he would have been eligible and entitled to be
  exempted but for the fact of  reclassification  of  the  dwelling  units
  including   exemption   from  the  rent  increase  granted  pursuant  to
  subparagraph (m) of paragraph one of subdivision g of section 26-405  of
  the administrative code of the city of New York to the extent that it is
  not  predicated  upon  any  improvement  or  addition  in  a category as
  provided for in subparagraph (d), (e), (f), (g),  (h)  or  (i)  of  such
  paragraph.
    (2)  Application  for  an  exemption order shall be made within ninety
  days from the date of the rent increase and reclassification  or  within
  ninety days of the effective date of this paragraph, whichever is later,
  and  the  rent  increase  exemption  order  shall  take effect as of the
  effective date of the rent increase and reclassification  including  any
  retroactive increments pursuant to such rent increase.
    g. notwithstanding any other provision of law to the contrary, where a
  head  of  the household holds a current, valid tax abatement certificate
  and, after the effective date of this paragraph, there  is  a  permanent
  decrease  in  the  combined income of all members of the household in an
  amount which exceeds twenty percent of such  income  as  represented  in
  such  head  of  the  household's  last  approved  application  for a tax
  abatement certificate or for renewal thereof, such head of the household
  may apply for a redetermination of the amount set  forth  therein.  Upon
  application, such amount shall be redetermined so as to re-establish the
  ratio  of  adjusted rent to income which existed at the time of approval
  of such head of the household's last application  for  a  tax  abatement
  certificate  or for renewal thereof; provided, however, that in no event
  shall the amount of the adjusted rent be redetermined to be (i)  in  the
  case of a head of the household who does not receive a monthly allowance
  for  shelter pursuant to the social services law, less than one-third of
  the combined income of all members of the household; or (ii) in the case
  of a head of the household who receives a monthly allowance for  shelter
  pursuant to the social services law, less than the maximum allowance for
  shelter which such head of the household is entitled to receive pursuant
  to  such law. For purposes of this paragraph, a decrease in the combined
  income of all members of the household shall not include any decrease in
  such income resulting from the manner  in  which  income  is  calculated
  pursuant  to  any  amendment  to  paragraph c of subdivision one of this
  section made on or after April first, nineteen hundred eighty-seven. For
  purposes of this paragraph, "adjusted rent" shall mean maximum  rent  or
  legal  regulated  rent  less  the  amount  set  forth in a tax abatement
  certificate.
    4. The head of the  household  must  apply  every  two  years  to  the
  appropriate  rent  control  agency  or  administrative  agency for a tax
  abatement certificate on  a  form  prescribed  by  said  agency.  A  tax
  abatement  certificate  setting  forth  an  amount  not in excess of the
  increase in maximum rent or legal regulated rent for the taxable  period
  or  such  other amount as shall be determined under subdivision three of
  this section shall be  issued  by  said  agency  to  each  head  of  the
  household  who  is  found to be eligible under this section on or before
  the last date prescribed by law for the payment  of  the  taxes  or  the
  first installment thereof of any municipal corporation which has granted
  an abatement of taxes. Copies of such certificate shall be issued to the
  owner  of  the real property containing the dwelling unit of the head of
  the household and to the collecting officer charged  with  the  duty  of
  collecting the taxes of each municipal corporation which has granted the
  abatement of taxes authorized by this section.
    5.  Eligibility.  a.  To qualify as a person with a disability for the
  purposes of this section, an individual shall submit to the  appropriate
  rent  control  agency  or administrative agency proof sufficient to such
  agency that such  individual  is  currently  receiving  social  security
  disability  insurance  (SSDI)  or  supplemental  security  income  (SSI)
  benefits under the federal social security act or disability pension  or
  disability   compensation   benefits   provided  by  the  United  States
  department of veterans affairs or those previously eligible by virtue of
  receiving disability benefits under  the  supplemental  security  income
  program   or  the  social  security  disability  program  and  currently
  receiving  medical  assistance  benefits  based  on   determination   of
  disability  as provided in section three hundred sixty-six of the social
  services law.
    b. Eligibility shall be determined as of  a  date  prescribed  by  the
  appropriate rent control agency or administrative agency pursuant to the
  local  law,  ordinance  or  resolution  and such local law, ordinance or
  resolution may provide for a pro rata refund of taxes paid prior to such
  eligibility date or a credit therefor against the  next  succeeding  tax
  periods.
    6.  The  amount  set  forth  in  a  tax abatement certificate shall be
  deducted from the total taxes levied by or on behalf  of  the  municipal
  corporation which has granted such abatement on real property containing
  the dwelling unit of a head of the household to whom the certificate has
  been  issued.  In  the  event  that  both  a town and a village included
  therein grant such abatement, such deduction for properties  located  in
  the village shall be made first from taxes levied by or on behalf of the
  village and any excess thereof shall be deducted from town taxes.
    7.  Upon  the  vacancy  of  a  dwelling  unit  for  which an abatement
  certificate has been issued, the owner thereof shall remit  a  pro  rata
  portion  of the tax abatement to the collecting officer of the municipal
  corporation which granted such abatement and any amount due by reason of
  such vacancy shall be a lien upon the property on and after the date  of
  such vacancy.
    8.  Where a tax abatement certificate has been issued to a head of the
  household as authorized by a local law, ordinance or resolution  adopted
  pursuant  to  this  section  and  the  landlord  collects or attempts to
  collect all or  part  of  the  amount  covered  by  such  tax  abatement
  certificate,  the  amount  of  such  abatement  shall  be  deemed a rent
  overcharge under the applicable rent control or rent regulation law.
    9. In a city with a population of one million or more, any such  local
  law,  ordinance  or  resolution  may  provide  that in the event the tax
  abatement certificate authorizes an amount of deduction in excess of the
  real estate quarterly installment, then the balance may  be  applied  to
  any  subsequent  installment  until  exhausted,  provided  that,  at the
  request of the owner, such balance shall be paid to the owner in lieu of
  being applied to any subsequent installment, except where the  owner  is
  in  arrears in the payment of real estate taxes on any property. For the
  purposes  of  such  provision  of  any  such  local  law,  ordinance  or
  resolution,  where  the owner is a corporation, it shall be deemed to be
  in arrears when any officer, director or any person holding an  interest
  in  more  than  ten  percent of the issued and outstanding stock of such
  corporation is in arrears in the payment of real  estate  taxes  on  any
  property; where title is held by a nominee, the owner shall be deemed to
  be in arrears when the person for whose benefit such title is held is in
  arrears in the payment of real estate taxes on any property.
    * NB Effective until June 16, 2011
    * §  467-b.  Tax  abatement  for  rent controlled property occupied by
  senior citizens or persons with disabilities. 1. Definitions. As used in
  this section:
    a. "Dwelling unit" means that part of a dwelling in which  a  head  of
  the  household  resides and which is subject to either emergency housing
  rent control law or to rent and rehabilitation law of the  city  of  New
  York  enacted  pursuant  to  the local law enacted pursuant to the local
  emergency housing rent control law;
    b. "Head of the household" means a person (i) who is  sixty-two  years
  of  age  or  older,  or (ii) who qualifies as a person with a disability
  pursuant to subdivision five of this section,  is  not  a  recipient  of
  public assistance pursuant to the social services law and is entitled to
  the possession or to the use or occupancy of a dwelling unit;
    c.  "Income"  means  income  from  all  sources after deduction of all
  income and social  security  taxes  and  includes  social  security  and
  retirement  benefits, interests, dividends, net rental income, salary or
  earnings, and new income from self-employment,  but  shall  not  include
  gifts or inheritances;
    d. "Income tax year" means a twelve month period for which the head of
  the  household filed a federal personal income tax return, or if no such
  return is filed, the calendar year;
    e. "Increase in maximum rent" means any increase in the  maximum  rent
  for  the  dwelling  unit  in  question  pursuant  to the applicable rent
  control law, or such classes of increase thereunder as may be  specified
  in  a  local  law,  ordinance  or  resolution  enacted  pursuant to this
  section, over such base period rent as shall be provided therein;
    f.  "Members of the household" means the head of the household and any
  person, other than a bona fide roomer, boarder or subtenant who  is  not
  related  to  the  head  of  the  household,  permanently residing in the
  dwelling unit.
    2. The  governing  body  of  any  city,  town  or  village  is  hereby
  authorized  and  empowered to adopt, after public hearing, in accordance
  with  the  provisions  of  this  section,  a  local  law,  ordinance  or
  resolution  providing  for  the  abatement  of  taxes  of said municipal
  corporation imposed on real  property  containing  a  dwelling  unit  as
  defined  herein  by  an  amount  not  in  excess  of that portion of any
  increase in maximum rent  which  causes  such  maximum  rent  to  exceed
  one-third of the combined income of all members of the household.
    3. Any such local law, ordinance or resolution shall provide that:
    a.  for  a  dwelling  unit where the head of the household is a person
  sixty-two years of age or older, no tax abatement shall  be  granted  if
  the  combined  income of all members of the household for the income tax
  year immediately preceding the date of making application exceeds  three
  thousand  dollars, or such other sum not more than five thousand dollars
  as may be provided by the local law,  ordinance  or  resolution  adopted
  pursuant  to  this section, provided that when the head of the household
  retires before the commencement of such year and the date of filing  the
  application,  the  income  for  such  year  may be adjusted by excluding
  salary or earnings and projecting his retirement income over the  entire
  period of such year.
    b.  for a dwelling unit where the head of the household qualifies as a
  person with a disability pursuant to subdivision five of  this  section,
  no tax abatement shall be granted if the combined income for all members
  of  the  household  for  the current income tax year exceeds the maximum
  income at which such head of the household  would  not  be  eligible  to
  receive  cash  supplemental  security  income benefits under federal law
  during such tax year.
    c. upon issuance  of  a  tax  abatement  certificate  as  provided  in
  subdivision four of this section, the amount of increase in maximum rent
  set  forth  in said certificate shall be deducted from the legal maximum
  rent chargeable for a dwelling unit of a head of the household.
    4. The head of the household must apply each year to  the  appropriate
  rent control agency for a tax abatement certificate on a form prescribed
  by  said agency. A tax abatement certificate setting forth an amount not
  in excess of the increase in maximum rent for the taxable  period  shall
  be  issued  by said agency to each head of the household who is found to
  be eligible under this section on or before the last date prescribed  by
  law for the payment of the taxes or the first installment thereof of any
  city, town or village which has granted an abatement of taxes. Copies of
  such  certificate  shall  be  issued  to  the owner of the real property
  containing the dwelling unit of the head of the  household  and  to  the
  collecting officer charged with the duty of collecting the taxes of each
  city,  town  or  village  which  has  granted  the  abatement  of  taxes
  authorized by this section.
    5. Eligibility. a. To qualify as a person with a  disability  for  the
  purposes  of this section, an individual shall submit to the appropriate
  rent control agency or administrative agency proof  sufficient  to  such
  agency  that  such  individual  is  currently  receiving social security
  disability  insurance  (SSDI)  or  supplemental  security  income  (SSI)
  benefits  under the federal social security act or disability pension or
  disability  compensation  benefits  provided  by   the   United   States
  department of veterans affairs or those previously eligible by virtue of
  receiving  disability  benefits  under  the supplemental security income
  program  or  the  social  security  disability  program  and   currently
  receiving   medical   assistance  benefits  based  on  determination  of
  disability  as provided in section three hundred sixty-six of the social
  services law.
    b. Eligibility shall be determined as of  a  date  prescribed  by  the
  appropriate  rent control agency pursuant to the local law, ordinance or
  resolution and such local law, ordinance or resolution may provide for a
  pro rata refund of taxes paid prior to such eligibility date or a credit
  therefor against the next succeeding tax periods.
    6. The portion of the increase in maximum rent for the taxable  period
  set  forth  in  a  tax  abatement certificate shall be deducted from the
  total taxes levied by or on behalf of the city, town  or  village  which
  has granted such abatement on real property containing the dwelling unit
  of  a  head of the household to whom the certificate has been issued. In
  the event that both a town and a village  included  therein  grant  such
  abatement, such deduction for properties located in the village shall be
  made  first  from  taxes  levied  by or on behalf of the village and any
  excess thereof shall be deducted from town taxes.
    7. Upon the  vacancy  of  a  dwelling  unit  for  which  an  abatement
  certificate  has  been  issued, the owner thereof shall remit a pro rata
  portion of the tax abatement to the collecting officer of the city, town
  or village which granted such abatement and any amount due by reason  of
  such  vacancy shall be a lien upon the property on and after the date of
  such vacancy.
    8. Where a tax abatement certificate has been issued to a head of  the
  household  as authorized by a local law, ordinance or resolution adopted
  pursuant to this section  and  the  landlord  collects  or  attempts  to
  collect the increase in the maximum rent for a dwelling unit occupied by
  such head of the household, the amount of such abatement shall be deemed
  a rent overcharge under the applicable rent control law.
    * NB Effective June 16, 2011

Last modified: August 26, 2006