2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 459-C - Persons With Disabilities and Limited Incomes.

§  459-c.  Persons with disabilities and limited incomes. 1.  (a) Real
property owned by  one  or  more  persons  with  disabilities,  or  real
property  owned by a married person or a married couple, or by siblings,
at least one of whom has a disability, or real property owned by one  or
more  persons, some of whom qualify under this section and the others of
whom qualify under section four hundred sixty-seven of this  title,  and
whose  income,  as  hereafter  defined,  is  limited  by  reason of such
disability, shall be exempt from payments in lieu of  taxes  (PILOT)  to
the  battery  city  park  authority  or  from  taxation by any municipal
corporation in which located to the extent of fifty per  centum  of  the
assessed  valuation  thereof  as  hereinafter  provided.  After a public
hearing, the governing board of a county,  city,  town  or  village  may
adopt  a  local  law and a school district, other than a school district
subject  to  article  fifty-two  of  the  education  law,  may  adopt  a
resolution to grant the exemption authorized pursuant to this section.
(b)  Any  local law or resolution adopted pursuant to paragraph (a) of
this subdivision may be amended, or a local law  or  resolution  may  be
adopted,  to  provide  an exemption so as to increase the maximum income
eligibility  level  of  such  municipal  corporation  as   provided   in
subdivision  five  of  this  section  (represented  in  the  hereinbelow
schedule as M), to the extent provided in the following schedule:
ANNUAL INCOME                         PERCENTAGE ASSESSED VALUATION
EXEMPT FROM TAXATION OR PILOT
More than (M) but
less than (M+ $1,000)                   45 per centum
(M+ $1,000 or more) but
less than (M+ $2,000)                   40 per centum
(M+ $2,000 or more) but
less than (M+ $3,000)                   35 per centum
(M+ $3,000 or more) but
less than (M+ $3,900)                   30 per centum
(M+ $3,900 or more) but
less than (M+ $4,800)                   25 per centum
(M+ $4,800 or more) but
less than (M+ $5,700)                   20 per centum
(M+ $5,700 or more) but
less than (M+ $6,600)                   15 per centum
(M+ $6,600 or more) but
less than (M+ $7,500)                   10 per centum
(M + $7,500 or more) but
less than (M+ $8,400)                   5 per centum
2. For purposes of this section:  (a) the term "sibling" shall include
persons whose relationship as  siblings  has  been  established  through
either half blood, whole blood or adoption.
(b)  a  person  with  a disability is one who has a physical or mental
impairment, not due to current use of alcohol or illegal drug use, which
substantially limits such person's ability to  engage  in  one  or  more
major  life activities, such as caring for one's self, performing manual
tasks, walking,  seeing,  hearing,  speaking,  breathing,  learning  and
working,  and who (i) is certified to receive social security disability
insurance (SSDI) or supplemental security income  (SSI)  benefits  under
the  federal  Social  Security  Act,  or  (ii)  is  certified to receive
Railroad Retirement  Disability  benefits  under  the  federal  railroad
Retirement  Act,  or  (iii)  has  received  a certificate from the state
commission for the blind stating that such person is legally  blind,  or
(iv)  is  certified to receive a United States Postal Service disability
pension, or (v) is certified to receive a United  States  department  of
veterans affairs disability pension pursuant to 38 U.S.C. §1521, or (vi)

has  received an order from the chair of the workers' compensation board
pursuant to article two of the workers' compensation law determining  an
award  for compensation for (A) permanent total disability, as described
in  subdivision one of section fifteen of the workers' compensation law,
or (B) permanent partial disability, as described in  subdivision  three
of  such section fifteen of the workers' compensation law, provided that
the governing board of a municipality, after a public hearing, may adopt
a local law or resolution establishing an adjustment  percentage  to  be
applied  to  the  exemption percentage schedule established in paragraph
(b) of subdivision one  of  this  section,  for  exemptions  based  upon
permanent  partial disabilities. Such adjustment percentage shall not be
less than fifty percent, and not more than one hundred percent.
An award  letter  from  the  Social  Security  Administration  or  the
Railroad  Retirement  Board,  or a certificate from the state commission
for the blind, or an award letter from the United States Postal Service,
or an award  letter  from  the  United  States  department  of  veterans
affairs,  or  an order of determination of an award for compensation for
permanent total disability or for permanent partial disability issued by
the  workers'  compensation  board  shall  be  submitted  as  proof   of
disability.
3.  Any exemption provided by this section shall be computed after all
other partial exemptions allowed by law, excluding the school tax relief
(STAR) exemption authorized by section four hundred twenty-five of  this
title,  have  been  subtracted from the total amount assessed; provided,
however, that no parcel may receive an exemption for the same  PILOT  or
municipal  tax  purpose  pursuant  to both this section and section four
hundred sixty-seven of this title.
4. Exemption from taxation for school purposes shall not be granted in
the case of real property where a child resides if such child attends  a
public school of elementary or secondary education; unless the governing
board  of  the  school  district in which the property is located, after
public hearing,  adopts  a  resolution  providing  for  such  exemption;
provided  that  any  such resolution shall condition such exemption upon
satisfactory proof that the child was not brought into the residence  in
whole  or  in substantial part for the purpose of attending a particular
school  within  the  district.  The  procedure  for  such  hearing   and
resolution  must  be  conducted  separately  from  the procedure for any
hearing and local law, ordinance or  resolution  conducted  pursuant  to
paragraph (a) of subdivision one of this section.
5. No exemption shall be granted:
(a)  (i)  if  the  income  of  the owner or the combined income of the
owners of the property for the applicable income tax  year  exceeds  the
sum  of  three  thousand  dollars, or such other sum not less than three
thousand dollars nor  more  than  fifty  thousand  dollars,  as  may  be
provided  by  the  local  law  or  resolution  adopted  pursuant to this
section.
(ii) Where the taxable status date is on or before  April  fourteenth,
the  applicable income tax year shall be the second most recent calendar
year. Where the taxable status date is on or after April fifteenth,  the
applicable  income  tax  year  shall  be  the most recent calendar year.
Provided, however, that for taxpayers whose income tax returns are filed
on the basis  of  a  fiscal  year  rather  than  a  calendar  year,  the
applicable  income  tax  year  shall  be the most recent fiscal year for
which an income tax return has been filed.
(iii) Where title is vested in a married person, the  combined  income
of  such person and such person's spouse may not exceed such sum, except
where one spouse or  ex-spouse  is  absent  from  the  property  due  to
divorce,  legal  separation  or abandonment, then only the income of the

spouse or ex-spouse residing on the property shall be considered and may
not exceed such sum.
(iv)  The  term "income" as used herein shall mean the "adjusted gross
income" for federal income tax purposes as reported on  the  applicant's
federal  or  state income tax return for the applicable income tax year,
subject to any subsequent  amendments  or  revisions,  plus  any  social
security  benefits  not  included in such federal adjusted gross income;
provided that if no such return was filed for the applicable income  tax
year,  the  applicant's  income shall be determined based on the amounts
that would have so been reported if such a return had  been  filed;  and
provided  further,  that  when  determining  income for purposes of this
section, the following conditions shall be applicable:
(1) the governing body of a  municipal  corporation,  after  a  public
hearing,  may  adopt a local law, ordinance or resolution providing that
any social security benefits that were not included in  the  applicant's
federal adjusted gross income shall not be considered income;
(2)  distributions  received  from an individual retirement account or
individual retirement annuity that  were  included  in  the  applicant's
federal  adjusted gross income shall not be considered income unless the
governing body of a  municipal  corporation,  after  a  public  hearing,
adopts a local law, ordinance or resolution providing otherwise;
(3)  the  applicant's  income  shall  be  offset  by  all  medical and
prescription drug expenses actually paid that  were  not  reimbursed  or
paid for by insurance, if the governing body of a municipal corporation,
after  a  public  hearing,  adopts  a local law, ordinance or resolution
providing therefor;
(4) any tax-exempt interest or dividends that were excluded  from  the
applicant's  federal  adjusted  gross income shall be considered income;
and
(5) any losses that were applied to  reduce  the  applicant's  federal
adjusted gross income shall be subject to the following limitations:
(A)  the net amount of loss reported on federal Schedule C, D, E, or F
shall not exceed three thousand dollars per schedule,
(B) the net amount of any other separate category of  loss  shall  not
exceed three thousand dollars, and
(C)  the  aggregate  amount  of  all  losses  shall not exceed fifteen
thousand dollars;
(v) Notwithstanding subparagraph (iv) of this  paragraph,  in  a  city
having a population of one million persons or more:
(1)  except  as  provided in clause two of this subparagraph, the term
"income" as used in this section shall mean the "adjusted gross  income"
for  federal  income tax purposes as reported on the applicant's federal
or state income tax return for the income tax year immediately preceding
the date  of  application,  subject  to  any  subsequent  amendments  or
revisions,  minus  any  distributions, to the extent included in federal
adjusted gross income, received from an  individual  retirement  account
and  an  individual  retirement annuity; provided that if no such return
was filed for such income tax year,  the  applicant's  income  shall  be
determined based on the amounts that would have so been reported if such
a return had been filed; and
(2) if an owner who has received an exemption pursuant to this section
for  a property on an assessment roll for a tax year ending on or before
June thirtieth,  two  thousand  twenty-four,  would  receive  a  greater
exemption  for  any  tax  year  ending  on  or after June thirtieth, two
thousand twenty-five, the term "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 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,  if  the  governing  board  of a municipality, after a public
hearing, adopts  a  local  law  or  resolution  providing  therefor.  In
computing  net rental income and net income from self-employment for the
purposes of this item, no depreciation deduction shall  be  allowed  for
the  exhaustion, wear and tear of real or personal property held for the
production of income.
(b) unless the property is used exclusively for residential  purposes,
provided, however, that in the event any portion of such property is not
so  used  exclusively  for  residential  purposes  but is used for other
purposes, such portion shall be subject to taxation  or  PILOT  and  the
remaining  portion  only  shall be entitled to the exemption provided by
this section;
(c) unless the real property is the legal residence of and is occupied
in whole or in part by the disabled person; except  where  the  disabled
person  is absent from the residence while receiving health-related care
as an inpatient of a residential health care  facility,  as  defined  in
section twenty-eight hundred one of the public health law, provided that
any  income  accruing  to  that  person  shall  be considered income for
purposes of this section only to the extent that it exceeds  the  amount
paid  by such person or spouse or sibling of such person for care in the
facility.
6. (a) If so provided in the local law or resolution adopted  pursuant
to  this  section,  title  to  that  portion of real property owned by a
cooperative apartment corporation in which a tenant-stockholder of  such
corporation    resides,    and    which    is    represented    by   the
tenant-stockholder's 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 owned by a
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  or  PILOT  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 or  PILOT  realized  thereby  shall  be
credited  by the cooperative apartment corporation against the amount of
such  taxes  or  PILOT  otherwise  payable  by  or  chargeable  to  such
tenant-stockholder.
7.  Application for such exemption must be made annually by the owner,
or all of the owners  of  the  property,  on  forms  prescribed  by  the
commissioner,  and shall be filed in such assessor's office on or before
the appropriate taxable status  date;  provided,  however,  proof  of  a
permanent  disability  need  be  submitted  only  in  the year exemption
pursuant to this section is first sought  or  the  disability  is  first
determined to be permanent.
7-a.  Notwithstanding  the  provisions  of  this  section or any other
provision of law, in a city having a population of one million or  more,
applications for the exemption authorized pursuant to this section shall
be  considered timely filed if they are filed on or before the fifteenth
day of March of the appropriate year and in such city all references  in

this  section  to  taxable  status  date shall be deemed to refer to the
fifteenth day of March of the appropriate year.
8.  At  least sixty days prior to the appropriate taxable status date,
the assessor shall  mail  to  each  person  who  was  granted  exemption
pursuant  to  this  section  on  the latest completed assessment roll an
application form and a notice that such application must be filed on  or
before  the  taxable  status  date  and  be  approved  in  order for the
exemption to continue to be granted. Failure to  mail  such  application
form or the failure of such person to receive the same shall not prevent
the  levy,  collection  and  enforcement  of the payment of the taxes or
PILOT on property owned by such person.
9. Notwithstanding any other provision of law  to  the  contrary,  the
provisions  of  this  section shall apply to real property held in trust
solely for the benefit of a person or persons  who  would  otherwise  be
eligible  for  a  real  property  tax  or  PILOT  exemption, pursuant to
subdivision one of this section, were such person or persons  the  owner
or owners of such real property.