Increases the real property tax circuit breaker credit income limits to $100,000; removes real property tax rebates from real property taxes that qualify under such credit.
Summary
Bill A07652 proposes amendments to the New York tax law regarding the real property tax circuit breaker credit. The bill aims to increase the income limits for qualifying taxpayers to $100,000, thereby allowing more residents to benefit from the credit. Additionally, it seeks to remove any real property tax rebates from the qualifying real property taxes that can be claimed under this credit, ensuring that only actual taxes paid are considered for the credit calculation. This change is intended to provide more substantial tax relief to eligible homeowners, particularly those with higher incomes who may have previously been excluded from receiving the credit.
Impact
If enacted, this bill would significantly alter the landscape of property tax relief in New York by expanding eligibility for the circuit breaker credit. It would allow a larger segment of the population, particularly middle-income households, to benefit from tax relief measures. The removal of rebates from qualifying taxes could streamline the process for taxpayers, making it clearer what constitutes qualifying taxes and potentially increasing the overall amount of credit available to eligible homeowners.
Sentiment
The general sentiment surrounding Bill A07652 appears to be positive, with support for the expansion of tax relief to a broader income range. However, there may be concerns regarding the fiscal implications of increasing the income threshold and the potential impact on state revenues. Discussions in committee have not yet indicated significant opposition, but further analysis may be required as the bill progresses.
Contention
Notable points of contention may arise regarding the removal of real property tax rebates from qualifying taxes, as some stakeholders may argue that this could disadvantage certain taxpayers who previously benefited from such rebates. Additionally, there may be debates about the appropriateness of raising the income limit to $100,000, with some advocating for a more conservative approach to ensure that the program remains sustainable and targeted towards those most in need.
Increases the real property tax circuit breaker credit income limits to $100,000; removes real property tax rebates from real property taxes that qualify under such credit.
Modifies the "circuit breaker" tax credit by increasing the maximum upper limits and adjusting the property tax credit income phase-out increment amounts
Creates the middle class circuit breaker tax credit allowing a credit against personal income tax, equal to seventy percent of the amount by which the taxpayer's net real property tax or the taxpayer's real property tax equivalent exceeds the taxpayer's maximum real property tax; establishes a tax reform study commission.
Increases amount of rental payments defined as rent constituting property taxes for purposes of deduction from gross income for property tax payments; increases property tax credit option for certain individuals.