Relates to the term "income" for purposes of the school tax relief exemption; adds 401(k) and 403(b) accounts to the list of eligible income deductions when determining Enhanced STAR eligibility.
Summary
This bill amends New York’s Real Property Tax Law section governing the School Tax Relief (STAR) exemption, specifically the definition of “income” used to determine eligibility for the Enhanced STAR exemption. Under current law, certain retirement income from IRAs and individual retirement annuities may be excluded from adjusted gross income for this purpose; the bill expands that exclusion to include distributions from 401(k) plans, 403(b) plans, and simplified employee pension (SEP) plans, to the extent those distributions are included in federal adjusted gross income.
The bill also makes a technical clarification that, when multiple individuals’ incomes are used to determine eligibility and no tax return was filed, each individual must provide a statement identifying the sources and amounts of income that would have been reported. The measure preserves the existing confidentiality protections for those statements and keeps the local assessor’s role in assisting applicants with filing the required documentation.
Impact
If enacted, the bill would broaden the income deductions available when calculating eligibility for the Enhanced STAR school property tax exemption, potentially allowing more senior homeowners and other qualifying taxpayers with retirement-plan withdrawals to remain eligible. It would amend Real Property Tax Law section 425 and affect applicants, assessors, and the Department of Taxation and Finance by updating the income definition and related application procedures for exemption determinations.
Sentiment
The bill appears generally supportive of taxpayers, especially older homeowners relying on retirement savings, by easing eligibility rules for a widely used property tax relief program. The sponsorship and caption suggest a favorable policy goal of aligning STAR income treatment with common retirement accounts, and there is no recorded committee debate or vote history in the provided materials indicating opposition or controversy.
Contention
The main policy issue is whether expanding the income exclusions for Enhanced STAR should include 401(k), 403(b), and SEP distributions in addition to IRAs and annuities. Supporters would likely view this as a fairness measure for retirees and near-retirees whose income includes tax-deferred retirement withdrawals, while any potential critics could be concerned about reduced tax-base screening or increased program costs from expanding eligibility. No specific objections, amendments, or recorded dissent are provided in the available context.
Same As
Relates to the term "income" for purposes of the school tax relief exemption; adds 401(k) and 403(b) accounts to the list of eligible income deductions when determining Enhanced STAR eligibility.
Relates to the term "income" for purposes of the school tax relief exemption; adds 401(k) and 403(b) accounts to the list of eligible income deductions when determining Enhanced STAR eligibility.
Relates to the term "income" for purposes of the school tax relief exemption; adds 401(k) and 403(b) accounts to the list of eligible income deductions when determining Enhanced STAR eligibility.
Relates to the term "income" for purposes of the school tax relief exemption; adds 401(k) and 403(b) accounts to the list of eligible income deductions when determining Enhanced STAR eligibility.
Individual income tax: deductions; deductions for contributions to Trump Accounts; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30) & adds sec. 51i.