Real Property Tax Credit for Homeowners and Renters (Circuit Breaker)

State

New York

Year

2018

Variations in Receipt of Benefit

Benefit Varies with Income

Minimum Tax Amount Must be Paid

Other Variation in Receipt of Benefits

Benefit Type

Circuit Breaker

Benefit

The refundable credit is 50% of the property taxes in excess of the threshold amount. The benefit paid in 2019 based on 2018 income is determined by sliding scale of relief with 7 brackets and thresholds ranging from 3.5% if income is under $3,000 to 6.5% if income is $14,001 to $18,000. For claimants under 65, maximum benefit ranges from $75 if income under $1,000 to $41 if income $17,000-$18,000. The benefit paid in 2018 based on 2017 income is determined by sliding scale of relief with 7 brackets and thresholds ranging from 3.5% if income is under $3,000 to 6.5% if income is $14,001 to $18,000. For claimants under 65, maximum benefit ranges from $75 if income under $1,000 to $41 if income $17,000-$18,000. For seniors, the maximum benefit ranges from $375 if income is under $1,000 to $86 if income is $17,001 to $18,000. Benefits are disbursed as a credit to the income tax, or as a refund if the benefit exceeds the income tax liability. Maximum property value considered is $85,000 (includes all real estate owned). For New York City, program is now reported as a stand-alone program.

How is Benefit Disbursed

Credit to the income tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program.

Eligibility Criteria

Homeowner

Income Ceiling

Principal Residence

Property Value Limit

Renter

Other Criteria

Description of Eligibility Criteria

Homeowners or spouses must have paid real property taxes, having lived in the state for a year and in the same residence for 6 months or more. Value of the property may not exceed $85,000 (includes all real estate owned) and consist of no more than 1 acre. For renters 25% of the adjusted rent is considered to be the real property tax equivalent. The average monthly rent paid by household must be $450 or less, not counting charges for heat, gas, electricity, furnishings, or board. Income for individuals both over and under 65 years of age cannot exceed $18,000.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

The state disburses benefits directly to the claimant through an income tax credit or direct rebate if the benefit exceeds income tax liability.

Record ID

NY101_RR18

Footnotes

For residential property owners that rent a portion of the property, any rent received for nonresidential use of residence must be 20% or less of the total rent received. The program for New York City enacted in 2014 was to sunset before 1 January 2016. As part of the state's 2015-2016 budget the program was extended until 1 January 2020. The details of the New York City program is now reported as a stand-alone program.

Sources

N.Y. Tax Law 22-606(e) (in effect for 2018)
Department of Taxation and Finance, Instructions for Form IT-214 - Claim for Real Property Tax Credit for Homeowners and Renters, 2018 (filing in 2019) [https://www.tax.ny.gov/pdf/current_forms/it/it214i.pdf Accessed 02/08/2019] View Archived Source

Department of Taxation and Finance, Instructions for Form IT-214 - Claim for Real Property Tax Credit for Homeowners and Renters, 2017 (filing in 2018)
[https://www.tax.ny.gov/pdf/current_forms/it/it214i.pdf accessed 02/07/2019]
View Archived Source

Department of Taxation and Finance, Claim for Real Property Tax Credit for Homeowners and Renters - (2018)
[https://www.tax.ny.gov/pdf/current_forms/it/it214.pdf accessed 02/07/2019]
View Archived Source
Department of Taxation and Finance, Real Property Tax Credit Information, (2018)

[http://www.tax.ny.gov/pit/credits/real_property_tax_credit.htm Accessed on 07/17/2018]

[https://www.lincolninst.edu/sites/default/files/gwipp/upload/sources/New%20York/2016/NY_Real_Property_Tax_Credit_Department_of_Taxation_and_Finance_2016.pdf]

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