Real Property Tax Credit for Homeowners and Renters

State

New York

Year

2006

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 benefit is 50% of the property taxes in excess of the threshold amount. The benefit 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 seniors, the maximum benefit ranges from $375 if income is under $1,000 to $86 if income is $17,001 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. Benefits are disbursed as a credit to the income tax, or as a direct rebate if the benefit exceeds the income tax liability. Maximum property value considered is $85,000 (includes all real estate owned).

How is Benefit Disbursed

Credit to the property tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Renter

Other Criteria

Description of Eligibility Criteria

Homeowners or spouses must have paid real property taxes. Any rent received for nonresidential use of residence must have been 20% or less of the total rent received. 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.

Enrollment Data

The state received 260,410 claims, costing $26,824,000.

Record ID

NY101_RR06

Footnotes

Sources

N.Y. Tax Law 22-606(e) (in effect for 2006)
Real Property Circuit Breaker Tax Credit Report (2007), New York Tax Department [http://www.tax.state.ny.us/pdf/stats/stat_pit/rpcb/real_property_circuit_breaker_tax_credit_2007.pdf Accessed 12/31/2009]
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