BILL NUMBER: S2960A
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to increasing the
combined household income limit for eligibility for a senior citizen
rent increase exemption (SCRIE), disability rent increase exemption
(DRIE), senior citizen homeowners' exemption (SCHE), and disabled home-
owners' exemption (DHE) on the basis of the consumer price index
 
PURPOSE:
This bill sets the maximum income threshold for SCRIE, DRIE, SCHE, and
DHE at $61,000 and would require the threshold to be increased according
to consumer price index adjustments going forward.
 
SUMMARY OF SPECIFIC PROVISIONS:
This bill amends section 467-b, section 467-c, section 467, and section
459-c of the Real Property Tax Law with the same language.
Section 1 amends paragraph a of subdivision 3 of section 467-b of the
real property tax law to set the maximum income threshold to be eligible
for the Senior Citizens Rent Increase Exemption (SCRIE) benefit at
$61,000 beginning July 1, 2024. The maximum income threshold shall also
be increased annually by order of the NYS Homes and Community Renewal
commissioner to reflect any increases in the consumer price index estab-
lished for the most recent preceding calendar year. The New York-Ne-
wark-Jersey City, NY-NJ-PA consumer price index (CPI-U) shall be used
for New York City and for any municipality that has adopted SCRIE in the
counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and
Westchester. The Northeast Region consumer price index shall be used for
any other municipality that adopts SCRIE.
Section 1 also amends paragraph b of subdivision 3 of section 467-b of
the real property tax law to set the same 2024 maximum income threshold
and annual CPI increases for the Disability Rent Increase Exemption
(DRIE).
Section 2 amends paragraph d of subdivision 1 of section 467-c of the
real property tax law to set the same 2024 maximum income threshold and
annual CPI increases for SCRIE for residents of Battery Park City.
Section 2 amends paragraph m of subdivision 1 of section 467-c of the
real property tax law to set the same 2024 maximum income threshold and
annual CPI increases for DRIE for residents of Battery Park City.
Section 3 amends subparagraph (i) of paragraph (a) of subdivision 3 of
section 467 of the real property tax law to set the same 2024 maximum
income threshold and annual CPI increases for the Senior Citizen Home-
owners' Exemption (SCHE).
Section 4 amends subparagraph (i) of paragraph (a) of subdivision 5 of
section 459-c of the real property tax law to set the same 2024 maximum
income threshold and annual CPI increases for the Disabled Homeowners'
Exemption (DHE).
Section 5 sets forth the effective date.
 
JUSTIFICATION:
According to the U.S. Inflation Calculator for the New York-Newark-Jer-
sey City metropolitan area-the Consumer Price Index for All Urban
Consumers (CPI-U) that is used for all the areas in New York that
currently offers the Senior Citizens Rent Increase Exemption (SCRIE),
the Disability Rent Increase Exemption (DRIE), the Senior Citizen Home-
owners' Exemption (SCHE), and the Disabled Homeowners' Exemption
(DHE)-$50,000 in 2014 dollars would cost $61,000 in 2024 dollars.
In the FY 2014-2015 enacted state budget, the maximum income threshold
for SCRIE was increased from $29,000 to $50,000. In the same year and
with the passage of S7640/A9744 of 2014 (Chapter 129 of the laws of
2014), the maximum income threshold for DRIE was also increased from
$29,000 to $50,000. And in 2022, the passage of S3085A/A3956A of 2022
(Chapter 488 of 2022) raised the maximum income threshold for SCHE and
DHE from $29,000 to $50,000. Had the increases been indexed to CPI-U in
2014, the income limit for these programs would be around $61,000 in
2024.
In 2023, social security benefits saw a Cost of Living (COLA) increase
of 8.7%. In 2024, the social security benefits COLA will increase by
3.2%. These adjustments are needed to offset the impact of inflation and
rising costs. However, without corresponding adjustments to income
limits for SCRIE/DRIE/SCHE/DHE, some recipients are worried that they
may soon become over-income for these programs.
This bill recognizes the rising cost of living for New Yorkers and the
importance for seniors' and people with disabilities' continued need for
SCRIE/DRIE/SCHE/DHE to keep their housing expenses constant. To account
for inflation in the 10 years since the last adjustment to SCRIE/DRIE
income limits, which the increases for SCHE and DHE matched in 2022 but
did not adjust for inflation, this bill raises the maximum income thres-
hold to $61,000. It also indexes the threshold to CPI-U increases for
New York City and for localities within Dutchess, Nassau, Orange,
Putnam, Rockland, Suffolk, and Westchester counties that have adopted
SCRIE/DRIE/SCHE/DHE. For localities outside of these areas that may
adopt SCRIE/DRIE in the future, they would index the increases according
to the CPI-Northeast Region consumer price index.
 
LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS:
To be determined. Program funding would be subject to amounts appropri-
ated, or otherwise available.
 
EFFECTIVE DATE:
This act shall take effect immediately; provided that:
(a) the amendments to paragraph a of subdivision 3 of section 467-b of
the real property tax law made by section one of this act shall not
affect the expiration of such paragraph pursuant to section 4 of part U
of chapter 55 of the laws of 2014, as amended, and shall be deemed to
expire therewith;
(b) the amendments to paragraph b of subdivision 3 of section 467-b of
the real property tax law made by section one of this act shall not
affect the expiration of such paragraph pursuant to section 4 of chapter
129 of the laws of 2014, as amended, and shall be deemed to expire ther-
ewith;
(c) the amendments to subparagraph 1 of paragraph d of subdivision 1 of
section 467-c of the real property tax law, made by section two of this
act shall not affect the expiration of such subparagraph pursuant to
section 4 of part U of chapter 55 of the laws of 2014, as amended, and
shall be deemed expired therewith; and
(d) the amendments to paragraph m of subdivision 1 of section 467-c of
the real property tax law, made by section two of this act shall not
affect the expiration of such paragraph pursuant to section 4 of chapter
129 of the laws of 2014, as amended, and shall be deemed expired there-
with.

Statutes affected:
S2960: 467 real property tax law, 467(3) real property tax law, 459-c real property tax law, 459-c(5) real property tax law
S2960A: 467 real property tax law, 467(3) real property tax law, 459-c real property tax law, 459-c(5) real property tax law