Finance, Assessment and Taxation Committee

COMMON COUNCIL MEETING FINANCE, ASSESSMENT AND TAXATION COMMITTEE Sonia Frederick, Chair DATE/TIME: Monday, January 23, 2023 at 5:30 PM LOCATION: Council Chambers-2nd Floor. City Hall TOPIC(S) OF DISCUSSION/CONSIDERATION:  Ordinance 21.91.22 AN ORDINANCE AUTHORIZING AND DIRECTING THEGRANT TO HISTORIC MANSION HILL LIMITED PARTNERSHIP OF AN EASEMENT IN THE CITYOF ALBANY OVER A PORTION OF THE CITY RIGHT-OF-WAY OF THE ASH GROVE PLACE COMMONALLEY (TAX MAP NUMBER 76.49-3-57) FOR THE CONSTRUCTION AND MAINTENANE OF AN ADACOMPLIANT RAMP  Ordinance24.111.22 AN ORDINANCE AUTHORIZING THE SALE TOTHE ALBANY COUNTY HISTORICAL ASSOCIATION OF 142 LIVINGSTON AVENUE (TAX MAPPARCEL NUMBER 65.74-4-13), 35 TEN BROECK PLACE (TAX MAP PARCEL NUMBER65.74-4- 20), AND 37 TEN BROECK PLACE (TAX MAP PARCEL NUMBER 65.74-4-21)  Ordinance 25.111.22 AN ORDINANCE AUTHORIZING ISSUANCE OFQUITCLAIM DEEDS TO THE CITY SCHOOL DISTRICT OF ALBANY FOR VARIOUS PROPERTIES  LOCAL LAW N OF 2022 A LOCAL LAWAMENDING ARTICLE III (SENIOR CITIZENS TAX EXEMPTION) OF CHAPTER 333 (TAXATION) OF THE CODE OF THE CITY OFALBANY TO INCREASE THE MAXIMUMINCOME ELIGIBILITY LEVELS APPLICABLE TO THE EXEMPTION Matter in strikethrough to be deleted. Matter underlined is new material.  LOCALLAW O OF 2022 A LOCAL LAW AMENDING ARTICLE XIII (EXEMPTION FOR DISABLED PERSONS WITHLIMITED INCOME) OF CHAPTER 333 (TAXATION) OF THE CODE OF THE CITY OF ALBANY TO INCREASE THEMAXIMUM INCOME ELIGIBILITY LEVELS APPLICABLETO THE EXEMPTION PUBLIC COMMENT PERIOD: YES Matter in strikethrough to be deleted. Matter underlined is new material. Council Member Johnson introduced the following: ORDINANCE 21.91.22 AN ORDINANCE AUTHORIZING AND DIRECTING THE GRANT TO HISTORIC MANSION HILL LIMITED PARTNERSHIP OF AN EASEMENT IN THE CITY OF ALBANY OVER A PORTION OF THE CITY RIGHT-OF-WAY OF THE ASH GROVE PLACE COMMON ALLEY (TAX MAP NUMBER 76.49-3-57) FOR THE CONSTRUCTION AND MAINTENANCE OF AN ADA COMPLIANT RAMP The City of Albany, in Common Council convened, does hereby ordain and enact: Section 1. The City of Albany is hereby authorized to grant an easement to Historic Mansion Hill Limited Partnership over a portion of the Ash Grove Place Common Alley right-of- way in the area of 112 Grand Street, in the City of Albany for the purpose of construction and maintenance of an ADA compliant ramp as requested by the property owner, and as described more fully in the legal description attached hereto. Section 2. The form, content, terms and conditions of such easement shall be approved by the Corporation Counsel. Section 3. The Grantee shall not hinder, interfere with, prevent, delay, obstruct, or adversely affect the Grantor in the reasonable exercise of its governmental operations or functions. Section 4. This ordinance shall take effect immediately. APPROVED AS TO FORM THIS 25TH DAY OF AUGUST, 2022 ______________________________ Corporation Counsel Matter in strikethrough to be deleted. Matter underlined is new material. To: Danielle Gillespie, City Clerk From: Brett Williams, Senior Assistant Corporation Counsel Re: Request for Common Council Legislation Supporting Memorandum Date: August 25, 2022 Sponsor: Council Member Johnson ORDINANCE 21.91.22 TITLE AN ORDINANCE AUTHORIZING AND DIRECTING THE GRANT TO HISTORIC MANSION HILL LIMITED PARTNERSHIP OF AN EASEMENT IN THE CITY OF ALBANY OVER A PORTION OF THE CITY RIGHT-OF-WAY OF THE ASH GROVE PLACE COMMON ALLEY (TAX MAP PARCEL 76.49-3-57) FOR THE CONSTRUCTION AND MAINTENANCE OF AN ADA COMPLIANT RAMP GENERAL PURPOSE OF THE LEGISLATION Historic Mansion Hill Limited Partnership, which owns and operates a number of affordable housing rental properties in the Mansion District, requests an easement to make improvements to the 65 ft.2 of city-owned common alleyway behind 112 Grand Street in order to build and maintain an ADA-compliant access ramp from 112 Grand Street to the lot formerly having an address of 12 Ash Grove Place (now merged with 104 Grand Street), which the Partnership also owns. NECESSITY FOR LEGISLATION AND ANY CHANGE TO EXISTING LAW Common Council approval is required for land transactions, such as the granting of a permanent easement in the City’s right-of-way. FISCAL IMPACT None. Matter in strikethrough to be deleted. Matter underlined is new material. Council Member Love introduced the following: Ordinance Number 24.111.22 AN ORDINANCE AUTHORIZING THE SALE TO THE ALBANY COUNTY HISTORICAL ASSOCIATION OF 142 LIVINGSTON AVENUE (TAX MAP PARCEL NUMBER 65.74-4-13), 35 TEN BROECK PLACE (TAX MAP PARCEL NUMBER 65.74- 4-20), AND 37 TEN BROECK PLACE (TAX MAP PARCEL NUMBER 65.74-4-21) The City of Albany, in Common Council convened, does hereby ordain and enact: Section 1. It is hereby ordered and directed that all the right, title and interest of the City of Albany in and to the 0.05± acre parcel known as 142 Livingston Street (tax map parcel number 65.74-4-13), the 0.08± acre parcel known as 35 Ten Broeck Place (tax map parcel number 65.74- 4-20), and the 0.08± acre parcel known as 37 Ten Broeck Place (tax map parcel number 65.74-4- 21) be sold at private sale pursuant to the provisions of Local Law No. 4 of 1984 to the Albany County Historical Association, SUBJECT to all easements, restrictions and rights-of-way of record. Section 2. It is hereby determined that the aforesaid properties have been abandoned for municipal or public purposes. Section 3. The form, content, terms and conditions of such conveyance shall be approved by the Corporation Counsel and shall be subject to the approval of the Board of Estimate and Apportionment, and if approved by said Board, the Mayor is hereby authorized and directed to execute a proper deed of conveyance for a valuable consideration. Section 4. This ordinance shall take effect immediately. APPROVED AS TO FORM THIS 19TH DAY OF OCTOBER, 2022. _________________________________ Corporation Counsel Matter in strikethrough to be deleted. Matter underlined is new material. To: Danielle Gillespie, City Clerk From: Brett Williams, Esq., Senior Assistant Corporation Counsel Re: Common Council Legislation Supporting Memorandum Date: October 19, 2022 Sponsor: Council Member Love ORDINANCE NUMBER 24.111.22 TITLE AN ORDINANCE AUTHORIZING THE SALE TO THE ALBANY COUNTY HISTORICAL ASSOCIATION OF 142 LIVINGSTON AVENUE (TAX MAP PARCEL NUMBER 65.74-4-13), 35 TEN BROECK PLACE (TAX MAP PARCEL NUMBER 65.74-4-20), AND 37 TEN BROECK PLACE (TAX MAP PARCEL NUMBER 65.74-4-21) GENERAL PURPOSE OF LEGISLATION The Albany County Historical Association, which owns and is headquartered at the Ten Broeck Mansion in the Ten Broeck triangle, seeks to purchase three city-owned lots which abut Mansion properties already owned by the Association, and which comprise, in part, the Mansion’s parking lot. The two lots on Ten Broeck Place will continue in their use as parking for the Mansion, but ownership by the ACHA will allow it to stripe it and paint crosswalks for enhanced safety, and also allow the ACHA to periodically close these spaces at night due to security issues, which have in the past included sexual activity, drinking, trash/defecation/disruptive behavior, and drug sales and use. Since the ACHA does not currently own these lots (but people drive through ACHA property to access them), they cannot post signs on them. The Livingston Ave lot will be used for ADA accessible walkways into the 4 acres of greenspace and gardens which the ACHA has open to the community, with educational programs, art programs, and tours. The form, content, terms and conditions of the conveyance, once authorized, will be approved by the Corporation Counsel. NECESSITY FOR LEGISLATION AND ANY CHANGE TO EXISTING LAW Under Local Law 4 of 1984, the sale of City-owned property requires Council approval by a three- fourths majority vote. This is accomplished by ordinance. SPECIFICS OF REAL PROPERTY SALE OR ACQUISITION The subject parcels, 142 Livingston Street, and 35 and 37 Ten Broeck Place, are all contiguous to properties currently owned by the ACHA. ACHA already uses and maintains, under an agreement Matter in strikethrough to be deleted. Matter underlined is new material. with the City, the Ten Broeck Place parcels as part of its parking lot. 142 Livingston is a vacant lot adjacent to two other vacant lots owned by the ACHA and ultimately contiguous to the Ten Broeck Mansion parcel. FISCAL IMPACT(S) ACHA will pay the assessed value for each parcel: $1,500 for 142 Livingston Avenue, $2,600 for 35 Ten Broeck Place, and $3,500 for 37 Ten Broeck Place. Matter in strikethrough to be deleted. Matter underlined is new material. Council Member Frederick, on behalf of the Finance, Taxation and Assessment Committee, introduced the following: Ordinance Number 25.111.22 AN ORDINANCE AUTHORIZING ISSUANCE OF QUITCLAIM DEEDS TO THE CITY SCHOOL DISTRICT OF ALBANY FOR VARIOUS PROPERTIES The City of Albany, in Common Council convened, does hereby ordain and enact: Section 1. It is hereby ordered and directed that all the right, title and interest of the City of Albany in and to the properties described below be granted to the City School District of the City of Albany: Physical Address Address on Assessment Acreage Tax Map No. Roll or in Boundary Agmt. 41 North Allen Street 37 North Allen Street 1.64± 64.51-2-7 1 Arbor Drive Lark Drive 17.5± 65.15-2-10 43 Bertha Street 1.03± 76.61-3-11 676 Clinton Avenue 666 Clinton Avenue 0.74± 65.46-1-13 45 Delaware Avenue 75 Delaware Avenue 3.80± 76.9-2-21 94 Delaware Avenue 4.50± 76.10-1-1 274 South Pearl Street 296 South Pearl Street 5.90± 76.15-1-11.1 369 New Scotland Avenue 385 New Scotland Avenue 1.96± 75.27-1-37 65 Tremont Street 45 Tremont Street 3.00± 53.66-2-19 108 Whitehall Road 124 Whitehall Road 4.60± 75.67-2-1 SUBJECT to all easements, restrictions and rights-of-way of record. Section 2. It is hereby determined that the aforesaid properties have been abandoned for municipal or public purposes. Section 3. The form, content, terms and conditions of such conveyances shall be approved by the Corporation Counsel and shall be subject to the approval of the Board of Estimate and Apportionment, and if approved by said Board, the Mayor is hereby authorized and directed to execute a proper deed of conveyance for a valuable consideration. Section 4. This ordinance shall take effect immediately. APPROVED AS TO FORM THIS 20TH DAY OF OCTOBER, 2022 _________________________________ Corporation Counsel Matter in strikethrough to be deleted. Matter underlined is new material. To: Danielle Gillespie, City Clerk From: Brett Williams, Esq., Senior Assistant Corporation Counsel Re: Common Council Legislation Supporting Memorandum Date: October 20, 2022 Sponsor: Council Member Frederick, on behalf of the Finance, Taxation and Assessment Committee ORDINANCE NUMBER 25.111.22 TITLE AN ORDINANCE AUTHORIZING THE SALE OF VARIOUS PROPERTIES TO THE CITY SCHOOL DISTRICT OF ALBANY GENERAL PURPOSE OF LEGISLATION For many years, the Albany City School District was controlled, and its property was owned by, the City of Albany. When the School District became independent it took title to many of its properties, as it ought to have. However, whether on purpose or inadvertently, it seems that the City retained title to certain properties used and operated by the independent School District, while the status of some other properties remains unclear. This ordinance and the transfer it approves are part of a broader effort that will occur over the coming months to clarify the School District’s title to a number of properties it has used and operated for many years. Once approved, the City will deed its interest in the subject property over to the School District by quitclaim deed. NECESSITY FOR LEGISLATION AND ANY CHANGE TO EXISTING LAW Under Local Law 4 of 1984, the sale of City-owned property requires Council approval by a three- fourths majority vote. This is accomplished by ordinance. SPECIFICS OF REAL PROPERTY SALE OR ACQUISITION The parcels for which title is presently unclear, and for which this ordinance authorizes the City to execute quitclaim deeds, are the parcels on which sit Pine Hills Elementary School, Arbor Hill Elementary School, Delaware Community School, Philip J. Schuyler Achievement Academy, William S. Hackett Middle School, the Thomas O’Brien Academy of Science & Technology, Giffen Memorial Elementary School, New Scotland Elementary School, the Montessori Magnet School, and the Albany School of the Humanities. FISCAL IMPACT(S) The City will not seek any remuneration from the School District, which has owned, operated, and maintained the improvements on the property for many years. Matter in strikethrough to be deleted. Matter underlined is new material. Council Member Frederick introduced the following: Ordinance Number 2.11.23 AN ORDINANCE AUTHORIZING THE CONVEYANCE OF CLINTON STREET COMMON ALLEY (TAX MAP PARCEL NUMBER 76.72-2-67) TO JUDITH CURRY The City of Albany, in Common Council convened, does hereby ordain and enact: Section 1. It is hereby ordered and directed that all the right, title and interest of the City of Albany in and to the 0.01± acre parcel (tax map parcel number 76.72-2-67) adjacent to 149 Clinton Street be sold at private sale pursuant to the provisions of Local Law No. 4 of 1984 to Judith Curry. SUBJECT to all easements, restrictions and rights-of-way of record. Section 2. It is hereby determined that the aforesaid property has been abandoned for municipal or public purposes. Section 3. The form, content, terms and conditions of such conveyance shall be approved by the Corporation Counsel and shall be subject to the approval of the Board of Estimate and Apportionment, and if approved by said Board, the Mayor is hereby authorized and directed to execute a proper deed of conveyance for a valuable consideration. Section 4. This ordinance shall take effect immediately. APPROVED AS TO FORM THIS 23RD DAY OF DECEMBER, 2022 _________________________________ Corporation Counsel Matter in strikethrough to be deleted. Matter underlined is new material. To: Danielle Gillespie, City Clerk From: Brett Williams, Esq., Senior Assistant Corporation Counsel Re: Common Council Legislation Supporting Memorandum Date: December 23, 2022 Sponsor: Council Member Frederick ORDINANCE NUMBER 2.11.23 TITLE AN ORDINANCE AUTHORIZING THE CONVEYANCE OF CLINTON STREET COMMON ALLEY (TAX MAP PARCEL NUMBER 76.72-2-67) TO JUDITH CURRY GENERAL PURPOSE OF LEGISLATION & SPECIFICS OF REAL PROPERTY SALE Judith Curry owns 149 Clinton Street, a parcel on which sits a one family residence. She is also the holder of a deed granting her the 60’ x 4’ alleyway adjacent to the southern side of the 149 Clinton St. property. At least as far back as 1906, these parcels have always been conveyed together. However, certain records, including the Albany County GIS system and the City’s tax rolls indicate that the alleyway is actually owned by the City of Albany. It is unclear how or why, at some point either in 1906 or before the parcel began to be exchanged among private parties, but since that time the owners of 149 Clinton St. have maintained and used the alleyway as if it was their own. Indeed, as can be seen in the below image, there is a gate across the alleyway to which it seems the City has never expressed opposition. By authorizing the City to execute a quitclaim deed transferring whatever interest it may have in the alleyway to Ms. Curry, this ordinance will merely allow the City to confirm, legally, what has already been in practice for at least the past 117 years – that the owner of 149 Clinton Street is also the owner of the adjacent alleyway Matter in strikethrough to be deleted. Matter underlined is new material. The form, content, terms and conditions of the conveyance, once authorized, will be approved by the Corporation Counsel. NECESSITY FOR LEGISLATION AND ANY CHANGE TO EXISTING LAW Under Local Law 4 of 1984, the sale of City-owned property requires Council approval by a three- fourths majority vote. This is accomplished by ordinance. FISCAL IMPACT(S) De minimis. Matter in strikethrough to be deleted. Matter underlined is new material. Council Member Frederick, on behalf of the Finance, Taxation and Assessment Committee, introduced the following: LOCAL LAW N OF 2022 A LOCAL LAW AMENDING ARTICLE III (SENIOR CITIZENS TAX EXEMPTION) OF CHAPTER 333 (TAXATION) OF THE CODE OF THE CITY OF ALBANY TO INCREASE THE MAXIMUM INCOME ELIGIBILITY LEVELS APPLICABLE TO THE EXEMPTION Be it enacted by the Common Council of the City of Albany as follows: Section 1. Subsections (A) and (B) of section 333-34 (Eligibility) of Article III (Senior Citizens Tax Exemption) of Chapter 333 (Taxation) of Part II (General Legislation) of the Code of the City of Albany is hereby amended to read as follows: A. Pursuant to § 467 of the Real Property Tax Law of the State of New York, real property located in the City of Albany and owned by one or more persons, each of whom is 65 years of age or over, or real property owned by the husband and wife spouses, one of whom is 65 years of age or over, shall be exempt from taxation according to the following eligibility schedule: Percentage of Assessed Value Annual Income Exempt from Taxation $29,000 $50,000 or less 50% More than $29,000 $50,000 and up to $30,000 $51,000 45% More than $30,000 $51,000 and up to $31,000 $52,000 40% More than $31,000 $52,000 and up to $32,000 $53,000 35% More than $32,000 $53,000 and up to $32,900 $53,900 30% More than $32,900 $53,900 and up to $33,800 $54,800 25% More than $33,800 $54,800 and up to $34,700 $55,700 20% More than $34,700 $55,700 and up to $35,600 $56,600 15% More than $35,600 $56,600 and up to $36,500 $57,500 10% More than $36,500 $57,500 and up to $37,400 $58,400 5% More than $37,400 $58,400 0% B. The real property tax exemption provided here on real property owned by husband and wife spouses, one of whom is 65 years of age or over, once granted, shall not be rescinded solely because of the death of the older spouse so long as the surviving spouse is at least 62 years of age. Section 2. Subsections (A) and (B) of Section 333-35 (Exceptions) of Article III (Senior Citizens Tax Exemption) of Chapter 333 (Taxation) of Part II (General Legislation of the Code of the City of Albany is hereby amended to read as follows: Matter in strikethrough to be deleted. Matter underlined is new material. A. If the income of the owner or the combined income of the owners of the property for the income tax year immediately preceding the date of making application for exemption exceeds $37,400 $58,400. “Income tax year” shall mean the twelve-month period for which the owner or owners filed a federal personal income tax return or, if no such return is filed, the calendar year; where title is vested in either the husband or his wife spouse, their combined income may not exceed such sum. Such income shall include social security and retirement benefits, interest, dividends, total gain from the sale or exchange of a capital asset in the same income tax year, net rental income, salary or earnings and net income for self-employment, but shall not include a return of capital, gifts or inheritance. In computing net rental income and net income for self-employment, no depreciation deduction shall be allowed for the exhaustion, wear and tear of real or personal property held for the production of income. B. Unless the title of the property shall have been vested in the owner or one of the owners of the property for at least 24 consecutive months prior to the date of making application for exemption; provided, however, that in the event of the death of either a husband or wife spouse in whose name title of the property shall have been vested at the time of death and then becomes vested solely in the survivor by virtue of devise by or descent from the deceased husband or wife spouse, the time of ownership of the property by the deceased husband or wife spouse shall be deemed also a time of ownership by the survivor, and such ownership shall be deemed continuous for the purposes of computing such period of 24 consecutive months, provided further that in the event of a transfer by either a husband or wife spouse to the other spouse of all or part of the title to the property, the time of ownership of the property by the transferor spouse shall be deemed also a time of ownership by the transferee spouse, and such ownership shall be deemed continuous for the purpose of computing such period of 24 consecutive months, and provided further that where property of the owner or owners has been acquired to replace property formerly owned by such owner or owners and taken by eminent domain or other involuntary proceeding, except a tax sale, the period of ownership of the former property shall be combined with the period of ownership of the property for which application is made for exemption, and such periods of ownership shall be deemed to be consecutive for purposes of this section. Where a residence is sold and replaced with another within one year and both are located in the City of Albany, the period of ownership of the former shall be combined with the period of ownership of the replacement residence and deemed consecutive for exemption purposes. Section 3. This Local Law shall take effect upon final passage, public hearing, and filing with the Secretary of State and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on and after January 1, 2023. APPROVED AS TO FORM THIS 21ST DAY OF OCTOBER, 2022 ______________________________ Corporation Counsel Matter in strikethrough to be deleted. Matter underlined is new material. To: Danielle Gillespie, City Clerk From: Brett Williams, Esq., Senior Assistant Corporation Counsel Re: Common Council Legislation Supporting Memorandum Date: October 21, 2022 Sponsor: Council Member Frederick, on behalf of the Finance, Taxation and Assessment Committee Local Law N of 2022 TITLE A LOCAL LAW AMENDING ARTICLE III (SENIOR CITIZENS TAX EXEMPTION) OF CHAPTER 333 (TAXATION) OF THE CODE OF THE CITY OF ALBANY TO INCREASE THE MAXIMUM INCOME ELIGIBILITY LEVELS APPLICABLE TO THE EXEMPTION GENERAL PURPOSE OF LEGSLATION The City of Albany’s senior citizen property tax exemption, codified at Code § 333-34 et seq., is authorized by and based upon section 467 of the state Real Property Tax Law. The assessed value of property owned by qualifying seniors is, under these statutes, exempt from taxation at a sliding rate, dependent upon the owner(s)’ annual income. From 2009 until the enactment of the new state law earlier this year, if a qualifying property owner had an income of $29,000 or less per year, the property was exempt to 50% of its value, while qualifying owners with an income of up to $37,400 received a 5% exemption. By SB 3085, signed into law by Governor Hochul on August 8, 2022, and codified as chapter 488 of the laws of 2022, the Legislature amended RPTL § 467 to increase these eligibility amounts for the first time in thirteen years. Under the amended state law, qualifying owners bringing in up to $50,000 per year may enjoy a 50% exemption while those making up to $58,400 are entitled to an exemption of 5% of their property’s value. NECESSITY FOR LEGISLATION AND ANY CHANGE TO EXISTING LAW This local law brings the City of Albany’s exemption income eligibility levels in line with those recently authorized by the State. The local law will apply only to assessment rolls prepared on the basis of taxable status dates occurring on an after January 1, 2023. Thus, because of the way the assessment calendar is arranged under the real property tax law, the exemption will not be available to those who fall under the new eligibility brackets until the 2023-24 school tax bills and 2024 City/County tax bills. This local law also replaces the repeated uses of the phrase “husband and wife” present in the current version of the code with the more gender-neutral term “spouse.” Matter in strikethrough to be deleted. Matter underlined is new material. FISCAL IMPACT The expansion of the income eligibility ranges for this exemption will mean that more seniors will be able to take advantage of it, which could have an exceedingly minimal impact on the homestead tax rate. Matter in strikethrough to be deleted. Matter underlined is new material. Council Member Frederick, on behalf of the Finance, Taxation and Assessment Committee, introduced the following: LOCAL LAW O OF 2022 A LOCAL LAW AMENDING ARTICLE XIII (EXEMPTION FOR DISABLED PERSONS WITH LIMITED INCOME) OF CHAPTER 333 (TAXATION) OF THE CODE OF THE CITY OF ALBANY TO INCREASE THE MAXIMUM INCOME ELIGIBILITY LEVELS APPLICABLE TO THE EXEMPTION Be it enacted by the Common Council of the City of Albany as follows: Section 1. Section 333-108 (Persons with Disabilities and Limited Incomes) of Article XIII (Exemption for Disabled Persons With Limited Incomes) of Chapter 333 (Taxation) of Part II (General Legislation) of the Code of the City of Albany is hereby amended to read as follows: § 333-108 Persons with disabilities and limited incomes. Effective as hereinafter provided, there shall be an exemption from taxation for general City purposes to the extent of the percentage of assessed valuation provided in the following schedule determined by the maximum income exemption eligibility level, also provided in the following schedule, up to a maximum of 50% of the assessed valuation of real property owned by a husband or wife person with a disability, or by one spouse, or both spouses, or by siblings, at least one of whom has a disability, or whose income, as hereinafter defined, is limited by reason of such disability: Percentage of Assessed Value Annual Income Exempt from Taxation $29,000 $50,000 or less 50% More than $29,000 $50,000 and up to $30,000 $51,000 45% More than $30,000 $51,000 and up to $31,000 $52,000 40% More than $31,000 $52,000 and up to $32,000 $53,000 35% More than $32,000 $53,000 and up to $32,900 $53,900 30% More than $32,900 $53,900 and up to $33,800 $54,800 25% More than $33,800 $54,800 and up to $34,700 $55,700 20% More than $34,700 $55,700 and up to $35,600 $56,600 15% More than $35,600 $56,600 and up to $36,500 $57,500 10% More than $36,500 $57,500 and up to $37,400 $58,400 5% More than $37,400 $58,400 0% Section 2. Subsection (A) of section 333-114 (Restrictions) of Article XIII (Exemption for Disabled Persons With Limited Income) of Chapter 333 (Taxation) of Part II (General Legislation of the Code of the City of Albany is hereby amended to read as follows: No exemption shall be granted: Matter in strikethrough to be deleted. Matter underlined is new material. A. If the income of the owner or the combined income of the owners of the property for the income tax year immediately preceding the date of making application for exemption exceeds the sums authorized by the provisions of § 459-c of the Real Property Tax Law. “Income tax year” shall mean the twelve-month period for which the owner or owners filed a federal personal income tax return or, if no such return is filed, the calendar year. Where title is vested in either the husband or wife spouse, their combined income may not exceed such sum, except where the husband or wife one spouse, or ex-husband or ex-wife ex- spouse, is absent from the property due to divorce, legal separation or abandonment, then only the income of the spouse or ex-spouse residing in the property shall be considered and may not exceed such sum. Where title is vested in siblings, their combined income may not exceed such sum. Such income shall include social security and retirement benefits, interest, dividends, total gain from the sale or exchange of a capital asset which may be offset by a loss from the sale or exchange of a capital asset in the same income tax year, net rental income, salary or earnings and net income from self-employment; but shall not include a return of capital, gifts, inheritance or moneys earned through employment in the foster grandparent program and any such income shall be offset by all medical and prescription drug expenses actually paid which were not reimbursed or paid by insurance. In computing net rental income and net income from self-employment, net depreciation deduction shall be allowed for the exhaustion or wear and tear of real or personal property held for the production of income. Section 3. This Local Law shall take effect upon final passage, public hearing, and filing with the Secretary of State and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on and after January 1, 2023. APPROVED AS TO FORM THIS 27TH DAY OF OCTOBER, 2022 ______________________________ Corporation Counsel Matter in strikethrough to be deleted. Matter underlined is new material. To: Danielle Gillespie, City Clerk From: Brett Williams, Esq., Senior Assistant Corporation Counsel Re: Common Council Legislation Supporting Memorandum Date: October 27, 2022 Sponsor: Council Member Frederick, on behalf of the Finance, Taxation and Assessment Committee Local Law O of 2022 TITLE A LOCAL LAW AMENDING ARTICLE XIII (EXEMPTION FOR DISABLED PERSONS WITH LIMITED INCOME) OF CHAPTER 333 (TAXATION) OF THE CODE OF THE CITY OF ALBANY TO INCREASE THE MAXIMUM INCOME ELIGIBILITY LEVELS APPLICABLE TO THE EXEMPTION GENERAL PURPOSE OF LEGSLATION The City of Albany’s property tax exemption for persons with disabilities and with limited incomes, codified at Code § 333-108 et seq., is authorized by and based upon section 459-c of the state Real Property Tax Law. The assessed value of property owned by qualifying individuals is, under this statute, exempt from taxation at a sliding rate, dependent upon the owner(s)’ annual income. From 2009 until the enactment of the a state law earlier this year, if a qualifying property owner had an income of $29,000 or less per year, the property was exempt to 50% of its value, while qualifying owners with an income of up to $37,400 received a 5% exemption. By SB 3085, signed into law by Governor Hochul on August 8, 2022, and codified as chapter 488 of the laws of 2022, the Legislature amended RPTL § 459-c to increase these eligibility amounts for the first time in thirteen years. Under the amended state law, qualifying owners bringing in up to $50,000 per year may enjoy a 50% exemption while those making up to $58,400 are entitled to an exemption of 5% of their property’s value. NECESSITY FOR LEGISLATION AND ANY CHANGE TO EXISTING LAW This local law brings the City of Albany’s exemption income eligibility levels in line with those recently authorized by the State. The local law will apply only to assessment rolls prepared on the basis of taxable status dates occurring on an after January 1, 2023. Thus, because of the way the assessment calendar is arranged under the real property tax law, the exemption will not be reflected for those who fall under the new eligibility brackets until the 2023-24 school tax bills and 2024 City/County tax bills. Code § 333-108 as currently written prior to this local law seems, if strictly construed, to have mistakenly technically prevented individuals with disabilities and low incomes from enjoying the exemption, because the section only applied to “real property owned by a husband or wife, or both, or by siblings, at least one of whom has a disability…” This local law corrects that error (which is not present in the authorizing state statute) by changing the language to “real property owned by a person with a disability, or one spouse, or both spouses, or by siblings, at least one of whom has a disability.” This change, as well as those made to § 333-114, also replaces the repeated uses of the phrase “husband and wife” present in the current version of the Code with the more gender-neutral term “spouse.” FISCAL IMPACT The expansion of the income eligibility ranges for this exemption will mean that more qualifying property owners will be able to take advantage of it, which could have an exceedingly minimal impact on the homestead tax rate. Matter in strikethrough to be deleted. Matter underlined is new material.