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LL #05-1998LOCAL LAW #5 OF 1998 TOWN OF WAPPINGER A Local Law entitled "Partial Tax Exemption for Real Property Owned by Disabled Persons". BE IT ENACTED by the Town Board of the "Town of Wappinger as follows: Section I: Title: Partial Tax Exemption for Real Property Owned by Disabled Persons. This Local Law shall be known and cited as Town of Wappinger Local Law No. of 1998, entitled "Partial Tax Exemption for Real Property Owned by Disabled Persons", and shall provide that real property owned by one or more persons with disabilities shall be partially exempt from taxation. Section II: Legislative Intent and Purpose. The purpose of providing a partial tax exemption for real property owned by disabled persons is to provide disabled property owners of the Town of Wappinger who meet the required guidelines with the maximum exemption allowable by Real Property Tax Law Section 459-c (effective January 2, 1998). Section III: Text. 1. Definitions and Word Usage: Disability: A person with a disability is one who has a physical or mental impairment, not due to current use of alcohol or illegal drug use, which substantially limits such person's ability to engage in one or more major life activities, such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning and working, and who (i) is certified to receive social security disability insurance (SSDI) or supplementary security income (SSI) benefits under the federal Social Security Act, or (ii) is certified to receive Railroad Retirement Disability benefits under the federal railroad Retirement Act, or (iii) has received a certificate from the o:\common\wappinger\locallaw\laws\disabld5.doc 1 state commission for the blind and visually handicapped stating that such person is legally blind. Sibling: A brother or sister, whether related through half-blood, whole blood or adoption. 2. Eligibility Requirements: a. Real property owned by one or more persons with a disability or real property owned by a husband, wife, or both, or by siblings, at least one of whom has a disability, whose income is as hereafter defined, and who is limited by reason of such disability, shall be exempt from taxation up to a maximum of fifty (50%) percent of the assessed valuation of said property as hereinafter provided. b. The provisions of this Local Law shall apply to real property held in trust solely for the benefit of the person or persons who would otherwise be eligible for a real property tax exemption, pursuant to subdivision 2(a) of this section, were such person or persons the owner or owners of such real property. C. In order to be eligible for a fifty (50%) tax exemption, 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 the application for exemption shall not and may not exceed the sum of Eighteen Thousand Five Hundred ($18,500.00) Dollars. The income tax year shall mean the twelve (12) month period for which the owner or owners filed a federal personal income tax return, or, if no such return is filed, the preceding calendar year. oAcommon\wappinger\1ocalIaw\1aws\disabld5.doc 2 Where title is vested in either the husband or the wife, their combined income may not exceed such sum, except where the husband or wife or ex- husband or ex-wife is absent from the property due to divorce, legal separation or abandonment, then, only the income of the spouse or ex- spouse residing on the property shall be considered, and 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 the net income from self-employment, but shall not include a return of capital, gifts, inheritances or monies earned through employment in the federal foster grandparent program, and such income shall be offset by all medical and prescription drug expenses actually paid which were not reimbursed or paid for by insurance. In computing net rental income and net income of 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. d. If the income of an eligible property owner or the combined income of the owners of the property exceeds the sum of $18,500.00 for the income tax year immediately preceding the date of making the application for tax exemption and is not greater than $26,899.99, said owner shall be entitled to a partial exemption as follows: o:\common\wappinger\localIaw\laws\disabld5.doe 3 INCOME NOT EXCEEDING EXEMPTION $ 0 -18,500.00 50% $ 18,500.01 - 19,499.99 45% $ 19,500.00 - 20,499.99 40% $ 20,500.00 - 21,499.99 35% $ 21,500.00 - 22,399.99 30% $ 22,400.00 - 23,299.99 25% $ 23,300.00 - 24,199.99 20% $ 24,200.00 - 25,099.99 15% $ 25,100.00 - 25,999.99 10% $ 26,000.00 - 26,899.99 5% 3. Limitations: a. Any exemption provided by this Local Law shall be computed after all other partial exemptions allowed by law have been subtracted from the total amount assessed; provided, however, that no parcel may receive an exemption pursuant to both this, Local Law and that of Local Law No. 3 of the Year 1997, entitled "Amending the Provisions of Local Laws Providing for Partial Tax Exemptions on Real Property Owned by Certain Persons with Limited Income Who are Sixty Five Years of Age or Older", adopted pursuant to §467 of the Real Property Tax Law. b. No tax exemption shall be granted unless: o:\common\wappinger\locallaw\laws\disabld5.doc 4 i) the property is used exclusively for residential purposes, providing, however, that in the event any portion of such property is not so used exclusively for residential uses but is used for other purposes, such portions shall be subject to taxation, and the remaining portion only shall be entitled to the exemption provided by this Local Law; and ii) the real property is the legal residence of and is occupied in whole or in part by the disabled person; except where the disabled person is absent from the residence while receiving health-related care as an in-patient of a residential health care facility as defined in Section twenty-eight hundred one of the Public Health Law, provided that any income accruing to the person shall be considered income for the purposes of this Section only to the extent that it exceeds the amount paid by such person or spouse or sibling of such person for care in the facility. Section IV: Separability. The provisions of this Local Law are separable and if' any provision, clause, sentence, subsection, word or part thereof is held illegal, invalid or unconstitutional, or inapplicable to any person or circumstance, such illegality, invalidity or unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, subsections, words or parts of this Local Law or their application to other persons or circumstances. It is hereby declared to be the legislative intent that this Local Law would have been adopted if such illegal, invalid or unconstitutional provision, clause, sentence, subsection, word or part had not been included therein, oAcommon\wappinger\localIaw\laws\disabld5.doc 5 and if such person or circumstance to which the Local Law or part thereof is held inapplicable had been specifically exempt therefrom. Section V: Effective Date. This Local Law shall take effect immediately upon adoption and filing with the Secretary of State as provided by the Municipal Home Rule Law, and shall be applied retroactively from January 2, 1998. oAcommon\wappinger\localIaw\laws\disabld5.doc 6