9/12/2023
Legislative Changes Allowing for Local Option to Adjust Income Definition for Two Exemptions Concerning RPTL 467: Limited-Income Senior Exemption (NOT STAR) and RPTL 459-c: Disabled Persons with Limited Income Town Board Presentation
September 14, 2023
by Assessor Donna Komor, IAO
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Recent Related Discussions September 8, 2022 & January 12, 2023 – we discussed the option to adjust the Income LIMITS for two exemptions: 1. Limited Income Senior Citizen (not STAR) 2. Disabled Persons with Limited Income • Reviewed the basic qualifications for each • Reviewed the Town Board’s authority to set the income limitations for Town purposes, within the limitations of the statutes
Town of Webster Assessment Office
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Town of Webster Assessment Office
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9/12/2023
• The effects of the increase in income level • The difficulty of predicting impact on taxable value & tax rate Requires: • Separate & distinct Public Hearings to amend the existing Local Laws Town of Webster Assessment Office
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Results of Related Discussions 2023 Roll 5 Deciding Tax Jurisdictions Found on the Webster Assessment Roll
1) Monroe County – Jan 10 adopted new State Maximum ($58,400) 2) Town of Webster - no action 3) Village of Webster - no action 4) Webster Central School District - no action 5) Wayne Central School District - no action Town of Webster Assessment Office
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Town of Webster Assessment Office
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9/12/2023
Results of Related Discussions 2023 Roll Monroe County Increased maximum income from $37,400 to $58,400* + 243 approvals @ + 17,819,836 (AV increase in exemption) *Current Town Maximum $34,400 Town of Webster Assessment Office
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Results of Related Discussions Four Year Analysis of Exemptions Granted and their Exempt Assessment Values Another example of the variety of variables that affect these exemptions (COVID)
Town of Webster Assessment Office
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Town of Webster Assessment Office
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9/12/2023
Your Income LIMITS Options for 2024 Roll By March 1, 2024… 1. Do nothing. 2. Lower the Town income limit for the 50% benefit. 3. Raise the Town income limit for the 50% benefit. 4. Revisit the question in future years.
*Current State Maximum $58,400 *Current Town Maximum $34,400
Town of Webster Assessment Office
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SLIDING SCALES
EXISTING vs. MAXIMUM OPTION Town & Village Adopted 2010 MAXIMUM OF $26,000 OR LESS
State-wide Maximum Option * 50% MAXIMUM OF $50,000 OR LESS
MORE THAN
$26,000 BUT LESS THAN
$27,000 45%
MORE THAN $50,000 BUT LESS THAN
$51,000
MORE THAN
$27,000 BUT LESS THAN
$28,000 40%
MORE THAN $51,000 BUT LESS THAN
$52,000
MORE THAN
$28,000 BUT LESS THAN
$29,000 35%
MORE THAN $52,000 BUT LESS THAN
$53,000
MORE THAN
$29,000 BUT LESS THAN
$29,900 30%
MORE THAN $53,000 BUT LESS THAN
$53,900
MORE THAN
$29,900 BUT LESS THAN
$30,800 25%
MORE THAN $53,900 BUT LESS THAN
$54,800
MORE THAN
$30,800 BUT LESS THAN
$31,700 20%
MORE THAN $54,800 BUT LESS THAN
$55,700
MORE THAN
$31,700 BUT LESS THAN
$32,600 15%
MORE THAN $55,700 BUT LESS THAN
$56,600
MORE THAN
$32,600 BUT LESS THAN
$33,500 10%
MORE THAN $56,600 BUT LESS THAN
$57,500
MORE THAN
$33,500 BUT LESS THAN
$34,400 5%
MORE THAN $57,500 BUT LESS THAN $58,400 * Previous State Maximum $29,000 – $37,399.99
Town of Webster Assessment Office
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Town of Webster Assessment Office
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9/12/2023
Town of Webster Assessment Office
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Opportunity & Objective • • •
To review the income limits established earlier To accept the NEW mandated income definition or To review & accept options in the NEW definition of income as appropriate for all of our residents Town of Webster Assessment Office
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Town of Webster Assessment Office
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9/12/2023
Legislative Changes The old definition was: Cumbersome, for both applicant and staff Confusing to the applicant Difficult to explain and administer Burdened with documented evidence
Fresh and relatable Easier to understand, but not simplistic Easier to administer (once Assessors’ final questions are answered) Reduces documented evidence, for most income tax filers Town of Webster Assessment Office
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Did not follow income tax guidelines Included all available income resources to a household Included non-taxable income, such as: Veteran Disability Payments Railroad Social Security Equivalent & Railroad Pensions Worker’s Compensation Earnings on all IRA investments Contributions from additional residents of the household
Omitted depreciation from income tax return, businesses, etc.
Town of Webster Assessment Office
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Town of Webster Assessment Office
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9/12/2023
Legislative Changes The new (basic mandated) definition:
Allows localities to adjust not only the income limits (sliding scale) but also the definition of income to reflect their communities Intends to simplify the process for all (One option defies this principle)
Submit completed Application, proof of age & residency and: Federal Tax Return & 1099’s Income Worksheet and 1099s Schedule 1 if applicant does not file a tax return
OR
Follows Federal Income Tax process
Does not look for income not found on income tax returns One option defies this principle
Town of Webster Assessment Office
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Legislative Changes The new (basic mandated) definition: Begins with Federal Adjusted Gross Income (FAGI) Adds Non-taxable interest & dividends (as found on the return) Includes Full Social Security benefits (vs. taxable) Excludes IRA Distributions Limits losses claimed for income tax purposes
The new definition provides flexibility with local options
Town of Webster Assessment Office
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Town of Webster Assessment Office
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9/12/2023
Legislative Definition of Income Starting point is the Federal Adjusted Gross income (FAGI) Adjustments are possible: two are non-negotiable Basic Mandated Definition
Optional Adjustments (Local Options)
• Includes Full Social Security (see options) • Excludes IRA distributions (see options) • Include any Tax-exempt interest and/or dividends (no option to exclude) • Losses are limited per statute (no option
• Opt OUT of including Full Soc Sec (use taxable
to adjust or exclude)
instead)
• Opt IN to include IRA Distributions • Exclude Un-reimbursed Medical Expenses
(not new) (This defies the goal of simplicity and using federal tax return documentation)
Town of Webster Assessment Office
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Overview of New Definition and Options (Form 1040 Year: 2022)
Town of Webster Assessment Office
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Town of Webster Assessment Office
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9/12/2023
Legislative Definition of Income By default the NEW definition is
more generous
It eliminates several items that were previously considered as income for the purposes of these two exemptions. To raise the income limits now would
increase generosity
Town of Webster Assessment Office
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Your Income Definition Options for 2024 Roll By March 1, 2024… 1. Do nothing (that is, to accept the basic mandated definition). 2. Choose any combination of options (8 total). 3. Revisit the question in future years. Town of Webster Assessment Office
*Current State Maximum $58,400 *Current Town Maximum $34,400 18
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Town of Webster Assessment Office
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9/12/2023
The 8 Possible Options Requires calculation of Taxable Soc Sec for non-filers
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2 Use taxable Soc Sec
Roth and Traditional IRAs are treated differently for tax purposes
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(Analysis for 4) 4
x
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x
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x
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x
Use taxable Distributions
Assumes current income limits
Town of Webster Assessment Office
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What’s Next?? If the Board decides to make any changes to the income limits, OR If the Board desires to adopt any options for the income definition THEN Public Hearings are required, one for each of the two exemptions. The earlier your decision is made the earlier we can answer the questions for the applicants, who are currently applying. Town of Webster Assessment Office
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Town of Webster Assessment Office
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9/12/2023
Questions? From the Board
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For more information on any property tax exemption in Webster • Visit our exemption page • http://www.ci.webster.ny.us/79/Exemptions
• To find: • Applications • Instructions • Descriptions
• Apply between NOW and March 1 Town of Webster Assessment Office
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Town of Webster Assessment Office
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