New York State Real Property Tax Law, section 467, gives local governments and public-school districts the option of granting a reduction on the amount of property taxes paid by qualifying senior citizens. This is accomplished by reducing the taxable value of residential property owned by seniors by 50%.

To qualify, seniors generally must be 65 years of age or older and meet certain income limitations and other requirements. For the 50% exemption, the law allows each county, city, town, village, or school district to set the maximum income limit at any figure between $3,000 and $50,000.

Localities have the further option of giving exemptions of less than 50% to seniors whose incomes are more than $29,000. Under this option, called the sliding-scale option, such owner can have a yearly income as high as $37,399.99 and get a 5% exemption in places that are using the maximum limit.

For example, in a community that has taken this “sliding-scale” option and has adopted the $29,000 income maximum, an eligible resident whose income is more than $29,000 but less than $29,999.99, is entitled to a 45% exemption.

If the income range is $30,000 to $30,999.99, the exemption is 40%; $31,000 to $31,999.99, 35%; $32,000 to $32,899.99, 30%; $32,900 to $33,799.99, 25%; $33,800 to $34,699.99, 20%; $34,700 to $35,599.99, 15%; $35,600 to $36,499.99, 10%, and $36,500 to $37,399.99, 5%.

Communities that adopt the sliding scale have an option of limiting it to the ranges from 45% through 20% or, if they choose, terminating the exemption at the 10% level, or the 5% level.

Income includes: • all Social Security payments • salary and wages (including bonuses) • interest (including nontaxable interest on state or local bonds), total dividends • net earnings from farming, rentals, business or profession (if any amounts have been claimed as depreciation for income tax purposes, they must be added back in) • income from estates or trusts • gains from sales and exchanges • the total amount received from governmental or private retirement or pension plans • annuity payments (excluding amounts representing a return of capital) • alimony or support money • unemployment insurance payments, disability payments, workers’ compensation, etc.

Income does not include: • Supplemental Security Income • reparation payments made to individuals because of their status as victims of Nazi persecution • moneys received pursuant to the Federal Foster Grandparent Program • welfare payments • proceeds of a reverse mortgage (but any interest or dividends realized from the investment of such proceeds are income) • gifts, inheritances or a return of capital • exchange of annuity for an annuity contract which resulted in a nontaxable gain.

Please check with your local assessor or the clerks of the local governments and school district to determine which local options, if any are in effect.

*Denotes those taxing jurisdictions that have extended age limit to allow individuals who are 64 years of age by taxable status date and who will be 65 by December 31st of the same year.