Pursuant to Real Property Tax Law § 467, Subdivision
3(a), no exemption shall be granted 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 sum of $3,000, or such other sum not less than $3,000
nor more than $26,000 for the period expiring June 30, 2007, $27,000
for the period commencing July 1, 2007 and expiring on June 30, 2008,
$28,000 for the period commencing July 1, 2008 and expiring on June
30, 2009, and $29,000 for the period commencing on July 1, 2009, as
may be provided pursuant to this section. "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
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 as provided in Subparagraph (ii) of Paragraph (d) of Subdivision
3(a) of Real Property Tax Law § 467, 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 net income from self-employment,
but shall not include a return of capital, gifts, inheritances, payments
made to individuals because of their status as victims of Nazi persecution,
as defined in P.L. 103-2861, or monies earned through employment in
the federal foster grandparent program. Furthermore, such income shall
not include the proceeds of a reverse mortgage, as authorized by § 6-h
of the Banking Law, and §§ 280 and 280-a of the Real
Property Law; provided, however, that monies used to repay a reverse
mortgage may not be deducted from income, and provided additionally
that any interest or dividends realized from the investment of reverse
mortgage proceeds shall be considered income. In computing net rental
income and net income from 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.
