Town of Smithtown, NY Article I Partial Exemption for Senior Citizens With Limited Income

[Adopted 6-12-1990 by L.L. No. 7-1990]

§ 256-1 Exemption granted.

A. Real property owned by one or more persons, each of whom is 65 years of age or over, shall be exempt from taxation by the Town of Smithtown to the extent of 50% based upon an annual combined income not exceeding the following limits:

[Last amended 2-16-2023 by L.L. No. 5-2023]

(1) No more than $50,000 beginning July 1, 2022; and

(2) Thereafter at the percentage of assessed valuation thereof as determined by the following schedule, with the amount for each year represented as (M), pursuant to the provisions of § 467 of the Real Property Tax Law.

	Annual Income	Percentage of Assessed Valuation Exempt From Taxation
	More than (M) but less than (M) +$1,000	45%
	(M) +$1,000 or more but less than (M) +$2,000	40%
	(M) +$2,000 or more but less than (M) +$3,000	35%
	(M) +$3,000 or more but less than (M) +$3,900	30%
	(M) +$3,900 or more but less than (M) +$4,800	25%
	(M) +$4,800 or more but less than (M) +$5,700	20%
	(M) +$5,700 or more but less than (M) +$6,600	15%
	(M) +$6,600 or more but less than (M) +$7,500	10%
	(M) +$7,500 or more but less than (M) +$8,400	5%

B. Any exemption provided by this section shall be computed after all partial exemptions allowed by law have been substituted from the total amount assessed.

C. The real property tax exemption or real property owned by husband and wife, one of whom is 65 years of age or over, once granted, shall not be rescinded solely because of the death of the older spouse, so long as the surviving spouse is at least 62 years of age.

D. The Town hereby ratifies and reaffirms all previous resolutions, rules, regulations and/or ordinances adopted in accordance with the Real Property Tax Law § 467 with respect to the income limitations for qualification for the exemption.

E. For the purposes of this article, title to that portion of real property built as a cooperative apartment and owned by a cooperative apartment corporation in which a tenant-stockholder of such corporation resides and which is represented by his share or shares of stock in such corporation as determined by its or their proportional relationship to the total outstanding stock of the corporation, including that owned by the corporation, shall be deemed to be vested in such tenant-stockholder. That proportion of the assessment of such real property built as a cooperative apartment and owned by such cooperative apartment corporation determined by the relationship of such real property vested in such tenant-stockholder to such entire parcel and the buildings thereon owned by such cooperative apartment corporation in which such tenant-stockholder resides shall be subject to exemption from taxation pursuant to this section, and any exemption so granted shall be credited against the assessed valuation of such real property; the reduction in real property taxes realized thereby shall be credited by the cooperative apartment corporation against the amount of such taxes otherwise payable by or chargeable to such tenant-stockholder.

[Added 12-12-1995 by L.L. No. 5-1995]

§ 256-2 School purposes.

Exemption from taxation for school purposes shall not be granted in the case of real property where a child resides if such child attends a public school within the school district.

§ 256-3 Exceptions.

A. No exemptions 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 maximum income as may be provided by § 256-1A of this article. "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. Such income shall include social security, less social security benefits not included in the applicant's federal adjusted gross income, 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 of 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 or inheritances, or moneys earned through employment in the federal 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 for by insurance. The provisions of this subsection notwithstanding, such income shall not include veterans disability compensation as defined in Title 38 of the United States Code. In computing net rental income and net income from self-employment, no depreciation deduction shall be allowed for the exhaustion or wear and tear of real or personal property held for the production of income.

[Last amended 12-28-2023 by L.L. No. 3-2024]

B. No exemption shall be granted 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 in whose name title of the property shall have been vested at the time of death and which then becomes vested solely in the survivor by virtue of devise by or descent from the deceased husband or wife, the time of ownership of the property by the deceased husband or wife 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. In the event of a transfer by either a husband or wife 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 purposes of computing such period of 24 consecutive months. 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 residences are within the state, the period of ownership of both properties shall be deemed consecutive for purposes of the exemption from taxation by a municipality within the state granting such exemption. Where the owner or owners transfer title to property which, as of the date of transfer, was exempt from taxation under the provisions of this section, the reacquisition of title by such owner or owners within nine months of the date of transfer shall be deemed to satisfy the requirement of this subsection that the title of the property shall have been vested in the owner or one of the owners for such period of 24 consecutive months. Where, upon or subsequent to the death of an owner or owners, title to property which, as of the date of such death, was exempt from taxation under such provisions becomes vested, by virtue of devise or descent from the deceased owner or owners or by transfer by any other means within nine months after such death, solely in a person or persons who, at the time of such death, maintained such property as a primary residence, the requirement of this subsection that the title of the property shall have been vested in the owner or one of the owners for such period of 24 consecutive months shall be deemed satisfied.

C. No exemption shall be granted unless the property is used exclusively for residential purposes; provided, however, that in the event that any portion of such property is not so used exclusively for residential purposes but is used for other purposes, such portion shall be subject to taxation and the remaining portion only shall be entitled to the exemption provided by this section.

D. No exemption shall be granted unless the real property is the legal residence of and is occupied in whole or in part by the owner or by all of the owners of the property, provided that an owner who is absent while receiving health-related care as an inpatient of a residential health care facility, as defined in § 2801 of the Public Health Law, shall be deemed to remain a legal resident and an occupant of the property while so confined, and income accruing to that person shall be income only to the extent that it exceeds the amount paid by such owner, spouse or co-owner for care in the facility and provided, further, that during such confinement such property is not occupied by other than the spouse or co-owner of such owner.

§ 256-4 Application for exemption.

[Amended 2-25-1997 by L.L. No. 1-1997]

A. Application for such exemption must be made by the owner or all of the owners of the property on forms prescribed by the State Board, to be furnished by the appropriate assessing authority, and shall furnish the information and be executed in the manner required or prescribed in such forms and shall be filed in such Assessor's office on or before the taxable status date (March 1). Any person otherwise qualifying under this section shall not be denied the exemption under this section if he becomes 65 years of age after the appropriate taxable status date and before December 31 of the same year.

B. In the event that the owner or all of the owners of the property fail to file the application required on or before taxable status day (March 1), such owners may file the application, executed as if such application had been filed on or before the taxable status day (March 1) with the Assessor on or before the date for hearing of complaints (the third Tuesday in May), where failure to file a timely application resulted from: (a) a death of the applicant's spouse, child, parent, brother or sister; or (b) an illness of the applicant or of the applicant's spouse, child, parent, brother or sister, which actually prevents the applicant from filing on a timely basis, as certified by a licensed physician. The assessor shall approve or deny such application as if it had been filed on or before the taxable status date.

[Added 11-3-2015 by L.L. No. 5-2015]

C. In the event the owner, or all of the owners, of property which has received an exemption pursuant to this section on the preceding assessment roll fail to file the application required pursuant to this section on or before the taxable status date such owner or owners may file the application, executed as if such application had been filed on or before the taxable status date, with the assessor on or before the date for the hearing of complaints.

[Added 11-3-2015 by L.L. No. 5-2015]

§ 256-5 Renewal.

A. At least 60 days prior to the appropriate taxable status date, the assessing authority shall mail to each person who was granted exemption pursuant to this section on the latest completed assessment roll an application form and a notice that such application must be filed on or before the taxable status date and be approved in order for the exemption to be granted. The assessing authority shall, within three days of the completion and filing of the tentative assessment roll, notify by mail any applicant who has included with his application at least one self-addressed, prepaid envelope of the approval or denial of the application; provided, however, that the assessing authority shall, upon the receipt and filing of the application, send by mail notification of receipt to any applicant who has included two of such envelopes with the application. Where an applicant is entitled to a notice of denial pursuant to this section, such notice shall be on a form prescribed by the State Board and shall state the reasons for such denial and shall further state that the applicant may have such determination reviewed in the manner provided by law. Failure to mail any such application form or notices or the failure of such person to receive any of the same shall not prevent the levy, collection and enforcement of the payments of the taxes on property owned by such person.

B. In the event that the owner or all of the owners of the property which has received an exemption pursuant to this chapter on the preceding assessment roll fail to file the application required on or before taxable status day (March 1), such owners may file the application, executed as if such application had been filed on or before the taxable status day (March 1) with the Assessor on or before the date for hearing of complaints (the third Tuesday in May).

[Amended 12-25-1992 by L.L. No. 2-1992]

C. Pursuant to the provision of Real Property Tax Law §467, Subdivision 8(a), where a renewal application for the exemption authorized by this article has not been filed on or before the taxable status date, and the owner believes that good cause exists for the failure to file the renewal application by that date, the owner may, no later than the last day for paying taxes without incurring interest or penalty, submit a written request to the Assessor asking for an extension of the filing deadline and that the exemption be granted. Such request shall contain an explanation of why the deadline was missed and shall be accompanied by a renewal application, reflecting the facts and circumstances as they existed on the taxable status date. The Assessor may extend the filing deadline and grant the exemption if he or she is satisfied that: 1) good cause existed for the failure to file the renewal application by the taxable status date, and that 2) the applicant is otherwise entitled to the exemption. The Assessor shall make a determination and mail notice thereof to the owner. If the determination states that the Assessor has granted the exemption, the Assessor shall thereupon be authorized and directed to correct the assessment roll accordingly, or, if another person has custody or control of the assessment roll, to direct that person to make the appropriate corrections. If the correction is not made before taxes are levied, the failure to take the exemption into account in the computation of the tax shall be deemed a clerical error and shall be corrected accordingly.

[Added 5-23-2024 by L.L. No. 12-2024[1]]

[1] Editor's Note: This local law also redesignated former Subsection C as Subsection D.

D. Any person who has been granted an exemption pursuant to this section on five consecutive completed assessment rolls shall not be subject to the requirements set forth in Subsection A of this section. However, said person shall be mailed an application form and a notice informing him of his rights. Such exemption shall be automatically granted on each subsequent assessment roll; provided, however, that when tax payment is made by such person, a sworn affidavit must be included with such payment, which shall state that such person continues to be eligible for such exemption. Such affidavit shall be on a form prescribed by the State Board. If such affidavit is not included with the tax payment, the collecting officer shall proceed pursuant to § 551-a of the Real Property Tax Law.

§ 256-6 Penalties for offenses.

Any conviction of having made any willful false statement in the application for such exemption shall be punishable by a fine of not more than $100 and shall disqualify the applicant or applicants from further exemption for a period of five years.