Res 0599-2026

Res. No. 599 ..Title Resolution calling upon the New York State Legislature to pass, and the Governor to sign, legislation creating a centralized income verification system for all income-based homeowner property tax exemptions administered by the New York City Department of Finance and authorizing the City of New York to use such system to determine applicants’ income eligibility for such exemptions ..Body By Council Member Morano Whereas, New York State (State) authorizes income-based property tax exemptions that provide critical tax relief to eligible homeowners, such as the Senior Citizen Homeowners’ Exemption (SCHE) and the Disabled Homeowners' Exemption (DHE); and Whereas, Eligibility for such exemptions depends, in part, on applicants meeting income limits established under State law; and Whereas, Many income-based property tax exemptions authorized under State law do not utilize a centralized State income verification system and instead require applicants to repeatedly submit income documentation to local governments to establish or maintain eligibility; and Whereas, In New York City, applicants seeking to establish or renew eligibility for such exemptions are generally required to submit proof of income directly to the Department of Finance (DOF), which reviews such documentation to determine eligibility; and Whereas, The current practice of requiring applicants to repeatedly submit sensitive financial documentation to establish or maintain eligibility for such exemptions creates unnecessary barriers, particularly for older adults and persons with disabilities, and may result in otherwise eligible homeowners losing property tax relief due to paperwork errors, missed renewal deadlines, or difficulty navigating administrative requirements rather than actual ineligibility; and Whereas, Collecting and reviewing income documentation submitted by applicants for such exemptions, including requesting additional documentation when necessary, imposes avoidable administrative burdens on DOF; and Whereas, By simplifying income verification for income-based homeowner property tax exemptions administered by DOF, a centralized income verification system would help eligible homeowners, particularly older adults and persons with disabilities, maintain critical property tax relief and remain in their homes; and Whereas, The New York State Department of Taxation and Finance already administers the Enhanced STAR Income Verification Program, which allows the State to use State tax return data to electronically verify an applicant’s income for purposes of the Enhanced STAR exemption, reducing paperwork and simplifying the administration of the program; and Whereas, A centralized State income verification system, modeled on the Enhanced STAR Income Verification Program, that DOF could use to verify applicants’ income for income-based property tax exemptions it administers would reduce administrative burdens on both homeowners and DOF by eliminating the need for applicants to repeatedly submit income documentation; and Whereas, Such a system would also allow DOF to use State income data to identify homeowners who may no longer qualify for an exemption and provide such homeowners with sufficient advance notice that they may no longer qualify before their exemption is due for renewal; and Whereas, Resolution Number 471 of 2026, introduced in the New York City Council, calls upon the New York State Legislature to pass, and the Governor to sign, S.4805/A.4984, which would establish a State-administered income verification program for applicants for SCHE; and Whereas, Expanding a similar income verification approach to all income-based homeowner property tax exemptions administered by DOF would promote greater accuracy in determining eligibility, reduce the risk of fraud, and reduce processing delays, thereby improving efficiency in DOF’s administration of income-based property tax exemption programs; now, therefore, be it Resolved, That the Council of the City of New York calls upon the New York State Legislature to pass, and the Governor to sign, legislation creating a centralized income verification system for all income-based homeowner property tax exemptions administered by the New York City Department of Finance and authorizing the City of New York to use such system to determine applicants’ income eligibility for such exemptions. LS # 20834 7/28/26 NJF