Volume 3 - Opinions of Counsel SBEA No. 46
Aged exemption (more than one parcel) (net rental income) - Real Property Tax Law, § 467:
The exemption allowed under this section can apply to only one parcel of real property owned by an otherwise qualified applicant, i.e., his residence. Net rental income received from real property owned by an applicant must be included in computing income for the purposes of this exemption.
Our opinion has been requested as to whether the partial exemption for elderly persons may apply to more than one parcel of real property owned by an otherwise qualified applicant, and whether the fact that an applicant derives income from real property would have any effect on his eligibility for exemption.
Section 467 of the Real Property Tax Law enables a municipality to grant a partial exemption on the residence of persons who meet the age, length of ownership, residence, occupancy and income requirements set forth in that section. With regard to residence and occupancy there are three statutory requirements. These are: (1) the property must be the “legal residence” of the applicant or applicants; (2) the property must be “used exclusively for residential purposes”; (3) the property must be “occupied in whole or in part” by the applicant or applicants. Therefore, the exemption can only apply to the legal residence of an otherwise qualified applicant. An applicant may rent out part of the premises to others for residential purposes without losing the exemption. However, the net rental income derived therefrom must be included in computing income for purposes of this exemption. Income from all sources (except gifts and inheritances) is required to be considered in determining eligibility for exemption. Thus, if an applicant is the owner of more than one income producing real property parcel, the net income derived therefrom must be considered.
September 27, 1973