Suffolk bill would allow special needs trust beneficiaries to apply for property tax breaks

A proposed amendment to Suffolk County's tax law would allow certain people with disabilities living with limited incomes to receive additional tax breaks to help them stay in their home.

The proposed change follows similar state legislation approved last summer to add a real property tax exemption for a person with a disability whose primary residence is included in a so-called special needs trust. The change also adds an exemption for a property owner who has a tenant with a disability "whose lease provides them with a life interest in the property as long as the tenant remains in residence," according to the legislation.

William Duffy, counsel to the legislature, said the county is "opting in" to the expanded exemptions approved by the state.

The legislature held a public hearing on the proposed change Tuesday afternoon at its general meeting in Riverhead. No one spoke. Legislators can vote to adopt the resolution at its March meeting.

Duffy said previously, a disabled person who had a house in a trust would not have been eligible for the additional exemption.

A special needs trust is a type of irrevocable financial vehicle designed for people with disabilities, according to the nonprofit NYSARC Trust Services based in Latham, New York. The trust can allow people with disabilities to still be eligible for government benefits such as Supplemental Security Income and Medicaid, according to the nonprofit.

In July 2024, Gov. Kathy Hochul signed three bills ahead of the anniversary of the Americans with Disabilities Act aimed at helping people with disabilities. Sen. Monica Martinez (D-Brentwood) sponsored the legislation in the state Senate that dealt with the expanded exemptions.

"This amendment brings much-needed equity and fairness to the property tax code that will help more disabled New Yorkers afford to remain in their homes and communities," Martinez said in a statement after Hochul signed the bill.

The state legislation aimed to "support home ownership for persons with disabilities, keeping them in the homes and communities they were raised in," according to the bill.

"People with disabilities deserve to enjoy the rights and privileges that all New Yorkers do," Hochul said at the time.