senate Bill S4340

Amended

Relates to reducing farm-based taxes, fees and regulatory burdens

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 30 / Mar / 2011
    • REFERRED TO AGRICULTURE
  • 02 / Jun / 2011
    • 1ST REPORT CAL.934
  • 06 / Jun / 2011
    • 2ND REPORT CAL.
  • 07 / Jun / 2011
    • ADVANCED TO THIRD READING
  • 13 / Jun / 2011
    • COMMITTED TO FINANCE
  • 04 / Jan / 2012
    • REFERRED TO AGRICULTURE
  • 01 / Mar / 2012
    • AMEND AND RECOMMIT TO AGRICULTURE
  • 01 / Mar / 2012
    • PRINT NUMBER 4340A
  • 06 / Mar / 2012
    • REPORTED AND COMMITTED TO FINANCE

Summary

Enacts the let New York Farm act; relates to reducing farm-based taxes, fees and regulatory burdens to help grow the agricultural economy and benefit family farms.

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Bill Details

See Assembly Version of this Bill:
A5286
Versions:
S4340
S4340A
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
Agriculture and Markets Law
Laws Affected:
Amd §303-b, Ag & Mkts L; amd §§210, 606, 1136 & 658, Tax L; amd §§499-b & 401, V & T L; amd §72-0602, En Con L
Versions Introduced in 2009-2010 Legislative Cycle:
S6947A, A10103

Votes

9
0
9
Aye
0
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Agriculture committee vote details

Sponsor Memo

BILL NUMBER:S4340

TITLE OF BILL:
An act
to amend the agriculture and markets law, the tax law,
the vehicle and traffic law
and the environmental conservation law, in relation to reducing
farm-based taxes, fees and regulatory burdens to help grow the
agricultural economy and benefit family farms

PURPOSE OR GENERAL IDEA OF BILL:
To reduce farm-based taxes, fees, and
regulatory burdens imposed on our state's farms to allow the state's
vital agricultural economy to grow and to benefit family farms in New
York State.

SUMMARY OF SPECIFIC PROVISIONS:
Section 303-b of Ag & Markets Law is
amended to allow Agricultural District hearing notices to be provided
to all landowners with land being proposed for inclusion in an
agricultural district.

Subdivision 12 of section 210 of the tax law is amended by adding a
new paragraph (e-1) to provide agricultural operations with a
refundable investment tax credit.

Subparagraph (C) of paragraph 1 of subdivision (i) of section 1136 of
the tax law, as added by section 1 of subpart G of part V-1 of
chapter 57 of the laws of 2009, is amended to exempt farm wineries
from sales tax reporting requirements.

Section 658 (c) and Section 210(1)(d)(4) of tax law is amended to
ease farm filing burdens with regard to corporation filing fees.

Sections 800 and 504 of tax law are amended to ease payroll tax and
vehicle supplemental registration fees within the Metropolitan
Transit Authority (MTA) service region.

Section of 499-b of vehicle and traffic law is amended to make
necessary clarifications to exempt rented trucks used for
agricultural purposes from the highway use tax.

Section 401(7)(E) of vehicle & traffic law is amended to reduce
agricultural plated truck registration fees.

Section 72-0602 of environmental conservation law is amended to reduce
State Pollutant Discharge Elimination System permit fees to
agricultural projects.

JUSTIFICATION:
New York's farms provide substantial economic and
environmental benefits to local communities and consumers in New York
State. The agricultural industry can drive the revitalization of the
economy of upstate New York and Long Island, but only if given a
chance to succeed.


Crushing taxes, ever increasing fees and endless paperwork are stifling
needed business investment and are forcing farmers to spend more time
pushing pencils and cutting red tape than actually farming. With
agriculture facing ever increasing global competition, New York must
provide farmers with the tools to succeed in their business. Not
continue to construct obstacles to doing business that farmers must
hurdle on a daily basis.

This bill is a first step in keeping and growing New York State's
viable farm operations, developing new agricultural businesses, and
producing high quality, affordable, local food for our state's
residents.

PRIOR LEGISLATIVE HISTORY:
A.10103/S.6947A of 2009-2010.

FISCAL IMPLICATIONS:
Minimal.

EFFECTIVE DATE:
Immediately, with provisions.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4340

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 30, 2011
                               ___________

Introduced  by  Sen. RITCHIE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Agriculture

AN ACT to amend the agriculture and markets law, the tax law, the  vehi-
  cle  and  traffic  law  and  the  environmental  conservation  law, in
  relation to reducing farm-based taxes, fees and regulatory burdens  to
  help grow the agricultural economy and benefit family farms

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative intent. The legislature finds that viable farms
and the protection of working farmland are of  paramount  importance  to
the  economic  and environmental wellbeing of New York state. The local-
ly-focused, diverse food supply New York farms provide  is  of  critical
importance  to  the  health  and welfare of all New York citizens.  With
agriculture facing ever increasing global competition, New York state is
committed to helping grow and expand our farms. In  aid  of  this  goal,
reducing  farm-based  taxes,  fees  and  regulatory  burdens that do not
recognize the unique nature and benefits of agriculture is an  important
step in achieving successful, sustainable family farms.
  S 2. Subdivision 3 of section 303-b of the agriculture and markets law
is amended by adding a new paragraph c to read as follows:
  C. THE NOTICE SHALL ALSO BE PROVIDED TO ALL LANDOWNERS WITH LAND BEING
PROPOSED  FOR  INCLUSION  IN  AN AGRICULTURAL DISTRICT. LANDOWNERS SHALL
HAVE THE OPTION TO RECEIVE THIS NOTICE EITHER THROUGH  WRITTEN  COMMUNI-
CATION OR THROUGH ELECTRONIC COMMUNICATION.
  S 3. Subdivision 12 of section 210 of the tax law is amended by adding
a new paragraph (e-1) to read as follows:
  (E-1)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF THIS SUBDIVISION, FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND  TWELVE,
IF THE CREDIT ALLOWED UNDER THIS SUBDIVISION IS GREATER THAN THE TAX DUE
IN  ANY  TAXABLE  YEAR  FOR A TAXPAYER WHOSE PRIMARY SOURCE OF INCOME IS
DERIVED FROM OPERATING A FARM OPERATION  OR  COMMERCIAL  HORSE  BOARDING

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08417-01-1

S. 4340                             2

OPERATION,  SUCH  TAXPAYER  MAY  ELECT TO TREAT THE AMOUNT BY WHICH SUCH
CREDIT EXCEEDS SUCH TAX DUE AS AN OVER-PAYMENT OF TAX TO BE REFUNDED  IN
ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND EIGHTY-SIX OF
THIS CHAPTER. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "FARM OPERATION"
AND  "COMMERCIAL  HORSE BOARDING OPERATION" SHALL HAVE THE SAME MEANINGS
AS SUCH TERMS ARE DEFINED IN SECTION THREE HUNDRED ONE OF  THE  AGRICUL-
TURE AND MARKETS LAW.
  S 4. Subsection (a) of section 606 of the tax law is amended by adding
a new paragraph 5-a to read as follows:
  (5-A)  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF THIS SUBSECTION, FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND  TWELVE,
IF  THE CREDIT ALLOWED UNDER THIS SUBSECTION IS GREATER THAN THE TAX DUE
IN ANY TAXABLE YEAR FOR A TAXPAYER WHOSE PRIMARY  SOURCE  OF  INCOME  IS
DERIVED  FROM  OPERATING  A  FARM OPERATION OR COMMERCIAL HORSE BOARDING
OPERATION, SUCH TAXPAYER MAY ELECT TO TREAT THE  AMOUNT  BY  WHICH  SUCH
CREDIT  EXCEEDS SUCH TAX DUE AS AN OVER-PAYMENT OF TAX TO BE REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "FARM OPERATION"  AND
"COMMERCIAL  HORSE  BOARDING  OPERATION" SHALL HAVE THE SAME MEANINGS AS
SUCH TERMS ARE DEFINED IN SECTION THREE HUNDRED ONE OF  THE  AGRICULTURE
AND MARKETS LAW.
  S  5.  Subparagraph  (C)  of paragraph 1 of subdivision (i) of section
1136 of the tax law, as added by section 1 of subpart G of part  V-1  of
chapter 57 of the laws of 2009, is amended to read as follows:
  (C)  Every  wholesaler,  as  defined by section three of the alcoholic
beverage control law, if it has made a sale of an alcoholic beverage, as
defined by section four hundred twenty of this chapter, without collect-
ing sales or use tax during the period covered by the return, except (i)
a sale to a person that has furnished an exempt organization certificate
to the wholesaler for that sale; or (ii) a sale  to  another  wholesaler
whose license under the alcoholic beverage control law does not allow it
to  make retail sales of the alcoholic beverage. For each vendor, opera-
tor, or recipient to  whom  the  wholesaler  has  made  a  sale  without
collecting  sales  or  compensating use tax, the return must include the
total value of those sales made during the period covered by the  return
(excepting  the sales described in clauses (i) and (ii) of this subpara-
graph) and the vendor's, operator's or recipient's state liquor authori-
ty license number, along with the information required by paragraph  two
of  this  subdivision.    THE  PROVISIONS OF THIS SUBPARAGRAPH SHALL NOT
APPLY TO A FARM WINERY AS DEFINED IN  SECTION  THREE  OF  THE  ALCOHOLIC
BEVERAGE CONTROL LAW.
  S  6.  Subparagraphs  (A)  and (B) of paragraph 3 of subsection (c) of
section 658 of the tax law, as amended by section 1 of part H-1 of chap-
ter 57 of the laws of 2009, are amended to read as follows:
  (A) Every  subchapter  K  limited  liability  company,  every  limited
liability  company  that  is a disregarded entity for federal income tax
purposes, and every partnership which has any income  derived  from  New
York  sources,  determined  in  accordance  with the applicable rules of
section six hundred thirty-one of this article  as  in  the  case  of  a
nonresident  individual, shall, within thirty days after the last day of
the taxable year, make a payment of a filing fee.  SUCH  DEADLINE  SHALL
NOT APPLY TO FARMS, COMMERCIAL HORSE BOARDING OPERATIONS OR AGRICULTURAL
SERVICE  PROVIDERS  SUBJECT  TO THE FEE, WHICH SHALL, WITHIN ONE HUNDRED
TWENTY DAYS AFTER THE LAST DAY OF THE TAXABLE YEAR, MAKE PAYMENT OF  ANY
REQUIRED  FILING  FEE.  The  amount  of the filing fee is the amount set
forth in subparagraph (B) of this paragraph. The minimum filing  fee  is

S. 4340                             3

twenty-five  dollars  for  taxable years beginning in two thousand eight
and thereafter. Limited liability companies that are  disregarded  enti-
ties  for  federal  income tax purposes must pay a filing fee of twenty-
five  dollars for taxable years beginning on or after January first, two
thousand eight.
  (B) The filing fee will be based on the New York source  gross  income
of  the  limited  liability  company or partnership for the taxable year
immediately preceding the taxable year for which the fee is due. If  the
limited  liability  company  or  partnership  does not have any New York
source gross income for the taxable year immediately preceding the taxa-
ble year for which the fee is due,  the  limited  liability  company  or
partnership  shall  pay the minimum filing fee. Partnerships, other than
limited liability partnerships under article eight-B of the  partnership
law  and  foreign  limited  liability  partnerships,  with less than one
million dollars in New York source gross  income  are  exempt  from  the
filing  fee. New York source gross income is the sum of the partners' or
members' shares of federal gross income from the partnership or  limited
liability  company  derived  from  or  connected  with New York sources,
determined in accordance with the  provisions  of  section  six  hundred
thirty-one  of  this  article  as  if  those  provisions and any related
provisions expressly referred to a computation of federal  gross  income
from  New  York  sources.  For  this  purpose,  federal  gross income is
computed without any allowance or deduction  for  cost  of  goods  sold,
EXCEPT THAT FOR COMPANIES ENGAGED PRIMARILY IN FARMING, COMMERCIAL HORSE
BOARDING  OR  AGRICULTURAL  SERVICE  PROVIDERS,  THE  TERM FEDERAL GROSS
INCOME SHALL MEAN NET INCOME AS REPORTED FOR FEDERAL TAX PURPOSES.
  The amount of the filing fee for taxable years beginning on  or  after
January  first, two thousand eight will be determined in accordance with
the following table:

If the New York source gross income is:         The fee is:
not more than $100,000                          $25
more than $100,000 but not over $250,000        $50
more than $250,000 but not over $500,000        $175
more than $500,000 but not over $1,000,000      $500
more than $1,000,000 but not over $5,000,000    $1,500
more than $5,000,000 but not over $25,000,000   $3,000
Over $25,000,000                                $4,500

  S 7. Subparagraph 4 of paragraph (d) of subdivision 1 of  section  210
of  the tax law, as added by section 2 of part AA-1 of chapter 57 of the
laws of 2008, is amended to read as follows:
  (4) Notwithstanding subparagraphs one and two of this  paragraph,  for
taxable  years  beginning on or after January first, two thousand eight,
the amount prescribed by this paragraph for New York S corporations will
be determined in accordance with the following table:

If New York receipts are:                The fixed dollar minimum tax is:
 not more than $100,000                               $   25
 more than $100,000 but not over $250,000             $   50
 more than $250,000 but not over $500,000             $  175
 more than $500,000 but not over $1,000,000           $  300
 more than $1,000,000 but not over $5,000,000         $1,000
 more than $5,000,000 but not over $25,000,000        $3,000
 Over $25,000,000                                     $4,500

S. 4340                             4

Otherwise the amount prescribed by this paragraph will be determined  in
accordance with the following table:

If New York receipts are:                The fixed dollar minimum tax is:
 not more than $100,000                               $   25
 more than $100,000 but not over $250,000             $   75
 more than $250,000 but not over $500,000             $  175
 more than $500,000 but not over $1,000,000           $  500
 more than $1,000,000 but not over $5,000,000         $1,500
 more than $5,000,000 but not over $25,000,000        $3,500
 Over $25,000,000                                     $5,000

For  purposes  of  this  paragraph,  New  York receipts are the receipts
computed in accordance with subparagraph two of paragraph (a) of  subdi-
vision  three  of  this  section  for  the taxable year, EXCEPT THAT FOR
CORPORATIONS ENGAGED PRIMARILY IN FARMING, COMMERCIAL HORSE BOARDING  OR
PROVIDING  AGRICULTURAL SERVICES, THE TERM NEW YORK RECEIPTS SHALL REFER
TO NET FARM INCOME AS REPORTED FOR FEDERAL TAX PURPOSES.
  S 8. Subsection (b) of section 800 of the tax law, as added by section
1 of part C of chapter 25 of the laws of 2009, is  amended  to  read  as
follows:
  (b)  Employer.  Employer  means  an  employer  required by section six
hundred seventy-one of this chapter to  deduct  and  withhold  tax  from
wages, that has a payroll expense in excess of two thousand five hundred
dollars in any calendar quarter; other than
  (1) any agency or instrumentality of the United States;
  (2) the United Nations; [or]
  (3)  an interstate agency or public corporation created pursuant to an
agreement or compact with another state or the Dominion of Canada[.];
  (4) EMPLOYERS PRIMARILY ENGAGED IN FARMING, COMMERCIAL HORSE  BOARDING
OPERATIONS OR PROVIDING AGRICULTURAL SERVICES;
  (5)  SOIL AND WATER CONSERVATION DISTRICTS AS DEFINED IN SECTION THREE
OF THE SOIL AND WATER CONSERVATION DISTRICTS LAW; OR
  (6)  COOPERATIVE  EXTENSIONS  AS  LISTED  IN   SECTION   TWO   HUNDRED
TWENTY-FOUR OF THE COUNTY LAW.
  S 9. Section 499-b of the vehicle and traffic law, as added by section
1  of  part  B  of chapter 25 of the laws of 2009, is amended to read as
follows:
  S 499-b. Collection of supplemental  fee.  All  registrants  of  motor
vehicles who reside in the metropolitan commuter transportation district
shall  pay  to  the  commissioner  or  his or her agent the supplemental
registration fee provided for  in  this  article  upon  registration  or
renewal  of  motor vehicles subject to registration fees pursuant to the
following sections of this chapter: paragraph a of  subdivision  six  of
section four hundred one; schedules A, B, C, [E,] F (EXCEPT AGRICULTURAL
SPRAYERS),  G, I and K of subdivision seven of section four hundred one;
paragraph a of subdivision eight of section  four  hundred  one,  EXCEPT
LIVESTOCK  TRAILERS;  paragraph  a  of  subdivision five of section four
hundred ten; and section four hundred eleven-b.
  S 10. Subdivision 3 of section 504 of the tax law, as amended by chap-
ter 194 of the laws of 1963, is amended to read as follows:
  3. [Owned and operated] OPERATED by a farmer and used  exclusively  by
such  farmer  in  transporting  his  own  agricultural  commodities  and
products, pulpwood or livestock, including  the  packed,  processed,  or
manufactured  products  thereof, that were originally grown or raised on
his farm, lands or orchard, or  when  used  to  transport  supplies  and

S. 4340                             5

equipment  to  his farm or orchard that are consumed and used thereon or
when operated by a farmer in transporting  farm  products  from  a  farm
contiguous to his own.
  S 11. Paragraph 1 of schedule E of subdivision 7 of section 401 of the
vehicle and traffic law, as amended by section 9 of part G of chapter 59
of the laws of 2009, is amended to read as follows:
  1.  For  each  agricultural  truck,  the annual fee of two dollars and
[fifty-one cents] ONE CENT for each five hundred  pounds  maximum  gross
weight, or fraction thereof.
  S 12. Section 72-0602 of the environmental conservation law is amended
by adding a new subdivision q-1 to read as follows:
  Q-1.  $25.00 PER ACRE DISTURBED PLUS $25.00 PER FUTURE IMPERVIOUS ACRE
FOR ANY FACILITY THAT IS PART OF A FARM OPERATION AS DEFINED IN  SECTION
THREE  HUNDRED  ONE  OF  THE AGRICULTURE AND MARKETS LAW, DISCHARGING OR
AUTHORIZED TO DISCHARGE  PURSUANT  TO  A  SPDES  PERMIT  FOR  STORMWATER
DISCHARGES FROM CONSTRUCTION ACTIVITY. FOR THE PURPOSES OF THIS SUBDIVI-
SION,  ACRES  DISTURBED ARE ACRES SUBJECT TO CLEARING, GRADING, OR EXCA-
VATING IN THE CONSTRUCTION AREA SUBJECT TO SPDES PERMITTING  AND  FUTURE
IMPERVIOUS  ACRES  ARE ACRES THAT WILL BE NEWLY PAVED WITH AN IMPERVIOUS
SUBSTANCE OR ROOFED DURING CONSTRUCTION;
  S 13. Subdivision t of section 72-0602 of the environmental  conserva-
tion  law,  as amended by section 1 of part JJ of chapter 59 of the laws
of 2009, is relettered subdivision u and amended and a new subdivision t
is added to read as follows:
  T. $50.00 FOR A WINERY OR  DISTILLERY  DISCHARGING  OR  AUTHORIZED  TO
DISCHARGE PURSUANT TO A GENERAL PERMIT;
  u.  $100.00  for  any  facility, other than a municipal separate storm
sewer as defined by 40 CFR S122.26 (b) (8), discharging or authorized to
discharge pursuant to a general permit unless a specific fee is  imposed
pursuant  to  subdivisions  a  through  [s]  T  of this section for such
discharge or authorization to discharge.
  S 14. This act shall take effect immediately, provided  however,  that
section  two of this act shall take effect on the ninetieth day after it
shall have become a law, provided further that sections three  and  four
of  this  act shall apply to any tax year commencing on or after January
1, 2012.

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