senate Bill S4340A

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:
A5286A
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:S4340A

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.

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.

HISTORY:
S.6947A of 2010 - Referred to Finance
S.4340 of 2011 - Referred to Finance

FISCAL IMPLICATIONS:
Minimal.

EFFECTIVE DATE:
Immediately, provided however, that section three shall take effect on
the ninetieth day after it becomes law, and that sections four and
five shall apply to any tax year commencing on or after January 1,
2013.

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

                                 4340--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 30, 2011
                               ___________

Introduced  by Sens. RITCHIE, GALLIVAN, GRISANTI, LAVALLE, LIBOUS, BONA-
  CIC, LARKIN, SEWARD, GRIFFO, DeFRANCISCO, YOUNG, BALL,  O'MARA,  VALE-
  SKY,  McDONALD,  LITTLE  --  read  twice and ordered printed, and when
  printed to be committed to the Committee on Agriculture -- recommitted
  to the Committee on Agriculture in accordance with Senate Rule 6, sec.
  8 -- committee discharged, bill amended, ordered reprinted as  amended
  and recommitted to said committee

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.  This  act shall be known and may be cited as the "let New
York farm act."
  S 2. 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  locally-fo-
cused,  diverse food supply New York farms provide is of critical impor-
tance to the health and welfare of all New York citizens.  With agricul-
ture 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 3. 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08417-02-2

S. 4340--A                          2

  S 4. 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  THIR-
TEEN,  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 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 AGRICULTURE AND MARKETS LAW.
  S 5. 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 THIR-
TEEN, 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 EIGHT-
Y-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 6. 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 7. Subparagraphs (A) and (B) of paragraph 3  of  subsection  (c)  of
section 658 of the tax law, subparagraph (A) as amended by section 18 of
part U of chapter 61 of the laws of 2011 and subparagraph (B) as amended
by  section 1 of part H-1 of chapter 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

S. 4340--A                          3

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 sixty 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
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 8. 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:

S. 4340--A                          4

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

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 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. 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 11. 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

S. 4340--A                          5

IMPERVIOUS ACRES ARE ACRES THAT WILL BE NEWLY PAVED WITH  AN  IMPERVIOUS
SUBSTANCE OR ROOFED DURING CONSTRUCTION;
  S  12. 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  13.  This act shall take effect immediately, provided however, that
section three of this act shall take effect on the ninetieth  day  after
it shall have become a law, provided further that sections four and five
of  this  act shall apply to any tax year commencing on or after January
1, 2013.

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