senate Bill S4728

Amended

Provides for a sales tax exemption for farm abstracts

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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

  • 15 / Apr / 2011
    • REFERRED TO AGRICULTURE
  • 11 / May / 2011
    • 1ST REPORT CAL.618
  • 16 / May / 2011
    • 2ND REPORT CAL.
  • 17 / May / 2011
    • ADVANCED TO THIRD READING
  • 24 / Jun / 2011
    • COMMITTED TO RULES
  • 04 / Jan / 2012
    • REFERRED TO AGRICULTURE
  • 12 / Jan / 2012
    • AMEND AND RECOMMIT TO AGRICULTURE
  • 12 / Jan / 2012
    • PRINT NUMBER 4728A
  • 19 / Jan / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 08 / May / 2012
    • 1ST REPORT CAL.730
  • 09 / May / 2012
    • 2ND REPORT CAL.
  • 14 / May / 2012
    • ADVANCED TO THIRD READING
  • 15 / May / 2012
    • PASSED SENATE
  • 15 / May / 2012
    • DELIVERED TO ASSEMBLY
  • 15 / May / 2012
    • REFERRED TO WAYS AND MEANS

Summary

Exempts from sales tax the sale of an abstract of title to real property to be used for agricultural purposes to either a prospective purchaser of real property or to an attorney representing a prospective purchaser.

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Bill Details

See Assembly Version of this Bill:
A7658
Versions:
S4728
S4728A
Legislative Cycle:
2011-2012
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยง1105, Tax L

Votes

10
0
10
Aye
0
Nay
0
aye with reservations
0
absent
0
excused
0
abstained
show Agriculture committee vote details

Sponsor Memo

BILL NUMBER:S4728

TITLE OF BILL:
An act
to amend the tax law, in relation to providing for a sales tax exemption
for farm abstracts

PURPOSE:
To clarify that sale of abstracts of title to land used for
agricultural purposes are not subject to sales tax.

SUMMARY:
Section 1 amends Paragraph 1 of Subdivision (c) of Section 1105 of the
Tax Law to provide an exclusion from the four percent tax for sale of
an abstract of title to real property used for agricultural purposes.

Section 2 states this act shall take effect immediately.

JUSTIFICATION:
Agriculture is a land intensive business which makes sales tax on
abstract services, property taxes and other land-related tax issues a
substantial business expense. The purchase or sale of land requires
an abstract of title which provides a condensed history of all deeds,
mortgages and other recorded documents pertinent to the land parcel
being transferred to new ownership. Before the sale of land can be
concluded, the abstract of title is reviewed by an attorney or
insurance company to determine if there are any outstanding liens or
mortgages that must be satisfied before the buyer can claim ownership.

Securing the abstract of title for a piece of real property to be
included in a farm operation is a costly business expense for farmers
which was partially defrayed by a state sales tax exemption until
last year. Sale of an abstract of title was not considered sale of a
taxable information service until the NYS Department of Taxation and
Finance rendered an Opinion (TSB-M-10(07)S in 2010 revoking its long
standing policy of exempting the sales of abstracts of title from
state sales tax in an effort to generate additional revenue for the
State. This legislation will protect
valuable working landscapes, open green spaces and farm viability by
statutorily restoring the tax exemption for sales of abstracts of
title to farm land.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately.

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

                                  4728

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 15, 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 tax law, in relation to providing for  a  sales  tax
  exemption for farm abstracts

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

  Section 1. Paragraph 1 of subdivision (c) of section 1105 of  the  tax
law,  as  amended by chapter 373 of the laws of 1995, is amended to read
as follows:
  (1) The furnishing of information by printed, mimeographed  or  multi-
graphed  matter or by duplicating written or printed matter in any other
manner, including the services of  collecting,  compiling  or  analyzing
information  of  any  kind  or  nature and furnishing reports thereof to
other persons, but excluding the  furnishing  of  information  which  is
personal or individual in nature and which is not or may not be substan-
tially incorporated in reports furnished to other persons, and excluding
the  services of advertising or other agents, or other persons acting in
a representative capacity, and information services used by  newspapers,
radio  broadcasters  and  television  broadcasters in the collection and
dissemination  of  news,  and  excluding  meteorological  services,  AND
EXCLUDING  THE  SALE OF AN ABSTRACT OF TITLE TO REAL PROPERTY TO BE USED
FOR AGRICULTURAL PURPOSES TO EITHER  A  PROSPECTIVE  PURCHASER  OF  REAL
PROPERTY OR TO AN ATTORNEY REPRESENTING A PROSPECTIVE PURCHASER.
  S 2. This act shall take effect immediately.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10930-01-1

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