senate Bill S4728A

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:
A7658A
Versions:
S4728
S4728A
Legislative Cycle:
2011-2012
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยง1105, Tax L

Sponsor Memo

BILL NUMBER:S4728A

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 - This act shall take effect on the same date and in the
same manner as Section 3 of Chapter 583 of the Laws of 2011.

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 it's 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 on the same date and in the same manner
as Section 3 of Chapter 583 of the Laws of 2011.

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

                                 4728--A

                       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 -- 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 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 583 of the laws of 2011, 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,
electronic news services, radio broadcasters and television broadcasters
in the collection and dissemination of news, and excluding  meteorologi-
cal  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 on the  same  date  and  in  the  same
manner as section 3 of chapter 583 of the laws of 2011.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10930-02-2

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