senate Bill S3694A

Relates to the unified credit against the estate tax for purposes of a farm operation

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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

  • 11 / Feb / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 05 / Mar / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 12 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 12 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1328
  • 13 / Jun / 2013
    • PASSED SENATE
  • 13 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 13 / Jun / 2013
    • REFERRED TO WAYS AND MEANS
  • 08 / Jan / 2014
    • DIED IN ASSEMBLY
  • 08 / Jan / 2014
    • RETURNED TO SENATE
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 03 / Mar / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 03 / Mar / 2014
    • PRINT NUMBER 3694A

Summary

Relates to the unified credit against the estate tax for purposes of a farm operation.

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Bill Details

See Assembly Version of this Bill:
A5230A
Versions:
S3694
S3694A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง951, Tax L

Sponsor Memo

BILL NUMBER:S3694A

TITLE OF BILL: An act to amend the tax law, in relation to the
unified credit against the estate tax

PURPOSE: This bill amends the Tax Law by increasing the Estate Tax
applicable exclusion amount from one million dollars to five million
dollars for a farm operation as defined in section three hundred one
of the Agriculture and Markets Law.

SUMMARY OF PROVISIONS:

Section 1 amends subsection (a) of section 951 of the Tax Law, as
amended by section 1 of part T of chapter 57 of the laws of 2010 to
increase the exemption to five million dollars for a farm operation,
as defined in section three hundred one of the Agriculture and Markets
Law.

Section 2 provides the effective date.

JUSTIFICATION: Currently the unified credit against the estate tax
provided in section 2010 of the Internal Revenue Code is the amount
allowable as if the federal applicable exclusion amount were one
million dollars. This bill adds a unified credit against the estate
tax of five million dollars for a farm operation as defined in section
301 of the Agriculture and Markets Law.

The value of real property in New York State has increased
substantially in recent years which has correspondingly increased the
value of farms. The economics of farming typically requires extensive
land holdings to remain profitable and productive. Today, it is not
uncommon for a farm of two hundred and fifty acres to have a value
well above one million dollars. Therefore, this bill is necessary to
maintain the viability of our state's farming operations and provide
for an affordable transfer from the present generation of farmers to
the next generation. It will also allow New York State to maintain a
strong agriculture industry while ensuring that the industry can
continue to grow.

LEGISLATIVE HISTORY: New Bill

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately and shall
apply to taxable years commencing on and after the first of January
next succeeding the date on which it shall have become a law.

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

                                 3694--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 11, 2013
                               ___________

Introduced  by  Sens.  RITCHIE,  GALLIVAN,  MARCHIONE  -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Investigations and Government Operations -- recommitted to the Commit-
  tee  on  Investigations  and  Government Operations 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 the unified credit against
  the estate tax

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

  Section 1. Subsection (a) of section 951 of the tax law, as amended by
section  1  of  part  T of chapter 57 of the laws of 2010, is amended to
read as follows:
  (a) Dates. For purposes of this article, any reference to the internal
revenue code means the United States Internal Revenue Code of 1986, with
all amendments enacted on or before July twenty-second, nineteen hundred
ninety-eight, and, unless specifically provided otherwise in this  arti-
cle,  any  reference to December thirty-first, nineteen hundred seventy-
six or January first, nineteen hundred seventy-seven  contained  in  the
provisions of such code which are applicable to the determination of the
tax imposed by this article shall be read as a reference to June thirti-
eth,  nineteen  hundred  seventy-eight  or  July first, nineteen hundred
seventy-eight, respectively. Notwithstanding the foregoing, the  unified
credit  against  the  estate tax provided in section two thousand ten of
the internal revenue code shall, for purposes of this  article,  be  the
amount  allowable as if the federal applicable exclusion amount were one
million dollars OR FIVE MILLION DOLLARS FOR A FARM OPERATION, AS DEFINED
IN SECTION THREE HUNDRED ONE OF THE AGRICULTURE AND MARKETS LAW.
  S 2. This act shall take effect immediately and shall apply to taxable
years commencing on and after the first of January next  succeeding  the
date on which it shall have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08783-03-4

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