senate Bill S6223

Relates to reducing farm-based taxes

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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

  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 02 / Jun / 2014
    • REPORTED AND COMMITTED TO FINANCE

Summary

Relates to reducing farm-based taxes.

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Bill Details

See Assembly Version of this Bill:
A8995
Versions:
S6223
Legislative Cycle:
2013-2014
Current Committee:
Senate Finance
Law Section:
Tax Law
Laws Affected:
Amd ยงยง658 & 210, Tax L

Votes

7
1
7
Aye
1
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Investigations and Government Operations committee vote details

Sponsor Memo

BILL NUMBER:S6223

TITLE OF BILL: An act to amend the tax law, in relation to reducing
farm-based taxes

PURPOSE: To allow farms, commercial horse boarding operations, and
agricultural service providers to use their net income, in place of
their gross income, for tax purposes.

SUMMARY OF PROVISIONS:

Section 1 amends subparagraphs (A) and (B) of paragraph 3 of
subsection (c) of section 658 of the Tax Law. Subparagraph (A) is
amended to allow farms, commercial horse boarding operations or
agricultural service providers 120 days after the last day of the
taxable year to make payment of their required filing fee.
Subparagraph (B) is amended to allow companies engaged primarily in
farming, commercial horse boarding operations or agricultural service
providers to use their net income as reported for federal tax purposes
in place of their federal gross income.

Section 2 amends subparagraph 4 of paragraph (d) of subdivision 1 of
section 210 of the Tax Law to allow corporations engaged primarily in
farming, commercial horse boarding or providing agricultural services
to have the term New York receipts refer to net farm income as
reported for federal tax purposes.

Section 3 provides that this act shall take effect immediately.

JUSTIFICATION: This bill is necessary because the current tax system
uses gross income instead of net income. Gross income does not take
into account the high expenses farms and other agricultural operations
incur to yield their products. Only by using net income are the
unusually high expenses of an agricultural business taken into
account, thereby allowing a more accurate filing of their income.

Additionally, this bill will remove a few of the many onerous and
burdensome requirements that are imposed on farms and agricultural
businesses in New York State. By lifting a few of these requirements,
farms will begin to experience some relief. This will make New York
State a place where farms and businesses can grow and create jobs.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: Minimal.

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
________________________________________________________________________

                                  6223

                            I N  S E N A T E

                               (PREFILED)

                             January 8, 2014
                               ___________

Introduced  by Sens. RITCHIE, GALLIVAN, SEWARD -- read twice and ordered
  printed, and when printed to be committed to the Committee on Investi-
  gations and Government Operations

AN ACT to amend the tax law, in relation to reducing farm-based taxes

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

  Section  1. 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
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-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13104-01-3

S. 6223                             2

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 2. 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

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

S. 6223                             3

 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 3. This act shall take effect immediately.

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