senate Bill S6882

Relates to providing a tax credit to farmers who sell or rent their agricultural land to a young farmer

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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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  • 25 / Mar / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Relates to providing a tax credit to farmers who sell or rent their agricultural land to a young farmer.

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Bill Details

Versions:
S6882
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยงยง210 & 606, Tax L

Sponsor Memo

BILL NUMBER:S6882

TITLE OF BILL: An act to amend the tax law, in relation to providing
a tax credit to farmers who sell or rent their agricultural land to a
young farmer

PURPOSE: To establish a tax credit for farmers who sell or rent their
agricultural land to young farmers.

SUMMARY OF PROVISIONS:

Sections 1 and 2 of the bill amend sections 210 and section 606 of the
tax law to create and allow for a credit for current farmers who sell
or rent their agricultural lands to young farmers.

Section three provides for the effective date.

EXISTING LAW: Current tax law allows for various tax credits. It does
not currently allow a credit for farmers who are considering selling
or renting their agricultural lands to a young farmer. Such programs
however, do exist in other states.

JUSTIFICATION: New York state tax law provides for various tax
credits already. Allowing a tax credit for current farmers who agree
to sell or rent their agricultural lands to a young farmer is good
public policy. Taking steps to recruit young, new farmers to the
agricultural profession is certainly one area in need of incentives,
and helping to ensure agricultural lands are available for sale or
rent to young or beginning farmers to get them started in the
agricultural profession, is one way to provide that incentive.

Agriculture is the leading industry in New York, yet New York's farm
community is aging and it has become increasingly difficult to attract
young people to farming and to encourage younger generations to
consider farming as a career. The average age of farm operators in New
York is 59, and is expected to continue to increase unless steps are
taken to reverse this trend. The U.S. Secretary of Agriculture has set
a goal of recruiting 100,000 new farmers across the country to replace
those who are retiring. By enacting a tax credit to encourage current
farmers to sell or rent their land to young farmers, we will be taking
one small step at helping that recruitment effort, and helping to keep
agricultural lands in production, rather than losing them permanently.

Farming is a difficult business and there are many barriers to keeping
current farm land in the hands of agricultural producers. As the
current crop of farmers continues to age out of the business, we need
to encourage these farmers to sell their land to those considering
entering the profession. It is in the best interest of the state to
ensure that enough producers are recruited and retained in
agricultural production. Additionally, the recent increase in demand
for quality fresh locally grown foods and beverages highlight the
importance of assisting new farmers to enter the profession.

LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS: Undetermined. The bill allows a ten percent tax
credit for the sale or use of agricultural land to a young farmer.


EFFECTIVE DATE: Immediately and shall apply to taxable years
beginning on and after January 1, 2015.

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

                                  6882

                            I N  S E N A T E

                             March 25, 2014
                               ___________

Introduced  by Sens. RITCHIE, BALL, BONACIC, DeFRANCISCO, FARLEY, GALLI-
  VAN, GRIFFO, GRISANTI, LARKIN,  LAVALLE,  LIBOUS,  LITTLE,  MARCHIONE,
  MAZIARZ, NOZZOLIO, O'MARA, RANZENHOFER, ROBACH, SEWARD, VALESKY, YOUNG
  -- read twice and ordered printed, and when printed to be committed to
  the Committee on Investigations and Government Operations

AN  ACT  to  amend the tax law, in relation to providing a tax credit to
  farmers who sell or rent their agricultural land to a young farmer

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

  Section  1.  Section  210  of  the  tax law is amended by adding a new
subdivision 48 to read as follows:
  48. CREDIT FOR FARMERS WHO SELL OR RENT THEIR AGRICULTURAL LAND  TO  A
YOUNG  FARMER.   (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS AN AGRICUL-
TURAL BUSINESS PRINCIPALLY ENGAGED IN FARMING, AS SUCH TERM  IS  DEFINED
IN  PARAGRAPH  NINETEEN OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ONE
OF THIS CHAPTER SHALL BE ALLOWED A CREDIT AGAINST  THE  TAX  IMPOSED  BY
THIS ARTICLE FOR THE SALE OR RENT OF THEIR AGRICULTURAL LANDS TO A YOUNG
FARMER,  AS DEFINED IN THIS SECTION. SUCH CREDIT SHALL BE TEN PERCENT OF
THE PURCHASE PRICE OR RENTAL AMOUNT OF THE AGRICULTURAL LANDS.
  (B) FOR PURPOSES OF THIS SUBDIVISION,  "YOUNG  FARMER"  SHALL  MEAN  A
FARMER  WHO  HAS  NOT PRODUCED AN AGRICULTURAL PRODUCT FOR MORE THAN TEN
CONSECUTIVE YEARS, WHERE AGRICULTURAL PRODUCT MEANS ANY AGRICULTURAL  OR
AQUACULTURAL  PRODUCT OF THE SOIL OR WATER, INCLUDING BUT NOT LIMITED TO
FRUITS, VEGETABLES, EGGS, DAIRY PRODUCTS, MEAT AND MEAT PRODUCTS,  POUL-
TRY  AND  POULTRY  PRODUCTS,  FISH  AND  FISH  PRODUCTS, GRAIN AND GRAIN
PRODUCTS, HONEY, NUTS, PRESERVES, MAPLE SAP PRODUCTS, APPLE CIDER, FRUIT
JUICE, HORTICULTURAL SPECIALTIES, AND CHRISTMAS TREES AND WHO WILL MATE-
RIALLY AND SUBSTANTIALLY PARTICIPATE IN THE PRODUCTION  OF  AN  AGRICUL-
TURAL PROJECT.
  (C)  PRIOR TO SALE, THE SELLER SHALL CONVEY TO THE DEPARTMENT OF AGRI-
CULTURE AND MARKETS, AN EASEMENT, THE TERMS OF WHICH  LIMIT  DEVELOPMENT
OF  THE LAND TO AGRICULTURAL BUSINESS, PRINCIPALLY FARMING, AS SUCH TERM
IS DEFINED IN PARAGRAPH NINETEEN OF SUBDIVISION (B)  OF  SECTION  ELEVEN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13527-06-4

S. 6882                             2

HUNDRED ONE OF THIS CHAPTER. THE EASEMENT SHALL EXPIRE NOT LESS THAN TEN
YEARS FROM THE DATE OF SALE.
  S  2.  Subsections  (yy)  and  (zz)  of section 606 of the tax law, as
relettered by section 5 of part H of chapter 1 of the laws of 2003,  are
relettered  subsections  (yyy)  and  (zzz)  and a new subsection (xx) is
added to read as follows:
  (XX) CREDIT FOR THE SALE OR RENT OF AGRICULTURAL LAND TO A YOUNG FARM-
ER. (1) ALLOWANCE OF CREDIT. A TAXPAYER WHOSE FEDERAL GROSS INCOME  FROM
FARMING  FOR  THE  TAXABLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL
GROSS INCOME SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED  BY  THIS
ARTICLE  FOR  THE  SALE  OR  RENT OF AGRICULTURAL LAND OR EQUIPMENT TO A
YOUNG FARMER, AS DEFINED BY SECTION TWO HUNDRED  TEN  OF  THIS  CHAPTER.
SUCH  CREDIT SHALL BE TEN PERCENT OF THE PURCHASE PRICE OF RENTAL AMOUNT
OF  THE  AGRICULTURAL  LAND,  AND  SHALL  BE   ALLOWED   NOTWITHSTANDING
SUBSECTION (KK) OF THIS SECTION.
  (2)  DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING DEFI-
NITIONS SHALL APPLY:
  (A) "EXCESS FEDERAL GROSS INCOME" MEANS THE AMOUNT  OF  FEDERAL  GROSS
INCOME  FROM ALL SOURCES FOR THE TAXABLE YEAR REDUCED BY THE SUM (NOT TO
EXCEED THIRTY THOUSAND DOLLARS, OF THOSE ITEMS INCLUDED IN FEDERAL GROSS
INCOME WHICH CONSIST OF:
  (I) EARNED INCOME,
  (II) PENSION PAYMENTS, INCLUDING SOCIAL SECURITY PAYMENTS,
  (III) INTEREST, AND
  (IV) DIVIDENDS.
  (B) FOR PURPOSES OF THIS PARAGRAPH, THE  TERM  "EARNED  INCOME"  SHALL
MEAN  WAGES,  SALARIES,  TIPS AND OTHER EMPLOYEE COMPENSATION, AND THOSE
ITEMS OF GROSS INCOME WHICH ARE INCLUDIBLE IN  THE  COMPUTATION  OF  NET
EARNINGS  FROM  SELF-EMPLOYMENT.  FOR  THE  PURPOSES  OF THIS PARAGRAPH,
PAYMENTS FROM THE STATE'S FARMLAND PROTECTION PROGRAM,  ADMINISTERED  BY
THE  DEPARTMENT OF AGRICULTURE AND MARKETS, SHALL BE INCLUDED AS FEDERAL
GROSS INCOME FROM FARMING.
  (3) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
  S 3. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2015.

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