NY State Senate Bill 2009-S657

Senate Bill S657

2009-2010 Legislative Session

Extends eligibility for the agricultural property tax credit to farmers having a leasehold interest of not fewer than five years in qualified agricultural property

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Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to investigations and government operations
Jan 12, 2009	referred to investigations and government operations

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2009-S657 (ACTIVE) - Details

See Assembly Version of this Bill:: A3380
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210 & 606, Tax L

2009-S657 (ACTIVE) - Summary

Extends eligibility for the agricultural property tax credit to farmers having a leasehold interest of not fewer than five continuous years in qualified agricultural property; provides for retroactive application in certain cases.

2009-S657 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S657

 TITLE OF BILL :
An act to amend the tax law, in relation to the eligibility of farmers
leasing land for the agricultural property tax credit


 PURPOSE :
This bill extends the eligibility of the farmer's school tax credit
program to include agricultural lands that are leased for at least a
five year period.

 SUMMARY OF PROVISIONS :
Section 1: Amends Tax Law section 210 (22) (a) & (b) to extend the
eligibility of the farmer's school tax credit program to include
agricultural lands that a farmer leases for at least 5 years.

Section 2: Amends Tax Law section 606 (n) (1) & (2) to extend the
eligibility of the farmer's school tax credit program to include
agricultural lands that a farmer leases for at least 5 years.

Section 3: Authorizes the Commissioner of Taxation and Finance to
promulgate rules to implement this act.

Section 4: Effective date.

 EXISTING LAW :
Under current law, a farmer must either own or possess real property
under a land contract before such farmer is eligible to obtain the
farmer's income tax credit for moneys paid for school property taxes.

 JUSTIFICATION :
As with the Agricultural Real Property Tax Assessment Program under
Article 25AA of the Agriculture & Markets Law, the Farmer's Income Tax
Credit Program should recognize the payment of school taxes that are
paid by farmers for land that is leased on a long term basis. The
nature of farming in the past 30 years has changed in that more and
more growers enter into long term leases for property to produce crops
instead of owning the land out right. This bill merely conforms the
provisions of the Farmer's Income Tax Credit Program with the
Agricultural Real Property Assessment Program authorized pursuant to
Article 25AA.

This bill should help to preserve open spaces in areas of the state
such as the Hudson Valley, Suffolk County, and suburban areas
surrounding other major metropolitan areas. In addition, the extension
of this tax credit law to include leased properties will not be abused
because the grower will still need to satisfy all of the other
requirements of the tax credit program including the farm income
eligibility requirements and the requirement that only eligible
agricultural lands may receive the tax benefit.

 LEGISLATIVE HISTORY :
S.236 of 2007/2008

 FISCAL IMPLICATIONS :
To be determined.

 LOCAL FISCAL IMPLICATIONS :
To be determined.

 EFFECTIVE DATE :
Immediate, provided however, that it shall apply to taxable years
commencing on or after the first of January next preceding the
effective date of this act.

2009-S657 (ACTIVE) - Bill Text download pdf

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

                                   657

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 12, 2009
                               ___________

Introduced  by  Sens. LARKIN, BONACIC, LEIBELL, LITTLE, MORAHAN, ROBACH,
  SALAND, SEWARD, YOUNG -- read twice  and  ordered  printed,  and  when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN  ACT  to amend the tax law, in relation to the eligibility of farmers
  leasing land for the agricultural property tax credit

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

  Section  1. Paragraphs (a) and (b) of subdivision 22 of section 210 of
the tax law, paragraph (a) as amended by chapter 315 of the laws of 1998
and paragraph (b) as amended by chapter 527 of the  laws  of  2003,  are
amended to read as follows:
  (a)  General.  In  the  case of a taxpayer which is an eligible farmer
[or], an eligible farmer [who] WHICH has paid taxes pursuant to  a  land
contract,  OR  AN  ELIGIBLE FARMER WHICH HAS A LEASEHOLD INTEREST OF NOT
FEWER THAN FIVE CONTINUOUS YEARS AS A LESSEE OF  QUALIFIED  AGRICULTURAL
PROPERTY,  there  shall  be  allowed  a  credit for the allowable school
district property taxes. The term "allowable  school  district  property
taxes"  means the school district property taxes paid during the taxable
year on qualified agricultural property, subject to the acreage  limita-
tion  provided in paragraph (e) of this subdivision and the income limi-
tation provided in paragraph (f) of this subdivision.
  (b) Eligible farmer.  For  purposes  of  this  subdivision,  the  term
"eligible farmer" means a taxpayer whose federal gross income from farm-
ing  for the taxable year is at least two-thirds of excess federal gross
income. The term "eligible farmer" also  includes  a  corporation  other
than  the  taxpayer  of record for qualified agricultural land which has
paid the school district property taxes  on  such  land  pursuant  to  a
contract  for  the future purchase of such land OR WHICH HAS A LEASEHOLD
INTEREST OF NOT FEWER THAN FIVE CONTINUOUS YEARS AS  A  LESSEE  OF  SUCH
LAND;  provided  that  such  corporation has a federal gross income from

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00564-02-9

S. 657                              2

farming for the taxable year which is  at  least  two-thirds  of  excess
federal  gross  income;  and  provided further that, in determining such
income eligibility, a taxpayer may, for any taxable year, use the  aver-
age  of such federal gross income from farming for that taxable year and
such income for the two consecutive taxable years immediately  preceding
such  taxable  year.    Excess  federal gross income means the amount of
federal gross income from all sources for the taxable year in excess  of
thirty thousand dollars.
  S  2.  Paragraphs  1 and 2 of subsection (n) of section 606 of the tax
law, paragraph 1 as amended by chapter 315 of the laws of 1998 and para-
graph 2 as amended by chapter 527 of the laws of 2003,  are  amended  to
read as follows:
  (1) General. In the case of a taxpayer who is an eligible farmer [or],
an eligible farmer who has paid taxes pursuant to a land contract, OR AN
ELIGIBLE  FARMER  WHO  HAS  A  LEASEHOLD INTEREST OF NOT FEWER THAN FIVE
CONTINUOUS YEARS AS A LESSEE OF QUALIFIED AGRICULTURAL  PROPERTY,  there
shall  be  allowed  a  credit for the allowable school district property
taxes. The term "allowable school district  property  taxes"  means  the
school district property taxes paid during the taxable year on qualified
agricultural  property,  subject  to  the acreage limitation provided in
paragraph five of this subsection and the income limitation provided  in
paragraph  six  of this subsection. Such credit shall be allowed against
the taxes imposed by this article for the taxable year  reduced  by  the
credits  permitted  by this article. If the credit exceeds the tax as so
reduced, the taxpayer may receive, and the  comptroller,  subject  to  a
certificate  of  the  commissioner, shall pay as an overpayment, without
interest, the amount of such excess.
  (2) Eligible farmer. For purposes of this subsection, the term "eligi-
ble farmer" means a taxpayer whose federal gross income from farming for
the taxable year is at least two-thirds of excess federal gross  income.
The  term  "eligible  farmer" also includes an individual other than the
taxpayer of record for qualified agricultural  land  who  has  paid  the
school  district  property taxes on such land pursuant to a contract for
the future purchase of such land OR WHO HAS A LEASEHOLD INTEREST OF  NOT
FEWER THAN FIVE CONTINUOUS YEARS AS A LESSEE OF SUCH LAND; provided that
such  individual has a federal gross income from farming for the taxable
year which is at least two-thirds of excess federal  gross  income;  and
provided further that, in determining such income eligibility, a taxpay-
er  may,  for  any  taxable  year, use the average of such federal gross
income from farming for that taxable year and such income  for  the  two
consecutive  taxable  years  immediately  preceding  such  taxable year.
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. For
purposes of this paragraph, the term "earned income" [shall mean]  MEANS
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.
  S  3.  The  commissioner  of  taxation  and  finance is authorized and
directed to promulgate any rules and regulations necessary to  implement
the provisions of this act.
  S 4. This act shall take effect immediately and shall apply to taxable
years  commencing  on  or after the first of January next succeeding the
date on which it shall have taken effect.

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