senate Bill S7551

2011-2012 Legislative Session

Creates an agricultural crop loss personal income tax credit

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 01, 2012 referred to investigations and government operations

Co-Sponsors

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S7551 - Bill Details

See Assembly Version of this Bill:
A10811
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง606, Tax L

S7551 - Bill Texts

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Creates an agricultural crop loss personal income tax credit.

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BILL NUMBER:S7551 REVISED 06/04/12

TITLE OF BILL:
An act
to amend the tax law, in relation to establishing an agricultural crop
loss personal income tax credit

PURPOSE:
The bill establishes a refundable personal income tax credit to
farmers for the loss of certain crops as a result of frost for the
2012 taxable year.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Amends Section 606 of the Tax Law by adding a new
subsection (uu) which establishes an agricultural crop loss
refundable personal income tax credit to farmers for the loss or
damage of certain agricultural crops as a result of frost injury in
2012. To be eligible for the credit, a taxpayer must derive at least
two-thirds of reported federal gross income from farming for the
taxable year. The amount of the credit is equal to thirty-five
percent of the average value of the unit of production for New York
State as reported by the USDA National Agricultural Statistics
Service for 2011, multiplied by a taxpayer's acreage in production,
including newly planted acreage, for the 2012 growing season.

Subsection (2) specifies that if the amount of the credit exceeds the
taxpayer's tax for such year, the excess shall be treated as an
overpayment of tax to be credited or refunded without having accrued
interest.

Subsection (3) defines which damaged crops a taxpayer may receive a
tax credit for and includes: fruits, including apples, peaches,
grapes, cherries and berries; vegetables, including tomatoes, snap
beans, cabbage, carrots, beets and onions; and potatoes and dry beans.

Section 2. Specifies that the effective date shall be immediately.

JUSTIFICATION:
At the beginning of the 2012 growing season, New York State's farmers
experienced widespread damage and loss to their crops as a result of
an extremely rare severe frost event.
Upon initial notification, elected officials and farm organizations
immediately requested that the Governor contact the USDA Secretary of
Agriculture and ask that a disaster declaration be issued for
counties where farmers experienced damage to their crops. In doing
so, farmers in counties that receive such a designation would be
eligible for low-cost loans if their losses exceed the established
threshold, as evaluated by the USDA's Farm Service Agency.

However, preliminary damage assessment estimates indicate that New
York has experienced one of the worst statewide, multi-crop losses

ever witnessed in the State. Cornell's Lake Erie Regional
Research.Laboratory has estimated crop losses for grapes at 40%-50%,
cherries at 100%, peaches at 90%, and apples at 50%. While the level
of crop loss varies based on the region of the State, elevation, and
the crop's stage of growth, there is no doubt that there is a high
probability that many farmers will face severe economic losses.

As a result, this legislation is vitally necessary to allow the
State's farm operations and their families an opportunity to be
economically viable as they plan for next year's growing season.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
Undetermined at this time.

EFFECTIVE DATE:
Effective immediately.

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

                                  7551

                            I N  S E N A T E

                              June 1, 2012
                               ___________

Introduced  by Sens. RITCHIE, FARLEY, SEWARD, MAZIARZ, GRISANTI, SALAND,
  GOLDEN, YOUNG, O'MARA, LITTLE, NOZZOLIO, GALLIVAN, RANZENHOFER -- 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 establishing an agricultural
  crop loss personal income tax credit

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

  Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
subsection (uu) to read as follows:
  (UU)  AGRICULTURAL  CROP  LOSS  TAX CREDIT. (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 LOSS OR DAMAGE OF
ELIGIBLE  CROPS  AS A RESULT OF FROST INJURY FOR THE TAXABLE YEAR BEGIN-
NING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE AND ENDING ON DECEM-
BER THIRTY-FIRST, TWO THOUSAND TWELVE. THE AMOUNT OF THE CREDIT SHALL BE
EQUAL TO THIRTY-FIVE PERCENT  OF  THE  AVERAGE  VALUE  OF  THE  UNIT  OF
PRODUCTION  FOR NEW YORK STATE AS REPORTED BY THE USDA NATIONAL AGRICUL-
TURAL STATISTICS SERVICE FOR TWO THOUSAND ELEVEN, MULTIPLIED BY  ACREAGE
IN  PRODUCTION,  INCLUDING  NEWLY  PLANTED ACREAGE, FOR THE TWO THOUSAND
TWELVE GROWING SEASON.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS  SUBSECTION  FOR  SUCH 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.
  (3) FOR THE PURPOSES OF THIS  SUBSECTION,  THE  TERM  "ELIGIBLE  CROP"
SHALL  MEAN: (A) FRUITS, INCLUDING APPLES, PEACHES, GRAPES, CHERRIES AND
BERRIES,  (B)  VEGETABLES,  INCLUDING  TOMATOES,  SNAP  BEANS,  CABBAGE,
CARROTS, BEETS AND ONIONS, AND (C) POTATOES AND DRY BEANS.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD16115-01-2

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