senate Bill S2294

2013-2014 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 Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to investigations and government operations
Jan 15, 2013 referred to investigations and government operations

Co-Sponsors

S2294 - Bill Details

See Assembly Version of this Bill:
A327
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยงยง210 & 606, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S4962, A1399
2009-2010: A988

S2294 - Bill Texts

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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.

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BILL NUMBER:S2294

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

SUMMARY OF PROVISIONS:

Section 1 defines farmers claiming the credit against the Corporate
Franchise Tax as those who lease land for at least five continuous
years.

Section 2 defines farmers claiming the credit against the Personal
Income Tax as those who lease land for at least five continuous years.

Section 3 gives the Commissioner of Taxation and Finance the authority
to make any rules and regulations that are deemed necessary.

Section 4 authorizes this act to take effect immediately and apply to
taxable years commencing on or after January 1, 2010.

JUSTIFICATION: Under current law, a farmer must own real property in
order to qualify for the farmer's income tax credit for monies paid
for school property taxes. This proposal would extend eligibility to
farmers who lease agricultural lands for at least five continuous
years. This proposal would not only provide S2 million in tax relief
for New York's Agricultural industry, but it would also enhance access
to farmland and open space preservation.

LEGISLATIVE HISTORY: 2007: A.5362 02/15/07 Referred to Ways and Means
11/16/07 Amend and Recommit to Ways and Means 11/16/07 Print Number
5362a 01/09/08 Referred to Ways and Means 06/19/08 Held for
Consideration in Ways and Means 07/01/10 Held for Consideration in
Ways and Means

FISCAL IMPLICATIONS: This bill will decrease State Revenues by $2
million,

EFFECTIVE DATE: This act shall take effect immediately and apply to
taxable years commencing on or after January 1, 2015.

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

                                  2294

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 15, 2013
                               ___________

Introduced  by  Sen.  BALL  --  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 297 of the laws of 2010, 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
farming  for  the  taxable  year  which is at least two-thirds of excess

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00198-01-3

S. 2294                             2

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. 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 for otherwise eligible farmers.
  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 297 of the laws of 2010,  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. 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 for otherwise eligible farmers.

S. 2294                             3

  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 January 1, 2015.

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