NY State Senate Bill 2017-S2909A

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 23, 2018	print number 2909a
Feb 23, 2018	amend and recommit to investigations and government operations
Jan 03, 2018	referred to investigations and government operations
Jan 18, 2017	referred to investigations and government operations

Bill Amendments

Original

A (Active)

co-Sponsors

2017-S2909 - Details

See Assembly Version of this Bill:: A4477
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §612, Tax L
Versions Introduced in 2015-2016 Legislative Session:: S6707, A9466

2017-S2909 - Summary

Relates to the tax treatment of farm income of certain farm business taxpayers.

2017-S2909 - Sponsor Memo

                                 BILL NUMBER:  S2909

 TITLE OF BILL :  An act to amend the tax law, in relation to the tax
treatment of farm income of certain farm business taxpayers

 PURPOSE :

Increases the personal income tax exemption currently available to
farm businesses from 5 percent to 20 percent for farm income;
Eliminates the current employee qualification and raises the income
eligibility thresh-old from $250,000 in farm income to $350,000 in
farm income.

 SUMMARY OF PROVISIONS :

Section 1 amends the Personal Income Tax, Section 612 of the Tax Law
to increase the exemption of farm income from 5 percent to 20 percent
for farm businesses (sole proprietors, LLCs, partnerships and
S-corporations) and raises the farm income eligibility from $250,000
to $350,000. There is no employment requirement for farm businesses to
receive this exemption.

Section 2 is the effective date.

 JUSTIFICATION :

New York's family farms are struggling to maintain their viability
with ever-increasing costs and market pressures from outside of the
state. Reducing the cost of doing business will help New York's farm
economy grow and remain competitive.

The FY 2014 Enacted Budget included a Senate sponsored Personal Income
Tax exemption for small businesses and small farms. The exemption is
equal to five percent of net income in 2016 and beyond. To qualify,
the business must be a sole proprietor or farm (regardless of how the
business is structured, sole proprietor, LLC, etc.), have less than.
$250,000 in net business income and employ at least one employee.

This increase in the exemption will build on the progress we have
already made and will help New York's family farms remain an integral
part of the State's economy for generations to come.

 LEGISLATIVE HISTORY :

2016: S.6707 Passed the Senate/A.9466 Referred to Ways and Means.

 FISCAL IMPLICATIONS :

This bill will reduce personal income taxes for farmers by $5 million
annually, beginning in SFY 2017-18.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.

2017-S2909 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2909
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 18, 2017
                                ___________
 
 Introduced  by  Sens.  RITCHIE, O'MARA, SERINO -- 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 the tax  treatment  of  farm
   income of certain farm business taxpayers

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 39 of subsection (c) of section 612  of  the  tax
 law,  as added by section 1 of part Y of chapter 59 of the laws of 2013,
 is amended to read as follows:
   (39) (A) In the case of a taxpayer who is a  small  business  who  has
 business  income  [and/or  farm  income]  as  defined in the laws of the
 United States, an amount equal to three percent  of  the  net  items  of
 income, gain, loss and deduction attributable to such business [or farm]
 entering into federal adjusted gross income, but not less than zero, for
 taxable  years beginning after two thousand thirteen, an amount equal to
 three and three-quarters percent of the net items of income, gain,  loss
 and  deduction  attributable  to  such  business [or farm] entering into
 federal adjusted gross income, but not less than zero, for taxable years
 beginning after two thousand fourteen,  and  an  amount  equal  to  five
 percent  of  the net items of income, gain, loss and deduction attribut-
 able to such business [or farm] entering  into  federal  adjusted  gross
 income,  but  not  less than zero, for taxable years beginning after two
 thousand fifteen. For the purposes of this  paragraph,  the  term  small
 business  shall  mean a sole proprietor [or a farm business] who employs
 one or more persons during the taxable year and  who  has  net  business
 income  [or  net  farm  income]  of less than two hundred fifty thousand
 dollars.
   (B) IN THE CASE OF A TAXPAYER WHO IS A FARM BUSINESS OR A TAXPAYER WHO
 IS A MEMBER, PARTNER, OR SHAREHOLDER OF  A  LIMITED  LIABILITY  COMPANY,
 PARTNERSHIP,  OR  NEW  YORK  S CORPORATION, RESPECTIVELY, THAT IS A FARM
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08239-01-7

 S. 2909                             2
 
 BUSINESS, WHO OR WHICH HAS FARM INCOME AS DEFINED BY  THE  LAWS  OF  THE
 UNITED  STATES,  AN  AMOUNT  EQUAL TO TWENTY PERCENT OF THE NET ITEMS OF
 INCOME, GAIN, LOSS AND DEDUCTION ATTRIBUTABLE  TO  SUCH  FARM.  FOR  THE
 PURPOSES  OF  THIS  PARAGRAPH,  THE TERM FARM BUSINESS SHALL MEAN A FARM
 BUSINESS THAT HAS NET FARM INCOME OF LESS THAN THREE HUNDRED FIFTY THOU-
 SAND DOLLARS.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.

co-Sponsors

2017-S2909A (ACTIVE) - Details

See Assembly Version of this Bill:: A4477
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §612, Tax L
Versions Introduced in 2015-2016 Legislative Session:: S6707, A9466

2017-S2909A (ACTIVE) - Summary

Relates to the tax treatment of farm income of certain farm business taxpayers.

2017-S2909A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2909A

SPONSOR: RITCHIE
 
TITLE OF BILL:

An act to amend the tax law, in relation to the tax treatment of farm
income of certain farm business taxpayers

 
PURPOSE:

Increases the personal income tax exemption currently available to farm
businesses from 5 percent to 20 percent for farm income; Eliminates the
current employee qualification and raises the income eligibility thresh-
old from $250,000 in farm income to $350,000 in farm income.

 
SUMMARY OF PROVISIONS:

Section 1 amends the Personal Income Tax, Section 612 of the Tax Law to
increase the exemption of farm income from 5 percent to 20 percent for
farm businesses (sole proprietors, LLCs, partnerships and S-corpora-
tions) and raises the farm income eligibility from $250,000 to $350,000.

There is no employment requirement for farm businesses to receive this
exemption.

Section 2 is the effective date.

 
JUSTIFICATION:

New York's family farms are struggling to maintain their viability with
ever-increasing costs and market pressures from outside of the state.
Reducing the cost of doing business will help New York's farm economy
grow and remain competitive.

The FY 2014 Enacted Budget included a Senate sponsored Personal Income
Tax exemption for small businesses and small farms. The exemption is
equal to five percent of net income in 2016 and beyond. To qualify, the
business must be a sole proprietor or farm (regardless of how the busi-
ness is structured, sole proprietor, LLC, etc.), have less than $250,000
in net business income and employ at least one employee.  This increase
in the exemption will build on the progress we have already made and
will help New York's family farms remain an integral part of the State's
economy for generations to come.

 
LEGISLATIVE HISTORY:

2016: S.6707 Passed the Senate/A.9466 Referred to Ways and Means.

 
FISCAL IMPLICATIONS:

This bill will reduce personal income taxes for farmers by $5 million
annually, beginning in SFY 2017-18.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2019.

2017-S2909A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2909--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 18, 2017
                                ___________
 
 Introduced  by  Sens.  RITCHIE, O'MARA, SERINO -- read twice and ordered
   printed, and when printed to be committed to the Committee on Investi-
   gations and Government Operations -- recommitted to the  Committee  on
   Investigations  and  Government  Operations  in accordance with Senate
   Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN  ACT  to  amend the tax law, in relation to the tax treatment of farm
   income of certain farm business taxpayers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  39 of subsection (c) of section 612 of the tax
 law, as added by section 1 of part Y of chapter 59 of the laws of  2013,
 is amended to read as follows:
   (39)  (A)  In  the  case of a taxpayer who is a small business who has
 business income [and/or farm income] as  defined  in  the  laws  of  the
 United  States,  an  amount  equal  to three percent of the net items of
 income, gain, loss and deduction attributable to such business [or farm]
 entering into federal adjusted gross income, but not less than zero, for
 taxable years beginning after two thousand thirteen, an amount equal  to
 three  and three-quarters percent of the net items of income, gain, loss
 and deduction attributable to such  business  [or  farm]  entering  into
 federal adjusted gross income, but not less than zero, for taxable years
 beginning  after  two  thousand  fourteen,  and  an amount equal to five
 percent of the net items of income, gain, loss and  deduction  attribut-
 able  to  such  business  [or farm] entering into federal adjusted gross
 income, but not less than zero, for taxable years  beginning  after  two
 thousand  fifteen.  For  the  purposes of this paragraph, the term small
 business shall mean a sole proprietor [or a farm business]  who  employs
 one  or  more  persons  during the taxable year and who has net business
 income [or net farm income] of less  than  two  hundred  fifty  thousand
 dollars.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08239-02-8

 S. 2909--A                          2
 
   (B) IN THE CASE OF A TAXPAYER WHO IS A FARM BUSINESS OR A TAXPAYER WHO
 IS  A  MEMBER,  PARTNER,  OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY,
 PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY,  THAT  IS  A  FARM
 BUSINESS,  WHO  OR  WHICH  HAS FARM INCOME AS DEFINED BY THE LAWS OF THE
 UNITED  STATES,  AN  AMOUNT  EQUAL TO TWENTY PERCENT OF THE NET ITEMS OF
 INCOME, GAIN, LOSS AND DEDUCTION ATTRIBUTABLE  TO  SUCH  FARM.  FOR  THE
 PURPOSES  OF  THIS  PARAGRAPH,  THE TERM FARM BUSINESS SHALL MEAN A FARM
 BUSINESS THAT HAS NET FARM INCOME OF LESS THAN THREE HUNDRED FIFTY THOU-
 SAND DOLLARS.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2019.

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Senate Bill S2909A

Sponsored By

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

Bill Amendments

co-Sponsors

2017-S2909 - Details

2017-S2909 - Summary

2017-S2909 - Sponsor Memo

2017-S2909 - Bill Text download pdf

co-Sponsors

2017-S2909A (ACTIVE) - Details

2017-S2909A (ACTIVE) - Summary

2017-S2909A (ACTIVE) - Sponsor Memo

2017-S2909A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2909A

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Sponsored By

Patty Ritchie

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

Bill Amendments

co-Sponsors

Thomas F. O'Mara

Susan Serino

2017-S2909 - Details

2017-S2909 - Summary

2017-S2909 - Sponsor Memo

2017-S2909 - Bill Text download pdf

co-Sponsors

Thomas F. O'Mara

Susan Serino

2017-S2909A (ACTIVE) - Details

2017-S2909A (ACTIVE) - Summary

2017-S2909A (ACTIVE) - Sponsor Memo

2017-S2909A (ACTIVE) - Bill Text download pdf

Comments