Senate Bill S3711

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 3711                                                  A. 5504
 
                        2019-2020 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                             February 13, 2019
                                ___________
 
 IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
   ed,  and  when  printed to be committed to the Committee on Budget and
   Revenue
 
 IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once  and  referred
   to the Committee on Ways and Means

 AN  ACT  to amend the tax law, in relation to granting an exclusion from
   transfer taxes for certain farmland and land of conservation value
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This act shall be known and may be cited as the "farmland
 and open space preservation act of 2019".
   § 2. Section 951-a of the  tax  law  is  amended  by  adding  two  new
 subsections (g) and (h) to read to follows:
   (G)  THE  TERM "FARM OPERATION" SHALL HAVE THE SAME MEANING AS DEFINED
 IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED ONE  OF  THE  AGRICULTURE
 AND MARKETS LAW.
   (H) THE TERM "CONSERVATION EASEMENT" SHALL MEAN AN EASEMENT, COVENANT,
 RESTRICTION, OR OTHER INTEREST IN REAL PROPERTY ACQUIRED FOR THE PRESER-
 VATION  OF AGRICULTURAL LANDS USED IN BONA FIDE AGRICULTURAL PRODUCTION,
 PURSUANT TO SECTION TWO HUNDRED FORTY-SEVEN  OF  THE  GENERAL  MUNICIPAL
 LAW.
   §  3.  Subsection  (a)  of  section  954 of the tax law, as amended by
 section 3 of part X of chapter 59 of the laws of 2014,  paragraph  3  as
 amended  by  section  2 of part BB of chapter 59 of the laws of 2015, is
 amended to read as follows:
   (a) General.-- The New York gross estate of a deceased resident  means
 his  or her federal gross estate as defined in the internal revenue code
 (whether or not a federal estate tax return is  required  to  be  filed)
 modified as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03251-01-9
              

 S. 3711                             2                            A. 5504
 
   (1)  Reduced by the value of real or tangible personal property having
 an actual situs outside New York state.
   (1-A)  REDUCED  BY  THE  VALUE  OF REAL PROPERTY SITUATED IN THE STATE
 WHICH, ON THE DATE OF THE DECEDENT'S DEATH WAS LAND USED IN SUPPORT OF A
 FARM OPERATION; UPON WHICH THERE WAS A CONSERVATION  EASEMENT;  OR  UPON
 WHICH  THERE  WAS A COVENANT RESTRICTING THE USE OF THE LAND TO AGRICUL-
 TURAL OR NATURAL RESOURCE CONSERVATION PURPOSES.
   (2) Increased by the amount  determined  under  section  nine  hundred
 fifty-seven  of  this  part  (relating  to limited powers of appointment
 created prior to September first, nineteen hundred thirty).
   (3) Increased by the amount of any taxable gift under section 2503  of
 the  internal  revenue  code  not  otherwise  included in the decedent's
 federal gross estate, made during the three year period  ending  on  the
 decedent's  date of death, but not including any gift made: (A) when the
 decedent was not a resident of New York state;  [or]  (B)  before  April
 first, two thousand fourteen; [or] (C) that is real or tangible personal
 property  having  an actual situs outside New York state at the time the
 gift was made[.  Provided, however that this paragraph shall  not  apply
 to  the  estate of a decedent dying on or after January first, two thou-
 sand nineteen]; (D) OR THAT IS REAL PROPERTY USED IN SUPPORT OF  A  FARM
 OPERATION,  SUBJECT TO A CONSERVATION EASEMENT, OR SUBJECT TO A RESTRIC-
 TIVE COVENANT AS DESCRIBED IN PARAGRAPH ONE-A OF THIS SUBSECTION.
   § 4. The tax law is amended by adding a new section 954-a to  read  as
 follows:
   §  954-A.  ADDITIONAL TAX IF LAND USED IN SUPPORT OF A FARM OPERATION,
 SUBJECT TO A CONSERVATION EASEMENT, OR SUBJECT TO A RESTRICTIVE COVENANT
 AS DESCRIBED IN PARAGRAPH  ONE-A  OF  SUBSECTION  (A)  OF  SECTION  NINE
 HUNDRED  FIFTY-FOUR  OF  THIS  PART IS NO LONGER USED FOR SUCH PURPOSES.
 (A) IF, AT ANY TIME AFTER THE DECEDENT'S DEATH AND BEFORE THE  DEATH  OF
 THE  HEIR,  THE HEIR: (1) DISPOSES OF ANY INTEREST IN REAL PROPERTY THAT
 IS USED IN SUPPORT OF A FARM OPERATION, SUBJECT TO A CONSERVATION  EASE-
 MENT,  OR  SUBJECT  TO  A RESTRICTIVE COVENANT AS DESCRIBED IN PARAGRAPH
 ONE-A OF SUBSECTION (A) OF SECTION NINE HUNDRED FIFTY-FOUR OF THIS  PART
 AND   THE   PERSON  ACQUIRING  SUCH  INTEREST  IS  NOT  SUBJECT  TO  THE
 RESTRICTIONS ON USE DESCRIBED IN PARAGRAPH ONE-A OF  SUBSECTION  (A)  OF
 SECTION  NINE HUNDRED FIFTY-FOUR OF THIS PART, OR (2) THE HEIR USES SUCH
 LAND IN ANY MANNER WHICH VIOLATES THE TERMS OF SUCH  RESTRICTION,  THEN,
 THERE IS HEREBY IMPOSED AN ADDITIONAL ESTATE TAX.
   (B)  THE AMOUNT OF THE ADDITIONAL TAX IMPOSED BY THIS SECTION SHALL BE
 THE AMOUNT EQUAL TO THE EXCESS OF WHAT WOULD HAVE BEEN  THE  ESTATE  TAX
 LIABILITY   BUT  FOR  THE  REDUCTION  PROVIDED  IN  PARAGRAPH  ONE-A  OF
 SUBSECTION (A) OF SECTION NINE HUNDRED FIFTY-FOUR OF THIS PART.
   § 5. Section 982 of the tax law is amended by adding a new  subsection
 (a-1) to read as follows:
   (A-1) FARMLAND AND CONSERVATION LAND EXCLUSION. AN AMOUNT EQUAL TO THE
 ADJUSTED  VALUE  ATTRIBUTABLE TO REAL PROPERTY USED IN SUPPORT OF A FARM
 OPERATION, SUBJECT TO A CONSERVATION EASEMENT, OR SUBJECT TO A  RESTRIC-
 TIVE  COVENANT  AS  DESCRIBED  IN  PARAGRAPH  ONE-A OF SUBSECTION (A) OF
 SECTION NINE HUNDRED FIFTY-FOUR OF THIS ARTICLE SHALL BE A LIEN IN FAVOR
 OF THE STATE.
   § 6. This act shall take effect immediately.