S T A T E O F N E W Y O R K
________________________________________________________________________
5722
2021-2022 Regular Sessions
I N A S S E M B L Y
February 24, 2021
___________
Introduced by M. of A. HAWLEY, McDONOUGH, PALMESANO, DiPIETRO, MORINEL-
LO, ASHBY, SALKA, NORRIS -- Multi-Sponsored 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 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 11 of section 210-B
of the tax law, as added by section 17 of part A of chapter 59 of the
laws of 2014, 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 OR WHICH HAS A
LEASEHOLD INTEREST OF NOT FEWER THAN FIVE CONTINUOUS YEARS AS A LESSEE
OF SUCH LAND pursuant to a contract for the future purchase 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
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02076-01-1
A. 5722 2
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.
§ 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.
§ 3. This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2023. Effective immediately the
addition, amendment and/or repeal of any rule or regulation necessary
for the implementation of this act on its effective date are authorized
to be made on or before such date.