The New York State Senate

 
                     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.