Bill Text: NY A01702 | 2019-2020 | General Assembly | Introduced


Bill Title: 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.

Spectrum: Strong Partisan Bill (Republican 12-1)

Status: (Introduced) 2019-01-16 - referred to ways and means [A01702 Detail]

Download: New_York-2019-A01702-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          1702
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 16, 2019
                                       ___________
        Introduced by M. of A. HAWLEY, CROUCH, McDONOUGH, PALMESANO, DiPIETRO --
          Multi-Sponsored  by -- M. of A. FINCH, KOLB, RAIA, 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:
     1    Section 1. Paragraphs (a) and (b) of subdivision 11 of  section  210-B
     2  of  the  tax  law, as added by section 17 of part A of chapter 59 of the
     3  laws of 2014, are amended to read as follows:
     4    (a) General. In the case of a taxpayer which  is  an  eligible  farmer
     5  [or],  an  eligible farmer [who] which has paid taxes pursuant to a land
     6  contract or an eligible farmer which has a  leasehold  interest  of  not
     7  fewer  than  five continuous years as a lessee of qualified agricultural
     8  property, there shall be allowed  a  credit  for  the  allowable  school
     9  district  property  taxes.  The term "allowable school district property
    10  taxes" means the school district property taxes paid during the  taxable
    11  year  on qualified agricultural property, subject to the acreage limita-
    12  tion provided in paragraph (e) of this subdivision and the income  limi-
    13  tation provided in paragraph (f) of this subdivision.
    14    (b)  Eligible  farmer.  For  purposes  of  this  subdivision, the term
    15  "eligible farmer" means a taxpayer whose federal gross income from farm-
    16  ing for the taxable year is at least two-thirds of excess federal  gross
    17  income.  The  term  "eligible  farmer" also includes a corporation other
    18  than the taxpayer of record for qualified agricultural  land  which  has
    19  paid  the  school  district  property  taxes on such land or which has a
    20  leasehold interest of not fewer than five continuous years as  a  lessee
    21  of  such  land  pursuant  to  a contract for the future purchase of such
    22  land; provided that such corporation has a  federal  gross  income  from
    23  farming  for  the  taxable  year  which is at least two-thirds of excess
    24  federal gross income; and provided further  that,  in  determining  such
    25  income  eligibility, a taxpayer may, for any taxable year, use the aver-
    26  age of such federal gross income from farming for that taxable year  and
    27  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.
                                                                   LBD02077-01-9

        A. 1702                             2
     1  such taxable year.   Excess federal gross income  means  the  amount  of
     2  federal  gross income from all sources for the taxable year in excess of
     3  thirty thousand dollars. For the purposes of  this  paragraph,  payments
     4  from  the  state's  farmland  protection  program,  administered  by the
     5  department of agriculture and markets,  shall  be  included  as  federal
     6  gross income from farming for otherwise eligible farmers.
     7    §  2.  Paragraphs  1 and 2 of subsection (n) of section 606 of the tax
     8  law, paragraph 1 as amended by chapter 315 of the laws of 1998 and para-
     9  graph 2 as amended by chapter 297 of the laws of 2010,  are  amended  to
    10  read as follows:
    11    (1) General. In the case of a taxpayer who is an eligible farmer [or],
    12  an eligible farmer who has paid taxes pursuant to a land contract, or an
    13  eligible  farmer  who  has  a  leasehold interest of not fewer than five
    14  continuous years as a lessee of qualified agricultural  property,  there
    15  shall  be  allowed  a  credit for the allowable school district property
    16  taxes. The term "allowable school district  property  taxes"  means  the
    17  school district property taxes paid during the taxable year on qualified
    18  agricultural  property,  subject  to  the acreage limitation provided in
    19  paragraph five of this subsection and the income limitation provided  in
    20  paragraph  six  of this subsection. Such credit shall be allowed against
    21  the taxes imposed by this article for the taxable year  reduced  by  the
    22  credits  permitted  by this article. If the credit exceeds the tax as so
    23  reduced, the taxpayer may receive, and the  comptroller,  subject  to  a
    24  certificate  of  the  commissioner, shall pay as an overpayment, without
    25  interest, the amount of such excess.
    26    (2) Eligible farmer. For purposes of this subsection, the term "eligi-
    27  ble farmer" means a taxpayer whose federal gross income from farming for
    28  the taxable year is at least two-thirds of excess federal gross  income.
    29  The  term  "eligible  farmer" also includes an individual other than the
    30  taxpayer of record for qualified agricultural  land  who  has  paid  the
    31  school  district  property taxes on such land pursuant to a contract for
    32  the future purchase of such land or who has a leasehold interest of  not
    33  fewer than five continuous years as a lessee of such land; provided that
    34  such  individual has a federal gross income from farming for the taxable
    35  year which is at least two-thirds of excess federal  gross  income;  and
    36  provided further that, in determining such income eligibility, a taxpay-
    37  er  may,  for  any  taxable  year, use the average of such federal gross
    38  income from farming for that taxable year and such income  for  the  two
    39  consecutive  taxable  years  immediately  preceding  such  taxable year.
    40  Excess federal gross income means the amount  of  federal  gross  income
    41  from  all sources for the taxable year reduced by the sum (not to exceed
    42  thirty thousand dollars) of those items included in federal gross income
    43  which consist of (i) earned income,  (ii)  pension  payments,  including
    44  social  security  payments,  (iii)  interest,  and  (iv)  dividends. For
    45  purposes of this paragraph, the term "earned income" [shall mean]  means
    46  wages,  salaries,  tips and other employee compensation, and those items
    47  of gross income which are includible in the computation of net  earnings
    48  from  self-employment. For the purposes of this paragraph, payments from
    49  the state's farmland protection program, administered by the  department
    50  of  agriculture  and  markets, shall be included as federal gross income
    51  from farming for otherwise eligible farmers.
    52    § 3. This act shall take effect immediately and shall apply to taxable
    53  years commencing on or after January 1, 2021.  Effective immediately the
    54  addition, amendment and/or repeal of any rule  or  regulation  necessary
    55  for  the implementation of this act on its effective date are authorized
    56  to be made on or before such date.
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