Bill Text: NY S00961 | 2019-2020 | General Assembly | Introduced
Bill Title: Establishes a working farmland property tax credit for owners of agricultural assessment land within agricultural districts.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Introduced - Dead) 2019-01-09 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S00961 Detail]
Download: New_York-2019-S00961-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 961 2019-2020 Regular Sessions IN SENATE January 9, 2019 ___________ Introduced by Sens. YOUNG, FUNKE, ORTT, RANZENHOFER, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law, the general municipal law, the real proper- ty tax law and the agriculture and markets law, in relation to the establishment of a working farmland property tax credit for owners of agricultural assessment land within agricultural districts The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative intent. The legislature hereby finds, deter- 2 mines and declares that the New York agriculture industry has a substan- 3 tial impact on the overall economic health and well-being of the state. 4 The state constitution provides that the policy of the state shall be to 5 encourage the development and improvement of its agricultural lands for 6 the production of food and other agricultural products. The activities 7 of farmers and the protection of viable farmland provide many environ- 8 mental benefits to society, such as open space, scenic vistas, wetlands 9 that aid in water purification, plants that purify air, and food, water 10 and habitat for people, domestic animals and wildlife. Therefore, it is 11 in the public interest to encourage the maintenance of existing farmland 12 and agricultural lands for farming purposes, thereby helping to ensure 13 the continued economic viability of farm operations. 14 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 15 sion 11-a to read as follows: 16 11-a. Working farmland property tax credit. (a) General. In the case 17 of a taxpayer that owns agricultural assessment land which is eligible 18 for the working farmland property tax credit established pursuant to 19 article eighteen-D of the general municipal law and an agricultural 20 district established pursuant to article twenty-five-AA of the agricul- 21 ture and markets law, and the taxpayer has executed a covenant to 22 restrict the use of such land pursuant to section nine hundred seventy- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03011-01-9S. 961 2 1 two-g of the general municipal law, there shall be allowed a credit for 2 the school district, town and county property taxes paid during the 3 taxable year on such land; provided, however, that the amount of the 4 credit shall be limited to the taxes paid on the agricultural assessment 5 value of such land as calculated by the assessor pursuant to section 6 three hundred five or three hundred six of the agriculture and markets 7 law. In the event that agricultural assessment land is removed from an 8 agricultural district pursuant to article twenty-five-AA of the agricul- 9 ture and markets law, a taxpayer that owns such land shall continue to 10 be eligible for the credit provided by this subdivision for the remain- 11 der of the term of the eight year covenant. 12 (b) School district property taxes. For purposes of this subdivision, 13 the term "school district property taxes" means all property taxes, 14 special ad valorem levies and special assessments, exclusive of penal- 15 ties and interest, levied for school district purposes on the agricul- 16 tural assessment land owned by the taxpayer. 17 (c) Town and county property taxes. For purposes of this subdivision, 18 the term "town and county property taxes" means all property taxes, 19 special ad valorem levies and special assessments, exclusive of penal- 20 ties and interest, levied for town and county purposes on the agricul- 21 tural assessment land owned by the taxpayer. 22 (d) Agricultural assessment land. The term "agricultural assessment 23 land" means land which receives or is eligible to receive an agricul- 24 tural assessment for the taxable year pursuant to section three hundred 25 five or three hundred six of the agriculture and markets law. Agricul- 26 tural assessment land also includes land set aside or retired under a 27 federal supply management or soil conservation program. 28 (e) Nonqualified use of agricultural assessment land. (1) No credit in 29 conversion year. In the event that agricultural assessment land, or any 30 portion of such land, is converted to nonqualified use, credit under 31 this subdivision shall not be allowed with respect to such property for 32 the taxable year of conversion (the conversion year). 33 (2) Credit recapture. If the conversion of agricultural assessment 34 land, or any portion of such land, to nonqualified use occurs during the 35 period of the eight taxable years following the taxable year for which 36 the credit under this subdivision was last claimed with respect to such 37 property, the credits allowed with respect to such property for the 38 taxable years prior to the conversion year, multiplied by two hundred 39 percent, must be added back in the conversion year. 40 (3) Exception to recapture. Subparagraph two of this paragraph shall 41 not apply to the conversion of land where the conversion is by reason of 42 involuntary conversion, within the meaning of section one thousand thir- 43 ty-three of the internal revenue code. 44 (4) Conversion to nonqualified use. For purposes of this paragraph, 45 conversion to nonqualified use shall mean that such land is converted to 46 a use which would disqualify such land for an agricultural assessment 47 under section three hundred five or three hundred six of the agriculture 48 and markets law. 49 (f) In no event shall the credit provided in this subdivision be 50 allowed in an amount which will reduce the tax payable to less than the 51 higher of the amounts prescribed in paragraphs (b) and (c) of subdivi- 52 sion one of this section. If, however, the amount of credit allowable 53 under this subdivision for any taxable year reduces the tax to such 54 amount, any amount of credit not deductible in such taxable year may be 55 carried over to the following year or years and may be deducted from 56 the taxpayer's tax for such year or years. Provided, however, in lieu ofS. 961 3 1 carrying over the unused portion of such credit, the taxpayer may elect 2 to treat such unused portion as an overpayment of tax to be credited or 3 refunded in accordance with the provisions of section one thousand 4 eighty-six of this chapter except that no interest shall be paid on such 5 overpayment. 6 (g) A taxpayer shall reduce credits claimed under this subdivision by 7 any credits claimed under subdivision eleven of this section for the 8 taxable year. 9 § 3. Section 606 of the tax law is amended by adding a new subsection 10 (n-3) to read as follows: 11 (n-3) Working farmland property tax credit. (1) General. In the case 12 of a taxpayer that owns agricultural assessment land which is located in 13 an agricultural district established pursuant to article twenty-five-AA 14 of the agriculture and markets law, and the taxpayer has executed a 15 covenant to restrict the use of such land pursuant to section nine 16 hundred seventy-two-g of the general municipal law, there shall be 17 allowed a credit for the school district, town and county property taxes 18 paid during the taxable year on such land; provided, however, that the 19 amount of the credit shall be limited to the taxes paid on the agricul- 20 tural assessment value of such land as calculated by the assessor pursu- 21 ant to section three hundred five or three hundred six of the agricul- 22 ture and markets law. Such credit shall be allowed against the taxes 23 imposed by this article for the taxable year reduced by the credits 24 permitted by this article. If the credit exceeds the tax as so reduced, 25 the taxpayer may receive, and the comptroller, subject to a certificate 26 of the commissioner, shall pay as an overpayment, without interest, the 27 amount of such excess. In the event that agricultural assessment land is 28 removed from an agricultural district, a taxpayer that owns such land 29 shall continue to be eligible for the credit provided by this subdivi- 30 sion for the remainder of the term of the eight year covenant. 31 (2) School district property taxes. For purposes of this subsection, 32 the term "school district property taxes" means all property taxes, 33 special ad valorem levies and special assessments, exclusive of penal- 34 ties and interest, levied for school district purposes on the agricul- 35 tural assessment land owned by the taxpayer. 36 (3) Town and county property taxes. For purposes of this subsection, 37 the term "town and county property taxes" means all property taxes, 38 special ad valorem levies and special assessments, exclusive of penal- 39 ties and interest, levied for town and county purposes on the agricul- 40 tural assessment land owned by the taxpayer. 41 (4) Agricultural assessment land. The term "agricultural assessment 42 land" means land which receives or is eligible to receive an agricul- 43 tural assessment for the taxable year pursuant to section three hundred 44 five or three hundred six of the agriculture and markets law. Agricul- 45 tural assessment land also includes land set aside or retired under a 46 federal supply management or soil conservation program. 47 (5) Nonqualified use of agricultural assessment land. (A) No credit in 48 conversion year. In the event that agricultural assessment land, or any 49 portion of such land, is converted to nonqualified use, credit under 50 this subsection shall not be allowed with respect to such land for the 51 taxable year of conversion (the conversion year). 52 (B) Credit recapture. If the conversion of agricultural assessment 53 land, or any portion of such land, to nonqualified use occurs during the 54 period of the eight taxable years following the taxable year for which 55 the credit under this subsection was last claimed with respect to such 56 land, the credits allowed with respect to such land for the taxableS. 961 4 1 years prior to the conversion year, multiplied by two hundred percent, 2 must be added back in the conversion year. 3 (C) Exception to recapture. Subparagraph (B) of this paragraph shall 4 not apply to the conversion of land where the conversion is by reason of 5 involuntary conversion, within the meaning of section one thousand thir- 6 ty-three of the internal revenue code. 7 (D) Conversion to nonqualified use. For purposes of this paragraph, 8 conversion to nonqualified use shall mean that such land is converted to 9 a use which would disqualify such property for an agricultural assess- 10 ment under section three hundred five or three hundred six of the agri- 11 culture and markets law. 12 (6) A taxpayer shall reduce credits claimed under this subsection by 13 any credits claimed under subsection (n) of this section for the taxable 14 year. 15 § 4. The general municipal law is amended by adding a new article 18-D 16 to read as follows: 17 ARTICLE 18-D 18 WORKING FARMLAND PROPERTY TAX CREDIT 19 Section 972. Short title. 20 972-a. Statement of legislative findings and declaration. 21 972-b. Definitions. 22 972-c. Eligibility criteria for working farmland property tax 23 credit. 24 972-d. Eligibility criteria for approval of county agricultural 25 and farmland protection plans. 26 972-e. Powers and duties of the commissioner. 27 972-f. Application for eligibility for designation as eligible 28 for the working farmland property tax credit. 29 972-g. Review of working farmland designation. 30 972-h. Restriction of lands to agricultural uses. 31 972-i. Annual report. 32 § 972. Short title. This article shall be known and may be cited as 33 the "working farmland property tax credit act". 34 § 972-a. Statement of legislative findings and declaration. It is 35 hereby found and declared that the conservation and protection of agri- 36 cultural lands, and the promotion of agriculture as a vital local 37 resource is of statewide concern. It is the public policy of the state 38 to conserve, protect and encourage the development and improvement of 39 its agricultural land for production of food and other agricultural 40 products. It is also the declared policy of the state to conserve and 41 protect agricultural lands as valued natural and ecological resources 42 which provide needed open spaces for clean air sheds, as well as for 43 aesthetic purposes. In order to accomplish these goals in the context of 44 local planning and land use decision-making, it is declared to be in the 45 interest of the state to establish authority at the township level to 46 designate the town as eligible for the working farmland property tax 47 credit to provide incentives and otherwise assist landowners and towns 48 to mutually achieve these goals. 49 § 972-b. Definitions. As used in this article, the following words and 50 terms shall have the following meanings unless the context shall indi- 51 cate another or different meaning or intent: 52 (a) "Applicant" shall mean the county submitting an application in the 53 manner authorized by this article for designation of an area as eligible 54 for the working farmland property tax credit. 55 (b) "Commissioner" shall mean the commissioner of agriculture and 56 markets.S. 961 5 1 (c) "Working farmland property tax credit" shall mean a county within 2 the state that has been designated as eligible for a working farmland 3 property tax credit pursuant to this article. 4 (d) "County agricultural and farmland protection plan" shall mean a 5 plan that has been adopted by a county legislative body pursuant to 6 section three hundred twenty-four of the agriculture and markets law. 7 (e) "Agricultural and farmland protection board" shall mean a county 8 agricultural and farmland protection board established pursuant to 9 section three hundred two of the agriculture and markets law. 10 (f) "Agricultural assessment land" shall mean land which receives or 11 is eligible to receive an agricultural assessment for the taxable year 12 pursuant to section three hundred five or three hundred six of the 13 agriculture and markets law. Agricultural assessment land also includes 14 land set aside or retired under a federal supply management or soil 15 conservation program. 16 § 972-c. Eligibility criteria for working farmland property tax cred- 17 it. For designation as eligible for the working farmland property tax 18 credit, a county shall adopt a county agricultural and farmland 19 protection plan pursuant to section three hundred twenty-four of the 20 agriculture and markets law or its equivalent as determined by the 21 commissioner. 22 § 972-d. Eligibility criteria for approval of county agricultural and 23 farmland protection plans. County agricultural and farmland protection 24 plans adopted by a county legislative body pursuant to this article 25 shall comply with section three hundred twenty-four of the agriculture 26 and markets law and shall include but not be limited to: 27 (a) the location of any land or areas proposed to be protected; 28 (b) an analysis of the following factors concerning any areas and 29 lands proposed to be protected: 30 (i) value to the agricultural economy of the county; 31 (ii) open space value; 32 (iii) consequences of possible conversion; and 33 (iv) level of conversion pressure on the lands or areas proposed to be 34 protected; 35 (c) an evaluation of the effect of county programs and policies on the 36 viability of farm operations and the availability of land for agricul- 37 tural production; 38 (d) a description of the activities, programs and strategies intended 39 to be used by the county to promote continued agricultural use. 40 § 972-e. Powers and duties of the commissioner. The commissioner 41 shall: 42 (a) Promulgate regulations governing the criteria of eligibility for 43 working farmland property tax credit designation and the application 44 process; 45 (b) Receive and review applications for designation of counties as 46 eligible for the working farmland property tax credit; 47 (c) Review the status of any county previously designated as eligible 48 for the working farmland property tax credit; and 49 (d) File notice of the designation or revocation of eligibility of a 50 county for the working farmland property tax credit with the applicant, 51 the department of taxation and finance and the commissioner of taxation 52 and finance. 53 § 972-f. Application for eligibility for designation as eligible for 54 the working farmland property tax credit. (a) A county legislative body 55 may adopt a resolution authorizing the town to prepare and submit an 56 application to the commissioner for designation of the county as eligi-S. 961 6 1 ble for the working farmland property tax credit; and the adoption of 2 such resolution by the county shall be a prerequisite to the submission 3 of an application for such designation. Such resolution shall include a 4 description of such area including the tax map identification numbers 5 for all parcels that would be eligible for the working farmland property 6 tax credit. 7 (b) Each application shall: 8 (i) be prepared in a manner and form prescribed by regulations promul- 9 gated by the commissioner, and shall include written confirmation by the 10 county legislative body verifying that the information contained in the 11 application is accurate and complete to the best of his or her know- 12 ledge; 13 (ii) include evidence of the adoption of a county agricultural and 14 farmland protection plan or its equivalent, which has been prepared in a 15 manner and form prescribed by regulations promulgated by the commission- 16 er, by the governing body of the county which is applying for desig- 17 nation as eligible for the working farmland property tax credit; 18 (iii) include a tax map or other map of the county which sets forth 19 the tax map numbers of all parcels of land that would be eligible for 20 the working farmland property tax credit; and 21 (iv) include a copy of the report of the county agricultural and farm- 22 land protection board. 23 (c) Within ninety days after receipt of written notice from the 24 commissioner that an application for designation as eligible for the 25 working farmland property tax credit has been approved, the county 26 legislative body shall commence the process to adopt a comprehensive 27 plan, or amend an existing comprehensive plan, pursuant to section two 28 hundred thirty-nine-d of this chapter, to include the county agricul- 29 tural and farmland protection plan which has been adopted by the county 30 agricultural and farmland protection board and approved by the commis- 31 sioner pursuant to this section. The working farmland property tax cred- 32 it shall not be effective unless the county's comprehensive plan, or 33 amendment of such plan, includes such agricultural and farmland 34 protection plan. The working farmland property tax credit shall be 35 effective for the tax year immediately upon the adoption of the county's 36 comprehensive plan, or amendment of such plan, which includes the agri- 37 cultural and farmland protection plan. 38 (d) Within thirty days after the effective date of the working farm- 39 land property tax credit, the county clerk shall record a copy of the 40 tax map or other map of the parcels that would be eligible for the work- 41 ing farmland property tax credit as approved by the commissioner pursu- 42 ant to this article. 43 § 972-g. Review of working farmland designation. (a) The county legis- 44 lative body may, by resolution, submit to the commissioner once every 45 eight years a request to review an existing working farmland desig- 46 nation. The resolution shall include the reasons and justification for 47 the proposed review along with the tax map or other map of the eligible 48 parcels. The commissioner shall review the designation subject to the 49 following provisions: 50 (i) The commissioner shall determine whether a change in circumstances 51 has occurred since the designation of eligibility which makes the county 52 no longer eligible. 53 (ii) Any designation of a county as eligible for the working farmland 54 property tax credit shall remain in effect for a minimum of three years 55 from the effective date of the designation.S. 961 7 1 (b) Any request by a county legislative body to remove the county as 2 eligible for the working farmland property tax credit must include proof 3 that the county provided public notice of such proposed removal, 4 provided individual notice in writing to persons, as listed on the most 5 recent assessment rolls, whose land is the subject of the proposed 6 removal and held a public hearing at least thirty days prior to the 7 request to the commissioner. 8 (c) Prior to submission to the commissioner of the resolution to 9 remove the county as eligible for the working farmland property tax 10 credit, the county agricultural and farmland protection board shall, 11 within forty-five days report to the county legislative body its recom- 12 mendations concerning the proposed removal of eligibility. The county 13 legislative body shall provide a copy of the report, or, in the event 14 that no report is provided by the county agricultural and farmland 15 protection board, a statement of the facts and circumstances concerning 16 the county legislative body's referral to the county agricultural and 17 farmland protection board, to the commissioner. 18 (d) Upon the removal of eligibility for the working farmland property 19 tax credit as provided in this section, the commissioner shall file 20 notice of such action as required by section nine hundred seventy-two-e 21 of this article. 22 (e) Within thirty days after receipt of written notice from the 23 commissioner that a request for removal of the working farmland property 24 tax credit has been approved, the county clerk shall record such notice 25 relating to the parcels so affected. 26 § 972-h. Restriction of lands to agricultural uses. (a) Any county 27 which is eligible for the working farmland property tax credit pursuant 28 to this article shall utilize a covenant or deed restriction with the 29 landowner to limit the use of agricultural assessment land for the 30 purpose of preserving such land subject to the conditions set forth in 31 the covenant and in this article. The owner of such land shall furnish 32 the county with such information as the county shall require in order to 33 enable it to determine the eligibility of the land involved. 34 (b) If such a covenant is made with any landowner, the county shall 35 offer such a covenant under similar terms to every other owner of agri- 36 cultural assessment land located in an agricultural district in the 37 county. 38 (c) Every covenant shall provide for the exclusion of uses other than 39 agricultural, and other than those compatible with agricultural uses, 40 for the duration of the covenant and be binding upon, and inure to the 41 benefit of, all successors in interest of the owner. 42 (d) Each covenant shall be for a term of eight years and shall auto- 43 matically be renewed each year unless the landowner files notice with 44 the county clerk. 45 (e) No later than twenty days after a county enters into a covenant 46 with a landowner pursuant to this section, the county clerk shall record 47 the covenant, which shall describe the land subject thereto, including 48 the tax map identification number or numbers for such land, together 49 with a reference to the map showing the location of the agricultural 50 district in which the property lies. From and after the time of such 51 recordation such covenant shall impart such notice thereof to all 52 persons as is afforded by the recording laws of this state. 53 (f) The county may bring any action in court necessary to enforce any 54 covenant, including, but not limited to, an action to enforce the coven- 55 ant by injunction.S. 961 8 1 § 972-i. Annual report. Each county which becomes eligible for the 2 working farmland property tax credit established pursuant to this arti- 3 cle shall every eight years file with the commissioner and the commis- 4 sioner of taxation and finance a report concerning the status of eligi- 5 ble agricultural land. The report shall include the tax map 6 identification numbers for all parcels in the county for which a land- 7 owner has filed a non-agricultural development covenant pursuant to this 8 article and the total number of acres in the county which are subject to 9 such a non-agricultural development covenant. In the event that any of 10 these parcels of land have been converted to a use which would disquali- 11 fy such land for an agricultural assessment under section three hundred 12 five or three hundred six of the agriculture and markets law, the report 13 shall identify such parcels. 14 § 5. Paragraph (a) of subdivision 1 of section 922 of the real proper- 15 ty tax law is amended by adding a new subparagraph (xv) to read as 16 follows: 17 (xv) a statement as to whether the parcel is eligible for a working 18 farmland property tax credit created pursuant to article eighteen-D of 19 the general municipal law. 20 § 6. Subdivision 1 of section 302 of the agriculture and markets law 21 is amended by adding a new paragraph (f) to read as follows: 22 (f) The county agricultural and farmland protection board shall advise 23 the county legislative body in relation to the proposed establishment or 24 review of any working farmland property tax credit established pursuant 25 to article eighteen-D of the general municipal law. The board shall 26 render expert advice relating to the desirability of such action, 27 including advice as to the nature of farming and farm resources within 28 the county and the extent to which it is consistent with the county 29 agricultural and farmland protection plan that may have been adopted 30 pursuant to section three hundred twenty-four of the agriculture and 31 markets law. 32 § 7. This act shall take effect on the one hundred eightieth day after 33 it shall have become a law and shall apply to taxable years beginning on 34 or after the effective date of this act. Provided that any rule or 35 regulation necessary for the timely implementation of the provisions of 36 this act on its effective date may be promulgated on or before such 37 effective date.
