Bill Text: NY A00327 | 2013-2014 | General Assembly | Introduced

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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 15-1)

Status: (Introduced - Dead) 2014-06-17 - held for consideration in ways and means [A00327 Detail]

Download: New_York-2013-A00327-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          327
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 9, 2013
                                      ___________
       Introduced  by  M. of A. HAWLEY, CROUCH, BUTLER, McDONOUGH, PALMESANO --
         Multi-Sponsored by -- M. of A. BARCLAY, CERETTO, DUPREY, FINCH,  KOLB,
         P. LOPEZ,  OAKS,  RAIA,  REILICH, TEDISCO, TENNEY, 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 22 of section 210  of
    2  the tax law, paragraph (a) as amended by chapter 315 of the laws of 1998
    3  and  paragraph  (b)  as  amended by chapter 297 of the laws of 2010, are
    4  amended to read as follows:
    5    (a) General. In the case of a taxpayer which  is  an  eligible  farmer
    6  [or],  an  eligible farmer [who] WHICH has paid taxes pursuant to a land
    7  contract, OR AN ELIGIBLE FARMER WHICH HAS A LEASEHOLD  INTEREST  OF  NOT
    8  FEWER  THAN  FIVE CONTINUOUS YEARS AS A LESSEE OF QUALIFIED AGRICULTURAL
    9  PROPERTY, there shall be allowed  a  credit  for  the  allowable  school
   10  district  property  taxes.  The term "allowable school district property
   11  taxes" means the school district property taxes paid during the  taxable
   12  year  on qualified agricultural property, subject to the acreage limita-
   13  tion provided in paragraph (e) of this subdivision and the income  limi-
   14  tation provided in paragraph (f) of this subdivision.
   15    (b)  Eligible  farmer.  For  purposes  of  this  subdivision, the term
   16  "eligible farmer" means a taxpayer whose federal gross income from farm-
   17  ing for the taxable year is at least two-thirds of excess federal  gross
   18  income.  The  term  "eligible  farmer" also includes a corporation other
   19  than the taxpayer of record for qualified agricultural  land  which  has
   20  paid  the  school  district  property  taxes  on such land pursuant to a
   21  contract for the future purchase of such land OR WHICH HAS  A  LEASEHOLD
   22  INTEREST  OF  NOT  FEWER  THAN FIVE CONTINUOUS YEARS AS A LESSEE OF SUCH
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00198-01-3
       A. 327                              2
    1  LAND; provided that such corporation has a  federal  gross  income  from
    2  farming  for  the  taxable  year  which is at least two-thirds of excess
    3  federal gross income; and provided further  that,  in  determining  such
    4  income  eligibility, a taxpayer may, for any taxable year, use the aver-
    5  age of such federal gross income from farming for that taxable year  and
    6  such  income for the two consecutive taxable years immediately preceding
    7  such taxable year.   Excess federal gross income  means  the  amount  of
    8  federal  gross income from all sources for the taxable year in excess of
    9  thirty thousand dollars. For the purposes of  this  paragraph,  payments
   10  from  the  state's  farmland  protection  program,  administered  by the
   11  department of agriculture and markets,  shall  be  included  as  federal
   12  gross income from farming for otherwise eligible farmers.
   13    S  2.  Paragraphs  1 and 2 of subsection (n) of section 606 of the tax
   14  law, paragraph 1 as amended by chapter 315 of the laws of 1998 and para-
   15  graph 2 as amended by chapter 297 of the laws of 2010,  are  amended  to
   16  read as follows:
   17    (1) General. In the case of a taxpayer who is an eligible farmer [or],
   18  an eligible farmer who has paid taxes pursuant to a land contract, OR AN
   19  ELIGIBLE  FARMER  WHO  HAS  A  LEASEHOLD INTEREST OF NOT FEWER THAN FIVE
   20  CONTINUOUS YEARS AS A LESSEE OF QUALIFIED AGRICULTURAL  PROPERTY,  there
   21  shall  be  allowed  a  credit for the allowable school district property
   22  taxes. The term "allowable school district  property  taxes"  means  the
   23  school district property taxes paid during the taxable year on qualified
   24  agricultural  property,  subject  to  the acreage limitation provided in
   25  paragraph five of this subsection and the income limitation provided  in
   26  paragraph  six  of this subsection. Such credit shall be allowed against
   27  the taxes imposed by this article for the taxable year  reduced  by  the
   28  credits  permitted  by this article. If the credit exceeds the tax as so
   29  reduced, the taxpayer may receive, and the  comptroller,  subject  to  a
   30  certificate  of  the  commissioner, shall pay as an overpayment, without
   31  interest, the amount of such excess.
   32    (2) Eligible farmer. For purposes of this subsection, the term "eligi-
   33  ble farmer" means a taxpayer whose federal gross income from farming for
   34  the taxable year is at least two-thirds of excess federal gross  income.
   35  The  term  "eligible  farmer" also includes an individual other than the
   36  taxpayer of record for qualified agricultural  land  who  has  paid  the
   37  school  district  property taxes on such land pursuant to a contract for
   38  the future purchase of such land OR WHO HAS A LEASEHOLD INTEREST OF  NOT
   39  FEWER THAN FIVE CONTINUOUS YEARS AS A LESSEE OF SUCH LAND; provided that
   40  such  individual has a federal gross income from farming for the taxable
   41  year which is at least two-thirds of excess federal  gross  income;  and
   42  provided further that, in determining such income eligibility, a taxpay-
   43  er  may,  for  any  taxable  year, use the average of such federal gross
   44  income from farming for that taxable year and such income  for  the  two
   45  consecutive  taxable  years  immediately  preceding  such  taxable year.
   46  Excess federal gross income means the amount  of  federal  gross  income
   47  from  all sources for the taxable year reduced by the sum (not to exceed
   48  thirty thousand dollars) of those items included in federal gross income
   49  which consist of (i) earned income,  (ii)  pension  payments,  including
   50  social  security  payments,  (iii)  interest,  and  (iv)  dividends. For
   51  purposes of this paragraph, the term "earned income" [shall mean]  MEANS
   52  wages,  salaries,  tips and other employee compensation, and those items
   53  of gross income which are includible in the computation of net  earnings
   54  from  self-employment. For the purposes of this paragraph, payments from
   55  the state's farmland protection program, administered by the  department
       A. 327                              3
    1  of  agriculture  and  markets, shall be included as federal gross income
    2  from farming for otherwise eligible farmers.
    3    S  3.  The  commissioner  of  taxation  and  finance is authorized and
    4  directed to promulgate any rules and regulations necessary to  implement
    5  the provisions of this act.
    6    S 4. This act shall take effect immediately and shall apply to taxable
    7  years commencing on or after January 1, 2015.