Bill Text: NY S02294 | 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; provides for retroactive application in certain cases.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2014-01-08 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S02294 Detail]

Download: New_York-2013-S02294-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2294
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                   January 15, 2013
                                      ___________
       Introduced  by  Sen.  BALL  --  read twice and ordered printed, and when
         printed to be committed to the Committee on Investigations and Govern-
         ment Operations
       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
   23  LAND; provided that such corporation has a  federal  gross  income  from
   24  farming  for  the  taxable  year  which is at least two-thirds of excess
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00198-01-3
       S. 2294                             2
    1  federal gross income; and provided further  that,  in  determining  such
    2  income  eligibility, a taxpayer may, for any taxable year, use the aver-
    3  age of such federal gross income from farming for that taxable year  and
    4  such  income for the two consecutive taxable years immediately preceding
    5  such taxable year.   Excess federal gross income  means  the  amount  of
    6  federal  gross income from all sources for the taxable year in excess of
    7  thirty thousand dollars. For the purposes of  this  paragraph,  payments
    8  from  the  state's  farmland  protection  program,  administered  by the
    9  department of agriculture and markets,  shall  be  included  as  federal
   10  gross income from farming for otherwise eligible farmers.
   11    S  2.  Paragraphs  1 and 2 of subsection (n) of section 606 of the tax
   12  law, paragraph 1 as amended by chapter 315 of the laws of 1998 and para-
   13  graph 2 as amended by chapter 297 of the laws of 2010,  are  amended  to
   14  read as follows:
   15    (1) General. In the case of a taxpayer who is an eligible farmer [or],
   16  an eligible farmer who has paid taxes pursuant to a land contract, OR AN
   17  ELIGIBLE  FARMER  WHO  HAS  A  LEASEHOLD INTEREST OF NOT FEWER THAN FIVE
   18  CONTINUOUS YEARS AS A LESSEE OF QUALIFIED AGRICULTURAL  PROPERTY,  there
   19  shall  be  allowed  a  credit for the allowable school district property
   20  taxes. The term "allowable school district  property  taxes"  means  the
   21  school district property taxes paid during the taxable year on qualified
   22  agricultural  property,  subject  to  the acreage limitation provided in
   23  paragraph five of this subsection and the income limitation provided  in
   24  paragraph  six  of this subsection. Such credit shall be allowed against
   25  the taxes imposed by this article for the taxable year  reduced  by  the
   26  credits  permitted  by this article. If the credit exceeds the tax as so
   27  reduced, the taxpayer may receive, and the  comptroller,  subject  to  a
   28  certificate  of  the  commissioner, shall pay as an overpayment, without
   29  interest, the amount of such excess.
   30    (2) Eligible farmer. For purposes of this subsection, the term "eligi-
   31  ble farmer" means a taxpayer whose federal gross income from farming for
   32  the taxable year is at least two-thirds of excess federal gross  income.
   33  The  term  "eligible  farmer" also includes an individual other than the
   34  taxpayer of record for qualified agricultural  land  who  has  paid  the
   35  school  district  property taxes on such land pursuant to a contract for
   36  the future purchase of such land OR WHO HAS A LEASEHOLD INTEREST OF  NOT
   37  FEWER THAN FIVE CONTINUOUS YEARS AS A LESSEE OF SUCH LAND; provided that
   38  such  individual has a federal gross income from farming for the taxable
   39  year which is at least two-thirds of excess federal  gross  income;  and
   40  provided further that, in determining such income eligibility, a taxpay-
   41  er  may,  for  any  taxable  year, use the average of such federal gross
   42  income from farming for that taxable year and such income  for  the  two
   43  consecutive  taxable  years  immediately  preceding  such  taxable year.
   44  Excess federal gross income means the amount  of  federal  gross  income
   45  from  all sources for the taxable year reduced by the sum (not to exceed
   46  thirty thousand dollars) of those items included in federal gross income
   47  which consist of (i) earned income,  (ii)  pension  payments,  including
   48  social  security  payments,  (iii)  interest,  and  (iv)  dividends. For
   49  purposes of this paragraph, the term "earned income" [shall mean]  MEANS
   50  wages,  salaries,  tips and other employee compensation, and those items
   51  of gross income which are includible in the computation of net  earnings
   52  from  self-employment. For the purposes of this paragraph, payments from
   53  the state's farmland protection program, administered by the  department
   54  of  agriculture  and  markets, shall be included as federal gross income
   55  from farming for otherwise eligible farmers.
       S. 2294                             3
    1    S 3. The commissioner  of  taxation  and  finance  is  authorized  and
    2  directed  to promulgate any rules and regulations necessary to implement
    3  the provisions of this act.
    4    S 4. This act shall take effect immediately and shall apply to taxable
    5  years commencing on or after January 1, 2015.