Relates to the unified credit against the estate tax for purposes of a farm operation.
Ayes (59): Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Fuschillo, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Rivera, Robach, Sanders, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Tkaczyk, Valesky, Young, Zeldin
Excused (4): Adams, Ranzenhofer, Ritchie, Sampson
TITLE OF BILL: An act to amend the tax law, in relation to the unified credit against the estate tax
PURPOSE: This bill amends the Tax Law by increasing the Estate Tax applicable exclusion amount from one million dollars to five million dollars for a farm operation as defined in section three hundred one of the agriculture and markets law.
SUMMARY OF PROVISIONS:
Section 1 amends Subsection (a) of section 951 of the tax, as amended by section 1 of part T of chapter 57 of the laws of 2010 to increase the exemption to five million dollars for a farm operation, as defined in section three hundred one of the agriculture and markets law.
JUSTIFICATION: Currently the unified credit against the estate tax provided in section 2010 of the Internal Revenue Code is the amount allowable as if the federal applicable exclusion amount were one million dollars. This bill adds a unified credit against the estate tax of five million dollars for a farm operation as defined in section 301 of the Agriculture and Markets Law.
The value of real property in New York State has increased substantially in recent years which has correspondingly increased the value of farms. The economics of farming typically requires extensive land holdings to remain profitable and productive. Today, it is not uncommon for a farm of two hundred and fifty acres to have a value well above one million dollars. Therefore, this bill is necessary to maintain the viability of our state's farming operations and provide for an affordable transfer from the present generation of farmers to the next generation. It will also allow New York State to maintain a strong agriculture industry while ensuring that the industry can continue to grow.
LEGISLATIVE HISTORY: New Bill.
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years commencing on and after January 1, 2013.
STATE OF NEW YORK ________________________________________________________________________ 3694 2013-2014 Regular Sessions IN SENATE February 11, 2013 ___________Introduced by Sens. RITCHIE, GALLIVAN -- 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, in relation to the unified credit against the estate tax THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection (a) of section 951 of the tax law, as amended by section 1 of part T of chapter 57 of the laws of 2010, is amended to read as follows: (a) Dates. For purposes of this article, any reference to the internal revenue code means the United States Internal Revenue Code of 1986, with all amendments enacted on or before July twenty-second, nineteen hundred ninety-eight, and, unless specifically provided otherwise in this arti- cle, any reference to December thirty-first, nineteen hundred seventy- six or January first, nineteen hundred seventy-seven contained in the provisions of such code which are applicable to the determination of the tax imposed by this article shall be read as a reference to June thirti- eth, nineteen hundred seventy-eight or July first, nineteen hundred seventy-eight, respectively. Notwithstanding the foregoing, the unified credit against the estate tax provided in section two thousand ten of the internal revenue code shall, for purposes of this article, be the amount allowable as if the federal applicable exclusion amount were one million dollars OR FIVE MILLION DOLLARS FOR A FARM OPERATION, AS DEFINED IN SECTION THREE HUNDRED ONE OF THE AGRICULTURE AND MARKETS LAW. S 2. This act shall take effect immediately and shall apply to taxable years commencing on and after January 1, 2013.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08783-02-3