Relates to the unified credit against the estate tax for purposes of a farm operation.

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S3694-2013 Actions

• Mar 5, 2013: REPORTED AND COMMITTED TO FINANCE
• Feb 11, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S3694-2013 Meetings

Investigations and Government Operations: Mar 5, 2013

S3694-2013 Votes

S3694-2013 Memo

BILL NUMBER:S3694

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.

S3694-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    3694

                         2013-2014 Regular Sessions

                              I N  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