Bill S5195A-2013

Establishes a tax credit for farm vehicle tolls

Establishes a tax credit for farm vehicle tolls of seventy-five percent of New York state thruway tolls paid for certain farm vehicles.

Details

Actions

  • Feb 27, 2014: PRINT NUMBER 5195A
  • Feb 27, 2014: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • May 14, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S5195A

TITLE OF BILL: An act to amend the tax law, in relation to establishing a tax credit for farm vehicle tolls

SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Section 210 of the tax law is amended by adding a new subdivision 48 to read as follows;

48. Farm vehicle tolls tax credit. Part(a) Taxpayers who operate farm vehicles on the New York State thruway may claim the farm vehicle tolls tax credit.

Part (b) relates to the definition of "farm vehicle" to be a vehicle which is registered with the Department of Motor Vehicles and authorized to travel on the New York State Thruway having a gross vehicle weight of not more than twenty-six thousand pounds which is controlled and operated by a farmer, is used to transport agricultural products, farm machinery, farm supplies or all of the aforementioned to or from the farm and is not used in the operations of a common or contract motor carrier.

Part (c) defines the amount of credit at seventy-five percent of the original thruway toll paid by the taxpayer for farm vehicles claiming the farm vehicle toll tax credit.

Part (d) declares thruway toll receipts copies must be submitted with tax returns to receive the tax credit.

Section 2: this subsection relates to the tax credit against the thruway tolls paid by the taxpayer for farm vehicles to be computed as provided in paragraph 3 of this subsection. Paragraph two of this subsection relates to the definition of farm vehicle. Paragraph three declares amount of credit, at seventy-five percent, paid by operator of a farm vehicle on New York State thruway.

Section 3: relates to the new clause in Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law which is amended to reflect this new tax credit.

Section 4 relates to the date when this act shall take effect which will be immediately, provided, however, that the credits established by sections one, two and three of this act shall apply to taxable years beginning on or after January 1, 2015.

JUSTIFICATION:

After speaking with many of the farmers who own small to medium sized farms in my district, one of the significant burdens they face is the cost of bringing goods to market. For many of these family farmers in my district, the largest market they can bring their goods to is New York City. They are hampered by the fact that they are unable to travel on the Taconic State Parkway because of the size of their "box trucks" and the Parkway's restriction for passenger cars only. This leaves the New York State Thruway as the only option but the high tolls take out a significant portion of the profits they make once

they've sold their goods. With the Department of Transportation unable to allow commercial vehicles on the Parkway, this tax credit would allow small to medium size farms to use the New York State Thruway to bring their products to market ail across the state. Limiting the size of the vehicle to 26,000 pounds, which is the average size of a 'box truck", ensures that small and medium size farms are the ones who benefit. Limiting the range of the use of this tax credit to within 150 miles of the farm ensures that this tax credit will be restricted to bringing goods to market. This bill continues the trend of making New York State more business friendly by allowing these businesses more flexibility of selling their goods while also attracting more entrepreneurs to begin their small to medium size farm operations and employ more New Yorkers.

PRIOR LEGISLATIVE HISTORY:

2013- Passed Assembly

FISCAL IMPLICATIONS:

To be determined to the State, this bill will increase economic activity with small and medium size farmers thus increasing revenue to the state by other means.

EFFECTIVE DATE:

Immediately; provided, however, that the credits established by sections one, two and three of this act shall apply to taxable years beginning on or after January 1, 2015.


Text

STATE OF NEW YORK ________________________________________________________________________ S. 5195--A A. 7347--A Cal. No. 353 2013-2014 Regular Sessions S E N A T E - A S S E M B L Y May 14, 2013 ___________
IN SENATE -- Introduced by Sens. GIPSON, AVELLA, DILAN, LATIMER, MONT- GOMERY -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investigations and Government Oper- ations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee IN ASSEMBLY -- Introduced by M. of A. BARRETT, GUNTHER, ROBERTS, STIRPE, SANTABARBARA, RIVERA, BLANKENBUSH, CROUCH, BARCLAY, DiPIETRO, McLAUGH- LIN, JAFFEE -- Multi-Sponsored by -- M. of A. ARROYO, GLICK, MAGEE, McDONOUGH, OAKS, SKARTADOS -- read once and referred to the Committee on Ways and Means -- advanced to a third reading, amended and ordered reprinted, retaining its place on the order of third reading AN ACT to amend the tax law, in relation to establishing a tax credit for farm vehicle tolls THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 210 of the tax law is amended by adding a new subdivision 48 to read as follows: 48. FARM VEHICLE TOLLS TAX CREDIT. (A) TAXPAYERS WHO OPERATE FARM VEHICLES ON THE NEW YORK STATE THRUWAY MAY CLAIM THE FARM VEHICLE TOLLS TAX CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AT THE CLOSE OF THE TAX YEAR PROVIDED, HOWEVER, THAT THE UNUSED PORTION OF ANY TAX CREDIT CLAIMED SHALL NOT BE CARRIED FORWARD AND APPLIED IN ANOTHER TAX YEAR. (B) FOR THE PURPOSES OF THIS SECTION, "FARM VEHICLE" SHALL MEAN A VEHICLE WHICH IS REGISTERED WITH THE DEPARTMENT OF MOTOR VEHICLES AND AUTHORIZED TO TRAVEL ON THE NEW YORK STATE THRUWAY AND HAVING A GVWR OF NOT MORE THAN TWENTY-SIX THOUSAND POUNDS WHICH IS CONTROLLED AND OPER- ATED BY A FARMER, IS USED TO TRANSPORT AGRICULTURAL PRODUCTS, FARM MACHINERY, FARM SUPPLIES OR ALL OF THE AFOREMENTIONED TO OR FROM THE
FARM AND IS NOT USED IN THE OPERATIONS OF A COMMON OR CONTRACT MOTOR CARRIER AND, SUCH A VEHICLE HAVING A GVWR OF MORE THAN TWENTY-SIX THOU- SAND POUNDS WHILE BEING USED WITHIN ONE HUNDRED FIFTY MILES OF THE PERSON'S FARM. (C) THE AMOUNT OF THE CREDIT SHALL BE SEVENTY-FIVE PERCENT OF THE NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER FOR FARM VEHICLES CLAIMING THE FARM VEHICLE TOLLS TAX CREDIT. (D) TAXPAYER CLAIMING THE FARM VEHICLE TOLLS TAX CREDIT SHALL SUBMIT COPIES OF NEW YORK STATE THRUWAY TOLL RECEIPTS WITH TAX RETURNS THAT CLAIM A TAX CREDIT. S 2. Section 606 of the tax law is amended by adding a new subsection (xx) to read as follows: (XX) CREDIT FOR FARM VEHICLE TOLLS. (1) GENERAL. A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER FOR FARM VEHICLES, TO BE COMPUTED AS PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION. (2) DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, "FARM VEHICLE" SHALL MEAN A VEHICLE WHICH IS REGISTERED WITH THE DEPARTMENT OF MOTOR VEHICLES AND AUTHORIZED TO TRAVEL ON THE NEW YORK STATE THRUWAY AND HAVING A GVWR OF NOT MORE THAN TWENTY-SIX THOUSAND POUNDS WHICH IS CONTROLLED AND OPERATED BY A FARMER, IS USED TO TRANSPORT AGRICULTURAL PRODUCTS, FARM MACHINERY, FARM SUPPLIES OR ALL OF THE AFOREMENTIONED TO OR FROM THE FARM AND IS NOT USED IN THE OPERATIONS OF A COMMON OR CONTRACT MOTOR CARRIER AND, SUCH A VEHICLE HAVING A GVWR OF MORE THAN TWENTY-SIX THOU- SAND POUNDS WHILE BEING USED WITHIN ONE HUNDRED FIFTY MILES OF THE PERSON'S FARM. (3) AMOUNT OF CREDIT. THE AMOUNT OF CREDIT SHALL BE SEVENTY-FIVE PERCENT OF THE NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER FOR FARM VEHICLES. IN NO EVENT SHALL THE CREDIT PROVIDED IN THIS SUBSECTION BE ALLOWED IN EXCESS OF THE TAXPAYER'S TAX FOR SUCH YEAR. S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xxxvii) to read as follows: (XXXVII) CREDIT FOR FARM AMOUNT OF CREDIT VEHICLE TOLLS UNDER UNDER SUBDIVISION SUBSECTION (XX) FORTY-EIGHT OF SECTION TWO HUNDRED TEN S 4. This act shall take effect immediately; provided, however, that the credits established by sections one, two and three of this act shall apply to taxable years beginning on or after January 1, 2015.

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