Bill S7257-2009

Includes payments from the state's farmland protection program as federal gross income

Includes payments from the state's farmland protection program as federal gross income from farming for otherwise eligible farmers.

Details

Actions

  • Jul 30, 2010: SIGNED CHAP.297
  • Jul 19, 2010: DELIVERED TO GOVERNOR
  • Jun 28, 2010: returned to senate
  • Jun 28, 2010: passed assembly
  • Jun 28, 2010: ordered to third reading rules cal.392
  • Jun 28, 2010: substituted for a10504
  • Jun 24, 2010: referred to ways and means
  • Jun 24, 2010: DELIVERED TO ASSEMBLY
  • Jun 24, 2010: PASSED SENATE
  • Jun 23, 2010: ORDERED TO THIRD READING CAL.1139
  • Jun 15, 2010: REPORTED AND COMMITTED TO RULES
  • Jun 8, 2010: REPORTED AND COMMITTED TO FINANCE
  • Mar 25, 2010: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - Jun 8, 2010
Ayes (7): Johnson C, Stachowski, Klein, Espada, Winner, Golden, Nozzolio
Nays (1): Diaz
VOTE: COMMITTEE VOTE: - Rules - Jun 23, 2010
Ayes (20): Smith, Espada, Stachowski, Montgomery, Hassell-Thompson, Krueger, Parker, Serrano, Stewart-Cousins, Dilan, Klein, Valesky, Johnson O, Padavan, Volker, Farley, LaValle, Seward, Larkin, Saland
Ayes W/R (2): Duane, Skelos
Absent (1): Hannon

Memo

 BILL NUMBER:  S7257              REVISED 03/26/10

TITLE OF BILL :

An act to amend the tax law, in relation to including payments from the state's farmland protection program as federal gross income from farming for otherwise eligible farmers

PURPOSE OF GENERAL IDEA OF BILL :

To ensure that farmers who receive payments from the New York Farmland Protection Program remain eligible for the Farmers' School Property Tax Credit.

SUMMARY OF SPECIFIC PROVISIONS :

Article 9-A, section 210, subsection 22 and Article 22, part (n) of section 606 of tax law is amended to maintain eligibility for the Farmers' School Property Tax Credit when a farmer receives payment for the sale of their development rights under the state's Farmland Protection Program.

JUSTIFICATION :

Farmers who meet strict eligibility requirements receive the Farmers' School Property Tax Credit. This critical agricultural tax relief program gives eligible farmers a refundable income credit equal to a portion of school taxes paid that year. Given that property tax payments have skyrocketed over the past decade and because farmers own considerable amounts of land, this credit is extremely important to the viability of the agricultural industry.

To be eligible for the credit, a farm must own the land in question and receive at least two thirds of its excess federal gross income from farming. Farmers that receive a payment through the state's Farmland Protection Program for selling their farms' development rights to preserve land from development must treat these payments as non-farm income. This stipulation makes such farmers ineligible for the Farmers' School Property Tax Credit, as they do not receive at least two-third of their excess federal gross income from farming for that year, which unintentionally penalizes farmers for preserving farmland and protecting the environment.

In order to address this issue, this legislation allows payments from the Farmland Protection Program to be treated as excess gross income from farming to allow continued eligibility for the tax credit.

PRIOR LEGISLATIVE HISTORY :

New bill.

FISCAL IMPLICATIONS :

No additional costs to the state.

EFFECTIVE DATE : Immediately and will apply to taxable years beginning on or after January 1st, 2011.

Text

STATE OF NEW YORK ________________________________________________________________________ 7257 IN SENATE March 25, 2010 ___________
Introduced by Sen. VALESKY -- 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 including payments from the state's farmland protection program as federal gross income from farm- ing for otherwise eligible farmers THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (b) of subdivision 22 of section 210 of the tax law, as amended by chapter 527 of the laws of 2003, is amended to read as follows: (b) Eligible farmer. For purposes of this subdivision, the term "eligible farmer" means a taxpayer whose federal gross income from farm- ing for the taxable year is at least two-thirds of excess federal gross income. The term "eligible farmer" also includes a corporation other than the taxpayer of record for qualified agricultural land which has paid the school district property taxes on such land pursuant to a contract for the future purchase of such land; provided that such corpo- ration has a federal gross income from farming for the taxable year which is at least two-thirds of excess federal gross income; and provided further that, in determining such income eligibility, a taxpay- er may, for any taxable year, use the average of such federal gross income from farming for that taxable year and such income for the two consecutive taxable years immediately preceding such taxable year. Excess federal gross income means the amount of federal gross income from all sources for the taxable year in excess of thirty thousand dollars. FOR THE PURPOSES OF THIS PARAGRAPH, PAYMENTS FROM THE STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT OF AGRICUL- TURE AND MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME FROM FARMING FOR OTHERWISE ELIGIBLE FARMERS. S 2. Paragraph 2 of subsection (n) of section 606 of the tax law, as amended by chapter 527 of the laws of 2003, is amended to read as follows:
(2) Eligible farmer. For purposes of this subsection, the term "eligi- ble farmer" means a taxpayer whose federal gross income from farming for the taxable year is at least two-thirds of excess federal gross income. The term "eligible farmer" also includes an individual other than the taxpayer of record for qualified agricultural land who has paid the school district property taxes on such land pursuant to a contract for the future purchase of such land; provided that such individual has a federal gross income from farming for the taxable year which is at least two-thirds of excess federal gross income; and provided further that, in determining such income eligibility, a taxpayer may, for any taxable year, use the average of such federal gross income from farming for that taxable year and such income for the two consecutive taxable years imme- diately preceding such taxable year. Excess federal gross income means the amount of federal gross income from all sources for the taxable year reduced by the sum (not to exceed thirty thousand dollars) of those items included in federal gross income which consist of (i) earned income, (ii) pension payments, including social security payments, (iii) interest, and (iv) dividends. For purposes of this paragraph, the term "earned income" shall mean wages, salaries, tips and other employee compensation, and those items of gross income which are includible in the computation of net earnings from self-employment. FOR THE PURPOSES OF THIS PARAGRAPH, PAYMENTS FROM THE STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT OF AGRICULTURE AND MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME FROM FARMING FOR OTHERWISE ELIGIBLE FARMERS. S 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2011.

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