Bill Text: NY A02040 | 2023-2024 | General Assembly | Introduced
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.
Spectrum: Strong Partisan Bill (Republican 15-1)
Status: (Introduced) 2024-01-03 - referred to ways and means [A02040 Detail]
Download: New_York-2023-A02040-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2040 2023-2024 Regular Sessions IN ASSEMBLY January 23, 2023 ___________ Introduced by M. of A. HAWLEY, McDONOUGH, PALMESANO, DiPIETRO, MORINEL- LO, NORRIS, JENSEN, ANGELINO, GALLAHAN, LEMONDES, DeSTEFANO, MANKTE- LOW, BYRNES -- Multi-Sponsored by -- M. of A. THIELE -- read once and referred to the Committee on Ways and Means 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 11 of section 210-B 2 of the tax law, as added by section 17 of part A of chapter 59 of the 3 laws of 2014, are amended to read as follows: 4 (a) General. In the case of a taxpayer which is an eligible farmer 5 [or], an eligible farmer [who] which has paid taxes pursuant to a land 6 contract or an eligible farmer which has a leasehold interest of not 7 fewer than five continuous years as a lessee of qualified agricultural 8 property, there shall be allowed a credit for the allowable school 9 district property taxes. The term "allowable school district property 10 taxes" means the school district property taxes paid during the taxable 11 year on qualified agricultural property, subject to the acreage limita- 12 tion provided in paragraph (e) of this subdivision and the income limi- 13 tation provided in paragraph (f) of this subdivision. 14 (b) Eligible farmer. For purposes of this subdivision, the term 15 "eligible farmer" means a taxpayer whose federal gross income from farm- 16 ing for the taxable year is at least two-thirds of excess federal gross 17 income. The term "eligible farmer" also includes a corporation other 18 than the taxpayer of record for qualified agricultural land which has 19 paid the school district property taxes on such land or which has a 20 leasehold interest of not fewer than five continuous years as a lessee 21 of such land pursuant to a contract for the future purchase of such 22 land; provided that such corporation has a federal gross income from 23 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. LBD04320-01-3A. 2040 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 § 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.A. 2040 3 1 § 3. This act shall take effect immediately and shall apply to taxable 2 years commencing on or after January 1, 2025. Effective immediately the 3 addition, amendment and/or repeal of any rule or regulation necessary 4 for the implementation of this act on its effective date are authorized 5 to be made on or before such date.
