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Who cares
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Sponsors
3 Co-sponsors
History
- Substituted by S7257
- Ordered to third reading rules cal.392
- Rules report cal.392
- Reported
- Reported referred to rules
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Includes payments from the state's farmland protection program as federal gross income
Signed by Governor · Sponsor David J. Valesky
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A10504
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 or 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 Farm- ers' 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 Janu- ary 1, 2011.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.