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History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 57–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.971
- Referred to investigations and government operations
- Referred to investigations and government operations
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.
Provides for a sales tax exemption for farm abstracts
In Assembly Committee · Ways And Means · Sponsor William Magee
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S4200
Title of bill
An act to amend the tax law, in relation to providing for a sales tax exemption for farm abstracts
Purpose
To clarify that sale of abstracts of title to land used for agricultural purposes are not subject to sales tax.
Summary
Section 1 amends Paragraph 1 of Subdivision (c) of Section 1105 of the Tax Law to provide an exclusion from the four percent tax for sale of an abstract of title to real property used for agricultural purposes.
Section 2 states this act shall take effect immediately.
Justification
Agriculture is a land intensive business which makes sales tax on abstract services, property taxes and other land-related tax issues a substantial business expense. The purchase or sale of land requires an abstract of title which provides a condensed history of all deeds, mortgages and other recorded documents pertinent to the land parcel being transferred to new ownership. Before the sale of land can be concluded, the abstract of title is reviewed by an attorney or insurance company to determine if there are any outstanding liens or mortgages that must be satisfied before the buyer can claim ownership.
Securing the abstract of title for a piece of real property to be included in a farm operation is a costly business expense for farmers which was partially defrayed by a state sales tax exemption until last year. Sale of an abstract of title was not considered sale of a taxable information service until the NYS Department of Taxation and Finance rendered an Opinion (TSB-M-10(07)S in 2010 revoking its long standing policy of exempting the sales of abstracts of title from state sales tax in an effort to generate additional revenue for the State. This legislation will protect valuable working landscapes, open green spaces and farm viability by statutorily restoring the tax exemption for sales of abstracts of title to farm land.
Legislative history
2012: S.4728A - Passed the Senate
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.