Establishes a tax credit for farm vehicle tolls

Summary of provisions

Section 1. Section 210-B of the tax law is amended by adding a new subdivision 49 to read as follows;

49. 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, 2016.

Justification

A significant burden faced by many farmers with small to medium sized farms is the cost of bringing their goods to market. For many of these family farmers, 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 travel route, 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 all 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.

Legislative history

2013-2104: S.5195-A -Referred to Investigations and Government Operations / A.2414 -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, 2016.