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S6707Senate2015-2016 SessionSame asA9466

Relates to the tax treatment of farm income of certain farm business taxpayers

Sponsor Patty RitchieSD-48+2 co-sponsorsAffects Finance
Status
In Assembly Committee
Ways And Means
Impact
Pending
Passage
Pending

Bill progress

Step 5 of 7

In Assembly · Ways And Means

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Who cares

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Sponsors

Primary sponsor
Patty Ritchie

Senator · Senate District 48

Chair, Agriculture

History

  1. Referred to ways and means
  2. Delivered to assembly
  3. Passed senateVote 56–2
  4. Ordered to third reading cal.150
  5. Referred to rules

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.

A9466Assembly

Relates to the tax treatment of farm income of certain farm business taxpayers

In Assembly Committee · Ways And Means · Sponsor William Magee

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

Title of bill

An act to amend the tax law, in relation to the tax treatment of farm income of certain farm business taxpayers

Purpose

Increases the personal income tax exemption currently available to farm businesses from 5 percent to 20 percent for farm income; Eliminates the current employee qualification and raises the income eligibility threshold from $250,000 in farm income to $350,000 in farm income.

Summary of provisions

Section one amends the Personal Income Tax, Section 612 of the Tax Law to increase the exemption of farm income from 5 percent to 20 percent for farm businesses (sole proprietors, LLCs, partnerships and S-corporations) and raises the farm income eligibility from $250,000 to $350,000. There is no employment requirement for farm businesses to receive this exemption.

Section two is the effective date.

Justification

New York's family farms are struggling to maintain their viability with ever increasing costs and market pressures from outside of the state.Reducing the cost of doing business will help New York's farm economy grow and remain competitive.

The FY 2014 Enacted Budget included a Senate sponsored Personal Income Tax exemption for small businesses and small farms. The exemption is equal to five percent of net income in 2016 and beyond.To qualify, the business must be a sole proprietor or farm (regardless of how the business is structured, sole proprietor, LLC, etc.), have less than $250,000 in net business income and employ at least one employee.

This increase in the exemption will build on the progress we have already made and will help New York's family farms remain an integral part of the State's economy for generations to come.

Legislative history

New bill

Fiscal implications

This bill will reduce personal income taxes for farmers by $5 million annually, beginning in SFY 2017-18.

Effective date

This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2017.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.