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Who cares
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Sponsors
No co-sponsors yet.
History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 61–1
- Ordered to third reading cal.1907
- Committee discharged and committed to rules
- Print number 7170a
- Amend and recommit 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.
Relates to property tax credits for farmers
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 property tax credits for farmers
Purpose
This bill would make a technical amendment to the tax code to allow for tenant farmers who rent land from a trust to claim the Farmer's School Tax Credit
Summary of provisions
Section one amends section 606 (n) (3) of the Tax Law, to allow tenant farmers who are renting land from a trust, to claim the Farmer's School Tax Credit.
Section 2 sets forth an immediate effective date.
Justification
Under current law family members who operate farms held in trust may not qualify for the Farmer's School Tax Credit (FSTC), despite the fact that the law provides for tenant farmers to qualify for the credit in other cases. There are over 400 farms in New York State classified as "cooperative, estate or trust, institutional" and a significant number of those are trusts. This number has grown significantly in the last five years indicating an increased use of trusts as a generational transfer tool for family farms, helping to ensure that older farm generation can retire, while the next generation can continue operating the farm.
Under section 606 (n) (3) of the Tax Law, to qualify for the Farmer's School Tax Credit, the agricultural property must either be owned by the taxpayer or owned by a parent, grandparent or sibling with whom you have a written agreement to eventually purchase the property. If a trust exists, however, and a child will inherit the property through the trust, section 606 (n) (3) cannot be applied. A family member farming on land held in trust should also be eligible for the Farmer's School Tax Credit, and this legislation would make that technical correction. Technical guidance contained in New York State tax publication 51.1 indicates the intent of 606 (n) (3) is to help ensure family farms will pass to the next generation which is what this legislation seeks to accomplish.
Legislative history
This is a new bill.
Fiscal implications
Changes to the Farmer's School Tax Credit (FSTC) are revenue neutral since, in most cases, the trust or beneficiary is already able to claim the FSTC. By allowing the farm operator to claim the FSTC instead, this allows the tax benefit to flow directly to the individual or entity involved in farming and who is generally covering the cost of the property tax. Similar to existing provisions, the trust or beneficiary would have to waive its right to claim the credit, ensuring that only one entity could claim the tax credit.
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.