What's happening
This bill increases the estate tax exclusion amount for estates where a farm operation makes up over 50% of the estate's value.
Why it matters
Helps keep family farms intact. by making it easier for heirs to inherit working farm operations without having to sell land or assets to pay estate taxes, which is a common challenge for multi-generational farms.
Targets tax relief specifically to active agricultural producers. , as the increased exclusion only applies when a farm operation makes up more than half the estate’s value, ensuring that the benefit goes to genuine farming families rather than passive landowners.
Adjusts for inflation over time. , as the exclusion amount is tied to a cost-of-living adjustment, helping the relief keep pace with rising land and farm values rather than becoming outdated.
May encourage continued agricultural use of land. , since families inheriting farms are less likely to sell off property for development, which can help preserve open space and rural economies.
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Who cares
Headline styles
Expand Farm Estate Tax Break
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Print number 2908a
- Amend and recommit to investigations and government operations
- 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.
Raise Farm Estate Tax Exemption
In Assembly Committee · Ways And Means · Sponsor William Magee
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2908--A
2017-2018 Regular Sessions
IN SENATE
January 18, 2017
Introduced by Sens. RITCHIE, O'MARA, SERINO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to the estate tax where the estate includes a farm operation
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph (B) of paragraph 2 of subsection (c) of section 952 of the tax law, as added by section 2 of part X of chapter 59 of the laws of 2014, is amended to read as follows:
(B) In the case of any decedent dying in a calendar year beginning on or after January first, two thousand nineteen, or in the case of a decedent dying on and after April first, two thousand eighteen, where the estate includes a farm operation, as defined in section three hundred one of the agriculture and markets law, and the value of the farm operation is more than fifty percent of the value of the entire estate at the time of death the basic exclusion amount shall be equal to:
(i) five million dollars, multiplied by
(ii) one plus the cost-of-living adjustment, which shall be the percentage by which the consumer price index for the preceding calendar year exceeds the consumer price index for calendar year two thousand ten.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08215-02-8
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to the estate tax where the estate includes a farm operation
Purpose
To allow estates that include farm operations, where the value of the farm operations are a majority of the estate, to have an exclusion amount equal to the federal exclusion amount starting April 1, 2018.
Summary of provisions
Section 1 amends the Estate Tax Section 952 of the tax law to accelerate by three years the increase of the exemption level to equal the federal exemption level for estates that mainly consist of farm operations.
Section 2 is the effective date.
Justification
Lowering New York's estate tax is necessary to preserve the tradition of family farming by making it easier to transfer farm businesses to the next generation. This bill will advance a plan to eliminate the estate tax on farms valued up to the federal exemption amount of $5.45 million three years early, preserving family farm businesses and providing peace of mind to more small farmers.
In 2014 the estate tax was amended to increase the exclusion amount from $1 million to $2,062,500 for those dying in State Fiscal Year 2014-15; $3,125,000 in SFY 2015-16; $4,187,500 in SFY 2016-17; and $5,250,000 from April 1, 2017 to December 31, 2018.In addition, the 2014 amendments provided that for those dying on or after January 1, 2019 the exclusion will equal the Federal basic exclusion amount with annual indexing for inflation.
Legislative history
2016: S.6706 Passed the Senate/A.9471 Referred to Ways and Means.
Fiscal implications
This bill will reduce estate tax revenues by $20 million annually, beginning in SFY 2017-18.
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.