What's happening
This bill exempts certain farmland and conservation land from New York estate transfer taxes, with a recapture tax if land use changes.
Why it matters
Encourages preservation of farmland and conservation land. by exempting such land from New York estate transfer taxes, making it financially easier for families to keep agricultural and conservation properties intact across generations.
Defines key terms like “farm operation” and “conservation easement”. with references to existing state law, ensuring clarity about which land qualifies for the tax exemption and protecting bona fide agricultural and conservation uses.
Imposes a recapture (“clawback”) tax. if heirs sell or repurpose the land for non-eligible uses, discouraging speculative transfers and ensuring that the tax benefit is only realized if the land continues to be used for farming or conservation.
Creates a state lien on exempted land. for the amount of the potential recapture tax, providing the state with a mechanism to reclaim taxes if the land use changes, and ensuring ongoing compliance with the law’s intent.
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Who cares
Headline styles
Protect Farmland from Taxes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- 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.
Protect Farms and Open Land
In Assembly Committee · Ways And Means · Sponsor Fred Thiele
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 4256 A. 5275
2017-2018 Regular Sessions
SENATE - ASSEMBLY
February 7, 2017
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to granting an exclusion from transfer taxes for certain farmland and land of conservation value
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. This act shall be known and may be cited as the "farmland and open space preservation act of 2017".
§ 2. Section 951-a of the tax law is amended by adding two new subsections (g) and (h) to read to follows:
(g) The term "farm operation" shall have the same meaning as defined in subdivision eleven of section three hundred one of the agriculture and markets law.
(h) The term "conservation easement" shall mean an easement, covenant, restriction, or other interest in real property acquired for the preservation of agricultural lands used in bona fide agricultural production, pursuant to section two hundred forty-seven of the general municipal law.
§ 3. Subsection (a) of section 954 of the tax law, as amended by section 3 of part X of chapter 59 of the laws of 2014, paragraph 3 as amended by section 2 of part BB of chapter 59 of the laws of 2015, is amended to read as follows:
(a) General.-- The New York gross estate of a deceased resident means his or her federal gross estate as defined in the internal revenue code (whether or not a federal estate tax return is required to be filed) modified as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07702-01-7
S. 4256 2 A. 5275
(1) Reduced by the value of real or tangible personal property having an actual situs outside New York state.
(1-a) Reduced by the value of real property situated in the state which, on the date of the decedent's death was land used in support of a farm operation; upon which there was a conservation easement; or upon which there was a covenant restricting the use of the land to agricultural or natural resource conservation purposes.
(2) Increased by the amount determined under section nine hundred fifty-seven of this part (relating to limited powers of appointment created prior to September first, nineteen hundred thirty).
(3) Increased by the amount of any taxable gift under section 2503 of the internal revenue code not otherwise included in the decedent's federal gross estate, made during the three year period ending on the decedent's date of death, but not including any gift made: (A) when the decedent was not a resident of New York state; [or] (B) before April first, two thousand fourteen; [or] (C) that is real or tangible personal property having an actual situs outside New York state at the time the gift was made[.]; (D) or that is real property used in support of a farm operation, subject to a conservation easement, or subject to a restrictive covenant as described in paragraph one-a of this subsection. Provided, however that this paragraph shall not apply to the estate of a decedent dying on or after January first, two thousand nineteen.
§ 4. The tax law is amended by adding a new section 954-a to read as follows:
§ 954-a. Additional tax if land used in support of a farm operation, subject to a conservation easement, or subject to a restrictive covenant as described in paragraph one-a of subsection (a) of section nine hundred fifty-four of this part is no longer used for such purposes. (a) If, at any time after the decedent's death and before the death of the heir, the heir: (1) disposes of any interest in real property that is used in support of a farm operation, subject to a conservation easement, or subject to a restrictive covenant as described in paragraph one-a of subsection (a) of section nine hundred fifty-four of this part and the person acquiring such interest is not subject to the restrictions on use described in paragraph one-a of subsection (a) of section nine hundred fifty-four of this part, or (2) the heir uses such land in any manner which violates the terms of such restriction, then, there is hereby imposed an additional estate tax.
(b) The amount of the additional tax imposed by this section shall be the amount equal to the excess of what would have been the estate tax liability but for the reduction provided in paragraph one-a of subsection (a) of section nine hundred fifty-four of this part.
§ 5. Section 982 of the tax law is amended by adding a new subsection (a-1) to read as follows:
(a-1) Farmland and conservation land exclusion. An amount equal to the adjusted value attributable to real property used in support of a farm operation, subject to a conservation easement, or subject to a restrictive covenant as described in paragraph one-a of subsection (a) of section nine hundred fifty-four of this article shall be a lien in favor of the state.
§ 6. This act shall take effect immediately.
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 granting an exclusion from transfer taxes for certain farmland and land of conservation value
Purpose
The proposed bill is intended to provide the owners and successors of interest with a way to keep farmland and land of conservation value intact.
Summary of provisions
Amends various provisions of the Tax Law relating to the "Farmland and Open Space Preservation Act of 2017"
Justification
Federal and state estate tax policy has been one of the most significant causes of the loss of farmland and natural lands in New York State. The costs associated with maintaining farmland, especially in areas of highly appreciated or valued land of conservation value, has resulted in the selling and conversion to residential and commercial development. This legislation is necessary in order to provide the owners and successors of interest with a way to keep farmland and land of conservation value intact in the face of onerous estate and transfer taxes, creating a land-based incentive program for conservation.
Legislative history
2017: New Legislation
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.