S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9466

                          I N  A S S E M B L Y

                              March 8, 2016
                               ___________

Introduced  by M. of A. MAGEE -- read once and referred to the Committee
  on Ways and Means

AN ACT to amend the tax law, in relation to the tax  treatment  of  farm
  income of certain farm business taxpayers

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph 39 of subsection (c) of section 612  of  the  tax
law,  as added by section 1 of part Y of chapter 59 of the laws of 2013,
is amended to read as follows:
  (39) (A) In the case of a taxpayer who is a  small  business  who  has
business  income  [and/or  farm  income]  as  defined in the laws of the
United States, an amount equal to three percent  of  the  net  items  of
income, gain, loss and deduction attributable to such business [or farm]
entering into federal adjusted gross income, but not less than zero, for
taxable  years beginning after two thousand thirteen, an amount equal to
three and three-quarters percent of the net items of income, gain,  loss
and  deduction  attributable  to  such  business [or farm] entering into
federal adjusted gross income, but not less than zero, for taxable years
beginning after two thousand fourteen,  and  an  amount  equal  to  five
percent  of  the net items of income, gain, loss and deduction attribut-
able to such business [or farm] entering  into  federal  adjusted  gross
income,  but  not  less than zero, for taxable years beginning after two
thousand fifteen. For the purposes of this  paragraph,  the  term  small
business  shall  mean a sole proprietor [or a farm business] who employs
one or more persons during the taxable year and  who  has  net  business
income  [or  net  farm  income]  of less than two hundred fifty thousand
dollars.
  (B) IN THE CASE OF A TAXPAYER WHO IS A FARM BUSINESS OR A TAXPAYER WHO
IS A MEMBER, PARTNER, OR SHAREHOLDER OF  A  LIMITED  LIABILITY  COMPANY,
PARTNERSHIP,  OR  NEW  YORK  S CORPORATION, RESPECTIVELY, THAT IS A FARM
BUSINESS, WHO OR WHICH HAS FARM INCOME AS DEFINED BY  THE  LAWS  OF  THE
UNITED  STATES,  AN  AMOUNT  EQUAL TO TWENTY PERCENT OF THE NET ITEMS OF
INCOME, GAIN, LOSS AND DEDUCTION ATTRIBUTABLE  TO  SUCH  FARM.  FOR  THE
PURPOSES  OF  THIS  PARAGRAPH,  THE TERM FARM BUSINESS SHALL MEAN A FARM

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD14023-01-6

A. 9466                             2

BUSINESS THAT HAS NET FARM INCOME OF LESS THAN THREE HUNDRED FIFTY THOU-
SAND DOLLARS.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2017.