NY State Senate Bill 2015-S2469A

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 22, 2016	print number 2469a
Feb 22, 2016	amend and recommit to investigations and government operations
Jan 06, 2016	referred to investigations and government operations
May 19, 2015	reported and committed to finance
Jan 23, 2015	referred to investigations and government operations

Votes

- May 19, 2015 - Investigations And Government Operations Committee Vote
  S2469A
  
  8
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Investigations And Government Operations Committee Vote: May 19, 2015
      
      aye (8)
      
      Carlucci
      
      Diaz
      
      Golden
      
      Marcellino
      
      Murphy
      
      Nozzolio
      
      O'Mara
      
      Squadron
      
      aye wr (1)
      
      Hoylman-Sigal

Bill Amendments

Original

A (Active)

co-Sponsors

2015-S2469 - Details

See Assembly Version of this Bill:: A7085
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §42, amd §§612, 209 & 601, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S3692, A5583
2017-2018: S3835, A4840
2019-2020: A5434
2021-2022: A4268
2023-2024: A5488

2015-S2469 - Summary

Establishes a farm savings account program.

2015-S2469 - Sponsor Memo

                                BILL NUMBER:S2469

TITLE OF BILL:  An act to amend the tax law, in relation to farm
savings accounts

PURPOSE:

To establish a farm savings accounts plan in statute that will allow
farmers to self insure part of their risk to counter-act strong
cyclical downturns in the farm economy.

SUMMARY OF PROVISIONS:

Section 1 adds a new section 42 to the Tax Law which establishes farm
savings accounts. This section outlines the definitions of farm
savings accounts and provides the requirements for deductions,
contributions, and distributions with regard to a variety of
contingencies for farm savings accounts.

Section 2 adds a new paragraph 42, to subsection (b) of section 612 of
the Tax Law to add a non-qualifying distribution from a farm savings
account to a person's adjusted gross income.

Section 3 amends subsection (c) of section 612 of the Tax Law by
adding a new paragraph 42, to exempt a contribution to a farm savings
account from a person's adjusted gross income.

Section 4 amends subdivision 4 of section 209 of the Tax Law, as
amended by section 2 of part FF-1 of chapter 57 of the laws of 2008,
and section 5 of part A of chapter 59 of the laws of 2014, to exempt
farm savings accounts from the list of corporations liable for
taxation.

Section 5 amends subdivision 4 of section 209 of the tax law, as
amended by section 5 of part A of chapter 59 of the laws of 2014 to
exempt farm saving accounts from the corporation tax under article
thirty-thee of this chapter.

Section 6 amends section 601 of the tax law by adding a new subsection
(g-1) to exempt farm savings accounts from inclusion as personal
income, subject to taxation.

Section 7 provides the effective date.

JUSTIFICATION:

Agriculture, by the nature of its business, is extremely dependent
upon weather and pricing. We have seen the impacts of weather on farm
business during Hurricane Irene, Tropical Storm Lee, and Superstorm
Sandy, where farms lost cows and a year's worth of forage, fruit and
produce Weather events combined with the the strong cyclical nature of
commodity pricing, especially in the dairy industry, makes pecuniary
gains extremely difficult for agricultural businesses. The succession
of low milk price cycles has negatively impacted farm income over the
last ten years. To combat these deficiencies, farm savings accounts
provide a viable alternative to offset farmers' losses.


A farm savings account is a tax deferred account that offers farmers
the unique opportunity to self-insure part of their risk. Some of the
methods used by farmers to help offset losses in difficult years
include delaying the purchase of equipment and the repayment of loans.
A farm savings account will offer farmers another management tool to
help offset their costs. Farm savings accounts will encourage farmers
to place revenue gained during years of good economic times into a tax
deferred savings account that can then be drawn from during times of
depressed markets. This will allow farmers to continue payments on
expenses and offset losses. In summation, farm savings accounts
provide farmers with an investment mechanism and aids farmers in their
future financial planning.

LEGISLATIVE HISTORY:

2013-2014: S.3692-A/A.5583-A

FISCAL IMPLICATIONS:

Minimal

EFFECTIVE DATE:

This act shall take effect immediately and shall apply to taxable
years commencing after such effective date; provided, however, that
section five of this act shall take effect on the same date and in the
same manner as section 27 of part S of chapter 59 of the laws of 2014,
takes effect. Effective immediately, the commissioner of taxation and
finance may add, amend, or repeal any rule or regulation necessary to
timely implement the provisions of this act on its effective date.

2015-S2469 - Bill Text download pdf

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

                                  2469

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 23, 2015
                               ___________

Introduced  by  Sens.  RITCHIE, FUNKE -- read twice and ordered printed,
  and when printed to be committed to the  Committee  on  Investigations
  and Government Operations

AN ACT to amend the tax law, in relation to farm savings accounts

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

  Section 1. The tax law is amended by adding a new section 42  to  read
as follows:
  S 42. FARM SAVINGS ACCOUNTS. 1. DEFINITIONS. (A) QUALIFIED FARMER. FOR
PURPOSES  OF  THIS  SECTION,  THE  TERM  "QUALIFIED  FARMER" MEANS, WITH
RESPECT TO ANY TAXABLE YEAR, ANY INDIVIDUAL WHO, DURING SUCH  YEAR,  WAS
ENGAGED IN THE TRADE OR BUSINESS OF FARMING.
  (B) FARM SAVINGS ACCOUNT. FOR PURPOSES OF THIS SECTION, THE TERM "FARM
SAVINGS ACCOUNT" MEANS A TRUST CREATED OR ORGANIZED IN THE UNITED STATES
AS  A  FARM SAVINGS ACCOUNT EXCLUSIVELY FOR THE PURPOSE OF MAKING QUALI-
FIED DISTRIBUTIONS FOR PURPOSES OF FARM SUSTAINABILITY, BUT ONLY IF  THE
WRITTEN  GOVERNING  INSTRUMENT  CREATING  THE  TRUST MEETS THE FOLLOWING
REQUIREMENTS:
  (I) NO CONTRIBUTION WILL BE ACCEPTED UNLESS IT IS IN CASH.
  (II) THE TRUSTEE IS A BANK, CREDIT UNION OR OTHER APPROPRIATE INSTITU-
TION THAT DEMONSTRATES ADMINISTRATION OF THE TRUST IN A MANNER  THAT  IS
CONSISTENT WITH THE REQUIREMENTS OF THIS SECTION.
  (III)  THE ASSETS OF THE TRUST WILL NOT BE COMMINGLED WITH OTHER PROP-
ERTY EXCEPT IN A COMMON TRUST FUND OR COMMON INVESTMENT FUND.
  (IV) THE INTEREST OF AN INDIVIDUAL  IN  THE  BALANCE  IN  HIS  OR  HER
ACCOUNT IS NONFORFEITABLE.
  (C)  QUALIFIED  DISTRIBUTION.  THE TERM "QUALIFIED DISTRIBUTION" MEANS
ANY AMOUNT PAID FROM A FARM SAVINGS ACCOUNT TO THE  ACCOUNT  BENEFICIARY
EXCLUSIVELY FOR PURPOSES OF FARM SUSTAINABILITY.
  (D)  ACCOUNT  BENEFICIARY.  THE  TERM  "ACCOUNT BENEFICIARY" MEANS THE
INDIVIDUAL OR BUSINESS ON WHOSE BEHALF  THE  FARM  SAVINGS  ACCOUNT  WAS
ESTABLISHED.
  2. PROGRAM DESCRIPTION. (A) DEDUCTIONS ALLOWED. IN THE CASE OF A QUAL-
IFIED FARMER, THERE SHALL BE ALLOWED AS A DEDUCTION FOR THE TAXABLE YEAR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07647-01-5

S. 2469                             2

AN AMOUNT EQUAL TO THE AGGREGATE AMOUNT PAID IN CASH DURING SUCH TAXABLE
YEAR  BY  OR  ON  BEHALF OF SUCH INDIVIDUAL TO A FARM SAVINGS ACCOUNT OF
SUCH INDIVIDUAL.
  (B)  CONTRIBUTION  REQUIREMENT.  THERE  SHALL BE NO MINIMUM OR MAXIMUM
CONTRIBUTION  REQUIREMENT.  HOWEVER,  AGGREGATE  CONTRIBUTIONS  MAY  NOT
EXCEED TOTAL INCOME DERIVED FROM FARMING DURING A GIVEN TAXABLE YEAR.
  (C)  TAX  TREATMENT OF ACCOUNTS. A FARM SAVINGS ACCOUNT IS EXEMPT FROM
TAXATION UNDER THIS CHAPTER UNLESS SUCH ACCOUNT HAS CEASED TO BE A  FARM
SAVINGS ACCOUNT.
  (D)  TERMINATION  OF  ACCOUNTS.  IF  THE ACCOUNT BENEFICIARY CEASES TO
ENGAGE IN THE TRADE OR BUSINESS OF FARMING, ALL FARM SAVINGS ACCOUNTS OF
SUCH INDIVIDUAL SHALL CEASE TO BE SUCH ACCOUNTS AND THE BALANCE  OF  ALL
SUCH  ACCOUNTS  SHALL  BE TREATED AS (I) DISTRIBUTED TO SUCH INDIVIDUAL,
AND (II) NOT PAID IN A QUALIFIED DISTRIBUTION.
  (E) TAX TREATMENT OF  DISTRIBUTIONS.  (I)  GENERAL.  IN  GENERAL,  ANY
AMOUNT  PAID  OR  DISTRIBUTED  OUT  OF  A  FARM SAVINGS ACCOUNT SHALL BE
INCLUDED IN GROSS INCOME.
  (II) ADDITIONAL TAX ON NON-QUALIFIED DISTRIBUTIONS. (1) IN ADDITION TO
ANY OTHER TAX IMPOSED BY THIS CHAPTER,  ANY  NON-QUALIFIED  DISTRIBUTION
FROM  A  FARM  SAVINGS  ACCOUNT  SHALL  BE  SUBJECT TO A FIFTEEN PERCENT
SURCHARGE ON THE AMOUNT OF SUCH NON-QUALIFYING DISTRIBUTION.
  (2) CLAUSE ONE OF THIS SUBPARAGRAPH SHALL NOT APPLY IF THE PAYMENT  OR
DISTRIBUTION  IS  MADE AFTER THE ACCOUNT BENEFICIARY BECOMES DISABLED OR
DIES.
  (III) ROLLOVER CONTRIBUTIONS. FOR PURPOSES OF THIS SECTION, ANY AMOUNT
PAID OR DISTRIBUTED FROM A FARM SAVINGS ACCOUNT TO THE ACCOUNT BENEFICI-
ARY SHALL BE TREATED AS A  QUALIFIED  DISTRIBUTION  TO  THE  EXTENT  THE
AMOUNT  RECEIVED  IS PAID INTO A FARM SAVINGS ACCOUNT FOR THE BENEFIT OF
SUCH BENEFICIARY NOT LATER THAN THE SIXTIETH DAY AFTER THE DAY ON  WHICH
THE BENEFICIARY RECEIVES THE PAYMENT OR DISTRIBUTION.
  (IV) TRANSFER OF ACCOUNT INCIDENT TO DIVORCE. THE TRANSFER OF AN INDI-
VIDUAL'S INTEREST IN A FARM SAVINGS ACCOUNT TO AN INDIVIDUAL'S SPOUSE OR
FORMER  SPOUSE  UNDER  A  DIVORCE  OR SEPARATION INSTRUMENT SHALL NOT BE
CONSIDERED A TAXABLE TRANSFER MADE BY  SUCH  INDIVIDUAL  NOTWITHSTANDING
ANY OTHER PROVISION OF THIS SECTION, AND SUCH INTEREST SHALL, AFTER SUCH
TRANSFER,  BE  TREATED  AS  A FARM SAVINGS ACCOUNT WITH RESPECT TO WHICH
SUCH SPOUSE IS THE ACCOUNT BENEFICIARY.
  (V) TREATMENT AFTER DEATH OF ACCOUNT  BENEFICIARY.  (1)  TREATMENT  IF
DESIGNATED BENEFICIARY IS SPOUSE. IF THE ACCOUNT BENEFICIARY'S SURVIVING
SPOUSE ACQUIRES SUCH BENEFICIARY'S INTEREST IN A FARM SAVINGS ACCOUNT BY
REASON  OF BEING THE DESIGNATED BENEFICIARY OF SUCH ACCOUNT AT THE DEATH
OF THE ACCOUNT BENEFICIARY, SUCH FARM SAVINGS ACCOUNT SHALL  BE  TREATED
AS IF THE SPOUSE WERE THE ACCOUNT BENEFICIARY.
  (2)  OTHER  CASES. IF, BY REASON OF THE DEATH OF THE ACCOUNT BENEFICI-
ARY, ANY PERSON ACQUIRES THE ACCOUNT BENEFICIARY'S INTEREST  IN  A  FARM
SAVINGS  ACCOUNT IN A CASE TO WHICH CLAUSE ONE OF THIS SUBPARAGRAPH DOES
NOT APPLY:
  (A) SUCH ACCOUNT SHALL CEASE TO BE A FARM SAVINGS ACCOUNT  AS  OF  THE
DATE OF DEATH, AND
  (B)  AN  AMOUNT  EQUAL  TO THE FAIR MARKET VALUE OF THE ASSETS IN SUCH
ACCOUNT ON SUCH DATE SHALL BE INCLUDED IN SUCH PERSON'S GROSS INCOME FOR
THE TAXABLE YEAR WHICH INCLUDES SUCH DATE IF  SUCH  PERSON  IS  NOT  THE
ESTATE  OF  SUCH  BENEFICIARY;  OR  IF SUCH PERSON IS THE ESTATE OF SUCH
BENEFICIARY, IN SUCH BENEFICIARY'S GROSS INCOME  FOR  THE  LAST  TAXABLE
YEAR OF SUCH BENEFICIARY.

S. 2469                             3

  S 2. Subsection (b) of section 612 of the tax law is amended by adding
a new paragraph 42 to read as follows:
  (42)  ANY  NON-QUALIFYING  DISTRIBUTIONS  MADE  FROM  A  FARM  SAVINGS
ACCOUNT. THIS SHALL NOT INCLUDE ANY DISTRIBUTIONS THAT ARE  EXEMPT  FROM
TAXATION  AS  SPECIFIED  IN  PARAGRAPH (E) OF SUBDIVISION TWO OF SECTION
FORTY-TWO OF THIS CHAPTER.
  S 3. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 42 to read as follows:
  (42) AN AMOUNT EQUAL TO ANY QUALIFIED CONTRIBUTION TO A  FARM  SAVINGS
ACCOUNT ESTABLISHED PURSUANT TO SECTION FORTY-TWO OF THIS CHAPTER.
  S  4.  Subdivision  4  of  section  209  of the tax law, as separately
amended by section 2 of part FF-1 of chapter 57 of the laws of 2008  and
section  5  of  part  A of chapter 59 of the laws of 2014, is amended to
read as follows:
  4. Corporations liable to tax under sections one hundred  eighty-three
to  one hundred eighty-five, inclusive, corporations taxable under arti-
cle thirty-three of this chapter, any trust company  organized  under  a
law  of  this  state all of the stock of which is owned by not less than
twenty savings banks organized under a law of this state, a captive REIT
or a captive RIC filing a  combined  return  under  subdivision  (f)  of
section  fifteen  hundred fifteen of this chapter, and housing companies
organized and operating pursuant to the provisions  of  article  two  or
article  five of the private housing finance law and housing development
fund companies organized pursuant to the provisions of article eleven of
the private housing finance law,  AND  FARM  SAVINGS  ACCOUNTS  PROPERLY
ESTABLISHED  UNDER  SECTION  FORTY-TWO  OF  THIS  CHAPTER,  shall not be
subject to tax under this article.
  S 5. Subdivision 4 of section 209  of  the  tax  law,  as  amended  by
section  5  of  part  A of chapter 59 of the laws of 2014, is amended to
read as follows:
  4. Corporations liable to tax under sections one hundred  eighty-three
to  one  hundred  eighty-four-a,  inclusive,  corporations taxable under
article thirty-three of this chapter, any trust company organized  under
a  law of this state all of the stock of which is owned by not less than
twenty savings banks organized under a law of this state, a captive REIT
or a captive RIC filing a  combined  return  under  subdivision  (f)  of
section  fifteen  hundred fifteen of this chapter, and housing companies
organized and operating pursuant to the provisions  of  article  two  or
article  five of the private housing finance law and housing development
fund companies organized pursuant to the provisions of article eleven of
the private housing finance law,  AND  FARM  SAVINGS  ACCOUNTS  PROPERLY
ESTABLISHED  UNDER  SECTION  FORTY-TWO  OF  THIS  CHAPTER,  shall not be
subject to tax under this article.
  S 6. Section 601 of the tax law is amended by adding a new  subsection
(g-1) to read as follows:
  (G-1)  FARM SAVINGS ACCOUNTS. ANY FARM SAVINGS ACCOUNT PROPERLY ESTAB-
LISHED UNDER SECTION FORTY-TWO OF THIS CHAPTER SHALL NOT BE  SUBJECT  TO
TAX UNDER THIS ARTICLE.
  S 7. This act shall take effect immediately and shall apply to taxable
years  commencing  after  such  effective  date; provided, however, that
section five of this act shall take effect on the same date and  in  the
same  manner  as section 27 of part S of chapter 59 of the laws of 2014,
takes effect.  Effective immediately, the commissioner of  taxation  and
finance  may  add,  amend, or repeal any rule or regulation necessary to
timely implement the provisions of this act on its effective date.

co-Sponsors

2015-S2469A (ACTIVE) - Details

See Assembly Version of this Bill:: A7085
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §42, amd §§612, 209 & 601, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S3692, A5583
2017-2018: S3835, A4840
2019-2020: A5434
2021-2022: A4268
2023-2024: A5488

2015-S2469A (ACTIVE) - Summary

Establishes a farm savings account program.

2015-S2469A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2469A

 TITLE OF BILL :

An act to amend the tax law, in relation to farm savings accounts

 PURPOSE :

To establish a farm savings accounts plan in statute that will allow
farmers to self insure part of their risk to counter-act strong
cyclical downturns in the farm economy.

 SUMMARY OF PROVISIONS :

Section 1 adds a new section 42 to the Tax Law which establishes farm
savings accounts. This section outlines the definitions of farm
savings accounts and provides the requirements for deductions,
contributions, and distributions with regard to a variety of
contingencies for farm savings accounts.

Section 2 adds a new paragraph 43, to subsection (b) of section 612 of
the Tax Law to add a non-qualifying distribution from a farm savings
account to a person's adjusted gross income.

Section 3 amends subsection (c) of section 612 of the Tax Law by
adding a new paragraph 44, to exempt a contribution to a farm savings

account from a person's adjusted gross income.

Section 4 amends subdivision 4 of section 209 of the Tax Law, as
amended by section 2 of part FF-1 of chapter 57 of the laws of 2008,
and section 5 of part A of chapter 59 of the laws of 2014, to exempt
farm savings accounts from the list of corporations liable for
taxation.

Section 5 amends subdivision 4 of section 209 of the tax law, as
amended by section 5 of part A of chapter 59 of the laws of 2014 to
exempt farm saving accounts from the corporation tax under article
thirty-three of this chapter.

Section 6 amends section 601 of the tax law by adding a new subsection
(g-1) to exempt farm savings accounts from inclusion as personal
income, subject to taxation.

Section 7 provides the effective date.

 JUSTIFICATION :

Agriculture, by the nature of its business, is extremely dependent
upon weather and pricing. We have seen the impacts of weather on farm
business during Hurricane Irene, Tropical Storm Lee, and Superstorm
Sandy, where farms lost cows and a year's worth of forage, fruit and
produce. Weather events combined with the strong cyclical nature of
commodity pricing, especially in the dairy industry, makes pecuniary
gains extremely difficult for agricultural businesses. The succession
of low milk price cycles has negatively impacted farm income over the
last ten years. To combat these deficiencies, farm savings accounts
provide a viable alternative to offset farmers' losses.

A farm savings account is a tax deferred account that offers farmers
the unique opportunity to self-insure part of their risk. Some of the
methods used by farmers to help offset losses in difficult years
include delaying the purchase of equipment and the repayment of loans.
A farm savings account will offer farmers another management tool to
help offset their costs. Farm savings accounts will encourage farmers
to place revenue gained during years of good economic times into a tax
deferred savings account that can then be drawn from during times of
depressed markets. This will allow farmers to continue payments on
expenses and offset losses. In summation, farm savings accounts
provide farmers with an investment mechanism and aids farmers in their
future financial planning.

 LEGISLATIVE HISTORY :

2013-2014: S.3692-A/A.5583-A

 FISCAL IMPLICATIONS :

Minimal

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to taxable
years commencing after such effective date; provided, however, that
section five of this act shall take effect on the same date and in the
same manner as section 27 of part S of chapter 59 of the laws of 2014,
takes effect. Effective immediately, the commissioner of taxation and
finance may add, amend, or repeal any rule or regulation necessary to
timely implement the provisions of this act on its effective date.

2015-S2469A (ACTIVE) - Bill Text download pdf

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

                                 2469--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 23, 2015
                               ___________

Introduced  by  Sens.  RITCHIE, CARLUCCI, FUNKE, PANEPINTO -- 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 farm savings accounts

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

  Section 1. The tax law is amended by adding a new section 42  to  read
as follows:
  S 42. FARM SAVINGS ACCOUNTS. 1. DEFINITIONS. (A) QUALIFIED FARMER. FOR
PURPOSES  OF  THIS  SECTION,  THE  TERM  "QUALIFIED  FARMER" MEANS, WITH
RESPECT TO ANY TAXABLE YEAR, ANY INDIVIDUAL WHO, DURING SUCH  YEAR,  WAS
ENGAGED IN THE TRADE OR BUSINESS OF FARMING.
  (B) FARM SAVINGS ACCOUNT. FOR PURPOSES OF THIS SECTION, THE TERM "FARM
SAVINGS ACCOUNT" MEANS A TRUST CREATED OR ORGANIZED IN THE UNITED STATES
AS  A  FARM SAVINGS ACCOUNT EXCLUSIVELY FOR THE PURPOSE OF MAKING QUALI-
FIED DISTRIBUTIONS FOR PURPOSES OF FARM SUSTAINABILITY, BUT ONLY IF  THE
WRITTEN  GOVERNING  INSTRUMENT  CREATING  THE  TRUST MEETS THE FOLLOWING
REQUIREMENTS:
  (I) NO CONTRIBUTION WILL BE ACCEPTED UNLESS IT IS IN CASH.
  (II) THE TRUSTEE IS A BANK, CREDIT UNION OR OTHER APPROPRIATE INSTITU-
TION THAT DEMONSTRATES ADMINISTRATION OF THE TRUST IN A MANNER  THAT  IS
CONSISTENT WITH THE REQUIREMENTS OF THIS SECTION.
  (III)  THE ASSETS OF THE TRUST WILL NOT BE COMMINGLED WITH OTHER PROP-
ERTY EXCEPT IN A COMMON TRUST FUND OR COMMON INVESTMENT FUND.
  (IV) THE INTEREST OF AN INDIVIDUAL  IN  THE  BALANCE  IN  HIS  OR  HER
ACCOUNT IS NONFORFEITABLE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07647-02-6

S. 2469--A                          2

  (C)  QUALIFIED  DISTRIBUTION.  THE TERM "QUALIFIED DISTRIBUTION" MEANS
ANY AMOUNT PAID FROM A FARM SAVINGS ACCOUNT TO THE  ACCOUNT  BENEFICIARY
EXCLUSIVELY FOR PURPOSES OF FARM SUSTAINABILITY.
  (D)  ACCOUNT  BENEFICIARY.  THE  TERM  "ACCOUNT BENEFICIARY" MEANS THE
INDIVIDUAL OR BUSINESS ON WHOSE BEHALF  THE  FARM  SAVINGS  ACCOUNT  WAS
ESTABLISHED.
  2. PROGRAM DESCRIPTION. (A) DEDUCTIONS ALLOWED. IN THE CASE OF A QUAL-
IFIED FARMER, THERE SHALL BE ALLOWED AS A DEDUCTION FOR THE TAXABLE YEAR
AN AMOUNT EQUAL TO THE AGGREGATE AMOUNT PAID IN CASH DURING SUCH TAXABLE
YEAR  BY  OR  ON  BEHALF OF SUCH INDIVIDUAL TO A FARM SAVINGS ACCOUNT OF
SUCH INDIVIDUAL.
  (B) CONTRIBUTION REQUIREMENT. THERE SHALL BE  NO  MINIMUM  OR  MAXIMUM
CONTRIBUTION  REQUIREMENT.  HOWEVER,  AGGREGATE  CONTRIBUTIONS  MAY  NOT
EXCEED TOTAL INCOME DERIVED FROM FARMING DURING A GIVEN TAXABLE YEAR.
  (C) TAX TREATMENT OF ACCOUNTS. A FARM SAVINGS ACCOUNT IS  EXEMPT  FROM
TAXATION  UNDER THIS CHAPTER UNLESS SUCH ACCOUNT HAS CEASED TO BE A FARM
SAVINGS ACCOUNT.
  (D) TERMINATION OF ACCOUNTS. IF  THE  ACCOUNT  BENEFICIARY  CEASES  TO
ENGAGE IN THE TRADE OR BUSINESS OF FARMING, ALL FARM SAVINGS ACCOUNTS OF
SUCH  INDIVIDUAL  SHALL CEASE TO BE SUCH ACCOUNTS AND THE BALANCE OF ALL
SUCH ACCOUNTS SHALL BE TREATED AS (I) DISTRIBUTED  TO  SUCH  INDIVIDUAL,
AND (II) NOT PAID IN A QUALIFIED DISTRIBUTION.
  (E)  TAX  TREATMENT  OF  DISTRIBUTIONS.  (I)  GENERAL. IN GENERAL, ANY
AMOUNT PAID OR DISTRIBUTED OUT  OF  A  FARM  SAVINGS  ACCOUNT  SHALL  BE
INCLUDED IN GROSS INCOME.
  (II) ADDITIONAL TAX ON NON-QUALIFIED DISTRIBUTIONS. (1) IN ADDITION TO
ANY  OTHER  TAX  IMPOSED BY THIS CHAPTER, ANY NON-QUALIFIED DISTRIBUTION
FROM A FARM SAVINGS ACCOUNT  SHALL  BE  SUBJECT  TO  A  FIFTEEN  PERCENT
SURCHARGE ON THE AMOUNT OF SUCH NON-QUALIFYING DISTRIBUTION.
  (2)  CLAUSE ONE OF THIS SUBPARAGRAPH SHALL NOT APPLY IF THE PAYMENT OR
DISTRIBUTION IS MADE AFTER THE ACCOUNT BENEFICIARY BECOMES  DISABLED  OR
DIES.
  (III) ROLLOVER CONTRIBUTIONS. FOR PURPOSES OF THIS SECTION, ANY AMOUNT
PAID OR DISTRIBUTED FROM A FARM SAVINGS ACCOUNT TO THE ACCOUNT BENEFICI-
ARY  SHALL  BE  TREATED  AS  A  QUALIFIED DISTRIBUTION TO THE EXTENT THE
AMOUNT RECEIVED IS PAID INTO A FARM SAVINGS ACCOUNT FOR THE  BENEFIT  OF
SUCH  BENEFICIARY NOT LATER THAN THE SIXTIETH DAY AFTER THE DAY ON WHICH
THE BENEFICIARY RECEIVES THE PAYMENT OR DISTRIBUTION.
  (IV) TRANSFER OF ACCOUNT INCIDENT TO DIVORCE. THE TRANSFER OF AN INDI-
VIDUAL'S INTEREST IN A FARM SAVINGS ACCOUNT TO AN INDIVIDUAL'S SPOUSE OR
FORMER SPOUSE UNDER A DIVORCE OR  SEPARATION  INSTRUMENT  SHALL  NOT  BE
CONSIDERED  A  TAXABLE  TRANSFER MADE BY SUCH INDIVIDUAL NOTWITHSTANDING
ANY OTHER PROVISION OF THIS SECTION, AND SUCH INTEREST SHALL, AFTER SUCH
TRANSFER, BE TREATED AS A FARM SAVINGS ACCOUNT  WITH  RESPECT  TO  WHICH
SUCH SPOUSE IS THE ACCOUNT BENEFICIARY.
  (V)  TREATMENT  AFTER  DEATH  OF ACCOUNT BENEFICIARY. (1) TREATMENT IF
DESIGNATED BENEFICIARY IS SPOUSE. IF THE ACCOUNT BENEFICIARY'S SURVIVING
SPOUSE ACQUIRES SUCH BENEFICIARY'S INTEREST IN A FARM SAVINGS ACCOUNT BY
REASON OF BEING THE DESIGNATED BENEFICIARY OF SUCH ACCOUNT AT THE  DEATH
OF  THE  ACCOUNT BENEFICIARY, SUCH FARM SAVINGS ACCOUNT SHALL BE TREATED
AS IF THE SPOUSE WERE THE ACCOUNT BENEFICIARY.
  (2) OTHER CASES. IF, BY REASON OF THE DEATH OF THE  ACCOUNT  BENEFICI-
ARY,  ANY  PERSON  ACQUIRES THE ACCOUNT BENEFICIARY'S INTEREST IN A FARM
SAVINGS ACCOUNT IN A CASE TO WHICH CLAUSE ONE OF THIS SUBPARAGRAPH  DOES
NOT APPLY:

S. 2469--A                          3

  (A)  SUCH  ACCOUNT  SHALL CEASE TO BE A FARM SAVINGS ACCOUNT AS OF THE
DATE OF DEATH, AND
  (B)  AN  AMOUNT  EQUAL  TO THE FAIR MARKET VALUE OF THE ASSETS IN SUCH
ACCOUNT ON SUCH DATE SHALL BE INCLUDED IN SUCH PERSON'S GROSS INCOME FOR
THE TAXABLE YEAR WHICH INCLUDES SUCH DATE IF  SUCH  PERSON  IS  NOT  THE
ESTATE  OF  SUCH  BENEFICIARY;  OR  IF SUCH PERSON IS THE ESTATE OF SUCH
BENEFICIARY, IN SUCH BENEFICIARY'S GROSS INCOME  FOR  THE  LAST  TAXABLE
YEAR OF SUCH BENEFICIARY.
  S 2. Subsection (b) of section 612 of the tax law is amended by adding
a new paragraph 43 to read as follows:
  (43)  ANY  NON-QUALIFYING  DISTRIBUTIONS  MADE  FROM  A  FARM  SAVINGS
ACCOUNT. THIS SHALL NOT INCLUDE ANY DISTRIBUTIONS THAT ARE  EXEMPT  FROM
TAXATION  AS  SPECIFIED  IN  PARAGRAPH (E) OF SUBDIVISION TWO OF SECTION
FORTY-TWO OF THIS CHAPTER.
  S 3. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 44 to read as follows:
  (44) AN AMOUNT EQUAL TO ANY QUALIFIED CONTRIBUTION TO A  FARM  SAVINGS
ACCOUNT ESTABLISHED PURSUANT TO SECTION FORTY-TWO OF THIS CHAPTER.
  S  4.  Subdivision  4  of  section  209  of the tax law, as separately
amended by section 2 of part FF-1 of chapter 57 of the laws of 2008  and
section  5  of  part  A of chapter 59 of the laws of 2014, is amended to
read as follows:
  4. Corporations liable to tax under sections one hundred  eighty-three
to  one hundred eighty-five, inclusive, corporations taxable under arti-
cle thirty-three of this chapter, any trust company  organized  under  a
law  of  this  state all of the stock of which is owned by not less than
twenty savings banks organized under a law of this state, a captive REIT
or a captive RIC filing a  combined  return  under  subdivision  (f)  of
section  fifteen  hundred fifteen of this chapter, and housing companies
organized and operating pursuant to the provisions  of  article  two  or
article  five of the private housing finance law and housing development
fund companies organized pursuant to the provisions of article eleven of
the private housing finance law,  AND  FARM  SAVINGS  ACCOUNTS  PROPERLY
ESTABLISHED  UNDER  SECTION  FORTY-TWO  OF  THIS  CHAPTER,  shall not be
subject to tax under this article.
  S 5. Subdivision 4 of section 209  of  the  tax  law,  as  amended  by
section  5  of  part  A of chapter 59 of the laws of 2014, is amended to
read as follows:
  4. Corporations liable to tax under sections one hundred  eighty-three
to  one  hundred  eighty-four-a,  inclusive,  corporations taxable under
article thirty-three of this chapter, any trust company organized  under
a  law of this state all of the stock of which is owned by not less than
twenty savings banks organized under a law of this state, a captive REIT
or a captive RIC filing a  combined  return  under  subdivision  (f)  of
section  fifteen  hundred fifteen of this chapter, and housing companies
organized and operating pursuant to the provisions  of  article  two  or
article  five of the private housing finance law and housing development
fund companies organized pursuant to the provisions of article eleven of
the private housing finance law,  AND  FARM  SAVINGS  ACCOUNTS  PROPERLY
ESTABLISHED  UNDER  SECTION  FORTY-TWO  OF  THIS  CHAPTER,  shall not be
subject to tax under this article.
  S 6. Section 601 of the tax law is amended by adding a new  subsection
(g-1) to read as follows:
  (G-1)  FARM SAVINGS ACCOUNTS. ANY FARM SAVINGS ACCOUNT PROPERLY ESTAB-
LISHED UNDER SECTION FORTY-TWO OF THIS CHAPTER SHALL NOT BE  SUBJECT  TO
TAX UNDER THIS ARTICLE.

S. 2469--A                          4

  S 7. This act shall take effect immediately and shall apply to taxable
years  commencing  after  such  effective  date; provided, however, that
section five of this act shall take effect on the same date and  in  the
same  manner  as section 27 of part S of chapter 59 of the laws of 2014,
takes  effect.   Effective immediately, the commissioner of taxation and
finance may add, amend, or repeal any rule or  regulation  necessary  to
timely implement the provisions of this act on its effective date.

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Senate Bill S2469A

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

May 19, 2015 - Investigations And Government Operations Committee Vote

Investigations And Government Operations Committee Vote: May 19, 2015

Bill Amendments

co-Sponsors

2015-S2469 - Details

2015-S2469 - Summary

2015-S2469 - Sponsor Memo

2015-S2469 - Bill Text download pdf

co-Sponsors

2015-S2469A (ACTIVE) - Details

2015-S2469A (ACTIVE) - Summary

2015-S2469A (ACTIVE) - Sponsor Memo

2015-S2469A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2469A

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Sponsored By

Patty Ritchie

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Bill Amendments

co-Sponsors

David Carlucci

Rich Funke

Marc Panepinto

2015-S2469 - Details

2015-S2469 - Summary

2015-S2469 - Sponsor Memo

2015-S2469 - Bill Text download pdf

co-Sponsors

David Carlucci

Rich Funke

Marc Panepinto

2015-S2469A (ACTIVE) - Details

2015-S2469A (ACTIVE) - Summary

2015-S2469A (ACTIVE) - Sponsor Memo

2015-S2469A (ACTIVE) - Bill Text download pdf

Comments