S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4477--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 2, 2017
                                ___________
 
 Introduced  by  M. of A. MAGEE, BLANKENBUSH -- read once and referred to
   the Committee on Ways and Means -- recommitted  to  the  Committee  on
   Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee

 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08239-03-8
              

 A. 4477--A                          2
 
   (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
 BUSINESS THAT HAS NET FARM INCOME OF LESS THAN THREE HUNDRED FIFTY THOU-
 SAND DOLLARS.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2019.