S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8224
 
                             I N  S E N A T E
 
                             February 3, 2022
                                ___________
 
 Introduced  by  Sen.  RATH  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to the eligibility  of  farmers
   leasing land for the agricultural property tax credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Paragraphs (a) and (b) of subdivision 11 of  section  210-B
 of  the  tax  law, as added by section 17 of part A of chapter 59 of the
 laws of 2014, are amended to read as follows:
   (a) General. In the case of a taxpayer which  is  an  eligible  farmer
 [or],  an  eligible farmer [who] WHICH has paid taxes pursuant to a land
 contract OR AN ELIGIBLE FARMER WHICH HAS A  LEASEHOLD  INTEREST  OF  NOT
 FEWER  THAN  FIVE CONTINUOUS YEARS AS A LESSEE OF QUALIFIED AGRICULTURAL
 PROPERTY, there shall be allowed  a  credit  for  the  allowable  school
 district  property  taxes.  The term "allowable school district property
 taxes" means the school district property taxes paid during the  taxable
 year  on qualified agricultural property, subject to the acreage limita-
 tion provided in paragraph (e) of this subdivision and the income  limi-
 tation provided in paragraph (f) of this subdivision.
   (b)  Eligible  farmer.  For  purposes  of  this  subdivision, the term
 "eligible farmer" means a taxpayer whose federal gross income from farm-
 ing for the taxable year is at least two-thirds of excess federal  gross
 income.  The  term  "eligible  farmer" also includes a corporation other
 than the taxpayer of record for qualified agricultural  land  which  has
 paid  the  school  district  property  taxes on such land OR WHICH HAS A
 LEASEHOLD INTEREST OF NOT FEWER THAN FIVE CONTINUOUS YEARS AS  A  LESSEE
 OF  SUCH  LAND  pursuant  to  a contract for the future purchase of such
 land; provided that such corporation has a  federal  gross  income  from
 farming  for  the  taxable  year  which is at least two-thirds of excess
 federal gross income; and provided further  that,  in  determining  such
 income  eligibility, a taxpayer may, for any taxable year, use the aver-
 age of such federal gross income from farming for that taxable year  and
 such  income for the two consecutive taxable years immediately preceding
 such taxable year.   Excess federal gross income  means  the  amount  of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02076-01-1
 S. 8224                             2
 
 federal  gross income from all sources for the taxable year in excess of
 thirty thousand dollars. For the purposes of  this  paragraph,  payments
 from  the  state's  farmland  protection  program,  administered  by the
 department  of  agriculture  and  markets,  shall be included as federal
 gross income from farming for otherwise eligible farmers.
   § 2. Paragraphs 1 and 2 of subsection (n) of section 606  of  the  tax
 law, paragraph 1 as amended by chapter 315 of the laws of 1998 and para-
 graph  2  as  amended by chapter 297 of the laws of 2010, are amended to
 read as follows:
   (1) General. In the case of a taxpayer who is an eligible farmer [or],
 an eligible farmer who has paid taxes pursuant to a land contract, OR AN
 ELIGIBLE FARMER WHO HAS A LEASEHOLD INTEREST  OF  NOT  FEWER  THAN  FIVE
 CONTINUOUS  YEARS  AS A LESSEE OF QUALIFIED AGRICULTURAL PROPERTY, there
 shall be allowed a credit for the  allowable  school  district  property
 taxes.  The  term  "allowable  school district property taxes" means the
 school district property taxes paid during the taxable year on qualified
 agricultural property, subject to the  acreage  limitation  provided  in
 paragraph  five of this subsection and the income limitation provided in
 paragraph six of this subsection. Such credit shall be  allowed  against
 the  taxes  imposed  by this article for the taxable year reduced by the
 credits permitted by this article. If the credit exceeds the tax  as  so
 reduced,  the  taxpayer  may  receive, and the comptroller, subject to a
 certificate of the commissioner, shall pay as  an  overpayment,  without
 interest, the amount of such excess.
   (2) Eligible farmer. For purposes of this subsection, the term "eligi-
 ble farmer" means a taxpayer whose federal gross income from farming for
 the  taxable year is at least two-thirds of excess federal gross income.
 The term "eligible farmer" also includes an individual  other  than  the
 taxpayer  of  record  for  qualified  agricultural land who has paid the
 school district property taxes on such land pursuant to a  contract  for
 the  future purchase of such land OR WHO HAS A LEASEHOLD INTEREST OF NOT
 FEWER THAN FIVE CONTINUOUS YEARS AS A LESSEE OF SUCH LAND; provided that
 such individual has a federal gross income from farming for the  taxable
 year  which  is  at least two-thirds of excess federal gross income; and
 provided further that, in determining such income eligibility, a taxpay-
 er may, for any taxable year, use the  average  of  such  federal  gross
 income  from  farming  for that taxable year and such income for the two
 consecutive taxable  years  immediately  preceding  such  taxable  year.
 Excess  federal  gross  income  means the amount of federal gross income
 from all sources for the taxable year reduced by the sum (not to  exceed
 thirty thousand dollars) of those items included in federal gross income
 which  consist  of  (i)  earned income, (ii) pension payments, including
 social security  payments,  (iii)  interest,  and  (iv)  dividends.  For
 purposes  of this paragraph, the term "earned income" [shall mean] MEANS
 wages, salaries, tips and other employee compensation, and  those  items
 of  gross income which are includible in the computation of net earnings
 from self-employment. For the purposes of this paragraph, payments  from
 the  state's farmland protection program, administered by the department
 of agriculture and markets, shall be included as  federal  gross  income
 from farming for otherwise eligible farmers.
   § 3. This act shall take effect immediately and shall apply to taxable
 years commencing on or after January 1, 2023.  Effective immediately the
 addition,  amendment  and/or  repeal of any rule or regulation necessary
 for the implementation of this act on its effective date are  authorized
 to be made on or before such date.