|SAME AS||SAME AS UNI. S04256|
|Amd §§951-a, 954 & 982, add §954-a, Tax L|
|Creates an estate tax benefit for farmland and conservation land where the use of the land is restricted to such purposes.|
|02/07/2017||referred to ways and means|
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5275 SPONSOR: Thiele
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 high- ly 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.
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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 print- ed, and when printed to be committed to the Committee on Investi- gations 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 Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "farmland 2 and open space preservation act of 2017". 3 § 2. Section 951-a of the tax law is amended by adding two new 4 subsections (g) and (h) to read to follows: 5 (g) The term "farm operation" shall have the same meaning as defined 6 in subdivision eleven of section three hundred one of the agriculture 7 and markets law. 8 (h) The term "conservation easement" shall mean an easement, covenant, 9 restriction, or other interest in real property acquired for the preser- 10 vation of agricultural lands used in bona fide agricultural production, 11 pursuant to section two hundred forty-seven of the general municipal 12 law. 13 § 3. Subsection (a) of section 954 of the tax law, as amended by 14 section 3 of part X of chapter 59 of the laws of 2014, paragraph 3 as 15 amended by section 2 of part BB of chapter 59 of the laws of 2015, is 16 amended to read as follows: 17 (a) General.-- The New York gross estate of a deceased resident means 18 his or her federal gross estate as defined in the internal revenue code 19 (whether or not a federal estate tax return is required to be filed) 20 modified as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07702-01-7S. 4256 2 A. 5275 1 (1) Reduced by the value of real or tangible personal property having 2 an actual situs outside New York state. 3 (1-a) Reduced by the value of real property situated in the state 4 which, on the date of the decedent's death was land used in support of a 5 farm operation; upon which there was a conservation easement; or upon 6 which there was a covenant restricting the use of the land to agricul- 7 tural or natural resource conservation purposes. 8 (2) Increased by the amount determined under section nine hundred 9 fifty-seven of this part (relating to limited powers of appointment 10 created prior to September first, nineteen hundred thirty). 11 (3) Increased by the amount of any taxable gift under section 2503 of 12 the internal revenue code not otherwise included in the decedent's 13 federal gross estate, made during the three year period ending on the 14 decedent's date of death, but not including any gift made: (A) when the 15 decedent was not a resident of New York state; [ or] (B) before April 16 first, two thousand fourteen; [ or] (C) that is real or tangible personal 17 property having an actual situs outside New York state at the time the 18 gift was made[ .]; (D) or that is real property used in support of a farm 19 operation, subject to a conservation easement, or subject to a restric- 20 tive covenant as described in paragraph one-a of this subsection. 21 Provided, however that this paragraph shall not apply to the estate of a 22 decedent dying on or after January first, two thousand nineteen. 23 § 4. The tax law is amended by adding a new section 954-a to read as 24 follows: 25 § 954-a. Additional tax if land used in support of a farm operation, 26 subject to a conservation easement, or subject to a restrictive covenant 27 as described in paragraph one-a of subsection (a) of section nine 28 hundred fifty-four of this part is no longer used for such purposes. 29 (a) If, at any time after the decedent's death and before the death of 30 the heir, the heir: (1) disposes of any interest in real property that 31 is used in support of a farm operation, subject to a conservation ease- 32 ment, or subject to a restrictive covenant as described in paragraph 33 one-a of subsection (a) of section nine hundred fifty-four of this part 34 and the person acquiring such interest is not subject to the 35 restrictions on use described in paragraph one-a of subsection (a) of 36 section nine hundred fifty-four of this part, or (2) the heir uses such 37 land in any manner which violates the terms of such restriction, then, 38 there is hereby imposed an additional estate tax. 39 (b) The amount of the additional tax imposed by this section shall be 40 the amount equal to the excess of what would have been the estate tax 41 liability but for the reduction provided in paragraph one-a of 42 subsection (a) of section nine hundred fifty-four of this part. 43 § 5. Section 982 of the tax law is amended by adding a new subsection 44 (a-1) to read as follows: 45 (a-1) Farmland and conservation land exclusion. An amount equal to the 46 adjusted value attributable to real property used in support of a farm 47 operation, subject to a conservation easement, or subject to a restric- 48 tive covenant as described in paragraph one-a of subsection (a) of 49 section nine hundred fifty-four of this article shall be a lien in favor 50 of the state. 51 § 6. This act shall take effect immediately.