STATE OF NEW YORK
________________________________________________________________________
S. 3711 A. 5504
2019-2020 Regular Sessions
SENATE - ASSEMBLY
February 13, 2019
___________
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Budget and
Revenue
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 2019".
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.
LBD03251-01-9
S. 3711 2 A. 5504
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[. Provided, however that this paragraph shall not apply
19 to the estate of a decedent dying on or after January first, two thou-
20 sand nineteen]; (D) or that is real property used in support of a farm
21 operation, subject to a conservation easement, or subject to a restric-
22 tive covenant as described in paragraph one-a of this subsection.
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.