Source: https://www.nysenate.gov/legislation/bills/2019/s3711
Timestamp: 2020-02-26 22:59:56
Document Index: 317101223

Matched Legal Cases: ['§951', '§954', '§ 2', '§  3', '§ 4', '§  954', '§ 5']

NY State Senate Bill S3711
senate Bill S3711
Relates to enacting the "farmland and open space preservation act of 2019"
Get Status Alerts for S3711
Feb 13, 2019 referred to budget and revenue
S3711 (ACTIVE) - Details
Amd §§951-a, 954 & 982, add §954-a, Tax L
S4256, A5275
S3711 (ACTIVE) - Summary
Creates an estate tax benefit for farmland and conservation land where the use of the land is restricted to such purposes.
S3711 (ACTIVE) - Sponsor Memo
BILL NUMBER: S3711
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 proposed bill is to provide the owners and successors of interest
with a way to keep farmland and land of conservation value intact.
Amends various provisions of the tax law relating to the "Farmland and
Open Space Preservation Act of 2019".
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 highly
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 the face of onerous estate and transfer taxes, creating a land-
based incentive program for conservation.
2017-18 S.4256/A.5275;
2015-16 S.2103/A.3033;
2013-14 S.6722/A.8581;
2011-12 A.7975;
2009-10 A.3120;
2007-08 S.2593;
2005-06 A.1144;
2003-04 A.959;
2001-02 A.2983
S3711 (ACTIVE) - Bill Text download pdf
S. 3711                                                  A. 5504
AN  ACT  to amend the tax law, in relation to granting an exclusion from
Section  1.  This act shall be known and may be cited as the "farmland
and open space preservation act of 2019".
§ 2. Section 951-a of the  tax  law  is  amended  by  adding  two  new
subsections (g) and (h) to read to follows:
(G)  THE  TERM "FARM OPERATION" SHALL HAVE THE SAME MEANING AS DEFINED
IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED ONE  OF  THE  AGRICULTURE
(H) THE TERM "CONSERVATION EASEMENT" SHALL MEAN AN EASEMENT, COVENANT,
RESTRICTION, OR OTHER INTEREST IN REAL PROPERTY ACQUIRED FOR THE PRESER-
VATION  OF AGRICULTURAL LANDS USED IN BONA FIDE AGRICULTURAL PRODUCTION,
PURSUANT TO SECTION TWO HUNDRED FORTY-SEVEN  OF  THE  GENERAL  MUNICIPAL
§  3.  Subsection  (a)  of  section  954 of the tax law, as amended by
section 3 of part X of chapter 59 of the laws of 2014,  paragraph  3  as
amended  by  section  2 of part BB of chapter 59 of the laws of 2015, is
(a) General.-- The New York gross estate of a deceased resident  means
his  or her federal gross estate as defined in the internal revenue code
(whether or not a federal estate tax return is  required  to  be  filed)
LBD03251-01-9
S. 3711                             2                            A. 5504
(1)  Reduced by the value of real or tangible personal property having
an actual situs outside New York state.
(1-A)  REDUCED  BY  THE  VALUE  OF REAL PROPERTY SITUATED IN THE STATE
WHICH, ON THE DATE OF THE DECEDENT'S DEATH WAS LAND USED IN SUPPORT OF A
FARM OPERATION; UPON WHICH THERE WAS A CONSERVATION  EASEMENT;  OR  UPON
WHICH  THERE  WAS A COVENANT RESTRICTING THE USE OF THE LAND TO AGRICUL-
TURAL OR NATURAL RESOURCE CONSERVATION PURPOSES.
(2) Increased by the amount  determined  under  section  nine  hundred
fifty-seven  of  this  part  (relating  to limited powers of appointment
created prior to September first, nineteen hundred thirty).
(3) Increased by the amount of any taxable gift under section 2503  of
the  internal  revenue  code  not  otherwise  included in the decedent's
federal gross estate, made during the three year period  ending  on  the
decedent's  date of death, but not including any gift made: (A) when the
decedent was not a resident of New York state;  [or]  (B)  before  April
first, two thousand fourteen; [or] (C) that is real or tangible personal
property  having  an actual situs outside New York state at the time the
gift was made[.  Provided, however that this paragraph shall  not  apply
to  the  estate of a decedent dying on or after January first, two thou-
sand nineteen]; (D) OR THAT IS REAL PROPERTY USED IN SUPPORT OF  A  FARM
OPERATION,  SUBJECT TO A CONSERVATION EASEMENT, OR SUBJECT TO A RESTRIC-
TIVE COVENANT AS DESCRIBED IN PARAGRAPH ONE-A OF THIS SUBSECTION.
§ 4. The tax law is amended by adding a new section 954-a to  read  as
§  954-A.  ADDITIONAL TAX IF LAND USED IN SUPPORT OF A FARM OPERATION,
SUBJECT TO A CONSERVATION EASEMENT, OR SUBJECT TO A RESTRICTIVE COVENANT
AS DESCRIBED IN PARAGRAPH  ONE-A  OF  SUBSECTION  (A)  OF  SECTION  NINE
HUNDRED  FIFTY-FOUR  OF  THIS  PART IS NO LONGER USED FOR SUCH PURPOSES.
(A) IF, AT ANY TIME AFTER THE DECEDENT'S DEATH AND BEFORE THE  DEATH  OF
THE  HEIR,  THE HEIR: (1) DISPOSES OF ANY INTEREST IN REAL PROPERTY THAT
IS USED IN SUPPORT OF A FARM OPERATION, SUBJECT TO A CONSERVATION  EASE-
MENT,  OR  SUBJECT  TO  A RESTRICTIVE COVENANT AS DESCRIBED IN PARAGRAPH
ONE-A OF SUBSECTION (A) OF SECTION NINE HUNDRED FIFTY-FOUR OF THIS  PART
AND   THE   PERSON  ACQUIRING  SUCH  INTEREST  IS  NOT  SUBJECT  TO  THE
RESTRICTIONS ON USE DESCRIBED IN PARAGRAPH ONE-A OF  SUBSECTION  (A)  OF
SECTION  NINE HUNDRED FIFTY-FOUR OF THIS PART, OR (2) THE HEIR USES SUCH
LAND IN ANY MANNER WHICH VIOLATES THE TERMS OF SUCH  RESTRICTION,  THEN,
(B)  THE AMOUNT OF THE ADDITIONAL TAX IMPOSED BY THIS SECTION SHALL BE
THE AMOUNT EQUAL TO THE EXCESS OF WHAT WOULD HAVE BEEN  THE  ESTATE  TAX
LIABILITY   BUT  FOR  THE  REDUCTION  PROVIDED  IN  PARAGRAPH  ONE-A  OF
SUBSECTION (A) OF SECTION NINE HUNDRED FIFTY-FOUR OF THIS PART.
§ 5. Section 982 of the tax law is amended by adding a new  subsection
(A-1) FARMLAND AND CONSERVATION LAND EXCLUSION. AN AMOUNT EQUAL TO THE
ADJUSTED  VALUE  ATTRIBUTABLE TO REAL PROPERTY USED IN SUPPORT OF A FARM
OPERATION, SUBJECT TO A CONSERVATION EASEMENT, OR SUBJECT TO A  RESTRIC-
TIVE  COVENANT  AS  DESCRIBED  IN  PARAGRAPH  ONE-A OF SUBSECTION (A) OF
SECTION NINE HUNDRED FIFTY-FOUR OF THIS ARTICLE SHALL BE A LIEN IN FAVOR