New York State OKs Bill to Allow Family Farms to Pass on Tax Credit
New York Senate Agriculture Committee Chair State Senator Patty Ritchie recently announced that a bill she introduced, designed to help a family member inheriting a farm through a trust to also inherit the tax credit the previous family farm operator was receiving, has been signed into law.
Under previous law, the Farmer’s School Tax Credit, which provides a tax credit to farmers as a reimbursement for some or all of school district property taxes, allowed a farmer to bequeath his or her farm and that tax credit to a family member, as long as the farm was not held in trust.
Senator Ritchie’s bill (S.2899) amends the Farmer’s School Tax Credit Law to include farms transferred to a family member through a trust.
“There are a significant number of family farms using trusts as a tool to transfer the property onto the family’s next generation,” says Senator Ritchie. “This bill helps ensure that our hardworking, older farm generation can retire, knowing their children will receive this important tax credit, allowing them to continue operating the farm and helping to protect the future of New York’s leading industry.”
This bill received unanimous support in both New York Senate and Assembly before Gov. Anthony Cuomo signed it into law.