New York S 10541: Relates to custom farm operators

Bill Text

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S10541 Summary:

BILL NOS10541 

&nbsp

SAME ASNo Same As

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SPONSORHELMING

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COSPNSR

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MLTSPNSR

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Amd §§42 & 606, Tax L

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Includes "custom farm operators" within the definition of "eligible farmer"; defines such term as an independent contractor who performs specific agricultural tasks including, but not limited to, tilling, planting, spraying, or harvesting, using their own machinery and labor for a set fee, typically without taking ownership of the crop.

Go to top S10541 Actions:

BILL NOS10541 

&nbsp

05/19/2026REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Go to topS10541 Committee&nbspVotes:

Go to topS10541 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS10541 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 10541

 IN SENATE

 May 19, 2026
 ___________

 Introduced by Sen. HELMING -- read twice and ordered printed, and when
 printed to be committed to the Committee on Investigations and Govern-
 ment Operations

 AN ACT to amend the tax law, in relation to custom farm operators

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Subdivision (c) of section 42 of the tax law, as amended by
 2 section 1 of part N of chapter 59 of the laws of 2019, is amended to
 3 read as follows:
 4 (c) For purposes of this section, the term "eligible farmer" means a
 5 taxpayer whose federal gross income from farming as defined in
 6 subsection (n) of section six hundred six of this chapter for the taxa-
 7 ble year is at least two-thirds of excess federal gross income. The
 8 term "eligible farmer" also includes a "custom farm operator" who is an
 9 independent contractor who performs specific agricultural tasks includ-
 10 ing, but not limited to, tilling, planting, spraying, or harvesting,
 11 using their own machinery and labor for a set fee, typically without
 12 taking ownership of the crop. Excess federal gross income means the
 13 amount of federal gross income from all sources for the taxable year in
 14 excess of thirty thousand dollars. For purposes of this section,
 15 payments from the state's farmland protection program, administered by
 16 the department of agriculture and markets, shall be included as federal
 17 gross income from farming for otherwise eligible farmers.
 18 § 2. Paragraph 2 of subsection (n) of section 606 of the tax law, as
 19 amended by chapter 297 of the laws of 2010, is amended to read as
 20 follows:
 21 (2) Eligible farmer. For purposes of this subsection, the term "eligi-
 22 ble farmer" means a taxpayer whose federal gross income from farming for
 23 the taxable year is at least two-thirds of excess federal gross income.
 24 The term "eligible farmer" also includes an individual other than the
 25 taxpayer of record for qualified agricultural land who has paid the
 26 school district property taxes on such land pursuant to a contract for
 27 the future purchase of such land; provided that such individual has a
 28 federal gross income from farming for the taxable year which is at least

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD15330-01-6

 S. 10541 2

 1 two-thirds of excess federal gross income; and provided further that, in
 2 determining such income eligibility, a taxpayer may, for any taxable
 3 year, use the average of such federal gross income from farming for that
 4 taxable year and such income for the two consecutive taxable years imme-
 5 diately preceding such taxable year. The term "eligible farmer" also
 6 includes a "custom farm operator" who is an independent contractor who
 7 performs specific agricultural tasks including, but not limited to,
 8 tilling, planting, spraying, or harvesting, using their own machinery
 9 and labor for a set fee, typically without taking ownership of the crop.
 10 Excess federal gross income means the amount of federal gross income
 11 from all sources for the taxable year reduced by the sum (not to exceed
 12 thirty thousand dollars) of those items included in federal gross income
 13 which consist of (i) earned income, (ii) pension payments, including
 14 social security payments, (iii) interest, and (iv) dividends.