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Page 2 CT-47-I (1998)

You are not engaged in the business of farming if your

Note: In the case of the production of maple syrup and

principal source of income is from providing agricultural

cider, and the sale of wine from a farm winery: any

services, such as soil preparation, veterinary services or

buildings and structures used to process the sap into syrup,

farm labor. In addition, you are not engaged in farming if

the apples into cider, or the grapes into wine, are

you manage or operate a farm for a fee. Furthermore, if you

considered qualiﬁed agricultural property, even though the

are cultivating or operating a farm for recreation or leisure

property is used in processing.

(e.g., a hobby farm), you are not engaged in the business

of farming. Also, forestry and logging, including the growing

of Christmas trees, is not farming unless the products are

Processing means doing something to a farm commodity

used in the operation of a farm or are connected with an

beyond what is needed to make it initially marketable. The

otherwise qualifying farm operating as described above.

mere sorting, washing, and packaging of fruits and

The amount of credit allowed in 1997 must be added to

vegetables is not considered processing.

federal taxable income in computing your New York State

entire net income for 1998. See New York Additions in the

instructions to Forms CT-3/4 or CT-3-A.

A residence includes a house, manufactured home or

housing, etc., and any other buildings associated with it,

How to Claim the Credit

such as garages or sheds, that are used for residential

File Form CT-47 if you are a corporation or a corporate

purposes.

partner in a partnership and you qualify for the Farmers’

School Tax Credit.

Corporate partners: When computing this credit, a

Item B - If you paid eligible school district property taxes on

corporate partner should include its pro rata share of the

qualiﬁed property during the tax year beginning in 1998,

partnership’s qualiﬁed agricultural property and eligible

check the Yes box.

taxes, as well as any other relevant information used to

compute the credit.

S Corporations: Do not complete this form. Instead,

Eligible school district taxes are real property taxes levied

include the shareholder’s amounts of qualiﬁed property and

by a school district on qualiﬁed agricultural property owned

eligible school taxes paid on Form CT-34-SH.

by you. Real property taxes levied by towns, villages, cities

or other municipal governments are not eligible taxes.

Part I - Eligibility

Eligible taxes include taxes paid on qualiﬁed agricultural

This part is used to determine if you are eligible to claim

property which you own but rent to someone else. However,

the farmers’ school tax credit.

eligible taxes do not include taxes paid on qualiﬁed

agricultural property you rent from someone else, even if

Item A - If you owned qualiﬁed agricultural property during

the rental agreement provides that you must actually pay

the tax year beginning in 1998, or were a partner in a

the taxes.

partnership that owned qualiﬁed agricultural property during

the tax year beginning in 1998, check the Yes box.

Qualiﬁed agricultural property includes land and land

Real property taxes levied by a school district include all

improvements located in New York State that are used in

property taxes, special ad valorem levies and special

agricultural production. It also includes structures and

assessments levied by a school district. Also included are

buildings (except for buildings used by the taxpayer for

taxes levied by a school district for the support of local

residential purposes) that are located in New York State

libraries. Penalties and interest are not included.

and used or occupied to carry out agricultural production.

Agricultural production means those activities discussed

under engaged in the business of farming on this page.

If you own both qualiﬁed agricultural property and

nonqualiﬁed property, and you receive only one school tax

Land used in agricultural production includes land under

bill for all the property, you must apportion the total school

structures or buildings which are qualiﬁed agricultural

taxes paid between the qualiﬁed and nonqualiﬁed property

property, and land in support of a farm operation, such as

based upon the value of the properties. Your local assessor

farm ponds, drainage swamps, wetlands and access roads.

may be able to tell you the value of your qualiﬁed and

nonqualiﬁed property. If your assessor is unable to provide

A structure or building qualiﬁes if it is used (1) in the raising

and production for sale of agricultural or horticultural

this information, you may use any other reasonable method,

commodities, or (2) for the storage of agricultural

such as basing the value on the recent sale price of similar

commodities for sale at a future time, or (3) for the storage

property in your area, to determine the value. In either

of supplies or for the storage or servicing of equipment

case, you should keep records to substantiate how you

necessary for agricultural or horticultural production.

allocated the taxes.

A structure or building is not qualiﬁed agricultural property if

it is used for (1) the processing of agricultural commodities,

or (2) the retail merchandising of agricultural commodities,

Item C - In order to qualify for this credit, the amount

or (3) the storage of commodities for personal consumption

shown on Worksheet A, line 3 on page 3 must be less than

or (4) a residence.

$150,000.

Form Ct-47-I - Instructions For Form Ct-47 - Claim For Farmers' School Tax Credit - 1998 Page 2

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