H.R. 1448House113th Congress (2013-2015)In Committee

FARMER Act of 2013

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 9, 2013

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HouseIntro Referral

Introduced in House

April 9, 2013

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 9, 2013

Floor Debate

1 member

What members said about H.R. 1448 on the floor

1 Democrat

Rep. Eni F. H. FaleomavaegaD-AS · Dec 2, 2014

Mr. Speaker, I rise today to include, for historical purposes, information about the passage of a bill to provide the American Samoa Government the authority to issue bonds exempt from state and…

Mr. Speaker, I rise today to include, for historical purposes, information about the passage of a bill to provide the American Samoa Government the authority to issue bonds exempt from state and local taxation.

[Press Release, Nov. 5, 2003]

House Passes Faleomavaega Bill To Provide ASG Authority To Issue Bonds

Exempt From State and Local Taxation

Congressman Faleomavaega announced that on November 4, 2003

the U.S. House of Representatives unanimously passed H.R.

982, a bill he introduced to provide the American Samoa

Government with the authority to issue bonds exempt from

state and federal taxation.

I would like to thank Chairman Pombo and Ranking Member

Rahall of the Resources Committee and Chairman Sensenbrenner

and Ranking Member Conyers of the Judiciary Committee for

their continued support regarding the needs of American Samoa

and for their efforts to bring H.R. 982 to the Floor,

Congressman Faleomavaega said. H.R. 982 would amend the U.S.

Code to allow interest earned from American Samoa bonds to be

exempt from both state and local taxation.

Under the U.S. Code, Congress has expressly provided for

the exemption of state and local taxes for bonds issued by

Guam, the Virgin Islands, Puerto Rico and the Northern

Mariana Islands. While American Samoa can issue bonds similar

to the other territories, the interest earned from American

Samoa bonds is subject to taxation by the several States,

Washington, DC and the other territories. H.R. 982 would

provide parity to American Samoa.

H.R. 982 will also make American Samoa bonds more

attractive to investors and could save the American Samoa

Government between $20,000 and $50,000 a year in interest

costs on municipal bonds it may issue, the Congressman said.

The American Samoa Power Authority has indicated that it

would like to sell bonds to purchase new diesel generator

sets to accommodate our growing population. This legislation

would lower the interest costs of the prospective sales and

will also enable the government to address deficiencies in

its current infrastructure.

This legislation is identical to H.R. 1448 which I

introduced in the 107th Congress. H.R. 1448 was adopted by

the Judiciary and Resources Committees and was finally agreed

to by voice vote on the House Floor on September 24, 2002.

Unfortunately, the Senate was unable to consider this

legislation before the 107th Congress adjourned.

However, the Judiciary and Resources Committees once again

supported American Samoa's interests by unanimously passing

H.R. 982 in the 108th Congress and I am thankful that my

friends, both Republican and Democrat, also voted in favor of

H.R. 982 when this matter was brought to the Floor for

consideration. This legislation is beneficial and critical to

the needs of American Samoa and in due time will help us

build and strengthen our local economy.

At this time, I also want to thank Governor Togiola for his

support and I look forward to working with my friends in the

U.S. Senate to make sure that this legislation is passed

before the 108th Congress adjourns next year, the Congressman

concluded.

Bill Text

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Introduced in HouseIssued April 9, 2013

113th CONGRESS

1st Session

H. R. 1448

IN THE HOUSE OF REPRESENTATIVES

April 9, 2013

Mr. Austin Scott of Georgia (for himself, Mr. Broun of Georgia, Mr. Westmoreland, Mr. Rogers of Alabama, Mr. Yoho, Mr. McIntyre, Mr. Kingston, and Mr. Crawford) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to increase the aggregate reduction in the fair market value of farm, etc., real property under section 2032A to $2,000,000, and for other purposes.

Short title

This Act may be cited as the Farmers and Ranchers Minimizing Estate Regulations Act of 2013 or the FARMER Act of 2013.

Modifications to alternate valuation of farm, etc., real property

(a)

Maximum reduction increased to $2,000,000

(1)

In general

Paragraph (2) of section 2032A(a) of the Internal Revenue Code of 1986 (relating to limitation on aggregate reduction in fair market value) is amended by striking $750,000 and inserting $2,000,000.

(2)

Conforming amendment

The first sentence of section 2032A(a)(3) of such Code is amended to read as follows:

In the case of estates of decedents dying in a calendar year after 2012, the $2,000,000 amount contained in paragraph (2) shall be increased by an amount equal to—

(A)

$2,000,000, multiplied by

(B)

the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting calendar year 2011 for calendar year 1992 in subparagraph (B) thereof.

(b)

Reduction in required holding and use periods of decedent

Subparagraph (C) of section 2032A(b)(1) of such Code is amended—

(1)

by striking 8-year period and inserting 5-year period, and

(2)

by striking 5 years and inserting 3 years.

(c)

Reduction in required holding and use periods To avoid recapture

(1)

In general

Paragraph (1) of section 2032A(c) of such Code is amended—

(A)

by striking 10 years and inserting 5 years, and

(B)

by striking subparagraph (B) and inserting the following new subparagraph:

(B)

there have been periods aggregating 3 years or more during which the qualified heir does not use for the qualified use the qualified real property which was acquired (or passed) from the decedent,

(2)

Conforming amendment

Clause (ii) of section 2032A(c)(7)(A) of such Code is amended by striking 10-year and inserting 5-year.

(d)

Certain rents from controlled entities treated as qualified

Subparagraph (E) of section 2032A(c)(7) of such Code is amended by inserting (or to an entity more than 50 percent (by vote and value) of the equity interests in which are owned directly by members of such family) after descendant.

(e)

Repeal of use of gross cash rental of comparable land in valuing farms

(1)

In general

Subparagraphs (A) and (B) of section 2032A(e)(7) of such Code (relating to method of valuing farms) are amended to read as follows:

(A)

In general

The value of a farm for farming purposes shall be determined by dividing—

(i)

the excess of the average annual net share rental for comparable land used for farming purposes and located in the locality of such farm over the average annual State and local real estate taxes for such comparable land, by

(ii)

the average annual effective interest rate for all new Federal Land Bank loans.

For purposes of the preceding sentence, the average annual net share rental computation shall be made on the basis of the 5 most recent calendar years ending before the date of the decedent's death.

(B)

Net share rental

For purposes of this paragraph, the term net share rental means the excess of—

(i)

the value of the produce received by the lessor of the land on which such produce is grown, over

(ii)

the cash operating expenses of growing such produce which, under the lease, are paid by the lessor.

(2)

Conforming amendment

Subparagraph (C) of section 2032A(e)(7) of such Code is amended by striking that there is no comparable land from which the average annual gross cash rental may be determined, and.

(f)

Effective date

The amendments made by this section shall apply to estates of decedents dying after the date of the enactment of this Act.

Woodlands subject to management plan

(a)

In general

Paragraph (2) of section 2032A(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(F)

Exception for woodlands subject to management plan

Subparagraph (E) shall not apply to any disposition or severance of standing timber on a qualified woodland if the harvest is—

(i)

consistent with a written forest management plan developed under the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103a), or an equivalent plan approved by the State Forester,

(ii)

conducted under the guidance of a qualified forestry professional (as determined by the Secretary in consultation with the United States Forest Service), or

(iii)

conducted on lands certified to a third-party audited forest certification system or similar land management protocol, as determined by the United States Forest Service.

(b)

Effective date

The amendment made by subsection (a) shall apply to the disposition or severance of standing timber after the date of the enactment of this Act.