Includes land used for processing or retail merchandising of agricultural products within the real property tax exemption for land used in agricultural production

1 Co-sponsor

• Michael H. Ranzenhofer

BILL NUMBER:S3075

Title of bill

An act to amend the agriculture and markets law and the real property tax law, in relation to property tax exemption for on-farm structures that provide added value to farm products

Purpose

This bill would include within the ten year property tax exemption for agriculture buildings those on-farm structures that are used by a farm to add value to farm products.

Summary of provisions

Section 1: Section 301 of the Agriculture and Markets Law is amended to include land or portions thereof used for processing or retrial merchandising of such crops, livestock or livestock products.

Section 2: Section 483 of the Real Property Tax Law is amended to include land and structures used for processing or retail merchandising of crops and/or livestock products from such land in the agriculture buildings exemption.

Section 3: Sets for the effective date.

Justification

Unfortunately, farmers are often deterred from expanding their farms due to dramatic yearly property taxes. This bill would offer a ten-year real property tax exemption for structures and buildings built on land used in agricultural production.

Since a ten-year tax exemption would save farmers money, this bill encourages farmers to invest in structures they may not have if they did not have the exemption. Farmers would be more willing to expand into a value-added initiative, because they would be temporarily sheltered from taxes on their new developments. By doing this, they would be making their farms more economically sustainable and eventually be able to provide more tax revenue to the state of New York.

Legislative history

2103,2014: S.2674A Referred to Local Government 2011,2012: S.778 Referred to Agriculture 2009,2010: S.2414 Referred to Agriculture 2007,2008: S.5678 Referred to Agriculture

Fiscal implications

None to the state. Since the bill only covers the value of new farm construction, there would be no negative impact on local revenues.

Effective date

Effective immediately and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after such date.