What's happening
This bill updates agricultural and property tax laws to expand definitions, clarify assessments, and allow farms to challenge assessment denials through the SCAR process.
Why it matters
Broader eligibility for agricultural tax benefits. The bill expands definitions and clarifies eligibility for land to qualify as "land used in agricultural production," including new and diversified operations (such as silvopasturing, apiary operations, and compost production), making it easier for more types of farms to access agricultural assessments and property tax exemptions.
Explicit inclusion of farm processing and marketing. By specifically including land and structures used for processing and retail merchandising of farm products in the definitions, the bill recognizes the modern realities of farm operations, supporting value-added agriculture and on-farm sales, which can help farms increase profitability and resilience.
Protection of farmland from utility siting. New restrictions prevent above-ground natural gas and electric transmission lines from being sited on agricultural land in agricultural districts (with certain exceptions), helping to preserve contiguous, productive farmland and reduce conflicts between agriculture and infrastructure development.
Enhanced appeal rights for farmers. The bill allows farms denied agricultural assessments or farm building exemptions to challenge these denials through the Small Claims Assessment Review (SCAR) process, providing a more accessible and affordable legal avenue for farmers to dispute local property tax decisions and potentially reducing financial burdens from misclassification or denial.
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Who cares
Headline styles
Update Farm Land Tax Rules
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.902
- Referred to agriculture
Full text
7 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8171
IN SENATE
April 13, 2018
Introduced by Sen. RITCHIE -- (at request of the Department of Agriculture and Markets) -- read twice and ordered printed, and when printed to be committed to the Committee on Agriculture
AN ACT to amend the agriculture and markets law, in relation to certain definitions and agricultural districts and assessments; and to amend the real property tax law, in relation to the farm buildings tax exemption and authorizing farms to challenge the denial of an agricultural value assessment through the small claims assessment review (SCAR) process
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 4 of section 301 of the agriculture and markets law, as amended by chapter 445 of the laws of 2002, the opening paragraph as amended by chapter 344 of the laws of 2012, paragraph a-1 as added by chapter 611 of the laws of 2008, paragraph c as amended by chapter 47 of the laws of 2011, paragraph h as amended by chapter 587 of the laws of 2005, paragraph i as added by chapter 252 of the laws of 2004, paragraph j as added by chapter 256 of the laws of 2006, paragraph k as added by chapter 341 of the laws of 2008, paragraph l as added by chapter 384 of the laws of 2011, and paragraph m as added by chapter 547 of the laws of 2014, is amended to read as follows:
4. "Land used in agricultural production" means [not less than seven acres of] land used as a single operation [in the preceding two years] for the production for sale of crops, livestock or livestock products [of an average] with annual gross sales [value] of ten thousand dollars or more; or, not less than seven acres of land used [in the preceding two years] to support a commercial horse boarding operation or a commercial equine operation with annual gross receipts of ten thousand dollars or more. [Land used in agricultural production shall not include land or portions thereof used for processing or retail merchandising of such crops, livestock or livestock products.] Land used in agricultural production shall also include:
a. Rented land which otherwise satisfies the requirements for eligibility for an agricultural assessment.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14328-02-8
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a-1. Land used by a not-for-profit institution for the purposes of agricultural research that is intended to improve the quality or quantity of crops, livestock or livestock products. Such land shall qualify for an agricultural assessment upon application made pursuant to paragraph [(a)] a of subdivision one of section three hundred five of this article, except that no minimum annual gross sales value shall be required.
b. Land of not less than seven acres used as a single operation for the production for sale of crops, livestock or livestock products, exclusive of woodland products, which does not independently satisfy the annual gross sales [value] requirement[, where such land was used in such production for the preceding two years] and currently is being so used under a written rental arrangement of five or more years in conjunction with land which is eligible for an agricultural assessment.
c. Land used in support of a farm operation or land used in agricultural production, constituting a portion of a parcel, as identified on the assessment roll, which also contains land qualified for an agricultural assessment. Such land shall include land used for agricultural amusements which are produced from crops grown or produced on the farm, provided that such crops are harvested and marketed in the same manner as other crops produced on such farm. Such agricultural amusements shall include, but not be limited to, so-called "corn mazes" or "hay bale mazes".
d. Farm woodland which is part of land which is qualified for an agricultural assessment, provided, however, that such farm woodland attributable to any separately described and assessed parcel shall not exceed fifty acres.
e. Land set aside through participation in a federal conservation program pursuant to title one of the federal food security act of nineteen hundred eighty-five or any subsequent federal programs established for the purposes of replenishing highly erodible land which has been depleted by continuous tilling or reducing national surpluses of agricultural commodities and such land shall qualify for agricultural assessment upon application made pursuant to paragraph a of subdivision one of section three hundred five of this article, except that no minimum annual gross sales [value] shall be required.
f. [Land of not less than seven acres used as a single operation in the preceding two years for the production for sale of crops, livestock or livestock products of an average gross sales value of ten thousand dollars or more, or land of less than seven acres used as a single operation in the preceding two years for the production for sale of crops, livestock or livestock products of an average gross sales value of fifty thousand dollars or more.
g.] Land under a structure within which crops, livestock or livestock products are produced, provided that the sales of such crops, livestock or livestock products meet the annual gross sales requirements of [paragraph f of] this subdivision.
[h. Land that is owned or rented by a farm operation in its first or second year of agricultural production, or, in the case of a commercial horse boarding operation in its first or second year of operation, that consists of (1) not less than seven acres used as a single operation for the production for sale of crops, livestock or livestock products of an annual gross sales value of ten thousand dollars or more; or (2) less than seven acres used as a single operation for the production for sale of crops, livestock or livestock products of an annual gross sales value of fifty thousand dollars or more; or (3) land situated under a struc-
S. 8171 3
ture within which crops, livestock or livestock products are produced, provided that such crops, livestock or livestock products have an annual gross sales value of (i) ten thousand dollars or more, if the farm operation uses seven or more acres in agricultural production, or (ii) fifty thousand dollars or more, if the farm operation uses less than seven acres in agricultural production; or (4) not less than seven acres used as a single operation to support a commercial horse boarding operation with annual gross receipts of ten thousand dollars or more.
i.] g. Land of not less than seven acres used as a single operation for the production for sale of orchard or vineyard crops when such land is used solely for the purpose of planting a new orchard or vineyard and when such land is also owned or rented by a newly established farm operation in its first, second, third or fourth year of agricultural production.
[j.] h. Land of not less than seven acres used as a single operation for the production and sale of Christmas trees when such land is used solely for the purpose of planting Christmas trees that will be made available for sale, whether dug for transplanting or cut from the stump and when such land is owned or rented by a newly established farm operation in its first, second, third, fourth or fifth year of agricultural production.
[k.] i. Land used to support an apiary products operation which is owned by the operation and consists of [(i) not less than seven acres nor] not more than ten acres used as a single operation [in the preceding two years] for the production for sale of crops, livestock or livestock products of an [average] annual gross sales [value] of ten thousand dollars or more [or (ii) less than seven acres used as a single operation in the preceding two years for the production for sale of crops, livestock or livestock products of an average gross sales value of fifty thousand dollars or more]. The land used to support an apiary products operation shall include, but not be limited to, the land under a structure within which apiary products are produced, harvested and stored for sale; and a buffer area maintained by the operation between the operation and adjacent landowners. Notwithstanding any other provision of this subdivision, rented land associated with an apiary products operation is not eligible for an agricultural assessment based on this paragraph.
[l. Land that is owned or rented by a farm operation in its first or second year of agricultural production or in the case of a commercial equine operation, in its first or second year of operation, that consists of not less than seven acres and stabling at least ten horses, regardless of ownership, that receives ten thousand dollars or more in gross receipts annually from fees generated through the provision of commercial equine activities including, but not limited to riding lessons, trail riding activities or training of horses or through the production for sale of crops, livestock, and livestock products, or through both the provision of such commercial equine activities and such production. Under no circumstances shall this subdivision be construed to include operations whose primary on site function is horse racing.
m.] j. Land used in silvopasturing, which is part of a single operation that otherwise satisfies the requirements for eligibility for an agricultural assessment, shall be limited to up to ten fenced acres per large livestock, including cattle, horses and camelids, and up to five fenced acres per small livestock, such as sheep, hogs, goats and poultry. For the purposes of this subdivision, "silvopasturing" shall mean the intentional combination of trees, forages and livestock managed as a
S. 8171 4
single integrated practice for the collective benefit of each, including the planting of appropriate grasses and legume forages among trees for sound grazing and livestock husbandry.
k. Land or portions thereof used for processing or retail merchandising of crops, livestock or livestock products.
§ 2. Subdivision 9 of section 301 of the agriculture and markets law, as amended by chapter 440 of the laws of 1993, paragraphs c, d, e, and f as amended and paragraph g as added by chapter 536 of the laws of 2008, is amended to read as follows:
9. "Gross sales [value]" means the proceeds from the sale of:
a. Crops, livestock and livestock products produced on land used in agricultural production provided, however, that whenever a crop is processed before sale, the proceeds shall be based upon the market value of such crop in its unprocessed state;
b. Woodland products from farm woodland eligible to receive an agricultural assessment, not to exceed two thousand dollars annually;
c. Honey, royal jelly, bee pollen, propolis and beeswax produced by bees in hives located on [an otherwise qualified farm operation but which does not independently satisfy the gross sales requirement] land used in agricultural production in conjunction with the same or an otherwise qualified farm operation;
d. Maple syrup, maple candy and maple cream processed from maple sap produced on land used in agricultural production in conjunction with the same or an otherwise qualified farm operation;
e. Compost, mulch or other organic biomass crops as defined in subdivision seventeen of this section produced on land used in agricultural production, not to exceed five thousand dollars annually;
f. Or payments received by reason of land set aside pursuant to paragraph e of subdivision four of this section;
[f.] g. Or payments received by thoroughbred breeders pursuant to section two hundred fifty-four of the racing, pari-mutuel wagering and breeding law; [and
g. Compost, mulch or other organic biomass crops as defined in subdivision sixteen of this section produced on land used in agricultural production, not to exceed five thousand dollars annually.]
h. Or in a commercial horse boarding operation as defined in subdivision thirteen of this section, the income received from the boarding of horses or through the production for sale of crops, livestock and livestock products or through both such boarding and such production; and
i. Or in a commercial equine operation as defined in subdivision eighteen of this section, the income received from fees generated through the provision of commercial equine activities including, but not limited to, riding lessons, trail riding activities or training of horses or through the production for sale of crops, livestock and livestock products or through both commercial equine activities and such production.
§ 3. Subdivision 1 of section 305 of the agriculture and markets law is amended by adding a new paragraph f to read as follows:
f. The commissioner may initiate an investigation pursuant to section thirty-six of this chapter to determine if an eligible farm operation was improperly denied an agricultural assessment pursuant to this section or section three hundred six of this article. If the commissioner finds after such investigation that an eligible farm operation was improperly denied such assessment, he or she may issue an order pursuant to section thirty-six of this chapter to compel the assessor to approve the agricultural assessment as provided for in the order.
S. 8171 5
§ 4. Subdivision 4 of section 305 of the agriculture and markets law is amended by adding a new paragraph h-1 to read as follows:
h-1. Notwithstanding any other provision of law to the contrary, no above ground natural gas and electric transmission line facilities shall be sited on land in agricultural production which is located within an agricultural district, or land in agricultural production that qualifies for and is receiving an agricultural assessment pursuant to section three hundred six of this article. Nothing contained in this paragraph, however, shall be deemed to prohibit siting when:
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the agriculture and markets law, in relation to certain definitions and agricultural districts and assessments; and to amend the real property tax law, in relation to the farm buildings tax exemption and authorizing farms to challenge the denial of an agricultural value assessment through the small claims assessment review (SCAR) process
Purpose
These proposed amendments are intended to streamline the agricultural assessment definitions and eligibility criteria (Agriculture and Markets Law (AML) § 301(4)) and provide additional protections to prime agricul- tural soils under AML § 305(4). The Real Property Tax Law (RPTL) would be amended to allow a 10-year exemption from taxation on buildings and structures used to process and market on-farm grown crops, livestock and livestock products and on buildings and structures associated with commercial equine operations (RPTL § 483); and to allow farmers to chal- lenge the denial of an agricultural assessment and/or a farm buildings tax exemption in small claims court (RPTL § 730).
Summary of provisions
Section 1 of the bill would amend the AML to allow farmers to qualify their land for an agricultural assessment in its first or second year of growing and selling a crop; would eliminate the minimum acreage require- ment; and would make land used for processing or retail merchandising eligible for an agricultural assessment.
Read the full memo (867 words)
Section 2 would amend AML § 301(9) to make the sale of maple candy and maple cream as a pure maple product and certain apiary products eligible to meet the gross sales value requirement to qualify for an agricultural assessment. The bill would add language to make it clear that receipts from commercial horse boarding operations and commercial equine oper- ations constitute gross sales.
Section 3 would amend AML § 305(1) to clarify that the Department has the authority to investigate and compel compliance with the agricultural assessment provisions of the AML on behalf of qualified farms.
Section 4 would amend AML § 305(4) to provide additional protections for agricultural lands in an agricultural district or lands receiving an agricultural assessment from the siting of above ground natural gas and electric line facilities.
Section 5 would amend RPTL § 483 to: allow structures used for on-farm processing and retail sales to qualify for a ten-year real property tax exemption; and make commercial equine operation structures and buildings used as indoor exercise arenas eligible for the exemption.
Section 6 would-amend RPTL § 73D to make Small Claims Assessment Review available to owners of property that has been denied an agricultural assessment and/or a farm buildings tax exemption. This section would apply to those petitions filed against assessment rolls prepared on or after January 1 next succeeding the date on which it shall have become a law. Section 7 would provide for an immediate effective date and make the amendments applicable to taxable status dates occurring on or after the effective date.
Justification
The proposed amendments to the Agricultural Districts Law (ADL) will better protect farms and keep land in agricultural production by stream- lining and expanding the agricultural assessment program; making it easier to challenge the denials of agricultural assessments; providing greater protection to prime farmland and clarifying which buildings and structures are on-farm buildings qualifying for a RPTL § 483 exemption. The bill would also address inequities in acreage and income require- ments for an agricultural assessment among different farm operations.
It will also address the evolving nature of farming, recognizing that processing or retail merchandising of crops, livestock and livestock products are integral parts of a farm operation. It will also update RPTL § 483 to better support the viability of farm operations by allow- ing on-farm processing structures and retail sales to qualify for a 10-year real property tax exemption, conforming this provision with the treatment of farm buildings and structures under the agricultural assessment and other AML provisions. The proposed RPTL amendments would also better protect farmers constructing buildings integral to their farm operation from the threat of punitive conversion payments by local assessors claiming that the construction constitutes a conversion of the land from agricultural uses under AML § 305(1)(d).
Farmland offers the easiest place to locate natural gas and electric transmission facilities due to prime construction attributes, minimal oversight and no legislated restrictions. The location of such facili- ties can be very disruptive to farm operations and may cause surrounding land to no longer be economically viable for agricultural purposes. The proposed amendment will provide protection for agricultural land located in an agricultural district or receiving an agricultural assessment from the siting of above-ground natural gas and electric transmission line facilities and will also allow Department staff to assist with the siting of such facilities to reduce adverse impacts to farm operations.
Finally, both the procedural hurdles and cost of litigation discourage most farmers from appealing their farmland and agricultural structure valuations to State Supreme Court. This amendment to RPTL § 730 will provide farmers with the ability to cost-effectively appeal the valu- ation of their land and/or buildings to the small claims court, like the process followed by residential landowners.
Prior legislative history
None.
Budget implications
None.
Effective date
This act would take effect immediately.
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