What's happening
This bill updates definitions and rules for New York farm assessments, expands farm building tax exemptions, and allows farms to challenge assessment denials through the SCAR process.
Why it matters
Expands eligibility for agricultural assessment and tax exemptions to more types of farm operations. The bill updates what counts as "land used in agricultural production," including land used for processing and retailing farm products as part of a farm operation, and clarifies that certain activities (like silvopasturing, maple product processing, and commercial equine operations) now qualify.
Provides new protections for farmland from infrastructure development. The bill restricts the siting of above-ground natural gas and electric transmission lines on agricultural land within agricultural districts or lands receiving agricultural assessment, unless specific exceptions are met, aiming to help preserve active farmland.
Clarifies and broadens definitions of farm income for assessment purposes. The bill refines what counts as "gross sales," now including a wider array of farm-derived products and activities (e.g., value-added maple and apiary products, compost, and equine activities), which could help more farms meet minimum income thresholds for assessment benefits.
Strengthens farmers’ ability to challenge denied assessments. Farms denied agricultural assessments or farm building tax exemptions can now challenge those decisions through the Small Claims Assessment Review (SCAR) process, giving farmers more accessible and affordable recourse compared to traditional legal appeals.
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Who cares
Headline styles
Broaden Farm Tax Benefits
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Reported and committed to finance
- Referred to agriculture
- Returned to senate
- Died in assembly
- Referred to agriculture
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1165
- Committee discharged and committed to rules
- Reported and committed to finance
- Referred to agriculture
Full text
7 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5755
2019-2020 Regular Sessions
IN SENATE
May 14, 2019
Introduced by Sen. METZGER -- (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, paragraph m as added by chapter 547 of the laws of 2014 and paragraph n as added by chapter 192 of the laws of 2018, 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09100-01-9
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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.
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 currently 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] with annual 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] with annual 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
S. 5755 3
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 structure 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.] h. 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.] i. 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.] j. Land used to support an apiary products operation which is owned by the operation and consists of (i) not less than seven acres nor 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] with 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] with annual 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.] k. Land used in silvopasturing, which is part of a single operation that otherwise satisfies the requirements for eligibility for an
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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 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.
l. Land or portions thereof used for processing or retail merchandising of crops, livestock or livestock products on land which is part of a farm operation, as defined in section three hundred one of this article, and used exclusively for the processing and marketing of agricultural and horticultural commodities which are grown on land which is part of such farm operation.
[n.] m. Land of not less than seven acres used as a single operation for the production for sale of hops when such land is used solely for the purpose of planting a new hopyard 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.
§ 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 and beeswax produced by bees in hives located on an otherwise qualified farm operation but which does not independently satisfy the gross sales requirement;
d. Maple syrup, maple candy, maple sugar 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. Or payments received by reason of land set aside pursuant to paragraph e of subdivision four of this section;
f. 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.] 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
S. 5755 5
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 land 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 land 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 this order.
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 assess- ments; 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
This bill would amend the Agriculture and Markets Law (AML) and the Real Property Tax Law (RPTL) to streamline the agricultural assessment proc- ess, and provide a 10-year tax exemption on agricultural buildings and structures.
Summary of provisions
Section 1 of the bill would amend the AML to qualify land in its first or second year of production of a crop, and land used in processing and retail merchandising eligible for an agricultural assessment.
Section 2 would amend AML § 301(9) to make certain maple products eligi- ble to meet the gross sales value requirement to qualify for an agricul- tural assessment, and clarify that receipts from commercial horse board- ing operations and commercial equine operations constitute gross sales.
Section 3 would amend AML § 305(1) to clarify the Department's enforce- ment authority.
Section 4 would amend AML § 305(4) to provide additional protections for agricultural lands in the siting of above ground natural gas and elec- tric line facilities.
Section 5 would amend RPTL § 483 to provide a 10-year real property tax exemption for structures used for on-farm processing and sales, as well as commercial equine operations.
Section 6 would amend RPTL § 730 to make Small Claims Assessment Review available to owners of property denied an agricultural assessment and/or a farm buildings tax exemption.
Section 7 would provide for an immediate effective date.
Justification
This bill would better protect farms and keep land in agricultural production by: streamlining the agricultural assessment program; making it easier to challenge the denials of agricultural assessments; provid- ing greater protection to prime farmland in connection with the siting of above-gyound gas and electric facilities; and clarifying which build- ings and structures are on-farm buildings qualifying for a RPTL § 483 exemption. The bill would also support the viability of farm operations by allowing on-farm processing structures and retail sales to qualify for a 10-year real property tax exemption, and provide farmers with the ability to cost-effectively appeal the valuation of their land and/or buildings to the small claims court, similar to the process followed by residential landowners.
Prior legislative history
Introduced as S.8171 (2018), referred to rules.
Effective date
The bill would take effect immediately, and would apply to petitionse- filed against assessment rolls after the first day of January next succeeding the date on which the bill becomes law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.