What's happening
This bill creates a three-year real property tax exemption for land used to replant or expand woody biomass crops for biofuel production in New York.
Why it matters
Encourages renewable energy production and rural economic diversification. by making it more financially attractive for landowners to grow woody biomass crops (like willow) for biofuels, potentially fostering local energy markets and green job growth.
Limits the scope and potential for abuse. by capping the exemption at 20% of a landowner’s eligible acreage each year—except in disaster areas—helping ensure the policy targets genuine crop expansion or replanting, not wholesale tax avoidance.
Provides flexibility for disaster recovery. by allowing landowners in governor-declared disaster zones to claim the exemption on more than 20% of their acreage if necessary to recover from crop loss, supporting farm resilience in the face of extreme weather or other emergencies.
Requires ongoing agricultural use and compliance. (including annual assessment applications) to qualify for the exemption, which helps keep the land in active, sustainable agricultural production rather than opening the door to speculative or non-agricultural uses.
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Who cares
Headline styles
Cut Taxes for Biofuel Farms
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to finance
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
896
2019-2020 Regular Sessions
IN SENATE
January 9, 2019
Introduced by Sens. YOUNG, FUNKE -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to amend the agriculture and markets law, in relation to establishing a real property tax abatement for the owners of land used for replanting or crop expansion of woody biomass for the production of ethanol or biofuels, including willow
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 305 of the agriculture and markets law is amended by adding a new subdivision 8 to read as follows:
8. Notwithstanding any provision of law to the contrary, that portion of the value of land which is used solely for the purpose of replanting or crop expansion of woody biomass for the production of ethanol or biofuels, including but not limited to willow, shall be exempt from real property taxation for a period of three successive years following the date of such replanting or crop expansion beginning on the first eligible taxable status date following such replanting or expansion provided the following conditions are met:
a. the land used for crop expansion or replanting must be part of land used in agricultural production of woody biomass for the production of ethanol or biofuels within an agricultural district or such land must be part of land used in agricultural production of woody biomass which is eligible for an agricultural assessment pursuant to this section or section three hundred six of this article where the owner of such land has filed an annual application for an agricultural assessment;
b. the land eligible for such real property tax exemption shall not in any one year exceed twenty percent of the total acreage of such land used in agricultural production of woody biomass within an agricultural district or twenty percent of the total acreage of such land used in agricultural production of woody biomass eligible for an agricultural assessment pursuant to this section and section three hundred six of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03632-01-9
S. 896 2
this article where the owner of such land has filed an annual application for an agricultural assessment;
c. the land eligible for such real property tax exemption must be maintained as land used in agricultural production of woody biomass for each year such exemption is granted; and
d. when the land used for the purpose of replanting or crop expansion on land used in agricultural production of woody biomass is located within an area which has been declared by the governor to be a disaster emergency in a year in which such tax exemption is sought and in a year in which such land meets all other eligibility requirements for such tax exemption set forth in this subdivision, the maximum twenty percent total acreage restriction set forth in paragraph b of this subdivision may be exceeded for such year and for any remaining successive years; provided, however, that the land eligible for such real property tax exemption shall not exceed the total acreage which remains damaged or destroyed in any remaining successive year. The total acreage for which such exemption is sought pursuant to this paragraph shall be subject to verification by the commissioner or his or her designee.
§ 2. This act shall take effect immediately and shall apply to assessment rolls prepared after the first of January next succeeding such effective date.
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 establishing a real property tax abatement for the owners of land used for replanting or crop expansion of woody biomass for the production of ethanol or biofuels, including willow
Purpose
This bill establishes real property tax abatement for the value of land used for replanting or crop expansion of woody biomass used for the production of ethanol or biofuel.
Summary of provisions
Agriculture and Markets Law is amended to establish a three-year real property tax exemption for replanting or crop expansion of woody biomass for the'production of ethanol or biofuel which reflects the maturation time needed in order for the plant material to be marketable.
Justification
This legislation will encourage crop transitions to cellulosic feedstock for ethanol production, such as willow and grasses, with a three-year real property tax exemption which reflects the maturation time needed in order for such plant material to be marketable. During this three year maturation period, farmers receive no cost benefit for the crop being produced. This exemption will help farmers diversify their operation and assist them in getting into the new and growing market for cellulosic ethanol and biofuel.
Legislative history
2018: S.534A Committed to Rules 2017: S.534 Committed to Rules 2016: S.2075A Committed to Finance 2015: S.2075 Committed to Rules 2013, 2014: S.2741 Referred to Agriculture 2011, 2012: S.844 Referred to Agriculture 2009, 2010: S.2421A Referred to Agriculture
Fiscal implications
Undetermined at this time.
Effective date
This act shall take effect immediately and shall apply to assessment rolls prepared after the first of January next succeeding such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.