What's happening
This bill expands property tax exemptions to include on-farm structures used for processing and retail merchandising of farm products.
Why it matters
Supports farm diversification and local economies. by allowing farms to process and sell their own products on-site without losing property tax benefits, potentially increasing farm revenues and creating rural jobs.
Levels the playing field for small and mid-sized farms. by reducing the tax burden associated with value-added activities (like cheese-making, bottling, or direct-to-consumer sales), which are often key for business survival in competitive markets.
Encourages more direct farm-to-consumer connections. by making it financially easier for farms to create retail spaces and processing facilities, likely improving access to local foods and strengthening community ties.
Modernizes outdated tax policies. that previously discouraged on-farm innovation and entrepreneurship, potentially spurring new investment in rural infrastructure and agritourism.
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Who cares
Farm owners
The bill would include land used to process or retail crops, livestock or livestock products in the definition of land used in agricultural production.
Operators of agricultural processing facilities and farm retail buildings
The bill would expand the agricultural structures property tax exemption to include buildings or portions used for processing or retail merchandising agricultural and horticultural commodities.
Local property tax assessors
Assessors would apply the expanded eligibility rules to assessment rolls based on taxable status dates on or after the bill’s effective date.
Headline styles
Expand Farm Tax Exemption
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Recommit, enacting clause stricken
- Referred to agriculture
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
918
2019-2020 Regular Sessions
IN SENATE
January 9, 2019
Introduced by Sens. YOUNG, RANZENHOFER -- 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 and the real property tax law, in relation to property tax exemption for on-farm structures that provide added value to farm products
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The opening paragraph of subdivision 4 of section 301 of the agriculture and markets law, as amended by chapter 344 of the laws of 2012, is amended to read as follows:
"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 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:
§ 2. Subdivision 2 of section 483 of the real property tax law, as amended by chapter 35 of the laws of 2016, is amended to read as follows:
2. The term "structures and buildings" shall include: (a) permanent and impermanent structures, including trellises and pergolas, made of metal, string or wood, and buildings or portions thereof used directly and exclusively in the raising and production for sale of agricultural and horticultural commodities or necessary for the storage thereof, [but not] and including structures and buildings or portions thereof used for the processing of agricultural and horticultural commodities, or the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03006-01-9
S. 918 2
retail merchandising of such commodities; (b) structures and buildings used to provide housing for regular and essential employees and their immediate families who are primarily employed in connection with the operation of lands actively devoted to agricultural and horticultural use, but not including structures and buildings occupied as a residence by the applicant and his immediate family; (c) structures and buildings used as indoor exercise arenas exclusively for training and exercising horses in connection with the raising and production for sale of agricultural and horticultural commodities or in connection with a commercial horse boarding operation as defined in section three hundred one of the agriculture and markets law. For purposes of this section, the term "indoor exercise arenas" shall not include riding academies or dude ranches; (d) structures and buildings used in the production of maple syrup; (e) structures and buildings used in the production of honey and beeswax including those structures and buildings used for the storage of bees. For purposes of this section, this shall not include those structures or buildings and portions thereof used for the sale of maple syrup or sale of honey and beeswax. The term "structures and buildings" shall not include silos, bulk milk tanks or coolers, or manure storage, handling and treatment facilities as such terms are used in section four hundred eighty-three-a of this title.
§ 3. This act shall take effect immediately and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after such 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 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 merchan- dising 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 forth 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
2017-18: S.456 Referred to Agriculture
2015,2016: S.3075 Referred to Agriculture
2013,2014: 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.