What's happening
This bill creates a three-year real property tax exemption for farmland in New York transitioning to USDA-certified organic production.
Why it matters
Reduces financial barriers for farmers transitioning to organic. By exempting land in the process of USDA organic certification from property taxes for up to three years, the bill helps offset the significant costs and risks associated with converting conventional farmland to organic methods.
Targets only land actively transitioning to organic. The exemption is limited to land being certified by a USDA-accredited authority and requires the land to be fully certified and used for organic production by the end of the exemption period, ensuring the benefit supports genuine organic expansion.
Limits scope to prevent abuse and protect tax base. The exemption cannot exceed 50% of the farm’s total assessed value (with exceptions in disaster years), and only applies if the land remains in agricultural production throughout the exemption period, balancing support for organic growth with local revenue needs.
Provides transparency and accountability. Requires annual reporting to the commissioner on the amount of transitioning land and its assessed value, allowing for tracking of public investment and the growth of organic agriculture in New York.
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Who cares
Headline styles
Tax Break for Organic Farms
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
972
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, in relation to creating a real property tax exemption for land of a farm operation being certified as organic
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. a. Notwithstanding any provision of law to the contrary, that portion of the value of land of a farm operation which is in the process of being certified by an organic certification authority accredited by the United States department of agriculture for the production of organic crops, livestock and livestock products shall be exempt from real property taxation for a period not to exceed three years. The land of the farm operation subject to such exemption shall be certified organic at the end of the three year tax exemption period and shall be used in the production of crops, livestock and livestock products in accordance with the United States department of agriculture national organic program standards. The land eligible for such exemption shall be reported to the commissioner who may issue an annual report detailing the amount of land subject to such exemption being converted to organic production and the assessed value of such land.
b. The land eligible for such real property tax exemption shall not in any one year exceed fifty percent of the total assessed value of such farm operation which is located on land used in agricultural production within an agricultural district or fifty percent of the total assessed value of such farm operation eligible for an agricultural assessment pursuant to this section and section three hundred six of this article where the owner of such land has filed an annual application for an agricultural assessment.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03736-01-9
S. 972 2
c. The land of the farm operation eligible for such real property tax exemption must be maintained as land used in agricultural production as part of such farm operation for each year such exemption is granted.
d. When the land which is in the process of being certified organic 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 fifty 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 damaged or destroyed by such disaster in such year or 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 designee.
§ 2. This act shall take effect immediately and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or 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 creating a real property tax exemption for land of a farm operation being certified as organic
Purpose or general idea of bill
This bill would create a real property tax exemption for the lands of a farm operation that are transitioning to organic - it is very similar to an already existing tax exemption for the replanting of vineyards and orchards.
Summary of provisions
Amends Section 305 of the Agriculture and Markets Law by adding a new subdivision 8.
Justification
The agriculture industry in New York State continues to become more and more diverse as it seeks to supply the many potential markets around the state, country and world. As part of that, some farms are seeking to transition to organic in an effort to grow fruits, vegetables and other goods for consumers who, for whatever reason, are seeking organic food.
Certainly, organic farming is a growing part of the agricultural fabric of the state and country given that, despite the increased costs, time and effort, the number of acres devoted to organic production has increased dramatically. For the first time ever, in 2005 all fifty states had land in organic production with over 4 million acres dedi- cated to it nationwide.
In 2011, New York ranked third in total amount of organic farms in the country with 597 organic farms. New York's certified organic farms sold a total of $107 million in organically produced commodities, including $38.5 million in crop sales and $68.3 million in sales of livestock, poultry and their products. Average sales were 4186,668 per farm. Fifty-six percent, or $60.2 million of total organic sales in New York were from milk from cows. Milk cow sales totaled $3.77 million. Crop sales included over $22.1 million from field crops, $14.5 million from vegetables, and $1.36 million from fruit and berries. (United States Department of Agriculture).
In an effort to continue this growth, this bill would provide farmers who choose to transition to organic a partial tax exemption. Given the great investment in time and capital, this exemption certainly does not give farmers an overwhelming incentive but it will provide them some assistance as they transition to organic production. It is important to note that this bill closely reflects the already existing tax exemption for the replanting of orchards and vineyards.
Prior legislative history
2018: S.562 Committed to Rules 2017: S.562 Passed Senate 2016: S.3059-A Referred to Agriculture 2015: S.3059 Referred to Agriculture 2013,2014: S.3910-A Referred to Agriculture 2009,2010: S.2415A Referred to Agriculture 2008: S.7224/A.9866 Referred to Agriculture 2011,2012: S.790 Passed the Senate
Fiscal implications
None.
Effective date
This act shall take effect immediately and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or 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.