Bill S2674A-2013

Includes land used for processing or retail merchandising of agricultural products within the real property tax exemption for land used in agricultural production

Includes land used for processing or retail merchandising of agricultural products within the real property tax exemption for land used in agricultural production.

Details

Actions

  • Jan 8, 2014: REFERRED TO LOCAL GOVERNMENT
  • Feb 13, 2013: PRINT NUMBER 2674A
  • Feb 13, 2013: AMEND (T) AND RECOMMIT TO LOCAL GOVERNMENT
  • Jan 23, 2013: REFERRED TO LOCAL GOVERNMENT

Memo

BILL NUMBER:S2674A              REVISED 3/7/13

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 301 of the Agriculture and Markets Law is amended to include land or portions thereof used for processing or retrial merchandising of such crops, livestock or livestock products.

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.

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: 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.


Text

STATE OF NEW YORK ________________________________________________________________________ 2674--A 2013-2014 Regular Sessions IN SENATE January 23, 2013 ___________
Introduced by Sens. YOUNG, RANZENHOFER -- read twice and ordered print- ed, and when printed to be committed to the Committee on Local Govern- ment -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 ASSEM- BLY, 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: S 2. Subdivision 2 of section 483 of the real property tax law, as amended by chapter 540 of the laws of 2007, is amended to read as follows: 2. The term "structures and buildings" shall include: (a) structures 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 INCLUD- ING structures and buildings or portions thereof used for the processing
of agricultural and horticultural commodities, or the retail merchandis- ing 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 includ- ing 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 agri- culture 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 and handl- ing facilities as such terms are used in section four hundred eighty- three-a of this title. S 3. This act shall take effect immediately and shall apply to assess- ment rolls prepared on the basis of taxable status dates occurring on or after such date.

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