Includes land used for processing or retail merchandising of agricultural products within the real property tax exemption for land used in agricultural production.
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 and 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: Family farms are continually exploring new ways to obtain a better return for their product while meeting consumer demand. At the same time, there is a growing recognition by consumers about the economic and environmental benefits that can occur by directly supporting local agriculture. These two trends have led to a large number of farms adding value to their farm products through on-farm processing and direct to consumer sales. Whether it be farm marketing to consumers or turning grapes into award-winning New York wines, farmers are using these new business projects to meet consumer demand. Unfortunately, the expansion required to provide value-added services can often be quite costly. This cost is compounded by dramatic yearly property taxes. By providing structures housing valued-added aspects of a farm business with a ten year real property tax exemption, farmers will be in a better position to expand into a value-added initiative, making their farms more economically sustainable.
LEGISLATIVE HISTORY: 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.
STATE OF NEW YORK ________________________________________________________________________ 778 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________Introduced by Sens. YOUNG, RANZENHOFER -- read twice and ordered print- ed, 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 ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The opening paragraph of subdivision 4 of section 301 of the agriculture and markets law, as separately amended by chapters 445 and 696 of the laws of 2002, 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 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 provideEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03395-01-1 S. 778 2
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.