senate Bill S778

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

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 05 / Jan / 2011
    • REFERRED TO AGRICULTURE
  • 04 / Jan / 2012
    • REFERRED TO AGRICULTURE

Summary

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

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Bill Details

Versions:
S778
Legislative Cycle:
2011-2012
Current Committee:
Senate Agriculture
Law Section:
Agriculture and Markets Law
Laws Affected:
Amd §301, Ag & Mkts L; amd §483, RPT L
Versions Introduced in 2009-2010 Legislative Cycle:
S2414

Sponsor Memo

BILL NUMBER:S778

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.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   778

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (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 provide

 EXPLANATION--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.

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