BILL NUMBER: S8067

SPONSOR: RITCHIE
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to the real prop-
erty tax exemption for structures and buildings essential to agricul-
tural and horticultural use

 
PURPOSE:

Would extend a property tax exemption for buildings essential to farm-
ing.

 
SUMMARY OF PROVISIONS:

The bill would amend subdivision one of Section 483 of the Real Property
Tax Law to extend provisions granting a one-time, ten year property tax
exemption for any increase in property value from the construction or
improvement of structures that are essential to the operation of the
farm and are actually used for that purpose. The law will be extended
              

until January 1st, 2029.

 
JUSTIFICATION:

Our farmers toil day in and day out to produce the dairy products, vege-
tables, fruits, beverages and other products that we all enjoy.  They do
this through good market conditions and bad, tremendously productive
weather seasons and conditions where their entire output is lost to
weather or disease. In addition, our farmers are competing in the
marketplace with other states and countries where the costs of producing
the same products are much lower than in New York.  Infrastructure costs
for farm buildings can be extremely expensive for these family owned
businesses that some years don't see a profit or experience losses.

To assist our farmers, section 483 of the real property tax law has, for
almost fifty years, exempted from real property taxation improvements to
those buildings essential to the production of agricultural goods.
Because of this long standing tax break, local governments will not
experience a sudden drop in assessed value. This ten year property tax
exemption has proved to be extremely helpful to our farmers who rely on
it to lower their cost of production so that they can stay in business,
maintain open space especially in highly developed areas, and continue
to feed their fellow New Yorkers.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
This act shall take effect immediately.