S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8171
 
                             I N  S E N A T E
 
                              April 13, 2018
                                ___________
 
 Introduced  by Sen. RITCHIE -- (at request of the Department of Agricul-
   ture and Markets) -- 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 certain
   definitions and agricultural districts and assessments; and  to  amend
   the  real  property  tax  law,  in  relation to the farm buildings tax
   exemption and authorizing farms to challenge the denial of an agricul-
   tural value assessment through  the  small  claims  assessment  review
   (SCAR) process
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 4 of section 301 of the agriculture and markets
 law, as amended by chapter 445 of the laws of 2002,  the  opening  para-
 graph  as  amended  by chapter 344 of the laws of 2012, paragraph a-1 as
 added by chapter 611 of the laws of 2008,  paragraph  c  as  amended  by
 chapter 47 of the laws of 2011, paragraph h as amended by chapter 587 of
 the  laws  of  2005,  paragraph i as added by chapter 252 of the laws of
 2004, paragraph j as added by chapter 256 of the laws of 2006, paragraph
 k as added by chapter 341 of the laws of 2008, paragraph l as  added  by
 chapter 384 of the laws of 2011, and paragraph m as added by chapter 547
 of the laws of 2014, is amended to read as follows:
   4.  "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] WITH ANNUAL 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 commer-
 cial 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:
   a. Rented land which otherwise satisfies the requirements  for  eligi-
 bility for an agricultural assessment.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14328-02-8

 S. 8171                             2
 
   a-1.  Land  used  by  a not-for-profit institution for the purposes of
 agricultural research that is intended to improve the quality or quanti-
 ty of crops, livestock or livestock products. Such  land  shall  qualify
 for  an  agricultural assessment upon application made pursuant to para-
 graph  [(a)]  A of subdivision one of section three hundred five of this
 article, except that no  minimum  ANNUAL  gross  sales  value  shall  be
 required.
   b.  Land  of  not less than seven acres used as a single operation for
 the production for sale  of  crops,  livestock  or  livestock  products,
 exclusive of woodland products, which does not independently satisfy the
 ANNUAL  gross  sales  [value]  requirement[, where such land was used in
 such production for the preceding two years] and currently is  being  so
 used  under  a  written  rental  arrangement  of  five  or more years in
 conjunction with land which is eligible for an agricultural assessment.
   c. Land used in support of a farm operation or land used  in  agricul-
 tural  production,  constituting a portion of a parcel, as identified on
 the assessment roll, which also contains land qualified for an  agricul-
 tural  assessment.  Such  land  shall include land used for agricultural
 amusements which are produced from crops grown or produced on the  farm,
 provided  that  such crops are harvested and marketed in the same manner
 as other crops produced on such farm. Such agricultural amusements shall
 include, but not be limited to, so-called  "corn  mazes"  or  "hay  bale
 mazes".
   d. Farm woodland which is part of land which is qualified for an agri-
 cultural  assessment, provided, however, that such farm woodland attrib-
 utable to any separately described and assessed parcel shall not  exceed
 fifty acres.
   e.  Land  set  aside  through  participation in a federal conservation
 program pursuant to title one of the federal food security act of  nine-
 teen  hundred eighty-five or any subsequent federal programs established
 for the purposes of replenishing highly erodible  land  which  has  been
 depleted  by  continuous tilling or reducing national surpluses of agri-
 cultural commodities  and  such  land  shall  qualify  for  agricultural
 assessment  upon application made pursuant to paragraph a of subdivision
 one of section three hundred five of this article, except that no  mini-
 mum ANNUAL gross sales [value] shall be required.
   f.  [Land  of  not less than seven acres 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 land of less than seven acres used as a single oper-
 ation in the preceding two years for the production for sale  of  crops,
 livestock or livestock products of an average gross sales value of fifty
 thousand dollars or more.
   g.]  Land under a structure within which crops, livestock or livestock
 products are produced, provided that the sales of such crops,  livestock
 or livestock products meet the ANNUAL gross sales requirements of [para-
 graph f of] this subdivision.
   [h.  Land  that is owned or rented by a farm operation in its first or
 second year of agricultural production, or, in the case of a  commercial
 horse  boarding operation in its first or second year of operation, that
 consists of (1) not less than seven acres used as a single operation for
 the production for sale of crops, livestock or livestock products of  an
 annual  gross  sales  value of ten thousand dollars or more; or (2) less
 than seven acres used as a single operation for the production for  sale
 of crops, livestock or livestock products of an annual gross sales value
 of  fifty  thousand dollars or more; or (3) land situated under a struc-

 S. 8171                             3

 ture within which crops, livestock or livestock products  are  produced,
 provided that such crops, livestock or livestock products have an annual
 gross sales value of (i) ten thousand dollars or more, if the farm oper-
 ation uses seven or more acres in agricultural production, or (ii) fifty
 thousand  dollars  or  more,  if the farm operation uses less than seven
 acres in agricultural production; or (4) not less than seven acres  used
 as  a  single operation to support a commercial horse boarding operation
 with annual gross receipts of ten thousand dollars or more.
   i.] G. Land of not less than seven acres used as  a  single  operation
 for  the production for sale of orchard or vineyard crops when such land
 is used solely for the purpose of planting a new orchard or vineyard and
 when such land is also owned or rented by a newly established farm oper-
 ation in its  first,  second,  third  or  fourth  year  of  agricultural
 production.
   [j.]  H.  Land of not less than seven acres used as a single operation
 for the production and sale of Christmas trees when such  land  is  used
 solely  for  the  purpose  of planting Christmas trees that will be made
 available for sale, whether dug for transplanting or cut from the  stump
 and when such land is owned or rented by a newly established farm opera-
 tion  in  its first, second, third, fourth or fifth year of agricultural
 production.
   [k.] I. Land used to support an apiary  products  operation  which  is
 owned  by  the  operation and consists of [(i) not less than seven acres
 nor] NOT more than ten acres used as a single operation [in the  preced-
 ing  two years] for the production for sale of crops, livestock or live-
 stock products of an [average] ANNUAL gross sales [value] of  ten  thou-
 sand  dollars  or  more  [or (ii) less than seven acres 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 fifty thousand dollars or more]. The land used to support  an  apiary
 products  operation shall include, but not be limited to, the land under
 a structure within which apiary products  are  produced,  harvested  and
 stored  for  sale; and a buffer area maintained by the operation between
 the operation  and  adjacent  landowners.    Notwithstanding  any  other
 provision  of  this  subdivision,  rented land associated with an apiary
 products operation is not eligible for an agricultural assessment  based
 on this paragraph.
   [l.  Land  that is owned or rented by a farm operation in its first or
 second year of agricultural production or in the case  of  a  commercial
 equine  operation,  in  its  first  or  second  year  of operation, that
 consists of not less than seven acres and stabling at least ten  horses,
 regardless  of  ownership, that receives ten thousand dollars or more in
 gross receipts annually from fees generated  through  the  provision  of
 commercial  equine  activities  including,  but  not  limited  to riding
 lessons, trail riding activities or training of horses  or  through  the
 production  for  sale  of  crops,  livestock, and livestock products, or
 through both the provision of such commercial equine activities and such
 production. Under no circumstances shall this subdivision  be  construed
 to include operations whose primary on site function is horse racing.
   m.]  J.  Land used in silvopasturing, WHICH IS PART OF A SINGLE OPERA-
 TION THAT OTHERWISE SATISFIES THE REQUIREMENTS FOR  ELIGIBILITY  FOR  AN
 AGRICULTURAL  ASSESSMENT, shall be limited to up to ten fenced acres per
 large livestock, including cattle, horses and camelids, and up  to  five
 fenced  acres  per small livestock, such as sheep, hogs, goats and poul-
 try. For the purposes of this subdivision, "silvopasturing"  shall  mean
 the intentional combination of trees, forages and livestock managed as a

 S. 8171                             4
 
 single integrated practice for the collective benefit of each, including
 the  planting  of appropriate grasses and legume forages among trees for
 sound grazing and livestock husbandry.
   K.  LAND OR PORTIONS THEREOF USED FOR PROCESSING OR RETAIL MERCHANDIS-
 ING OF CROPS, LIVESTOCK OR LIVESTOCK PRODUCTS.
   § 2. Subdivision 9 of section 301 of the agriculture and markets  law,
 as amended by chapter 440 of the laws of 1993, paragraphs c, d, e, and f
 as  amended and paragraph g as added by chapter 536 of the laws of 2008,
 is amended to read as follows:
   9. "Gross sales [value]" means the proceeds from the sale of:
   a. Crops, livestock and livestock products produced on  land  used  in
 agricultural production provided, however, that whenever a crop is proc-
 essed  before sale, the proceeds shall be based upon the market value of
 such crop in its unprocessed state;
   b. Woodland products from farm woodland eligible to receive  an  agri-
 cultural assessment, not to exceed two thousand dollars annually;
   c.  Honey,  ROYAL  JELLY, BEE POLLEN, PROPOLIS and beeswax produced by
 bees in hives located on [an  otherwise  qualified  farm  operation  but
 which  does  not independently satisfy the gross sales requirement] LAND
 USED IN AGRICULTURAL PRODUCTION IN  CONJUNCTION  WITH  THE  SAME  OR  AN
 OTHERWISE QUALIFIED FARM OPERATION;
   d.  Maple  syrup, MAPLE CANDY AND MAPLE CREAM processed from maple sap
 produced on land used in agricultural production in conjunction with the
 same or an otherwise qualified farm operation;
   e. COMPOST, MULCH OR OTHER ORGANIC BIOMASS CROPS AS DEFINED IN  SUBDI-
 VISION  SEVENTEEN  OF THIS SECTION PRODUCED ON LAND USED IN AGRICULTURAL
 PRODUCTION, NOT TO EXCEED FIVE THOUSAND DOLLARS ANNUALLY;
   F. Or payments received by reason of land set aside pursuant to  para-
 graph e of subdivision four of this section;
   [f.]  G.  Or  payments  received  by thoroughbred breeders pursuant to
 section two hundred fifty-four of the racing, pari-mutuel  wagering  and
 breeding law; [and
   g.  Compost, mulch or other organic biomass crops as defined in subdi-
 vision sixteen of this section produced on  land  used  in  agricultural
 production, not to exceed five thousand dollars annually.]
   H.  OR IN A COMMERCIAL HORSE BOARDING OPERATION AS DEFINED IN SUBDIVI-
 SION THIRTEEN OF THIS SECTION, THE INCOME RECEIVED FROM THE BOARDING  OF
 HORSES  OR THROUGH THE PRODUCTION FOR SALE OF CROPS, LIVESTOCK AND LIVE-
 STOCK PRODUCTS OR THROUGH BOTH SUCH BOARDING AND SUCH PRODUCTION; AND
   I. OR IN A COMMERCIAL EQUINE OPERATION AS DEFINED IN SUBDIVISION EIGH-
 TEEN OF THIS SECTION, THE INCOME RECEIVED FROM  FEES  GENERATED  THROUGH
 THE PROVISION OF COMMERCIAL EQUINE ACTIVITIES INCLUDING, BUT NOT LIMITED
 TO,  RIDING  LESSONS,  TRAIL  RIDING ACTIVITIES OR TRAINING OF HORSES OR
 THROUGH THE PRODUCTION  FOR  SALE  OF  CROPS,  LIVESTOCK  AND  LIVESTOCK
 PRODUCTS   OR   THROUGH  BOTH  COMMERCIAL  EQUINE  ACTIVITIES  AND  SUCH
 PRODUCTION.
   § 3. Subdivision 1 of section 305 of the agriculture and  markets  law
 is amended by adding a new paragraph f to read as follows:
   F.  THE COMMISSIONER MAY INITIATE AN INVESTIGATION PURSUANT TO SECTION
 THIRTY-SIX OF THIS CHAPTER TO DETERMINE IF AN  ELIGIBLE  FARM  OPERATION
 WAS  IMPROPERLY  DENIED  AN  AGRICULTURAL  ASSESSMENT  PURSUANT  TO THIS
 SECTION OR SECTION THREE HUNDRED SIX OF THIS ARTICLE. IF THE COMMISSION-
 ER FINDS AFTER SUCH INVESTIGATION THAT AN ELIGIBLE  FARM  OPERATION  WAS
 IMPROPERLY DENIED SUCH ASSESSMENT, HE OR SHE MAY ISSUE AN ORDER PURSUANT
 TO  SECTION THIRTY-SIX OF THIS CHAPTER TO COMPEL THE ASSESSOR TO APPROVE
 THE AGRICULTURAL ASSESSMENT AS PROVIDED FOR IN THE ORDER.

 S. 8171                             5
 
   § 4. Subdivision 4 of section 305 of the agriculture and  markets  law
 is amended by adding a new paragraph h-1 to read as follows:
   H-1.  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW TO THE CONTRARY, NO
 ABOVE GROUND NATURAL GAS AND ELECTRIC TRANSMISSION LINE FACILITIES SHALL
 BE SITED ON LAND IN AGRICULTURAL PRODUCTION WHICH IS LOCATED  WITHIN  AN
 AGRICULTURAL DISTRICT, OR LAND IN AGRICULTURAL PRODUCTION THAT QUALIFIES
 FOR  AND  IS  RECEIVING  AN  AGRICULTURAL ASSESSMENT PURSUANT TO SECTION
 THREE HUNDRED SIX OF THIS ARTICLE.  NOTHING CONTAINED IN THIS PARAGRAPH,
 HOWEVER, SHALL BE DEEMED TO PROHIBIT SITING WHEN:
   (I) THE OWNER OF SUCH LAND HAS ENTERED INTO A WRITTEN AGREEMENT  WHICH
 SHALL INDICATE HIS CONSENT FOR SITE CONSIDERATION; OR
   (II)  THE  APPLICANT  FOR A PERMIT HAS MADE A COMMITMENT IN THE PERMIT
 APPLICATION TO FUND A FARM LAND PROTECTION CONSERVATION EASEMENT  WITHIN
 A  REASONABLE  PROXIMITY  TO  THE PROPOSED PROJECT IN AN AMOUNT NOT LESS
 THAN THE DOLLAR VALUE OF ANY SUCH FARM LAND PURCHASED FOR  THE  PROJECT;
 OR
   (III)  THE COMMISSIONER HAS DETERMINED THAT ANY SUCH AGRICULTURAL LAND
 TO BE TAKEN, CONSTITUTES LESS THAN FIVE PERCENT OF THE LAND IN  AGRICUL-
 TURAL PRODUCTION AND THE PROJECT SPONSOR HAS DONE EVERYTHING PRACTICABLE
 TO MINIMIZE ADVERSE IMPACTS TO THE LAND IN AGRICULTURAL PRODUCTION.
   § 5. Subdivisions 2 and 8 of section 483 of the real property tax law,
 subdivision 2 as amended by chapter 35 of the laws of 2016, and subdivi-
 sion  8  as  amended  by chapter 411 of the laws of 2001, are amended to
 read as follows:
   2. The term "structures and buildings" shall  include:  (a)  permanent
 and  impermanent  structures,  including trellises and pergolas, made of
 metal, string or wood, and buildings or portions thereof  used  directly
 and  exclusively  in  the  [raising and production for sale] PRODUCTION,
 PREPARATION AND/OR MARKETING of agricultural and  horticultural  commod-
 ities  or  necessary  for  the  storage thereof[, but not structures and
 buildings or portions thereof used for the  processing  of  agricultural
 and  horticultural  commodities,  or  the  retail  merchandising 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 including struc-
 tures 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]  PRODUCTION,  PREPARATION  AND/OR
 MARKETING of agricultural and horticultural commodities or in connection
 with a commercial horse boarding operation OR A COMMERCIAL EQUINE OPERA-
 TION  as  defined  in  section  three hundred one of the agriculture and
 markets law. For purposes of this section,  the  term  "indoor  exercise
 arenas" shall not include [riding academies or] dude ranches; (d) struc-
 tures  and  buildings used in the production of maple syrup, MAPLE CANDY
 AND MAPLE CREAM; (e) structures and buildings used in the production  of
 honey,  ROYAL  JELLY,  BEE  POLLEN, PROPOLIS 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,  handling  and  treatment
 facilities as such terms are used in section four hundred eighty-three-a
 of this title.

 S. 8171                             6
 
   8.  As used in this section, the term "agricultural and horticultural"
 shall include the [activity]  ACTIVITIES  of  raising,  breeding  [and],
 TRAINING AND/OR boarding of livestock, including commercial horse board-
 ing  operations   AND COMMERCIAL EQUINE OPERATIONS AS DEFINED IN SECTION
 THREE HUNDRED ONE OF THE AGRICULTURE AND MARKETS LAW.
   §  6.  Paragraph  (b)  and  the closing paragraph of subdivision 1 and
 subdivision 2 of section 730 of the real property tax law, paragraph (b)
 of subdivision 1 as amended by chapter 154 of  the  laws  of  1993,  the
 closing  paragraph  of subdivision 1 as added by chapter 114 of the laws
 of 2012, and subdivision 2 as amended by chapter  714  of  the  laws  of
 1982, are amended to read as follows:
   (b)  the  property  is:  (i)  improved  by  a one, two or three family
 owner-occupied structure used exclusively for residential purposes other
 than property subject to the  assessment  limitations  of  section  five
 hundred  eighty-one of this chapter and article nine-B of the real prop-
 erty law [or]; (ii) the property is unimproved and is not of  sufficient
 size  as  determined  by the assessing unit or special assessing unit to
 contain a one, two or three family residential structure; OR  (III)  THE
 PROPERTY  HAS BEEN DENIED AN AGRICULTURAL VALUE ASSESSMENT AND/OR A FARM
 BUILDINGS TAX EXEMPTION BY THE ASSESSOR UNDER SECTION THREE HUNDRED FIVE
 OR THREE HUNDRED SIX OF THE AGRICULTURE AND  MARKETS  LAW  AND/OR  UNDER
 SECTION FOUR HUNDRED EIGHTY-THREE OF THIS CHAPTER;
   An  owner  of real property who qualifies under paragraphs (a) through
 (d) of this subdivision shall also include:
   (i) a person or persons whose real property is held  in  trust  solely
 for  the benefit of such person or persons if the property serves as the
 primary residence of such person or persons and the  trust  which  holds
 title  to  the  property  was  lawfully created to hold title solely for
 estate planning and asset protection purposes; [and]
   (ii) a person or persons who reside in real property which is owned by
 a limited partnership if the property serves as the primary residence of
 such person or persons and said limited partnership does not  engage  in
 any  commercial  activity, was lawfully created to hold title solely for
 estate planning and asset protection purposes and the partner  or  part-
 ners who primarily reside thereon personally pay all of the real proper-
 ty taxes and other costs associated with the property's ownership; AND
   (III)  A PERSON OR PERSONS, PARTNERSHIP, CORPORATION, LIMITED PARTNER-
 SHIP OR LIMITED LIABILITY CORPORATION WHICH OWNS REAL PROPERTY THAT  HAS
 BEEN DENIED AN AGRICULTURAL VALUE ASSESSMENT AND/OR A FARM BUILDINGS TAX
 EXEMPTION  BY  THE  ASSESSOR  UNDER  SECTION THREE HUNDRED FIVE OR THREE
 HUNDRED SIX OF THE AGRICULTURE AND MARKETS LAW AND/OR UNDER SECTION FOUR
 HUNDRED EIGHTY-THREE OF THIS CHAPTER, WHERE SUCH REAL PROPERTY  IS  HELD
 IN  TRUST SOLELY FOR THE BENEFIT OF SUCH PERSON OR PERSONS, PARTNERSHIP,
 CORPORATION, LIMITED PARTNERSHIP OR LIMITED  LIABILITY  CORPORATION  AND
 THE TRUST WHICH HOLDS TITLE TO THE PROPERTY WAS LAWFULLY CREATED TO HOLD
 TITLE SOLELY FOR ESTATE PLANNING AND ASSET PROTECTION PURPOSES.
   2.  Upon  determining any such complaint every real property tax board
 of assessment review shall inform IN WRITING every owner of one, two  or
 three  family owner-occupied residential real property [in writing], AND
 EVERY OWNER OF PROPERTY THAT  HAS  BEEN  DENIED  AN  AGRICULTURAL  VALUE
 ASSESSMENT  AND/OR  A FARM BUILDINGS TAX EXEMPTION BY THE ASSESSOR UNDER
 SECTION THREE HUNDRED FIVE OR THREE HUNDRED SIX OF THE  AGRICULTURE  AND
 MARKETS LAW AND/OR UNDER SECTION FOUR HUNDRED EIGHTY-THREE OF THIS CHAP-
 TER,  of  the  right  to  small  claims  assessment review in the manner
 provided by subdivision four of section five hundred twenty-five of this
 chapter. Such notice shall specify the last date on which petitions must

 S. 8171                             7
 
 be filed and the location where small claims assessment review forms may
 be obtained. The petition form for small claims assessment review  shall
 be  provided to such property owner, upon request, at no cost in accord-
 ance  with the rules promulgated pursuant to section seven hundred thir-
 ty-seven of this title.
   § 7. This act shall take effect immediately and shall apply to taxable
 status dates occurring on or after such date;  provided,  however,  that
 section  six  of this act shall apply to petitions filed against assess-
 ment rolls prepared on or after the first of January next succeeding the
 date on which it shall have become a law.